"That's the sales price for typical home around here last year. But no one's typical, and both buyers and sellers have to do a lot of research -- and soul-searching -- before they can answer: What's it worth?
" (2008-3-30)
March 29, 2008
Bush readying mortgage aid plan
"The Bush administration is finalizing details of a plan to rescue thousands of homeowners at risk of foreclosure, by helping them refinance into more affordable mortgages backed by public funds, government officials said." (2008-3-29)
Alexandria
"What a difference a year makes. In 2006, home prices in the ritziest parts of historic Alexandria appreciated the most. Sales prices in Old Town and in the hilly enclaves along upper King Street rose more than 10 percent.
" (2008-3-30)
"Home prices in the District continued rising last year, even though values fell in most of its suburbs, with much of the increase east of the Anacostia River.
" (2008-3-30)
Calvert County
"For the second year in a row, home prices in Calvert County increased somewhat despite a decrease in home sales.
" (2008-3-30)
Charles County
"Home prices in Charles County fell slightly last year, while the number of transactions dropped sharply.
" (2008-3-30)
Loudoun County
"Loudoun County had the Washington region's sharpest drop in home prices last year.
" (2008-3-30)
Frederick County
"After years of climbing, Frederick County home prices fell 2 percent in 2007.
" (2008-3-30)
Howard County
"The median sale price of a Howard County home fell by 2 percent last year, from $407,000 to $400,500.
" (2008-3-30)
Prince William County
"Home sales and home prices fell last year in Prince William County, as they did in every county in Northern Virginia except Arlington.
" (2008-3-30)
Montgomery County
"Montgomery County was one of the few places in the region where housing prices last year kept up with inflation.
" (2008-3-30)
March 28, 2008
New Zealand's economy
"Happy days may not lastThe world economy may have entered choppy waters, but New Zealand appears hardly to have noticed just yet. Economic growth picked up in the three months to December, boosted by dairy and oil exports and by robust business investment. The good times are unlikely to last for much longer, however. The economy will slow sharply under the weight of high interest rates and fuel prices in 2008, and monetary-policy options will be limited.Data released by Statistics New Zealand, the government's statistical office, on March 28th show that economic growth in output terms (the government's preferred indicator) picked up to 1% in the three months to December, from 0.5% in the previous quarter. Expenditure-based GDP grew by 0.8% in real terms in the same period, up from 0.3% in the quarter to September. The data also paint an encouraging picture of broad-based growth. Very few areas of the economy?with the notable exception of housing investment?did badly. ..." (2008-3-28)
Higher-Quality Loans May Trip Merrill Next
"A little-known banking subsidiary's home equity and Alt-A debt could lead to unforeseen losses.
" (2008-3-28)
Fannie, Freddie may raise $20 billion
"Fannie Mae’s and Freddie Mac’s regulator will allow the mortgage financiers to raise as much as $20 billion in capital as part of an agreement that lets them buy more debt securities, Bloomberg News said on Friday." (2008-3-28)
The best cities to buy foreclosed homes
"Only today's bravest buyers would consider homes in cities like Las Vegas and Tampa, where rampant foreclosures are sinking already weak real estate markets." (2008-3-28)
March 27, 2008
Long time in germination
"The five-yearly row over agriculture is deadlocked, and time is running outOF THE recent battles between the Democrats in Congress and George Bush, none is as counter-intuitive as that over the farm bill, America's twice-a-decade review of agricultural policy. Mr Bush is insisting on reforming subsidy payments that disproportionately benefit a small cadre of big agribusinesses in mostly Republican states. The Democrats, who ran on a platform of good government in 2006, have so far opted to keep the largesse flowing. With the legislative clock ticking, the Democrats are suffering for their lack of backbone. The current policy is shameless. Farmers of a few select crops such as wheat or maize can avoid almost all risk using the government's overlapping system of subsidised insurance, loans and payments. The recipients are hardly the most deserving: farm households make a third more than others, and the richest of them, which get most of the subsidies, bring in three times what the average non-farm household does. Instead of saving the family farm, the policy is destroying it, encouraging agricultural land consolidation and raising barriers to entry. And then there are the deleterious effects America's price-distorting payments have on foreign farmers and so on trade negotiations. ..." (2008-3-27)
Long time in germination
"The five-yearly row over agriculture is deadlocked, and time is running outOF THE recent battles between the Democrats in Congress and George Bush, none is as counter-intuitive as that over the farm bill, America's twice-a-decade review of agricultural policy. Mr Bush is insisting on reforming subsidy payments that disproportionately benefit a small cadre of big agribusinesses in mostly Republican states. The Democrats, who ran on a platform of good government in 2006, have so far opted to keep the largesse flowing. With the legislative clock ticking, the Democrats are suffering for their lack of backbone. The current policy is shameless. Farmers of a few select crops such as wheat or maize can avoid almost all risk using the government's overlapping system of subsidised insurance, loans and payments. The recipients are hardly the most deserving: farm households make a third more than others, and the richest of them, which get most of the subsidies, bring in three times what the average non-farm household does. Instead of saving the family farm, the policy is destroying it, encouraging agricultural land consolidation and raising barriers to entry. And then there are the deleterious effects America's price-distorting payments have on foreign farmers and so on trade negotiations. ..." (2008-3-27)
How to Get the Most From Education Tax Breaks
"The savings can reach into the thousands of dollars.
" (2008-3-27)
A used-car bargain?
"What Tata, an Indian conglomerate, will do with two luxury-car brandsDEPENDING on which way you look at it, in acquiring Jaguar and Land Rover from Ford for $2.3 billion, a deal finalised on Wednesday March 26th, Tata Motors has either got itself two of the most famous brands in the car business at a bargain-basement price?or a sea of troubles. Back home in India, there is both pride in Tata?s global ambition and a fair dose of scepticism. Tata Group, the parent of Tata Motors, may be India?s biggest industrial conglomerate but there are concerns that this time it may have bitten off more than it can chew. When the deal was first mooted, S. Ramnath of SSK Securities, a Mumbai stockbroker, feared that passion rather than logic was in the driving seat. Balaji Jayaraman of Morgan Stanley added that buying Jaguar and Land Rover (JLR) was clearly ?value-destructive given the lack of synergies and the high-cost operations involved?. ..." (2008-3-26)
Grim realty
"House prices in America take the biggest tumble yetAFTER the gain for some, the pain continues for many American property owners. According to the newly published S&P/Case-Shiller index, house prices in ten metropolitan areas fell by 11.7% in January compared with the year before, the biggest fall since the index was created in 1987. The larger 20-city index tumbled by 10.7%. Sunbelt cities which earlier saw the most dramatic price rises are now enduring the hardest falls. Only Charlotte has yet to succumb to declining prices. The OFHEO's index of homes guaranteed by Fannie Mae or Freddie Mac fell by 3% from 2007, also showing an accelerating slide. ..." (2008-3-26)
Empty bowls, stomachs and pockets
"Disquiet over the soaring rice priceTHE soaring price of rice and dwindling stockpiles of Asia?s staple food are causing anxiety across the continent. In particular the Philippines, a big, hungry country which cannot grow enough to feed itself, could be in trouble. The front pages of Manila?s newspapers scream about a ?rice crisis?, as politicians float drastic solutions, such as forcing the country?s top 100 companies to take up rice farming. Farmers in Thailand, the world?s largest rice exporter, are delighted with the price surge, although some were this week said to be hiring guards to protect their valuable crops against ?rice bandits?. The president of the Philippines, Gloria Macapagal Arroyo, last month pleaded publicly with neighbouring Vietnam, the second-largest exporter, to guarantee supplies. The two countries signed an agreement on Wednesday March 26th apparently to do just that. But the various escape clauses that Vietnam insisted upon suggest it was more of a face-saving measure than a firm pledge. Vietnam and India, another big rice exporter, have recently announced export restrictions to try to curb soaring food prices at home. This will make it tough for poor, rice-importing countries, in Africa as well as Asia, to secure supplies. ..." (2008-3-26)
Egypt the pressure cooker
"Soaring food prices lead to widespread protestsSocial unrest has been growing on the back of rising inflation, which is undermining consumers' purchasing power and fuelling general dissatisfaction with the fallout of economic reform. This has led to a rising number of demonstrations. These include further protests against rising prices by thousands of textile workers at Mahalla al-Kubra (who are generally credited with having started the current wave of labour protests in late 2006). Groups such as doctors, nurses and university professors have also threatened to strike, a rare phenomenon in Egypt.The government has sought to address the discontent in several ways. It is especially attempting to improve subsidy provision, separating the production and sale of subsidised bread?the main element in the Egyptian diet?in order to reduce corruption. Families were allowed to add children to their ration cards in February for the first time since 1988 (increasing the total number of beneficiaries from 40m to an estimated 55m). Nevertheless, as rising wheat prices force more and more people to rely on subsidised bread, the queues are lengthening and supplies are coming under strain. Similar problems have also arisen regarding diesel fuel, which is used to power machinery and farm equipment. Shortages have led to outbreaks of fights at petrol stations, and accusations that the government is deliberately keeping stocks hidden to boost prices. ..." (2008-3-25)
Whither the miracle cure?
"More inconvenient truths about energy efficiencyENERGY efficiency, policy wonks like to say, is the forgotten fuel. It can get us half-way to stabilising the climate, in the opinion of the International Energy Agency, a think-tank-cum-watchdog for big energy-consuming countries. Better yet, it pays for itself. If you consider the cost not just of buying a lightbulb or refrigerator or house, but also of powering it over its entire lifespan, the most energy-efficient options tend to be the cheapest.So it should have been with joy that Green.view (GV) discovered this morning that his boiler had packed up for the umpteenth time, and would probably need to be replaced. Here, surely, was a golden opportunity to put his subtle command of energy efficiency to use, and do his bit to save the planet. ..." (2008-3-24)
Pump action
"How much tax are you paying on petrol?STUCK in a traffic jam on the road home after an Easter break, the motorist has time to ponder many things. One may be the pain felt filling up the car for the return journey. Petrol prices have risen as the oil price has increased. But the driver's pain at the pump differs across countries, dependent in part on the proportion of the cost that is paid in taxes. Turks have the most reason to feel aggrieved, closely followed by the British. Americans still enjoy relatively cheap fuel?they pay far less in tax than drivers elsewhere. ..." (2008-3-24)
March 26, 2008
Bus tours showing off foreclosed homes
"The white bus rumbles into the quiet suburban neighborhood, heading toward a foreclosed home that sits empty. Neighbors, young and old, cock their heads in curiosity or point at the slow-moving coach." (2008-3-26)
Housing advocates protest Bear Stearns bailout
"Some 200 demonstrators gathered at Bear Stearns Wednesday, protesting the government-led bailout of the investment firm as millions of homeowners face foreclosure." (2008-3-26)
A used-car bargain?
"What Tata, an Indian conglomerate, will do with two luxury-car brandsDEPENDING on which way you look at it, in acquiring Jaguar and Land Rover from Ford for $2.3 billion, a deal finalised on Wednesday March 26th, Tata Motors has either got itself two of the most famous brands in the car business at a bargain-basement price?or a sea of troubles. Back home in India, there is both pride in Tata?s global ambition and a fair dose of scepticism. Tata Group, the parent of Tata Motors, may be India?s biggest industrial conglomerate but there are concerns that this time it may have bitten off more than it can chew. When the deal was first mooted, S. Ramnath of SSK Securities, a Mumbai stockbroker, feared that passion rather than logic was in the driving seat. Balaji Jayaraman of Morgan Stanley added that buying Jaguar and Land Rover (JLR) was clearly ?value-destructive given the lack of synergies and the high-cost operations involved?. ..." (2008-3-26)
Grim realty
"House prices in America take the biggest tumble yetAFTER the gain for some, the pain continues for many American property owners. According to the newly published S&P/Case-Shiller index, house prices in ten metropolitan areas fell by 11.7% in January compared with the year before, the biggest fall since the index was created in 1987. The larger 20-city index tumbled by 10.7%. Sunbelt cities which earlier saw the most dramatic price rises are now enduring the hardest falls. Only Charlotte has yet to succumb to declining prices. The OFHEO's index of homes guaranteed by Fannie Mae or Freddie Mac fell by 3% from 2007, also showing an accelerating slide. ..." (2008-3-26)
Empty bowls, stomachs and pockets
"Disquiet over the soaring rice priceTHE soaring price of rice and dwindling stockpiles of Asia?s staple food are causing anxiety across the continent. In particular the Philippines, a big, hungry country which cannot grow enough to feed itself, could be in trouble. The front pages of Manila?s newspapers scream about a ?rice crisis?, as politicians float drastic solutions, such as forcing the country?s top 100 companies to take up rice farming. Farmers in Thailand, the world?s largest rice exporter, are delighted with the price surge, although some were this week said to be hiring guards to protect their valuable crops against ?rice bandits?. The president of the Philippines, Gloria Macapagal Arroyo, last month pleaded publicly with neighbouring Vietnam, the second-largest exporter, to guarantee supplies. The two countries signed an agreement on Wednesday March 26th apparently to do just that. But the various escape clauses that Vietnam insisted upon suggest it was more of a face-saving measure than a firm pledge. Vietnam and India, another big rice exporter, have recently announced export restrictions to try to curb soaring food prices at home. This will make it tough for poor, rice-importing countries, in Africa as well as Asia, to secure supplies. ..." (2008-3-26)
Egypt the pressure cooker
"Soaring food prices lead to widespread protestsSocial unrest has been growing on the back of rising inflation, which is undermining consumers' purchasing power and fuelling general dissatisfaction with the fallout of economic reform. This has led to a rising number of demonstrations. These include further protests against rising prices by thousands of textile workers at Mahalla al-Kubra (who are generally credited with having started the current wave of labour protests in late 2006). Groups such as doctors, nurses and university professors have also threatened to strike, a rare phenomenon in Egypt.The government has sought to address the discontent in several ways. It is especially attempting to improve subsidy provision, separating the production and sale of subsidised bread?the main element in the Egyptian diet?in order to reduce corruption. Families were allowed to add children to their ration cards in February for the first time since 1988 (increasing the total number of beneficiaries from 40m to an estimated 55m). Nevertheless, as rising wheat prices force more and more people to rely on subsidised bread, the queues are lengthening and supplies are coming under strain. Similar problems have also arisen regarding diesel fuel, which is used to power machinery and farm equipment. Shortages have led to outbreaks of fights at petrol stations, and accusations that the government is deliberately keeping stocks hidden to boost prices. ..." (2008-3-25)
Whither the miracle cure?
"More inconvenient truths about energy efficiencyENERGY efficiency, policy wonks like to say, is the forgotten fuel. It can get us half-way to stabilising the climate, in the opinion of the International Energy Agency, a think-tank-cum-watchdog for big energy-consuming countries. Better yet, it pays for itself. If you consider the cost not just of buying a lightbulb or refrigerator or house, but also of powering it over its entire lifespan, the most energy-efficient options tend to be the cheapest.So it should have been with joy that Green.view (GV) discovered this morning that his boiler had packed up for the umpteenth time, and would probably need to be replaced. Here, surely, was a golden opportunity to put his subtle command of energy efficiency to use, and do his bit to save the planet. ..." (2008-3-24)
Pump action
"How much tax are you paying on petrol?STUCK in a traffic jam on the road home after an Easter break, the motorist has time to ponder many things. One may be the pain felt filling up the car for the return journey. Petrol prices have risen as the oil price has increased. But the driver's pain at the pump differs across countries, dependent in part on the proportion of the cost that is paid in taxes. Turks have the most reason to feel aggrieved, closely followed by the British. Americans still enjoy relatively cheap fuel?they pay far less in tax than drivers elsewhere. ..." (2008-3-24)
A few good machines
"Exports are cushioning America's downturn. But for how long? AMID the ageing brick warehouses of South Boston, an assembler at the Cole Hersee switch plant inserts the pin into a roller connecter, flattening each end with a metal press to keep it secure. With the economy in a funk, you might expect such an old-style manufacturing firm to be struggling. But many of the company's switches are destined to regulate the power flow on the rigs that Caterpillar, an Illinois-based heavy-equipment manufacturer, exports in skyrocketing volumes to Asia and Latin America. According to Don Mayer, Cole Hersee's vice-president, the company's revenue grew a tad last year. Domestic demand for many of its wares slowed, but sales to Caterpillar rose smartly. That, writ large, is the story of America's economy. The housing bust, the credit crunch and a weakening labour market have dragged down domestic spending. The economy has probably slipped into recession?but exports are easing the pain. ..." (2008-3-13)
Ahern at bay
"Another economy suffering from a property bustSPAIN is not the only country in Europe to be feeling the after-effects of a burst property bubble (see article). Another may well be Britain; and a third, even more spectacularly, is Ireland. In the Irish case, the prime minister, Bertie Ahern, is suffering as well.Indeed, when Mr Ahern meets George Bush next week for the annual St Patrick's Day bash in the White House, it may be the last such party for both men. Mr Bush will be gone by next year. And Mr Ahern, who was returned only last May to a third term as head of a three-party coalition, is struggling to stay in power. A Teflon taoiseach (prime minister) for most of the past 11 years, Mr Ahern has lost his non-stick coating. ..." (2008-3-13)
Eyeing the wages of war
"Two economists take an unflinching look at the costs of invading IraqSUPPOSE that, five years ago, George Bush had asked every American household to stump up $25,000 to pay for an imminent war on Iraq. How would they have responded? That money, suitably husbanded, would have paid for arming, provisioning and remunerating the troops; treating the wounded; and restoring the army's strength in the aftermath. It would have paid just compensation for the death and injury of American servicemen and contractors, and it would have covered America's outlays on reconstruction. It would also have allowed America to subsidise the price of oil by $10 a barrel?offsetting the disruption to Iraq's supply. ..." (2008-3-13)
Grossly distorted picture
"If you look at GDP per head, the world is a different?and, by and large, a better?placeWHICH economy has enjoyed the best economic performance over the past five years: America's or Japan's? Most people will pick America. The popular perception is that America's vibrant economy was sprinting ahead (albeit fuelled by credit and housing bubbles that have now painfully burst), whereas Japan crawled along at a snail's pace. And it is true that America's average annual real GDP growth of 2.9% was much faster than Japan's 2.1%. However, the single best gauge of economic performance is not growth in GDP, but GDP per person, which is a rough guide to average living standards. It tells a completely different story.GDP growth figures flatter America's relative performance, because its population is rising much faster, by 1% a year, thanks to immigration and a higher birth rate. In contrast, the number of Japanese citizens has been shrinking since 2005. Once you take account of this, Japan's GDP per head increased at an annual rate of 2.1% in the five years to 2007, slightly faster than America's 1.9% and much better than Germany's 1.4%. In other words, contrary to the popular pessimism about Japan's economy, it has actually enjoyed the biggest gain in average income among the big three rich economies. Among all the G7 economies it ranks second only to Britain (see left-hand chart). ..." (2008-3-13)
When the rivers run dry
"Can bank regulators and central banks prevent future liquidity crises?POLICYMAKERS and academics are still grappling with the causes and consequences of the credit crunch. One broad area of agreement is that ample ?liquidity? encouraged the lax lending that led to bad mortgage debts, and a sudden dearth of it helped to precipitate the crisis. But what is liquidity, why does it suddenly evaporate and what can central banks and regulators do to ensure that its ebb and flow does not destabilise economies? This and much else is the subject of a special issue of the Bank of France's Financial Stability Review.* The essence of liquidity is the ability to raise ready money to meet pressing spending needs. A firm is liquid if it has enough cash to pay its suppliers and employees and finance its investment. This funding liquidity is linked to a second facet, market liquidity?the ease with which assets can be sold without losing their value. If financial markets were complete and perfectly liquid, firms and households could always raise cash by pledging their future earnings in return. Both funding and market liquidity rely on a big enough pool of monetary liquidity to draw upon. This is a third aspect of liquidity: the amount of central-bank money flowing around the economy. ..." (2008-3-6)
New home sales fall to a 13-year low in Feb.
"The government reports that sales of new homes fell in February for a fourth straight month as the steep slump in housing continues." (2008-3-26)
March 25, 2008
U.S. home prices fell by a record in January
"A widely-watched index of U.S. home prices fell 11.4 percent in January, its steepest drop since data for the indicator was first collected in 1987." (2008-3-25)
March 24, 2008
A sizzling summer in Malibu: a rental for $150,000 a month
"That's the peak -- so far. Those who can handle a sky-high price like the proximity to stars that it buys them.
For summer lease: Four-bedroom, eight-bathroom bluff-side Malibu house. Price -- $150,000 a month.
" (2008-3-24)
New BlackBerry Is a Bargain-Hunter's Dream
"Savings can be substantial when device is used with HotSpot @Home service.
" (2008-3-24)
Home sales rise, but prices keep tumbling
"After falling for six straight months, sales of existing homes posted an unexpected increase in February although the the median home price tumbled by the largest amount on record, a real estate trade group reported Monday." (2008-3-24)
March 23, 2008
'Will & Grace' star's home listed for $9 million / Agents say slump not hurting L.A.'s Hancock Park
"Sean Hayes, who played Jack McFarland in the NBC sitcom "Will & Grace," must have gotten word that the housing slump hasn't hurt sales in the upper tiers of the market. He has listed his Los Angeles home at close to $9 million, according to area real estate...
" (2008-3-23)
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