"A closely watched index shows home prices tumbling by the sharpest annual rate ever in July, but the rate of decline is slowing." (2008-9-30)
September 30, 2008
Home prices tumble by sharpest annual rate
Global market turmoil continues after the House rejects the bail-out plan
"Global market turmoil continues after the rejection of the mortgage-rescue plan in AmericaHOW many votes in Congress will the latest financial upheaval change? That is the calculus underway in Washington, DC, after the House of Representatives defeated the proposed $700 billion mortgage-rescue plan by 228 to 205 on Monday September 29th. Democrats backed it by 140 votes to 95, while Republicans opposed it by 133 to 65.Bankers had been under no illusions that the tweaked Paulson plan would cure all the financial systema€™s ills. But most had seen it as a step in the right direction, and had expected it to pass. Its rejection sent stockmarkets into freefall. The Dow Jones Industrial Average finished down by 7%, and suffered its biggest-ever points loss. Perhaps fittingly in an economy that is in danger of sliding into depression, the only stock among the 500 in the S&P index that finished higher was Campbella€™s Soup. The S&P closed 29% below its peak. Reflecting fears that consumer demand will wilt, shares of Apple Computer, creator of the iPhone, fell by 18%. The rout continued in Asia, but shares rebounded in Europe on Tuesday morning on hopes that the bill would eventually pass. ..." (2008-9-30)
KB Home building smaller houses to lift sagging sales
"The company is trying to attract buyers with 1,230-square-foot homes selling for $200,000 in the Inland Empire and other high-foreclosure areas.
As California's biggest builder of new homes posted its seventh straight quarterly loss Friday, Westwood-based KB Home said it was trying to boost sales by building small, lower-priced houses instead of the larger ones that had sustained the company during the housing boom." (2008-9-27)
California home prices continue to fall
"After a 41% slide in August, prices are at their lowest in five years and will probably fall further, industry group says.
California home prices tumbled a record 41% in August from a year earlier as foreclosure sales pushed down values." (2008-9-26)
Bailout doesn’t address abandoned homes
"So why — as we discuss the most dramatic government intervention in nearly a century — is there only passing mention of all these vacancies?" (2008-9-26)
Help sought for struggling homeowners
"But the main proposals to ease the foreclosure problem face practical and political problems, and there's no consensus that the measures would actually work.
Lawmakers, housing advocates and both presidential candidates are demanding that any bailout for financiers on Wall Street needs to help homeowners on Main Street too." (2008-9-25)
Subscribe to:
Posts (Atom)
