" The latest federal statistics on housing prices in hundreds of local markets reveal patterns that haven't been making the news. " (2008-12-6)
June 23, 2009
Long-Term Numbers Tell a Different Story
Lawsuit Paints Loan Crisis In Black, White and Brown
" In what appears to be the first legal action of its kind, an association of community-based organizations has filed a federal civil rights complaint against two of the three largest Wall Street ratings agencies, charging that their inflated ratings on subprime mortgage bonds disproportionately ca... " (2008-11-29)
June 20, 2009
Long-Term Numbers Tell a Different Story
" The latest federal statistics on housing prices in hundreds of local markets reveal patterns that haven't been making the news. " (2008-12-6)
Lawsuit Paints Loan Crisis In Black, White and Brown
" In what appears to be the first legal action of its kind, an association of community-based organizations has filed a federal civil rights complaint against two of the three largest Wall Street ratings agencies, charging that their inflated ratings on subprime mortgage bonds disproportionately ca... " (2008-11-29)
May 30, 2009
Foreclosures Pick Pockets of Homeowners Associations
" If you live in a neighborhood that has a homeowners association, brace yourself. Neighbors losing their homes to foreclosure and short sales not only are dragging down your property values but also are setting you up for higher fees. There's even a threat that your entire neighborhood could grow ... " (2008-11-9)
May 15, 2009
Classes and events around the Southland
"Foreclosure workshops to help investors and homeowners.
MAY 16
" (2009-5-14)
Obama administration to expand housing plan
"The Obama administration expanded its $50 billion mortgage aid program on Thursday, announcing new measures that would help homeowners avoid foreclosure.
" (2009-5-14)
Greece and immigration: Fear and loathing in Athens
"Once hospitable Greeks are turning against immigrantsTHE ancient Greek tradition of hospitality to strangers is dying out. Twenty years ago Greeks welcomed more than 600,000 Albanians who walked over the border to start a new life. These days Albanian families have credit cards, mortgages and residency permits. Smaller numbers of Bulgarians, Romanians, Moldovans, Ukrainians, Georgians and Russians also have a toehold in Greece. But a new wave of immigrants from places like Pakistan, Afghanistan, Iraq, Sudan and Somalia has met indifference or even outright hostility. On May 9th far-right protesters tried to storm a former court building in Athens that is a squalid home for 600 immigrants. One resident, Moncef, a mechanic from Morocco, says: “The police stood there and did nothing.” It took a group of Greek anarchists to come to the rescue. More than a dozen policemen were injured and four protesters were arrested—but the immigrants stayed. ..." (2009-5-14)
Number of homeowners facing foreclosure up
"The number of U.S. households faced with losing their homes to foreclosure jumped 32 percent in April compared with the same month last year.
" (2009-5-13)
Home prices down in most U.S. cities
"Home prices fell in nearly nine out of every 10 U.S. cities in the first quarter of this year as first-time buyers looking for bargains dominated the market.
" (2009-5-12)
Worries growing about commercial real estate
"Now, many mortgage lenders have something else to worry about: A rising tide of potential losses from commercial real estate loans that could reach into the billions.
" (2009-5-12)
It pays to be married
"Where being single costs you mostBRINGING up children is a labour of love, and a pricey one at that. Thankfully, most governments offer some form of tax breaks or cash benefits to ease the burden. In all but one of 30 OECD countries, a married one-earner couple with two children takes home more money than a single person with no children on the same average annual salary. Measured at purchasing-power parity, a family in Luxembourg has the highest overall net income of $48,980, out of an average gross wage of $49,488. But the best countries for families are Ireland or the Czech Republic, where “net” incomes end up higher than gross. British singletons subsidise families less than their German counterparts, who take home almost $10,000 less from almost the same salary. Mexico, the poorest of the OECD countries, is the only place where married couples with children get no breaks at all. ..." (2009-5-12)
Where there's muck...
"More British MPs are embarrassed by revelations over their expense claimsHORSE manure. Swimming-pool maintenance. Light bulbs. Those are some of the items that British MPs have charged to the taxpayer under Parliament’s now-discredited expenses system. Probably the worst abuses involve “flipping”—that is, changing the property designated as an MP’s second home, thus allowing him to be reimbursed for improvements made to more than one residence. (British MPs may claim for the upkeep of a second home as they discharge their dual responsibilities at Westminster and in their constituencies.) Some of them tarted up their homes at public expense shortly before selling them for personal profit; a few seemingly identified a property as their second home for expenses purposes, but as their main residence when they sold it (thus avoiding capital-gains tax). The culprits include senior ministers and spokesmen for the opposition Conservatives as well as obscure backbenchers. The reputation of Parliament is at a desperately low ebb. ..." (2009-5-12)
Coal-fired power plants: The writing on the wall
"Only green compromises will allow them to surviveTHE coal-fired power plant that was cancelled in Michigan on May 1st is the 97th to be rejected since 2001, and the ninth this year. The number of planned coal plants across America has plummeted from 150 to 60 in the past five years. Last year 5,465 megawatts (MW) of new electricity were announced, but more than twice that capacity—12,572mw, according to Edison Electric Institute, which represents the electricity industry—was subtracted because of cancellations or delays. The nine coal plants cancelled this year alone, Edison notes ruefully, would have provided about 6,650mw of power, or enough to heat almost 5m homes. Environmentalists, though thrilled, know they still have a long way to go. The Energy Information Administration reports that more than 600 coal-fired plants still produce about half of America’s power and will still produce 47% of it in 2030. But the government has pledged to slash greenhouse-gas emissions by 80% by 2050. “If the [planned] coal plants don’t get derailed, President Obama won’t be able to cut greenhouse gas emissions in the next four years,” says Bruce Nilles, who heads the Sierra Club’s anti-coal campaign. ..." (2009-5-7)
Fed says banks tightening mortgage standards
"The Federal Reserve says a larger share of banks made it more difficult for people to obtain home mortgages over the last three months.
" (2009-5-4)
Pending home sales up 3.2 percent
"The National Association of Realtors says pending U.S. home sales rose from February to March as buyers took advantage of deeply discounted prices and low interest rates.
" (2009-5-4)
Statewatch: Rhode Island: Little Rhody in the red
"America’s smallest state has mammoth economic problemsTHE mansions of Newport, one of Rhode Island’s most popular tourist attractions, were once the mere summer “cottages” of the industrialists of the Gilded Age. Marble House, playhouse of the Vanderbilts, is said to have cost $11m, $7m of which was spent on 500,000 cubic feet of marble. Today almost no homes, opulent or otherwise, are being built in Rhode Island. Only 16 permits for single-family dwellings were issued in February in the whole state. In March 633 homes were in foreclosure. The job front looks even worse. Last September Rhode Island had the highest unemployment rate in the country, exceeding even Michigan. In March the rate was the sixth-highest in the country, 10.5%, compared with 8.5% nationally. ..." (2009-4-30)
Home prices tumble, but no new record
"Home prices dropped sharply in February, but for the first time in 25 months the decline was not a record, another sign the housing crisis could be bottoming.
" (2009-4-28)
How to Pick a Neighborhood
"According to a 2008 study by NYU’s Furman Center for Real Estate and Urban Policy, price run-ups in previous good times strongly correlate to performance down the road." (2009-4-27)
Buyers cautiously sniffing housing market
"With white tin ceilings, original woodwork, bay windows, and a $699,000 price tag, the two-bedroom apartment at 719 Carroll St. in Brooklyn would have been snatched up in a New York minute a couple of years ago.
" (2009-4-26)
Four states dominate city foreclosure rankings
"The 26 U.S. cities with the worst foreclosure problems are concentrated in four states — California, Florida, Arizona and Nevada, a report released Wednesday shows.
" (2009-4-22)
Some homeowners see giving up as best option
"Teresa Bondora and her family abandoned their two-story brick home in Atlanta rather than fall behind on their mortgage and $30,000 worth of home renovation debt.
" (2009-4-17)
March housing construction falls 10.8 percent
"Housing construction plunged to the second lowest level on record in March, providing a sobering sign that the worst housing slump in decades has not yet ended.
" (2009-4-16)
Economics focus: Pharaoh capitalism
"The costs and benefits of “pyramid” business groupsCorrection to this article LIKE a blot on corporate India’s copybook, the Satyam scandal is still spreading. Two auditors from PricewaterhouseCoopers are in police custody, where they are trying to explain why they signed off on the outsourcing company’s cooked books. The chief minister of Satyam’s home state is trading furious accusations of negligence and worse with his predecessor. And on February 6th the government revealed that its serious fraud office is investigating no fewer than 325 companies wrapped up in the scam perpetrated by Satyam’s founder, B. Ramalinga Raju, and at least one of his brothers. ..." (2009-2-12)
February 10, 2009
Hollywood Hills home looks like a bargain
"You've seen his face all over TV for years, now won't you please go see the man's house? Actor Vondie Curtis-Hall and his wife, Kasi Lemmons, just dropped the price on their Hollywood Hills home by 21 percent - from $2,899,000 to $2,295,000. Previously, they...
" (2009-2-8)
Statewatch: Nevada: Wheel of fortune
"We begin an occasional series on how America’s states are faring in the downturn with Nevada, the ultimate in boom and bustFOR a glimpse of the old, confident Las Vegas, visit its newest hotel. Steve Wynn’s vaguely Chinese-themed Encore, which opened in December, is packed with heavy draperies and well-drilled staff. It has thousands of indoor flowers, flat-screen televisions in the bathrooms and a restaurant where the decor changes every half-hour or so. One of its boutiques sells a bejewelled object adorned with a butterfly for $269. Closer inspection reveals it to be a toothbrush-holder. No doubt it seemed like a good idea two-and-a-half years ago, when work began on the hotel. Today it seems delusional. Nevada’s most distinctive industry is slumping as Americans fasten their wallets. Despite the opening of several big casinos, total gambling revenues have declined by 15% in a year. Developers are frantically scaling back projects, or even mothballing them. Still, two huge casino-hotels will open this year, boosting supply at the worst possible moment. ..." (2009-2-5)
Charlemagne: Single-market blues
"Recession is bringing fresh threats to Europe’s single marketIN FRANCE railway crossings are adorned with a small lesson for a life of gnomic brevity. “One train can conceal another,” is the message printed on warning signs. It is a motto that supporters of free trade should remember as they scan the horizon for threats to the European Union’s greatest achievement: the borderless single market. Those watching out for protectionism have plenty to alarm them, right before their eyes. But the biggest threats to the single market are those hidden from view.Start with the visibly alarming. France’s President Nicolas Sarkozy, an express train in human form, has hinted that billions of euros in aid for the French car industry should be made conditional on keeping production in France (and perhaps on buying French-made components, unnamed aides have briefed). There has been no less furious tooting and whistling from politicians in such places as Spain, Britain and Greece as they nag bailed-out bankers to lend first to domestic businesses and households. The Greeks publicly “advised” banks to be “more prudent” about transferring bail-out funds to Balkan subsidiaries. A nasty industrial dispute, sparked when Italian and Portuguese workers were posted to an English oil refinery, led one British minister to urge changes to EU law to stop foreigners undercutting Brits. ..." (2009-2-5)
February 4, 2009
What would it take to get home buyers off the fence?
"Stuck with bulging inventories of homes, builders might offer packages of special financing, price concessions, lower down payments and perhaps application guarantees.
If you'd love to purchase a new house but you're sitting on the fence, what exactly would it take to get you to buy? Mortgage rates lower than today's 5% range? Smaller down payments? Below-market value pricing? Special amenity packages? Or a big tax credit?
" (2009-2-1)
Vondie Curtis-Hall drops price of Hollywood Hills house to $2,295,000
"HOT PROPERTY
You've seen his face all over TV for years, now won't you please go see the man's house? Actor Vondie Curtis-Hall and his wife, Kasi Lemmons , just dropped the price on their Hollywood Hills home by 21% -- from $2,899,000 to $2,295,000.
" (2009-1-31)
February 1, 2009
What will it to take to get you to buy a house?
"If you'd love to purchase a new house but you're sitting on the fence, what exactly would it take to get you to buy? Mortgage rates lower than 5 percent? Smaller down payments? Below-market value pricing? Special amenity packages? Or a big tax credit? What's...
" (2009-2-1)
Beck can't get rid of Malibu mansion
"Perpetually touring performer Beck has lowered the price on his Malibu beach house a smidgen to pique interest. Old price: $2,399,000. New price: $2,345,000. Hey, we did say a smidgen. It's his second home, and his schedule hasn't allowed much use of it. The...
" (2009-2-1)
The home you save could be your own
"A growing number of American homeowners in foreclosure are representing themselves as what are called pro se – a Latin phrase meaning “for oneself” -- litigants in court proceedings. Msnbc.com's Mike Stuckey explains why." (2009-1-28)
Fed moves to help distressed homeowners
"With home foreclosures spiking, the Federal Reserve is taking steps to try to keep some distressed borrowers in their homes." (2009-1-28)
Home prices drop by record pace in Nov.
"Home prices plunged a record 18.2 percent in November from a year earlier as the country’s housing market remains in the throes of a deep recession." (2009-1-27)
Fight building over judges redoing mortgages
"Most congressional Democrats say the quickest way to save homeowners like Troy Butler of Saginaw, Mich., is to let them declare bankruptcy and allow judges to dictate new mortgage terms." (2009-1-26)
Wild-animal spirits
"Why is finance so unstable?WHEN people look back on a bubble, they tend to blame the mess on crookery, greed and the collective insanity of others. What else but madness could explain all those overpriced Dutch tulips? With hindsight, today’s mortgage disaster seems ridiculously simple. Wasn’t it the fault of barely legal mortgage underwriting, overpaid investment bankers and the intoxication of easy credit? Yet there is an element of the madhouse in that explanation too. Cupidity, fraud and delusion were obviously part of the great bust. But if they are the chief causes of bubbles—which have repeatedly plagued Western finance since its origins in the Italian Renaissance—you have to suppose that civilisation is beset by naivety and manic depression.In fact, observes Abhijit Banerjee, an economist at the Massachusetts Institute of Technology, a little irrationality goes a long way. When reasonable, self-interested people trade with each other, optimism tends to breed optimism—until it subsides into corrosive pessimism. In the words of Willem Buiter, of the London School of Economics, “finance is a scary, inherently unstable, essential activity.” ..." (2009-1-22)
Foreclosures increased 81 percent last year
"More than 2.3 million American homeowners faced foreclosure proceedings last year, an 81 percent increase from 2007, with the worst yet to come." (2009-1-15)
Congress takes up foreclosure relief plans
"Congress and the Obama administration are working on a variety of measures to try to slow the pace of home foreclosures. But the problem has been stubbornly resistant to quick fixes." (2009-1-14)
Bankruptcy system takes on the mortgage mess
"Aiming to keep overextended borrowers in their homes, judges and trustees in the federal bankruptcy court system have helped set up a service intended to speed the modification of troubled mortgages." (2009-1-14)
Fannie Mae won’t evict renters in foreclosures
"Mortgage finance company Fannie Mae said Tuesday it has adopted a policy allowing renters to remain in their homes even if their landlord enters foreclosure." (2009-1-14)
Citi agrees to let judges alter mortgages
"A trio of Democratic senators say they have reached a deal with Citigroup Inc. on a plan to let bankruptcy judges alter home loans in an effort to prevent foreclosures." (2009-1-9)
Foreclosure suspensions extended through Jan.
"Mortgage giants Fannie Mae and Freddie Mac will extend the suspension of foreclosure sales and evictions from single-family homes through the end of January." (2009-1-8)
Manhattan luxury housing feeling the pinch
"In what seemed like a New York-minute, prices of luxury homes in Manhattan are suddenly falling." (2009-1-6)
Green building stalls amid lower prices
"Homebuilders slapped on solar panels and added other eco-friendly enhancements as energy prices soared earlier this year, hoping greener homes would lure reluctant buyers." (2008-12-28)
Advice for renters if landlord faces foreclosure
"You're paying your bills, but your landlord isn't. This is becoming an all too familiar scenario for thousands of renters who have become the unintended victims of foreclosures." (2008-12-26)
Home prices plunge as sales slow sharply
"Sales of new and existing homes plummeted in November, as buyers stayed out of the market amid the growing financial crisis and deepening recession." (2008-12-23)
Mortgage re-defaults up; no sign of slowing
"The rate of home mortgage borrowers defaulting after their loans are modified is rising and shows no signs of leveling off, U.S. banking regulators said on Monday." (2008-12-22)
Economics focus: Banks need more capital
"In a guest article, Alan Greenspan says banks will need much thicker capital cushions than they had before the bustGLOBAL financial intermediation is broken. That intricate and interdependent system directing the world’s saving into productive capital investment was severely weakened in August 2007. The disclosure that highly leveraged financial institutions were holding toxic securitised American subprime mortgages shocked market participants. For a year, banks struggled to respond to investor demands for larger capital cushions. But the effort fell short and in the wake of the Lehman Brothers default on September 15th 2008, the system cracked. Banks, fearful of their own solvency, all but stopped lending. Issuance of corporate bonds, commercial paper and a wide variety of other financial products largely ceased. Credit-financed economic activity was brought to a virtual standstill. The world faced a major financial crisis.For decades, holders of the liabilities of banks in the United States had felt secure with the protection of a modest equity-capital cushion, allowing banks to lend freely. As recently as the summer of 2006, with average book capital at 10%, a federal agency noted that “more than 99% of all insured institutions met or exceeded the requirements of the highest regulatory capital standards.” ..." (2008-12-18)
Economics focus: The teetotallers' hangover
"High saving and low private-sector debt have not shielded Germany and Japan from recession PAUL KRUGMAN, the winner of this year’s Nobel prize in economics, put his finger on something in the 1990s when he identified, and then ridiculed, the notion that a slump is a “necessary punishment” for the excesses of the boom that went before it. The popular idea of recession as purgative—the hangover following an ill-judged binge—has a strong and enduring emotional appeal. It allows distressed consumers in America and Britain, countries with a shared weakness for untrammelled spending and reckless borrowing, to make sense of the unfolding crisis. Recession, they reason, must be a penance for past profligacy. However, such logic is of little use in Germany and Japan, two big and rich countries that did not succumb to the boom’s vices, but are nevertheless facing nasty recessions. Each avoided the credit expansion, consumer frenzy, house-price bubbles and trade deficits indulged in by many of their peers. Both went into the downturn less burdened by private-sector debt and with hefty current-account surpluses (see left-hand chart). Yet prudence has not spared them: both economies contracted in the second and third quarters, and seem set for a further retreat in the current one. The OECD forecasts that Japan’s economy will grow by just 0.5% this year, and will shrink by 0.1% in 2009. It thinks GDP in Germany will fall by 0.8% next year. ..." (2008-12-4)
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