US: Seeing Prices Drop Significantly Everyday

[Green_Bear]

“Call it a wave of price cuts or a market adjustment, but there is no way to mask the fact that people selling residential real estate locally have been dropping their asking prices in droves. Deal Estate combed through data from the MLS of Northern Illinois and found that one out of three single-family homes sold in the Chicago area so far this month were bought only after the initial asking price dropped at least once.â€

[Mark]

Further ‘unexpected’ deterioration in US housing market (and it is going to get worse);

bloomberg.com/apps/news?pid= … SR1kumLhCM

[ragingbear]

Further ‘unexpected’ deterioration in US housing market (and it is going to get worse);

A lot worse indeed - the percentage of mortgages which were “1% intro rate, interest only, no deposit, no documentation” taken out in the last 5 years in the US is unbelievable - some even had negative amortization
A huge percentage of those will default for sure, once they reset to 3-4% above the fed rate (which is normal for sub-primes). Some people will go from paying 1% of their loan value per year to over 10%.

[Green_Bear]

The US is suffering the worst slump in the housing market since the 30s, say the news accounts. How bad is it, really? Hard to say. The national statistics show a modest decline in prices or even an increase, in some areas - with mounting inventories of unsold houses. In Las Vegas, the number of resold houses in May this year dropped by 28% from last year. The wheels of Financial Fate may grind slowlybut they grind exceedingly fine. And Americas middle class is beginning to notice. Home values and the $6 trillion U.S. mortgage-backed securities market are locked in a downward spiral, reports Bloomberg.
more>>>>

US Suffering The Worst Slump In Housing Market Since The 30s
dailyreckoning.co.uk/article/uss … s0317.html

Bill Moyers discusses the “housing market meltdown”, the ongoing subprime mortgage and hedge fund crisis, and the “housing bubble” and “homebuying mania” with the New York Times’ Pulitzer-prize winning business reporter Gretchen Morgenson.

Bill Moyers 20070630 - Housing Market Meltdown 1 of 2
youtube.com/watch?v=6q9dC7FQJ1U

Bill Moyers 20070630 - Housing Market Meltdown 2 of 2
youtube.com/watch?v=ZggRyJlD8X4

[verbatim]

Thanks for those videos Green Bear. That was a great summary of the whole subprime/housing mess.

[Blue_Horseshoe]

US home sales near a six-year low

Pending sales of existing US homes fell in May to the lowest level in almost six years, new figures have shown.
The National Association of Realtors said its index of pending home sales fell by 3.5% in May to 97.7, its lowest level since September 2001.

news.bbc.co.uk/2/hi/business/6266470.stm

Not a very happy 4th of July for the US.

Blue Horseshoe