Category Archives: Prices

Home Prices Keep Falling

Home prices have fallen for more than four years. I bet they fall for another four years. My sense of things is that the average home in the United States is over-priced by about 10%. Banks have hundreds of thousands … Continue reading

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Home Sales At Two Year High

They’re driven by an income tax credit which is due to expire and record-low mortgage rates. Underneath that, the housing market looks weak. Three months of stability don’t seem so impressive compared to the plunge of the past two years. … Continue reading

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What’s Wrong With Obama’s HARP?

The Wall Street Journal reports that the lofty program has not done much good in the real world. HARP (Home Affordable Refinance Program) refinance applications are complicated for banks to process. They’re having a hard enough time keeping up with … Continue reading

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The Politics Of The Housing Boom & Bust

I’m reading this new book by economist Thomas Sowell — The Housing Boom and Bust. The median-priced home in the United States is 3.6 times the median income of Americans. In Great Britain, the median-priced home is 5.5 times the … Continue reading

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What Caused The Housing Boom & Bust?

I’m reading this new book by economist Thomas Sowell — The Housing Boom and Bust. From 2000 to 2005, the average home price in the United States increased by one-third. Millions of Americans began using their homes as ATMs, getting … Continue reading

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The Commercial Real Estate Crunch

The real estate crisis began with subprime loans in CA and FL and Nevada and AZ but now it has spread across the nation and commercial property values are plunging. This Bloomberg article says beware of a dramatic level of … Continue reading

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What Housing Auctions Tells Us About Our Economy

The housing market has stabilized, right? Prices are even going up in some places? David Leonhardt writes for the New York Times: In 2006 and early 2007, the official housing statistics were still showing that house prices were holding up. … Continue reading

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Have We Hit Bottom?

From the New York Times: No one actually knows when and where the housing market will bottom. In Ocean City, N.J., for example, inflation-adjusted house prices rose about 1.6 percent a year from 1988 through 2002. Compared with what this … Continue reading

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Limited Mortgage Relief

From the WSJ: If you are hoping for mortgage relief under the new Hope for Homeowners Act, here’s another factor that you and your lender will have to work into your numbers. The effective interest rate on new mortgages made … Continue reading

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The Dear Seller Letter

Ron Lieber writes: The letters dripped with compliments for the property and ended with a plea for mercy (and a signed contract). Then, I crafted a reply that confident sellers could fire back. No seller would be happy to get … Continue reading

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