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Millionaire Now! by Larry NusbaumThis blog is based on the organizational principles found in my new book, "Millionaire Now! - A Financial Toolbox with Seven Steps to Wealth". |
Existing Home Sales Fall In 41 States
Posted on 08/17/2007 02:27:36 | Link | Post Comment
Existing home sales fall in 41 states
from MSNBC.com, reports that sales of existing homes fell in 41 states during the April to June quarter while home prices were down in one-third of the metropolitan areas surveyed, according to the latest report from the National Association of Realtors (NAR). However, Realtors officials said they saw some glimmers of hope in the data, pointing out that existing home prices were up in 97 of the 149 metropolitan areas surveyed compared with the sales prices of a year ago. That represents gains in 65 percent of the areas surveyed, an improvement from the 55 percent a year ago. "Although home prices are relatively flat, more metro areas are showing price gains with general improvement since bottoming out in the fourth quarter of 2006," said Lawrence Yun, a senior economist for the Realtors. Arizona was noted in the article as one of the states with the largest large drops in sales compared with the same period a year ago (down 23.4 percent), and Phoenix was cited as having a price decline of 2.8 percent compared with the same period in 2006.
Who's to blame for the Sub-Prime Problem
from the National Review Online, reports that according to economic columnist Jerry Bowyer, the Federal Reserve policy of lowering interest rates back in 2003, the money spigots were opened wide and this marked the beginning of the sub-prime mortgage bubble. His thinking is that when the Fed pumps money into the economy, it does so through the banks. The Fed buys bonds from banks using money created from thin air. Yes, the money ends up flowing throughout the whole economy, but it hits the banks first. And flush with this excess cash, the bankers make loans, including loans to homeowners. And when they run out of reasonably good credit risks, they start lending to bad credit risks-- such as all those sub-prime mortgage holders you're now reading about. In one year, sub-prime lending went from 4 percent of total lending to more than 10 percent. That's in one year! He suggests that tax cuts versus a reduction in interest rates would have avoided the messy sub-prime mess and stimulated the economy better than the policy the Fed chose. Interesting take.
Home prices drop for fourth straight quarter
But the latest home prices from Realtors show losses seem to be easing, as reported by CNNMoney.com. During the second quarter, the median single-family home price was $223,800, 1.5 percent less than a year ago, according to the National Association of Realtors (NAR). It was the fourth consecutive quarter of price declines. Condo prices rose 1 percent to a median of $226,800. See entire list of latest housing prices from the National Association of realtors for 149 metro area markets HERE
Also read: Inside the Subprime Storm by Liz Ann Sonders
from MSNBC.com, reports that sales of existing homes fell in 41 states during the April to June quarter while home prices were down in one-third of the metropolitan areas surveyed, according to the latest report from the National Association of Realtors (NAR). However, Realtors officials said they saw some glimmers of hope in the data, pointing out that existing home prices were up in 97 of the 149 metropolitan areas surveyed compared with the sales prices of a year ago. That represents gains in 65 percent of the areas surveyed, an improvement from the 55 percent a year ago. "Although home prices are relatively flat, more metro areas are showing price gains with general improvement since bottoming out in the fourth quarter of 2006," said Lawrence Yun, a senior economist for the Realtors. Arizona was noted in the article as one of the states with the largest large drops in sales compared with the same period a year ago (down 23.4 percent), and Phoenix was cited as having a price decline of 2.8 percent compared with the same period in 2006.
Who's to blame for the Sub-Prime Problem
from the National Review Online, reports that according to economic columnist Jerry Bowyer, the Federal Reserve policy of lowering interest rates back in 2003, the money spigots were opened wide and this marked the beginning of the sub-prime mortgage bubble. His thinking is that when the Fed pumps money into the economy, it does so through the banks. The Fed buys bonds from banks using money created from thin air. Yes, the money ends up flowing throughout the whole economy, but it hits the banks first. And flush with this excess cash, the bankers make loans, including loans to homeowners. And when they run out of reasonably good credit risks, they start lending to bad credit risks-- such as all those sub-prime mortgage holders you're now reading about. In one year, sub-prime lending went from 4 percent of total lending to more than 10 percent. That's in one year! He suggests that tax cuts versus a reduction in interest rates would have avoided the messy sub-prime mess and stimulated the economy better than the policy the Fed chose. Interesting take.
Home prices drop for fourth straight quarter
But the latest home prices from Realtors show losses seem to be easing, as reported by CNNMoney.com. During the second quarter, the median single-family home price was $223,800, 1.5 percent less than a year ago, according to the National Association of Realtors (NAR). It was the fourth consecutive quarter of price declines. Condo prices rose 1 percent to a median of $226,800. See entire list of latest housing prices from the National Association of realtors for 149 metro area markets HERE
Also read: Inside the Subprime Storm by Liz Ann Sonders
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