Housing Bubble

The myth of a global savings glut

2005-09-13T04:54:00.000-07:00

C. P. ChandrasekharJayati Ghosh There is substantial agreement that international imbalances in growth and

Sink or swim? Heavy debt load makes Americans vulnerable to rising rates, foreign currency imbalances

2005-09-04T06:36:00.000-07:00

Images.comGrowing debt has long been a concern in the United States, from individuals buying on credit to Washington budgets. But many economists are now warning that runaway spending and borrowing have the nation on track toward a major economic crash. By EILEEN ALT POWELL, Associated Press • Editor's note: Growing debt has long been a

In the twilight of the great Dollar standard

2005-09-03T15:39:00.000-07:00

IN THE TWILIGHT OF THE GREAT DOLLAR STANDARDby Addison WigginAmerican consumers face the specter of losing value in their retirement savings, finding out they cannot live on a fixed income, and suffering from chronic hyperinflation. These changes are unavoidable. But there are steps that smart investors can take defensively to escape from their vulnerability to the dollar's inevitable fall.Any

Ways you can help victims of Hurricane Katrina

2005-09-03T07:17:00.000-07:00

Miami Herald TO DONATE MONEY: (Specify donations for victims of Hurricane Katrina.) American Red Cross: 800-HELP-NOW or http://www.redcross.org BankAtlantic's 78 stores are collecting donations for the American Red Cross. Participants can donate at the teller line or through the Totally Free Change Exchange machines and assist those in need. Broward County: Broward

Seattle Housing : The biggest bubble?

2005-08-31T07:56:00.000-07:00

Is your city overpriced?Forbes : 7/21/2005Cost of living -- from housing to the electric bill -- is going up just about everywhere, but these 10 cities have the rest of the country beat. Seattle tops the list. Again. Does your hometown make the cut?Once an overpriced city, always an overpriced city.That may not be how the old saw goes, but it's one of the things Forbes.com gleaned from the fourth

Pro Bubble vs No Bubble Crowd

2005-08-31T04:45:00.000-07:00

Knowing what happened during the stock market boom era, would you believe whatever Jack Grubman/Mary Meeker/Henry Blodget and others will recommend, knowing what you know today?Here, the housing bubble team will add the names of folks who are going on record about the existence (or lack of) a bubble. Over time, the masses will know who the liars are:Folks claiming that a bubble exists: Robert

National poverty rate increases for 4th straight year

2005-08-30T20:43:00.000-07:00

From San Jose MercuryLatest numbers from Census indicate1. Rise in poverty for the fourth consecutive year2. Increase in number of people without health insurance to 45.8 Million3. Income has remained stagnantHow will this effect housing?

How big is your bubble

2005-08-30T15:19:00.000-07:00

Check out this interactive map to see the valuation of the properties in your city BankRate

Housing Statistics

2005-08-30T08:23:00.000-07:00

23% of all homes purchased in 2004 were for investment (Source : National Association of Realtors)13% of all homes purchased in 2004 were vacation homes (Source : National Association of Realtors)There are 72.1 million owner-occupied homes in the US, followed by 43.8 million second homes of which 6.6 million are vacation homes. There are 37.2 million investment units (compared to 72.1 million

Paul Krugman: Days late, dollars short

2005-08-30T07:39:00.000-07:00

By Paul Krugman The New York Times PRINCETON, New Jersey Most of what Alan Greenspan said at last week's conference in his honor made very good sense. But his words of wisdom come too late. He's like a man who suggests leaving the barn door ajar, and then - after the horse is gone - delivers a

Bubbles All Around Us

2005-08-30T07:06:00.000-07:00

Summary and Investment Conclusion The world may be in the middle of the biggest bubble in history. The bubble (e.g., property, stock, commodities) could exceed 50% of global GDP in value. The key cause of the bubble is that the major central banks failed to lower inflation targets to account for the combination of productivity acceleration due to IT and the new upward stickiness in wages due

It's RIP for the housing boom

2005-08-29T08:29:00.000-07:00

Housing bubble evidence abundant

2005-08-28T19:15:00.000-07:00

One indicator shows some huge deviations from 35-year average By SCOTT BURNS Universal Press Syndicate Like the old real estate adage, "location, location, location," we have only one question these days. We just ask it in different ways. Business Week Deed thieves, property flippers, equity strippers -- these con artists are duping banks and homeowners, and there are lots of them By most measures, Matthew B. Cox would appear to be a mortgage lender's dream customer. The 36-year-old former Tampa resident had once worked in the mortgage business, so he

Good News, Bad News: Your Loan's Approved

2005-08-28T07:23:00.000-07:00

By EDUARDO PORTER ADAM GARDNER wasn't going to let limited resources stop him from buying a house. A 28-year-old appraiser's apprentice from Reno, Nev., he extended his search all the way to a new development 20 miles north of downtown. When he finally found a place - a two-bedroom, three-bath house - he took out two loans to finance 90 percent of the $253,850 price tag. And to keep

But don't let me burst your bubble

2005-08-26T07:34:00.000-07:00

By Bill Maher August 26, 2005 You don't have to remember history, but you do have to remember Thursday. The bursting of the Nasdaq bubble was only five years ago. People lost a trillion dollars. And here we are today with real estate prices across the country that could aptly be compared to Courtney Love: irrationally high and about to collapse. I don't want to say there's a

The road to a bubble?

2005-04-30T09:04:00.000-07:00

Why the bubble willl burst?1) Higher Interest Rates : As Interest rates rise, home owners who are already deep in debt are going to find it even more difficult to pay higher monthly payments. Most sectors of the economy are not growing, leading to falling wages and increasing costs of education, healthcare and rising prices. Squeezed between falling wages and rising interest rates, may owners

Wanna buy this house? Send your résumé.

2005-04-24T17:38:00.000-07:00

By Evan Pondel | Contributor to The Christian Science Monitor LOS ANGELES – A headshot and bio is standard protocol to get an audition for a TV show or a play. But are they really necessary to buy a house? They are in some neighborhoods of Los Angeles where, in addition to offering as much as $75,000 over the asking price, buyers are sending flowery bios,

Housing Experts Wary of Bubble Fatigue

2005-04-24T16:27:00.000-07:00

By Ilaina JonasNEW YORK (Reuters) - Bubble or not, the U.S. housing market has stayed afloat at a high altitude for the past two years.So what do experts look for as the first signs of fatigue in a frothy housing market?Mark Zandi, chief economist for Economy.com, said it won't be buyers who will disappear. Instead, he believes disgruntled sellers will bring the market to a halt."People will

The Housing Bubble

2005-04-24T09:33:00.000-07:00

Are we experiencing a housing bubble? That’s the million dollar question being asked by most homeowners today. Here is the evidence that we are in a massive housing bubble: At first look, housing and real estate are performing spectacularly. Since 1980, the average home is up by 185 percent. In recent years, despite the recession, housing prices have risen by over

Possible market bubbles abound

2005-04-24T07:37:00.000-07:00

Could it be U.S.

Home prices soar while rents barely budge

2005-04-24T06:36:00.000-07:00

By: BRADLEY J. FIKES - Staff Writer In San Diego County, owning a home is more than the American dream. It's considered the ticket to financial security, the great dividing factor between haves and have-nots. It's an article of faith that home ownership is better than gold: homes provide a place to live and an investment that's surer to gain value than buying into the risky

America's Housing Boom: Is The Bubble Due To Pop?

2005-04-22T14:41:00.000-07:00

By DAVID LEONHARDT & MOTOKO RICHReal estate-crazed Americans have started behaving in ways that eerily recall the stock market obsession of the late 1990s.In a version of day trading, some houses Naples, Fla., have been bought twice in a single day. Buying stocks on margin has morphed into buying homes with no money down. The over-the-top parties of Internet startups have been replaced by flashy

Will the walls come falling down?

2005-04-20T19:38:00.000-07:00

From The Economist Global AgendaHouse prices have been growing at a breakneck pace in many developed countries. This has encouraged householders to keep spending even during the global slowdown. But now that housing markets are looking soft, consumers may be forced to retrench AMERICAN homeowners, particularly those who have just bought their properties, are full of reasons

Steering clear of a recession

2005-04-19T12:53:00.000-07:00

Bruce Bartlett Last week’s meltdown in the stock market, with major indexes falling three percent, is only the latest indication that the economy is in fragile condition. One is even starting to hear the first whispers of the “R” word (recession). Although I think such expectations are premature, the financial sector of the economy is under growing strain that could burst and spill over into

Home buyer worry in two areas

2005-04-19T09:58:00.000-07:00

By Scott Van VoorhisIf

Stock Market Suggests that Homebuilders on Extremely Thin Ice

2005-04-14T15:33:00.000-07:00

The position of the homebuilding stocks is reminiscent of the jolly red bear in the kids’ game, “Don’t Break the Ice”. The homebuilder stocks sit complacent, atop a foundation of supporting sectors (or “ice cubes”) that are being knocked out from under on a daily basis. As each “cube” cracks, the position of these stocks

Curtain call for housing

2005-04-14T09:18:00.000-07:00

Max Fraad Wolff is a Doctoral Candidate in Economics at the University of Massachusetts, Amherst. US housing prices and consumer spending- marching in lock step- have delinked from household earnings, long term trends and sustainability. In 2003, half of the nation’s $7 trillion in mortgage debt was either originated or refinanced. Credit availability, 40-year low interest rates and rising debt

Illegal Appraisals Inflate Housing Bubble

2005-04-12T11:30:00.000-07:00

by Broderick Perkins Through the din of reports about mortgage fraud, title industry kickbacks, and a general upswing in errant real estate industry activities akin to organized crime, a new report turns the focus to real estate appraisals. Appraising, the science of determining the value a home, when used to falsely inflate values, sets a dangerous precedent that can not only

Riskier loans stir up interest

2005-04-12T11:29:00.000-07:00

Interest-only mortgage not all bad, but buyer beware JONATHAN LANSNERRegister columnist The gap between owner and renter is slimmer than you think. One benefit of home ownership is increasingly passé - so-called "building equity" by systematically reducing a mortgage's balance. Slightly more than half of last year's buyers of Orange County residences utilized mortgages that

Housing bubble will pop

2005-04-12T11:25:00.000-07:00

By Robert J. ShillerThe upward momentum of home prices in cities such as Los Angeles, Las Vegas, New York or Boston has seemed so incredibly strong that it has been hard to imagine what could stop it. But we have to exercise our imaginations a little more. The reality is that double-digit price increases cannot go on indefinitely because they would eventually put home prices out of reach of

More homeowners on borrowed time

2005-04-11T13:28:00.000-07:00

By DAVID STREITFELDLos Angeles TimesApril 11. 2005 9:32AMBuyers are seduced by "interest only" loans, but what happens when the principal finally comes due?Rachael Herron's new condo will assure her financial salvation - unless it provokes her ruin.Herron, who lives in Oakland, Calif., put no money down for her tidy one-bedroom, borrowing the entire purchase price of $211,000. To keep her monthly

The 40 year mortgage

2005-04-10T11:19:00.000-07:00

The financial powers that be and the various government agencies are planning on a 40 year mortgage, now that they see the housing boom is unwinding and inventories are rising.The housing construction industry thinks that raising the loan period to 40 years, will get them a breather.Remember, you heard it first on the housing bubble blog!

Sydney first, others follow.

2005-04-10T11:08:00.000-07:00

THE PROPERTY CHOPPING BLOCKJenmanIn June last year, a Sydney agent told a family that their home was worth $1.95 million. Nine months later, after reducing the price to $1.15 million, the home remains unsold. Last week the owners refused an offer of $870,000.Welcome to today’s Sydney property market where prices are tumbling and where many homeowners don’t know who to believe or what to do.Can

Abolish The Fed Ponzi Scheme

2005-04-10T08:40:00.000-07:00

by Arthur Radley, Sunday April 10 2005 The Federal Reserve's off-balance-sheet 'custody' holdings for foreign official accounts are up $214 billion, or 18.2%, over 52 weeks, to almost $1.4 trillion. $1.4 trillion is 67% larger than the Fed's own balance sheet. Although it's not counted in the US money supply, it represents foreign exchange reserves that are part of other countries' money

Low-payment loans could turn out to be scary

2005-04-10T07:45:00.000-07:00

The Miami Herald Some new loan features begin with low monthly payments that suddenly balloon after an initial period. Are low monthly payments on a home mortgage always good? Are you kidding me? Of course they are, you might answer. But a new report issued by a Wall Street firm suggests that some low-payment loans in today's hot housing market could prove to be

Let's Get Real About Real Estate

2005-04-10T07:31:00.000-07:00

"People have gotten caught up in the euphoria" of a stellar housing market, says Steve Murray, editor of Real Trends, an industry newsletter, who forecasts rates will reach 7% by year end. "Everywhere you go people are talking about how much their homes appreciated," he says. "We are going to have to be a little more rational the next few years." Mr. Murray predicts that if mortgage rates reach

Housing market may cool

2005-04-09T12:49:00.000-07:00

Betty BeardThe Arizona RepublicAhwatukee Foothills saw median home prices grow 31 percent in the first quarter of the year, to hit $280,000, keeping prices in the community the highest in the southeast Valley.But there are hints that the market may be changing.It appears to take longer to sell homes.There seem to be more "for sale" or "for sale by owner signs," and there are indications that

Sentiment Versus Sensible

2005-04-09T07:56:00.000-07:00

Rich Karlgaard The trick is always in the timing, isn't it? Home prices have soared into deep space. Airline stocks remain grounded. Time to short one and buy the other? You could make a killing. You could get killed, too. This hedge looks sensible on paper. But the market is not paper, and it acts sensibly only in the long term. In the

Is it time to cash in on your home?

2005-04-09T06:33:00.000-07:00

Frothy housing prices produce joy about our profits ... and fear over how to protect the gains. These strategies will help you make the right choice. By Kiplinger's Personal Finance Magazine Many 21st-century homeowners are feeling as if they’ve won the real-estate lottery. Especially on the East and West coasts, they have seen their home values double, or even triple, over the past five

The dangers of falling home prices

2005-04-09T05:24:00.000-07:00

By David R. Francis Economist Dean Baker was so worried about a housing bubble that he sold his Washington, D.C., condominium, at three times the price he paid for it, and rented an apartment instead. Now, about two years later, he's still waiting for the bubble to pop. The danger of a bust is "absolutely getting worse," says Mr. Baker, codirector of the

Un-Real Estate

2005-04-09T04:26:00.000-07:00

James Grant, 04.25.05, 12:00 AM ETOne real estate sage says he has never seen such "aggravated excess liquidity." That's where too much cash is chasing too few buildings. Markets look forward, except when they look backward. At this moment the real estate market is looking backward. What it sees is comforting but irrelevant. In the past five years real estate

US not facing national housing "bubble" - Greenspan

2005-04-08T15:35:00.000-07:00

(Updates with quotes on housing and energy) WASHINGTON, April 8 (Reuters) - Most U.S. homeowners do not need to fear an abrupt collapse in home prices despite sharp increases in recent years, Federal Reserve Chairman Alan Greenspan said in a letter released on Friday. "For the nation as a whole, I do not believe that a 'bubble' has developed, but the extraordinary gains in some local markets

Investment clubs fuel housing boom

2005-04-08T09:50:00.000-07:00

But is it a sign of a bubble when people are buying homes as investments? by Bertha CoombsHe's a roofer. She owns a hair salon. Now, Paul and Caren Matera are using their entrepreneurial skills in real estate. They bought and sold a little bungalow on New York's Long Island for a 50% profit."We closed in July when we purchased it and it was sold at the end of September," says Paul Matera.The

The Coming Real Estate Wreck

2005-04-08T09:28:00.000-07:00

Posted by Dana Blankenhorn The next U.S. recession will result from a real estate crash. (The picture is actually from the inspiring story of an English school, but you don't want your home portrayee as rundown, do you?) U.S. residential real estate is overvalued because its purchase is subsidized. It is the only good consumers can buy while writing off the interest. Builders also have a

Philadelphia Housing Index seems to have peaked

2005-04-08T09:11:00.000-07:00

Daily ReckoningYou can't lose money buying good stocks and holding for the long run. That's what Peter Lynch used to say. Lynch made his reputation running America's largest equity fund - Fidelity Magellan. He had a winning streak and retired a rich genius. Investors, naturally, mistook his good fortune for good sense. They piled into Fidelity Magellan only to watch the price drop 23% over the

Higher mortgage rates to bite

2005-04-08T07:15:00.000-07:00

Impact of higher home loan rates could be felt far and wide across the United States -- soon. By Chris Isidore, CNN/Money senior writer NEW YORK (CNN/Money) - Whether or not rising mortgage rates cool the housing market, they're going to put a multi-billion-dollar dent in consumer spending -- and soon. That could have big implications not just for housing, but for U.S. economic growth,

C.A.R. reports California's Housing Affordability Index falls six points to 19 percent in February

2005-04-07T09:14:00.000-07:00

LOS ANGELES (April 7) – The percentage of households in California able to afford a median-priced home stood at 19 percent in February, a 6 percentage-point decrease compared with the same period a year ago when the Index was at 25 percent (revised), according to a report released today by the California Association of REALTORS® (C.A.R.). The February Housing Affordability Index (HAI) improved 1

What Goes Up (House Prices) Must Come Down

2005-04-07T08:00:00.000-07:00

By Robert J. Shiller The upward momentum of home prices in cities such as Los Angeles, Las Vegas, New York or Boston has seemed so incredibly strong that it has been hard to imagine what could stop it. But we have to exercise our imaginations a little more. The reality is that double-digit price increases cannot go on indefinitely because they would eventually put home prices out of reach

‘I don't see that price appreciation is a bubble'

2005-04-07T07:44:00.000-07:00

By Albert C. Pacciorini Despite higher interest rates and a still-sluggish economy, the price of real estate continues to appreciate at astounding levels, especially in California. Consumers are not only seeing record home sales and prices, but are confronted with an array of new loan options. And because of the booming real estate market, the number of licensed real estate

Home prices take off in tight market

2005-04-07T06:39:00.000-07:00

By Elizabeth Rhodes Seattle Times staff reporter E-mail article Print view Search Most e-mailed Most read RSS An abundance of buyers and significant

Unsold homes pile up in some areas

2005-04-07T06:29:00.000-07:00

The Wall Street JournalSurplus at Entry level prompts builder incentives; Free landscaping and incentives."The National Association of Realtors reported this week that its index of pending home sales - those for which contracts have been signed but transactions aren't completed - in February was up 10% from a year earlier."

Real estate investing gaining in popularity

2005-04-07T06:17:00.000-07:00

But experts are concerned about a housing bubbleBy Bertha CoombsReporterCNBCHe’s a roofer and she owns a hair salon, and now Paul and Caren Matera are applying their entrepreneurial skills to New York’s red-hot housing market.After attending a $3,000 real estate seminar, last July the Materas bought a little bungalow on Long Island. They sold it two months later and made a 50 percent profit.

New Foreclosure Inventory in U.S. Rises Nearly Fifty Percent in March

2005-04-07T05:43:00.000-07:00

RISMEDIA, April 7 – Some 28,190 new foreclosed residential properties were listed for sale in the U.S. during March 2005, reports Foreclosure.com.The number represents an increase of 50 percent from February 2005. The total number of U.S. residential foreclosure properties available for sale in the U.S. during the month of March was 80,757, an increase of 10 percent from February."New foreclosure

Why The Dollar Could Demolish Your Home

2005-04-07T05:16:00.000-07:00

Oxford AnalyticaDuring last year's presidential campaign, the Bush Administration's economic record was widely assailed by Democrats. In large part, this was because the United States suffered a net job loss during President George W. Bush's first term. This is the first time the economy has lost jobs during a single presidential term since the Great Depression. However, a key factor, which has

Greenspan and the real estate bubble

2005-04-07T04:37:00.000-07:00

By William F. HagueThere has been widespread denial that there could be anything like a real estate "bubble," even given recent activity. Yet, anyone with a pulse can see wild speculation taking place all around them.If we reflect back on the stock market bubble of 2000 and, yes, it was in fact a bubble we can see many similarities. Without a doubt, the level and severity of speculation we're

More Are Seeking Adjustable-Rate Mortgages

2005-04-06T13:57:00.000-07:00

By Eileen Alt Powell, AP Business WriterMore Families Are Opting for Adjustable-Rate Mortgages When They Buy or Refinance Their HomesNEW YORK (AP) -- As interest rates rise, more families are opting for adjustable-rate mortgages when they buy or refinance their homes. Unlike the traditional fixed-rate mortgages, which lock in a set rate for 15 years to 30 years, adjustable-rate mortgages

Home Builders Stock Falls on Order Worries

2005-04-06T11:15:00.000-07:00

Home Builder Companies' Stocks Slump As Standard Pacific Sees Orders DeclineNEW YORK (AP) -- Investors moved out of home building companies Wednesday after Standard Pacific Corp. reported new orders declined 2.2 percent during the first quarter, and indicated it will intentionally slow sales in the fast-growing Florida market.The Irvine, Calif.-based company said a majority of the weakness came

Real estate foreclosures surge 50%

2005-04-06T09:53:00.000-07:00

Rising interest rates to blameInman News The number of new foreclosed residential properties soared 50 percent nationwide in March from the previous month, according to Foreclosure.com, which tracks residential foreclosures and for-sale-by-owner properties.According to data released today, 28,190 new foreclosed residential properties were listed for sale in the U.S. during March 2005, up from

As housing market booms, more buyers pay $1M-plus

2005-04-06T09:52:00.000-07:00

By Adam Shell, USA TODAY In today's booming housing market, buyers are increasingly willing to fork over $1 million or more for their dream house. Last year, nearly 51,000 buyers — 65% in California — spent $1 million or more for a single-family home, says DataQuick Information Systems. That's a fivefold increase since 1999, when 10,000 homes fetched $1 million-plus. Derek Walter, 43, is one

Real estate’s dirty little secret

2005-04-06T05:50:00.000-07:00

‘Appraisal inflation’ a worry for housing expertsBy Jane WellsReporterCNBCIt is often referred to as “appraisal inflation” and it could be the dirty little secret of the housing industry.advertisementThe practice — when real estate appraisers bend the numbers to satisfy clients and stay in business — is a growing problem, according to real estate experts.Appraisers say there is pressure on them

The market is moving from red-hot to hot

2005-04-03T14:08:00.000-07:00

By Chris Reidy, Globe StaffAs of Thursday, MLS Property Information Network Inc. listed 6,009 single-family homes and condos for sale in Greater Boston, up 19 percent from the same day a year ago. More supply should mean more choices for buyers, but don't tell that to Dmitiriy Peregudov, 30. He's an engineer from Waltham who's shopping for his first home purchase with a budget of $300,000 to

Business Week : After the housing boom! - Price Appreciation

2005-04-03T09:14:00.000-07:00

They're In -- but Not Home Free

2005-04-02T19:49:00.000-08:00

Many Californians have 'interest-only' loans. They might be living on borrowed time.By David StreitfeldTimes Staff WriterOAKLAND — Rachael Herron's new condo will ensure her financial salvation — unless it provokes her ruin.Herron put no money down for her tidy one-bedroom, borrowing the entire purchase price of $211,000. To keep her monthly payments as low as possible, she got an adjustable-rate

County housing cost now at a crisis level

2005-04-02T14:56:00.000-08:00

By: Gus Thomson, Gold Country News Service Placer County

How Bubbly Is Your Housing Market?

2005-04-02T09:16:00.000-08:00

Interactive Table: After one of the greatest booms in history, housing is likely to cool off in 2005. While prices won't collapse nationally, some overheated markets could see sharp price declines in the next year or so. How do you know if you're in one of those markets?By exploring this exclusive interactive table. It contains nine key data points on each of more than 30 major metro areas. See

Time-shifted comparison of NASDAQ Composite vs The S&P 500 Homebuilding Index

2005-04-02T08:41:00.000-08:00

Las Vegas : Is the boom over?

2005-04-02T08:11:00.000-08:00

Business Week : After the housing boom!

2005-04-02T08:08:00.000-08:00

24-year-old gets 24 months in fraud case

2005-04-02T08:01:00.000-08:00

Judge orders her to pay mortgage company almost $1 millionBY AMALIE NASHNews Staff ReporterA former mortgage company employee accused of falsifying loan applications in a scheme referred to as "bankruptcy for profit" was ordered to repay nearly $1 million to a Pittsfield Township company and serve two years in federal prison.The sentence was handed down Wednesday against 24-year-old Kristy L.

After The Housing Boom

2005-04-02T07:54:00.000-08:00

Business WeekWhat the coming slowdown means for the economy -- and youAdmit it -- you've done it. You've surfed Web sites such as GetMyHomesValue.com and Domania.com to get a sense of the real estate values in your city. On weekends you skim local real estate ads to check asking prices. And at neighborhood dinner parties you steer the conversation to find out what price that four-bedroom colonial

Other sites related to the bubble

2005-04-01T11:39:00.000-08:00

http://shorebubble.blogspot.com/

Interest rate hikes now making an impact

2005-04-01T09:04:00.000-08:00

The Dallas Morning NewsBy Danielle DiMartinoUntil recently, someone returning from long travels wouldn't have guessed that the Federal Reserve was on a campaign to raise interest rates.The Fed began raising its short-term interest rates last June, but the 10-year Treasury yield dropped only to around 4 percent, closer to its historic post-Sept. 11 lows.Finally, in February, worries about

Interest rate hikes now making an impact

2005-04-01T07:05:00.000-08:00

The risks from falling home prices

2005-03-30T16:57:00.000-08:00

By Chuck Jaffe, MarketWatchBOSTON (MarketWatch) -- When I interviewed for the job that first brought me to New England in 1994, I met with seven different executives.Four of them were underwater on their mortgage, meaning that if they had to sell their home in the Boston suburbs, they would have to bring money to the table to pay off their lender because the home had declined in value.They spent

Cash in on Your Home?

2005-03-30T14:53:00.000-08:00

by Kristin W. Davis Kiplinger, April issueMany 21st-century homeowners are feeling as if they've won the real estate lottery. Especially on the East and West coasts, they have seen their home values double, or even triple, over the past five years. There's just one problem: It's all on paper. You can't reap the benefit of all that wild appreciation, or protect it from a blowup in your local

How to sell a house? Try some entertainment

2005-03-30T14:10:00.000-08:00

By Kimberly Blanton, Globe StaffCAMBRIDGE -- With the high-end housing market cooling, a realtor in this city knew exactly who should be the headliner at her open house a few blocks from Harvard University: a historian.More than 100 of the city's well-heeled turned out on a recent weeknight to hear Charles Sullivan of the Cambridge Historical Commission speak about the 162-year-old mansion for

Metro mortgage defaults on rise

2005-03-30T14:04:00.000-08:00

Experts blame bad lending and borrowing decisions, lagging income growth and flat home prices.By Christine TatumDenver Post Staff WriterSoaring foreclosure filings in Arapahoe County for the first three months of this year helped drive metro Denver's foreclosure rate 34 percent higher than the same period of last year and 30 percent higher than the fourth quarter of 2004.The seven-county region's

Mortgage Applications Increased Last Week

2005-03-30T06:52:00.000-08:00

NEW YORK (Reuters) - Applications for U.S. home mortgages increased last week as higher home purchasing activity offset a decrease in refinancing at a time when mortgage rates are rising, an industry group said on Wednesday.The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity increased 2.4 percent to 674.3 in the week ended March 25, partly

Bad loans more than double at GMAC

2005-03-29T19:38:00.000-08:00

By James Mackintosh in LondonEnter Description for image here!Bad loans at the retail mortgage operations of General Motors, the world's biggest carmaker, more than doubled last year as it increased lending to poorer customers and was forced by post-Enron accounting to keep more debt on the balance sheet.Non-performing loans in the mortgage business of General Motors Acceptance Corp, the finance

Beazer to Log Goodwill Impairment Charge

2005-03-29T16:36:00.000-08:00

Beazer Says 2Q Results to Include Charges From Impairing Goodwill, Class-Action Settlement ATLANTA (AP) -- Beazer Homes USA Inc. on Tuesday said it plans to record charges from impairing goodwill and a legal settlement in its results for the current quarter.The homebuilder, however, maintained its forecast for 2005 earnings -- including the settlement but before any impairment costs -- of

STRUCUTRAL DRAGS

2005-03-29T15:51:00.000-08:00

by Dr. Kurt RichebächerFrom the macro perspective, U.S. business profits received their main boost from two flows in recent years. One was the phenomenal decline of personal saving, and the other was the soaring budget deficit accruing from tax cuts and higher spending.Saving is the unspent part of personal income. To this extent, wage earners reduce total business receipts in relation to total

Greenspan's Second Bubble

2005-03-28T15:49:00.000-08:00

AEII knew Alan Greenspan had his first bubble in late 1999 when cab drivers were too busy talking to their brokers on cell phones to talk with customers. The “cab driver test” flashed its second bubble warning light to me just recently when I arrived in Key West for the annual winter vacation with my family. Without any prompting, our cab driver told us of a Key West real estate market on fire.

HOUSE (AND SENATE) MUST SAVE HOMES

2005-03-28T07:44:00.000-08:00

Fri, Mar. 25, 2005A FORECLOSURE CRISIS IN THE STATE IS FINALLY GETTING ATTENTIONIN PENNSYLVANIA in the past three years, an alarming number of homeowners - about 55,000 - have had their American Dream sold at Sheriff's sale.In fact, Pennsylvania ranks fourth in the nation in the rates of foreclosures for "subprime" mortgages, according to a recent study prepared by The Reinvestment Fund for state

Japan's real estate still under bubble shadow

2005-03-28T06:55:00.000-08:00

TOKYO, March 28 (Xinhuanet) -- Whereas land prices in large citiesacross Japan are picking up, the overall market is still on the decline, a lingering repercussion of the 1990s property foam, recent government statistics showed. The statistics released last week by the Land, Infrastructure and Transport Ministry showed that the nation's average land prices dropped 5.0 percent in the year to

Should You Wait Out Mortgage Rates?

2005-03-28T05:08:00.000-08:00

Click On DetroitMortgage rates have been rising steadily, and rates on 30-year home loans are back above 6 percent, on average, for the first time in eight months. Is it a good idea to wait in hopes that rates go back down? Maybe not. Senior vice president Jack Radin with online lender Mortgage-IT said it can be a mistake to buy when rates are low, because low rates can draw more

Real Rates and Gold

2005-03-28T01:52:00.000-08:00

Forex RateThis week witnessed some big news on the real interest rate front. Notable developments... ... hit the wires in both key components of real interest rates, nominal 1-year US Treasury Bill yields and the annual growth rate in US inflation as measured by the Consumer Price Index. On Tuesday the US Fed raised overnight lending rates between banks by 25bp to 2.75%. It was the seventh

Housing boom may go bust, economists warn

2005-03-27T09:09:00.000-08:00

Eager investors are buying up real estate; parallels to dot-com frenzy raise red flag By Motoko Rich and David Leonhardt New York Times Real estate-crazed Americans have started behaving in ways that eerily recall the stock market obsession of the late 1990s. In a version of day trading, some houses in Naples, Fla., have been bought twice in a single day. Buying

What Happens If It Bursts?

2005-03-27T06:17:00.000-08:00

BY MAREK FUCHS T cocktail parties these days, the chatter often involves a bit of bragging about real estate profits before it winds down to those famous last words: "The market might go down, but my area will maintain its value." It's as if people think that an electromagnetic field of protection will shield a particular series of brownstones or cul-de-sacs from whatever might

Dude, where's my rent?

2005-03-27T05:41:00.000-08:00

More under-25s are breaking into real estate as landlords, sometimes relying on gumption alone to make a go of itBy Jenn Abelson, Globe StaffWhen Sean Flynn isn't busy serving drinks at Hennessey's bar in Faneuil Hall, the 21-year-old is watching over his two condominiums in South Boston.Flynn, who lives with his mother in Arlington, still hasn't graduated from college. But he doesn't tell that

Bargains galore as house prices plunge

2005-03-27T05:15:00.000-08:00

By Hannah EdwardsThe Sun-HeraldA list of more than 400 of Sydney's bargain homes is available in the print edition.Sydney house hunters looking for quality properties have never been so spoilt for choice.A report by Home Price Guide exclusively for The Sun-Herald reveals the price of hundreds of properties across Sydney on sale since before September have dropped by as much as 40 per cent.In

Property owners' taxing problem: They're sitting on a gold mine but they can't get up

2005-03-27T04:51:00.000-08:00

Although many residents could make a fortune if they sold their homes, high housing prices and soaring taxes force many to stay put.By Barbara MarshallPalm Beach Post Staff WriterIn a housing market this hot, someone was bound to get burned.Don Todorich is a Lake Worth real estate agent, but despite his knowledge of the market, he's one of many Palm Beach County residents who find themselves

Echoing the dot-com boom, many middle- class investors are rushing into real estate.

2005-03-27T04:30:00.000-08:00

Putting Stock in PropertyBy David StreitfeldTimes Staff WriterSAN FRANCISCO — Chris Boome, an insurance agent in the suburb of Burlingame, doesn't want to work the rest of his life. Who does? But at 58, Boome knows he hasn't saved enough to retire.So a few weeks ago, he revamped his retirement accounts. He sold most of the mutual fund shares and used the cash to buy an $83,500 chunk of land in

Study: Buyers in "bubble" markets are doing well

2005-03-27T04:28:00.000-08:00

Kenneth R. HarneyThough some economists are concerned about American homeowners' rising debt burdens — especially in high-cost, high-inflation markets — a new study suggests that those worries may be misplaced: Homeowners in so-called "bubble" markets such as California, Nevada, New England, Florida, the Mid-Atlantic and the District of Columbia are more likely to pay their mortgages on time than

Signs of a Pumped-Up Economy

2005-03-27T04:01:00.000-08:00

Washington Post It's hard to complain about a U.S. economy that, almost alone in the industrialized world, is creating new jobs and growing at a rate of more than 4 percent, even in the face of record high energy prices. But there is no shaking the feeling that this is an economy on steroids, pumped up by deficit spending by government and plenty of cheap money. The telltale signs can

Renovators: Low interest rates and rapidly rising prices have many investing in run-down properties that can be spruced up and sold for a tidy profit.

2005-03-27T03:50:00.000-08:00

Rehabs surge as market is flooded with investorsBy Jamie Smith HopkinsSun StaffPeter Chrisopoulos is maneuvering his slate-gray Nissan Altima around the streets of South Baltimore, stopping and pointing at once-unusual sights. Look, there. And another around the corner. And a third across the street.The star of this tour: home rehabilitations."Everything is getting worked on," says the longtime

Property gold rush threatens US growth

2005-03-27T02:59:00.000-08:00

Property gold rush threatens US growth By Christopher Swann Tom Kunz, head of Century 21, the largest chain of property agents in the US, recently entered a lottery. The prize on offer is not a cheque the length of a bookcase but rather the chance to bid for an apartment in Hawaii. Even if he wins he may have to camp outside the property to ensure that he beats the crowd of other aspiring

Losing the American Dream

2005-03-26T21:54:00.000-08:00

Pa. report shows what has to be done to protrct us By Helen Colwell Adams Sunday News LANCASTER COUNTY, PA - Pennsylvania is fourth in the nation in the rate of foreclosures filed on subprime loans.The question is what the state Legislature is willing to do about it. Pennsylvania’s dismal ranking emerged in a long-awaited state Banking Department report on foreclosures and predatory

If You Think Higher Interest Rates Will Help the Dollar, Think Again!

2005-03-26T14:45:00.000-08:00

HoweStreet Since the release of the Fed Open Market Committee statement yesterday, much has been said about the Fed's newfound commitment to contain inflation. However, currency traders have apparently confused the Fed's mere mention of the word "inflation" with an actual intention to do something about it. Presuming that a tougher Fed means higher interest rates, traders have