Filed under: Bad news, Personal finance, Housing, Recession
Housing markets saw December year-over-year sales drop nearly 40% off their 2007 high, and median home prices dropped as well.
Archive for January 29th, 2008Filed under: International markets, Consumer experience, Market matters, Economic data, Housing, Federal Reserve, Recession
Last week the Fed announced a surprise 75 basis point rate cut in an attempt to soothe concerns over an American recession, and now the question is, what can we anticipate this time around? Since the outlook of another rate cut seems to be all but a forgone conclusion, the question becomes, what level rate cut will we see? After last week’s cut, the Fed rate is now sitting at 3.5%, and most analysts are anticipating to see that drop by a half percentage point to 3% when the Fed announces it sdecision tomorrow afternoon. Some are even starting to wonder if we could see another 75 basis point drop. The market has not exactly be shooting to the moon since last week’s emergency cut, but the positive impact has been felt in many areas of the market. As Jim Cramer pointed out yesterday, it can be argued that the Fed’s magic actually did work. You have to wonder if another 75 basis point cut would smell a little too desperate. Considering how close we are to last week’s cuts, it might be a bit excessive at this time to wish for another rate cut of such proportion. Such massive point cuts are rare, and to see another one so soon could be interpreted as a panic move. At this time, a 50 basis point would probably be the ideal option for the market’s concern. It would bring more confidence into the stock market, but would create a bit less inflationary risk than another 75 basis point cut would pose. At the time of last week’s cut, the Fed made it clear that it was more concerned about stimulating economic growth than it was with inflation. The Fed said that inflation concerns had subsided enough to justify the emergency rate cuts, but have they subsided enough to justify a 1.5% cut in under 10 days? That is the question that the Fed has to be asking itself at today’s meeting, and I’ve to believe that the outcome is going to be only a 50 basis point this time around. So who will really benefit from the current interest rate environment? For a great answer to that question, be sure to read Brian White’s excellent piece on the answer to that question. Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the on the internet investment advisory service Investor’s Observer. [photo: tiseb] Filed under: Bad news, Personal finance, Housing, Recession Housing markets saw December year-over-year sales drop almost 40% off their 2007 high, and median home prices dropped as well.
29
01
2008
 
Home prices fall 7.7% in past year, according to Case-Shiller IndexPosted by: in HousingFiled under: Bad news, Economic data, Housing, Recession
Prices fell a record 2.2% in November 2007, and 7.7% in the past year. Just as ominous, home prices fell in all 20 cities in November 2007, and prices in the last three months fell at a 16.2% annual rate. In addition, the survey’s original 10-city index fell 8.4% in the past year. Miami recorded the largest price decline, down 15.1%; followed by San Diego, down 13.4%; Las Vegas, down 13.2%; and Detroit, down 13%. A tell-tale stat Economist Steve Affinito told BloggingStocks Tuesday the Case-Shiller data is yet another tell-tale statistic regarding the condition of the U.S. housing sector. “The song remains the same, and it’s not a pleasant tune,” Affinito said. “The Case-Shiller data shows a housing sector in deep recession, no doubt about it. We have an enormous oversupply as a result of the home construction overbuild and home owners in the market to sell who are not lowering the prices of their homes. Until everyone sets more-realistic sales price goals, those homes won’t sell. And prices will not recover until that inventory is worked-off. We’re a long way from that day.” Index co-developer Robert Shiller couldn’t provide any encouragement, either. “We reached another grim milestone in the housing market in November,” Shiller, Chief Economist at MacroMarkets LLC said. “Not only did the 10-City Composite post another record low in its annual growth rate, but 13 of the 20 metro areas, each with data back to 1991, did the same. . . . Each MSA has now posted three consecutive monthly declines.” Watch the latest BloggingStockCast to learn more: Filed under: Bad news, Personal finance, Housing, Recession Housing markets saw December year-over-year sales drop nearly 40% off their 2007 high, and median home prices dropped as well. Filed under: International markets, Consumer experience, Market matters, Economic data, Housing, Federal Reserve, Recession
Last week the Fed announced a surprise 75 basis point rate cut in an attempt to soothe concerns over an American recession, and now the question is, what can we anticipate this time around? Since the outlook of another rate cut seems to be all but a forgone conclusion, the question becomes, what level rate cut will we see? After last week’s cut, the Fed rate is now sitting at 3.5%, and most analysts are expecting to see that drop by a half percentage point to 3% when the Fed announces it sdecision tomorrow afternoon. Some are even starting to wonder if we could see another 75 basis point drop. The market has not exactly be shooting to the moon since last week’s emergency cut, but the positive impact has been felt in many areas of the market. As Jim Cramer pointed out yesterday, it can be argued that the Fed’s magic actually did work. You have to wonder if another 75 basis point cut would smell a little too desperate. Considering how close we’re to last week’s cuts, it may be a bit excessive at this time to wish for another rate cut of such proportion. Such large point cuts are rare, and to see another one so soon could be interpreted as a panic move. At this time, a 50 basis point would probably be the ideal option for the market’s concern. It would bring more confidence into the stock market, but would create a bit less inflationary risk than another 75 basis point cut would pose. At the time of last week’s cut, the Fed made it clear that it was more concerned about stimulating economic growth than it was with inflation. The Fed said that inflation concerns had subsided enough to justify the emergency rate cuts, but have they subsided enough to justify a 1.5% cut in under 10 days? That is the question that the Fed has to be asking itself at today’s meeting, and I have to believe that the outcome is going to be only a 50 basis point this time around. So who will really benefit from the current interest rate environment? For a great answer to that question, be sure to read Brian White’s excellent piece on the answer to that question. Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the online investment advisory service Investor’s Observer. [photo: tiseb] Filed under: International markets, Consumer experience, Market matters, Economic data, Housing, Federal Reserve, Recession
Last week the Fed announced a surprise 75 basis point rate cut in an attempt to soothe concerns over an American recession, and now the question is, what can we expect this time around? Since the outlook of another rate cut seems to be all but a forgone conclusion, the question becomes, what level rate cut will we see? After last week’s cut, the Fed rate is now sitting at 3.5%, and most analysts are expecting to see that drop by a half percentage point to 3% when the Fed announces it sdecision tomorrow afternoon. Some are even starting to wonder if we could see another 75 basis point drop. The market has not exactly be shooting to the moon since last week’s emergency cut, but the positive impact has been felt in many areas of the market. As Jim Cramer pointed out yesterday, it can be argued that the Fed’s magic actually did work. You’ve to wonder if another 75 basis point cut would smell a little too desperate. Considering how close we’re to last week’s cuts, it might be a bit excessive at this time to wish for another rate cut of such proportion. Such large point cuts are rare, and to see another one so soon could be interpreted as a panic move. At this time, a 50 basis point would probably be the best option for the market’s concern. It would bring more confidence into the stock market, but would create a bit less inflationary risk than another 75 basis point cut would pose. At the time of last week’s cut, the Fed made it clear that it was more concerned about stimulating economic growth than it was with inflation. The Fed said that inflation concerns had subsided enough to justify the emergency rate cuts, but have they subsided enough to justify a 1.5% cut in under 10 days? That is the question that the Fed has to be asking itself at today’s meeting, and I’ve to believe that the outcome is going to be only a 50 basis point this time around. So who will really benefit from the current interest rate environment? For a great answer to that question, be sure to read Brian White’s excellent piece on the answer to that question. Michael Fowlkes has worked as a stock trader for seven years and spent the last four years working as an analyst for the on the web investment advisory service Investor’s Observer. [photo: tiseb]
29
01
2008
Home prices fall 7.7% in past year, according to Case-Shiller IndexPosted by: in HousingFiled under: Bad news, Economic data, Housing, Recession
Prices fell a record 2.2% in November 2007, and 7.7% in the past year. Just as ominous, home prices fell in all 20 cities in November 2007, and prices in the last three months fell at a 16.2% annual rate. In addition, the survey’s original 10-city index fell 8.4% in the past year. Miami recorded the largest price decline, down 15.1%; followed by San Diego, down 13.4%; Las Vegas, down 13.2%; and Detroit, down 13%. A tell-tale stat Economist Steve Affinito told BloggingStocks Tuesday the Case-Shiller data is yet another tell-tale statistic regarding the condition of the U.S. housing sector. “The song remains the same, and it’s not a pleasant tune,” Affinito stated. “The Case-Shiller data shows a housing sector in deep recession, no doubt about it. We have an enormous oversupply as a result of the home construction overbuild and home owners in the market to sell who are not lowering the prices of their homes. Until everyone sets more-realistic sales price goals, those homes won’t sell. And prices will not recover until that inventory is worked-off. We’re a long way from that day.” Index co-developer Robert Shiller couldn’t provide any encouragement, either. “We reached another grim milestone in the housing market in November,” Shiller, Chief Economist at MacroMarkets LLC said. “Not only did the 10-City Composite post another record low in its annual growth rate, but 13 of the 20 metro areas, each with data back to 1991, did the same. . . . Each MSA has now posted three consecutive monthly declines.” Watch the latest BloggingStockCast to learn more: Filed under: Bad news, Economic data, Housing, Recession
Foreclosures in 2007 totaled 2,203,295 up from 1,285,873 in 2006, RealtyTrac announced Tuesday in a statement. The report also shows that more than 1% of all U.S. households were in some stage of foreclosure during the year, up from 0.58% in 2006. Foreclosure filings increased at the end of the year, with December 2007 marking the fifth straight month of more than 200,000 foreclosures reported, RealtyTrac stated. An ‘alarming stat’ Economist Steve Affinito told BloggingStocks Tuesday that even though he’d anticipated a bad foreclosure statistic for 2007, the figure was worse than he had expected. “The 2007 foreclosure stat is alarming and will serve as a major drag on the economy in 2008. In many cases lower home values are preventing home owners from refinancing to lower rates to save their homes before higher payments take effect,” Affinito stated. “In addition to the HOPE NOW plan, the Congress and the president need to pass a comprehensive home mortgage rescue plan and an emergency funding plan to slow the upward trend in foreclosures, and to provide immediate emergency help to homeowners.” Affinito added that “given the number of variable interest mortgage resets in 2008, the foreclosure total is apt to rise substantially again in 2008, further delaying the housing sector’s recovery.” Say totals Nevada’s foreclosure rate led the nation, with 3.4% of its households entering some stage of foreclosure during the year, followed by Florida and Michigan at 2% and 1.9% respectively. Further, RealtyTrac stated that while foreclosure filings were up 75% in 2007, the number of properties in some stage of foreclosure was up 79%, indicating that an increasing number of properties might have just entered the initial stage of foreclosure in 2007 and could be going through the rest of the foreclosure process in 2008 — unless lender and government intervention efforts begin to gain more traction. TheStreet.com University : Knowledge@Wharton RBI leaves personal finance untouched Fitch Rates Chandler, Arizona Spectrum Improvement District’s Special Wynn campaign files FEC complaint over rival’s fundraising Court Approves IBC Disclosure Statement Company Will U.S. bankruptcy tweak can ease subprime woes, lawmakers told New twist in French bank scandal: Trader says his bosses turned blind Former congressional hopeful in New Hampshire faces trial on charge of Mexico’s Cemex states unexpected free cash will help offset downturn in Australia’s Fosters names new finance chief Gulf Finance House FY net rises 61 pct to 340 mln usd Analysis: Fla. is 1st huge battleground for McCain, Romney Market gains as metal prices rise Lung Cancer Alliance Urges Inclusion of $5 Billion for Biomedical |
As the Federal Reserve starts this week’s meeting today, the question that the Fed will probably be asking is not whether to cut interest rates again, but just 
Home price depreciation accelerated in November, with prices falling in all 20 cities surveyed by the Case-Shiller Home Price Index, survey officials 
U.S. foreclosure filings increased 75% in 2007 to 2.2 million, with more than 1% of all U.S. households facing foreclosure, a leading real estate market research company announced Tuesday. 
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