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Housing slump gets worse

ratAphooey said: "Housing suffers its worst [url=http://news.yahoo.com/s/ap/20080527/ap_on_bi_ge/home_prices]decrease in 20 years[/url]. [quote] Standard & Poor's/Case-Shiller said its national home price index fell 14.1 percent in the first quarter compared with a year earlier, the lowest since its inception in 1988. The quarterly index covers all nine U.S. Census divisions. The narrower indices also set record declines. The 20-city index tumbled 14.4 percent during the quarter, the lowest since that index was started in 2001. The 10-city index plunged 15.3 percent, a record in its 20-year history. "There are very few silver linings that one can see in the data. Most of the nation appears to remain on a downward path," said David Blitzer, chairman of S&P's index committee.[/quote] Las Vegas had the worst decline of all dropping a whopping 25.9%. Does anyone think we're nearing the bottom?"

Heather said: "It's got to be getting closer. I read that today a number of banks are freezing HELOC's on people because home values are slipping. That isn't good news..."

placer7 said: "US banks fear being forced to take $5,000bn back on balance sheets By Paul J Davies and Gillian Tett in Cannes and Jennifer,Hughes in London Accounting changes could force US banks to take thousands of billions of dollars back on to their balance sheets in the coming months in a move that is likely to curb further their lending and could push them into new capital raisings, analysts have warned. Analysts at Citigroup said a planned tightening of the rules regarding off-balance sheet vehicles would force banks to reconsider arrangements and could result in up to $5,000bn of assets coming back on to the books."

placer7 said: "Yesterday afternoon, monoline bond insurers AMBAC and MBIA were downgraded by Standard & Poors. Their ratings were lowered from AAA to AA. Had this action happened 3 months ago, it would have had major news coverage, yet this morning, only one mainstream financial website even has the information available; buried near the bottom of their site."

akhanna01 said: "the main reason for the global crises is the housing slump in usa which leads to sub prime crises and then spread to all over the world."

Mr. Gekko said: "While current home owners are depressed due to lower property values, I couldn't be happier. After I graduate (little less than a year), I'll become a first time home owner. So, as far as I'm concerned the market can continue to go down or even tread water for the next year. :biggrin5:"

rmani said: "[QUOTE=Mr. Gekko;70926]While current home owners are depressed due to lower property values, I couldn't be happier. After I graduate (little less than a year), I'll become a first time home owner. So, as far as I'm concerned the market can continue to go down or even tread water for the next year. :biggrin5:[/QUOTE] I'm in a similar situation as you I'm hoping vaues keep going down so I can actually afford something decent."

Aligator said: "Both rmani and Gekko could be in fine shape. My daughter is a mortgage broker, though, and she has informed me that the qualifications have really tightened up so be sure you're in good shape when you shop. The foreclosure market may yield some nice buys. I've tried that market and never found anything I wanted to buy, but I'd try it again if I were in the market. I don't look for real estate to come roaring back, though, so I wouldn't expect that you'll clean up; you'll just get what you pay for, that's all. Which is better than the guy before you did.:blush2: Ah to be just startin' out again.....what an exciting time in your life.:cool:"

Mr. Gekko said: "[QUOTE=Aligator;70994]Both rmani and Gekko could be in fine shape. My daughter is a mortgage broker, though, and she has informed me that the qualifications have really tightened up so be sure you're in good shape when you shop.[/QUOTE] I have no debt what so ever... no credit card, car loan, college loan no nothing. So, I'm in fine shape! Plus, I'll be able to put at least a 15% down payment on whatever I purchase. :cool: [QUOTE=Aligator;70994] The foreclosure market may yield some nice buys. I've tried that market and never found anything I wanted to buy, but I'd try it again if I were in the market. [/QUOTE] I really don't want to put a whole lot of work into my first house... particularly to make it livable. That usually puts foreclosures out of the question."

AlfredSokol said: "Owning your own home (even though the bank actually owns it) is a great feeling for anyone. Congrats Gekko."