Mobile Version
Free Internet Press
  Uncensored News For Real People


FIP Year In Review

FIP Month in Review

FIP Archive Search




2014-07-09
R.I.P. William 'Bill' Herbert Kelder - Intellpuke

2013-11-28
Gamers Donate 37,500 Pounds Of Food To Needy

2013-09-30
Statement From The Whitehouse Regarding The Government Shutdown

2013-09-29
An Open Response To 'Organizing for Action'

2013-08-26
Bayou Corne: The Biggest Ongoing Disaster In The U.S. You Have Not Heard Of

2013-04-21
Boston Mayor Hopes Feds 'Throw the Book' at Marathon Bombing Suspect

2013-04-19
Boston Police Closing In On Suspects

2013-04-15
2 Explosions At Boston Marathon. 2 Dead, Many Injured.

2013-01-03
The Press vs Citizens Rights and Privacy - Act 3

2012-12-30
CBS News - Year In Review 2012

Nature.com - 366 Days: 2012 In Review

The Guardian - 2012 In Review: An Interactive Guide To The Year That Was

TruTV - The Biggest Conspiracy Theories of 2012

Colbert Nation: 2012: A Look Back

FIP Year In Review(s?)

2012-12-25
Happy Holidays

2012-12-21
Welcome To A New Era!

2012-12-16
An Open Letter To United Health Care, Medcom, And The Medical Insurance Industry In General

2012-11-17
Whitehouse Petition To Remove "Under God" and "In God" From Currency And The Pledge.

2012-11-15
December 21, 2012

2012-11-11
If Hillary Clinton Ran For President, She Would Probably Be The Best-prepared Candidate In American History

2012-11-10
CIA Director David Petraeus Resigns After FBI Investigation Uncovers Affair With High-Profile Journalist

FIP Format Update

2012-11-07
Thank you for voting.

2012-11-06
Live Election Results

2012-09-30
FIP In Hiatus

2012-09-18
U.S.-Afghan Military Operations Suspended After Attacks

Iran Nuclear Chief Says IAEA Might Be Infiltrated By 'Terrorists And Saboteurs'

Romney Stands By Gaffe

2012-09-17
President Obama Says China Trade Practices Harm American Auto Parts Workers


Foreclosures Squeezing U.S. Home Prices And Sales
2012-04-24 17:09:45 (130 weeks ago)
Posted By: Intellpuke
Rising foreclosures are weighing on the U.S. housing market, reducing prices and keeping new-home sales weak.

Foreclosed homes are usually sold at steep discounts, thereby lowering average prices. And by expanding the supply of low-priced previously occupied homes, foreclosures tend to limit demand for new homes.

Some economists expect foreclosures to keep prices under pressure this year, even though they think sales of previously occupied homes will rise.

Banks are stepping up foreclosures in about half the states. The increase comes after state officials settled a dispute in February with five of the biggest mortgage lenders over foreclosure abuses.

"Foreclosures, excess supply and weak demand will drive home prices ... down at least another 5 percent," said Patrick Newport, an economist at IHS Global Insight.

(story continues below)




The Standard & Poor's/Case-Shiller home-price index, released Tuesday, showed that prices dropped in February from January in 16 of the 20 cities it tracks. That's the sixth straight decline.

And new-home sales fell sharply in March, the Commerce Department said. Sales dropped 7.1 percent to a seasonally adjusted annual rate of 328,000.

Still, there were good signs in both reports. New home sales were revised sharply upward in February to show a 7.3 percent gain, much larger than initially reported. That suggests that warm winter weather might have pulled some sales into February that normally would have occurred in March.

As a result, new-home sales rose 7.5 percent in March compared with a year earlier.

And the pace of decline in the S&P/Case-Shiller index slowed. Some economists said that suggests prices are stabilizing. The index fell 3.5 percent over the 12 months that ended in February. That's the smallest annual drop in a year.

Purchases of previously occupied homes, meanwhile, rose in January and February, making this winter the best for sales in five years. Such purchases dropped back in March, to a seasonally adjusted annual rate of 4.48 million.

Builders are laying plans to construct more homes in 2012 than at any other point in past 3½ years. More jobs and a better outlook among buyers could also make 2012 the first year since 2008 that construction added to the U.S. economy.

Stan Humphries, chief economist at the real estate website Zillow, said it's normal in the early stages of a housing recovery for prices to keep sliding even as sales start to tick up.

"This is all part and parcel of the bottoming process," he said.

The national numbers mask regional differences. Foreclosures are rising sharply in 26 states in which courts oversee the process. A report last month by RealtyTrac showed that bank repossessions in February dipped slightly nationwide. But they soared in Massachusetts, North Carolina, Florida and Georgia, among other states.

Foreclosures are a big reason prices are falling fast in Atlanta, where the average price sank 17.3 percent in February compared with a year earlier. That's the biggest annual drop in the history of the Case-Shiller index for any city.

Yelena Shulyatyeva, an economist at BNP Paribas, said she expects 1 million homes to be foreclosed this year, up from 800,000 in 2011.

Mark Vitner, an economist at Wells Fargo, said there's also a divide between so-called "distressed" home prices and the rest of the market. Distressed homes include foreclosures and "short sales." Short sales occur when lenders allow homes to be sold for less than what's owed on the mortgage.

Home-price indexes that exclude distressed properties suggest that prices are inching up.

For non-distressed properties, "there's really some intense competition out there," Vitner said. "A lot of houses are getting multiple bids."

Humphries estimates that foreclosed homes made up about 20 percent of February sales. That figure has been 15 percent to 20 percent since late 2008, he said. In a healthy market, it's usually less than 5 percent.

The Case-Shiller index showed that prices rose in Phoenix, Arizona, San Diego, California, and Miami, Florida. They were unchanged in Dallas, Texas.

Phoenix and Miami are also seeing heavy foreclosures but are benefiting from intense interest among investors.

The average home price in Phoenix has risen for five straight months. The average in Miami rose in February, too.

Nationwide, the steady price declines have brought the Case-Shiller index to its late 2002 level. Home prices have fallen 35 percent since the housing bust.

The S&P/Case-Shiller monthly index covers half of all U.S. homes. It measures prices compared with those in January 2000 and creates a three-month moving average. The February figures are the latest available.

Intellpuke: You can read this article by Associated Press Eonomics Writer Christopher S. Rugaber, reporting from Washington, D.C., in context here: http://www.guardian.co.uk/world/feedarticle/10210956


Email To A Friend
Email this story to a friend:
Your Name:
Their Email:
 
Readers Comments
Add your own comment.
(Anonymous commenting now enabled.)

Creative Commons License
Free Internet Press is licensed under a Creative Commons Attribution 3.0 United States License. You may reuse or distribute original works on this site, with attribution per the above license.

Any mirrored or quoted materials may be copyright their respective authors, publications, or outlets, as shown on their publication, indicated by the link in the news story. Such works are used under the fair use doctrine of United States copyright law. Should any materials be found overused or objectionable to the copyright holder, notification should be sent to editor@freeinternetpress.com, and the work will be removed and replaced with such notification.

Please email editor@freeinternetpress.com with any questions.

Our Privacy Policy can be viewed at https://freeinternetpress.com/privacy_policy.php

XML/RSS/RDF Newsfeed Syndication XML/RSS/RDF Newsfeed Syndication: http://freeinternetpress.com/rss.php

XML/RSS/RDF Newsfeed Syndication XML News Sitemap