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NY Times' Leonhardt on House Prices
Calculated Risk —
From David Leonhardt at the NY Times: For Housing Crisis, the End Probably Isn’t Near Note: See article for graphic on house prices to median income by city. ... I decided to go to an auction at a hotel ballroom in Washington — and to study the results of several others elsewhere — with an eye to figuring out whether prices may now be close to bottoming out. ... The winning bid on the first home auctioned off, a two-bedroom townhouse in Virginia Beach, was $115,000. Just last July, it sold for $182,000, according to property records. A four-bedroom ...
Links Earth Day
naked capitalism —
... the ‘green shoots’ of recovery could yet wither Martin Wolf, Financial Times How economics lost sight of real world John Kay, Financial Times Debtholders vs. U.S. Over Chrysler Deal New York Times. The bondholders want 65 cents on the dollar PLUS 40% of the company when the debt trade for 15 cents. And guess who is leading the bondholders? JP Morgan and Citi. Five Buildings that Should not have been Built Robert Green For Housing Crisis, the End Probably Isn’t Near David Leonhardt, New York Times. A new ...
Wednesday morning links
The Mess That Greenspan Made —
... Offer $1.1 Trillion Toxic-Asset Plan - Bloomberg • Central bank darkens view of recession - Globe & Mail • Canada Cuts Rate to 0.25%, May Keep It There for Year - Bloomberg • Sweden cuts rates to record low of 0.5% - Financial Times HOUSING • Las Vegas tops foreclosure list - CNN/Money • An Effort to Save a City by Shrinking It - NY Times • Mortgage rates likely to stay down all year - MarketWatch • For Housing Crisis, the End Probably Isn’t Near - NY Times FED/TREASURY/BANKING ...
Median Income vs Median Home Price
The Big Picture —
Great interactive chart I meant to get to earlier this week, via the NYT:
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Source:
For Housing Crisis, the End Probably Isn’t Near
DAVID LEONHARDT
NYT, April 21, 2009
http://www.nytimes.com/2009/04/22/business/economy/22leonhardt.html ...
The Elusive Housing “Fair Value”
The Big Picture —
... Second, we know the recession plus a glut of foreclosed homes creates a “self-reinforcing cycle.” Job losses and income decreases lead to more distressed sales, with prices especially pressured. Falling prices make put mortgage holders underwater — holding homes worth less than the mortgage. This leads to walkaways, jingle mail, and even more foreclosures. All of this adds up to an even greater excess supply of homes for sale. More supply equals lower prices. The entire vicious cycle continues. ...
