Tuesday, October 16, 2007

Realtors moving offices to Candyland?

Below for your enjoyment is a collection of article headlines posted today from various news services. Can you spot the one that's from Candyland? The mythical place where everything is great. The roads are paved with chocolate and the sky is full of rainbows.


California median home prices are predicted to fall next year for the first time in ten years, according to a a recent forecast released by the California Association of Realtors(CAR). CAR is predicting that in 2008, the median price of a resale home in the state will drop 4 percent to $553,000 and sales will fall another 9 percent in addition to the 23-percent plunge that is predicted for this year. Riverside, San Bernardino and the Central Valley counties are experiencing the steepest declines, the forecasters said, largely as a result of an exceptional amount of new-home construction, which has forced builders to take large price cuts to clear unsold inventories. CAR President Colleen Badagliacco predicts that Riverside and San Bernardino counties will continue to suffer more than the rest of the state because of the large number of subprime mortgages that were used by first-time buyers who moved inland from coastal counties to buy affordable housing. Badagliacco said she expects the California housing market will again be jolted in the second and third quarters, when more adjustable-rate subprime mortgages are scheduled to reset, possibly at higher interest rates. "Tighter credit standards, affordability concerns and a continued standoff between buyers and sellers will contribute to continued weakness in the market going into next year," Badagliacco said. Badagliacco added that the industry is hoping the federal government will help by raising the lending limits on government-sponsored mortgages. Chapman University economist Esmael Adibi said the significance of CAR's projection is that it reflects a growing pessimism among real estate experts. Adibi said it is the first time that Badagliacco's group has acknowledged the downturn may continue for another year. "We haven't seen any turnaround in sales, and the inventory of unsold homes keeps rising," Adibi noted. "For sure there will be no rebound."
Several major banks, including Citigroup, Bank of America Corp. and JPMorgan Chase & Co. have announced they are pooling money to prevent investment funds from having to dump assets into the market. The pool will prop up funds known as structured investment vehicles (SIVs), which have had trouble refinancing their debt recently and in the worst case scenario would have to sell their assets to pay off investors.

NAR Says Improvement in Mortgage Market Bodes Well for Housing in 2008
Conditions in the mortgage market are improving for consumers, according to the latest forecast by the National Association of Realtors (NAR). Lawrence Yun, NAR vice president of research, notes that widening credit availability will help turn around home sales. “Conforming loans are abundantly available at historically favorable mortgage rates. Pricing has steadily improved on jumbo mortgages since the August credit crunch, and FHA loans are replacing subprime mortgages,” he said.

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Westside Bubble said...

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North Carolina Mortgage said...

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