This is in Canada, but the picture is the same in the U.S. We suspect it’s the same in Europe, but the RE agents are more clever and don’t put up so many signs.
A couple entries from one of our favority trade publications
leads us to the inescapable conclusion that the real estate crisis isn’t over, in spite of what you may be reading about increased home sales, rising home prices, etc.
Check these out: [we added underlines]
Sandy delays Northeast foreclosure flood
Moratoriums on foreclosures in areas hard-hit by Hurricane Sandy could prolong the housing recovery and make the foreclosure problem worse in those areas, according to media reports. In the 34 counties declared disaster areas, foreclosure activity was up 54% at the end of October compared to a year ago.
Last week, Fannie Mae and Freddie Mac told their loan servicers to postpone any actions against defaulting borrowers for 90 days. For more, click here…
FHA faces $16 billion shortfall, bailout may be necessary
The Federal Housing Administration is facing a $16.3 billion shortfall
and may need taxpayer help to cover the losses, according to an independent audit. The agency said home prices have not risen as fast as they forecasted, and low interest rates have lowered returns. A high number of mortgage delinquencies from the real estate bubble also caused the agency to come up short. For more, click here…
Housing affordability improves in third quarter
Lower interest rates helped make homes more affordable to median-income families even as house prices continued to inch up in metro areas across the country in the third quarter, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index. Nationwide, 74.1% of all homes sold in this year’s third quarter were affordable to families earning the U.S. median income of $65,000. This was up slightly from the 73.8% of homes sold that were affordable to median-income earners in the second quarter. For more, click here…
Note from IFO – lower interest rates DO NOT make housing more afforadable. They make home prices go up. If interest rates go up, prices for these “affordable” homes will crash.
For more excruciating details, please see: Dr. Housing Bubble , who continues to provide excellent, clear-eyed, factual information and analysis well beyond his traditional stomping grounds of Southern California.