Thursday, May 12, 2005

LAN Crashed Yestersday

My internet provider crashed yesterday afternoon, so I haven't been able to post or check news. Any links are appreciated as the tech guys work out the problem. Please check back soon, as I will get back up to speed shortly.

6 Comments:

At 8:58 AM, Anonymous Anonymous said...

BEFORE YOU CASH IN

http://www.nypost.com/realestate/43612.htm

'You'll repay when you sell. If you sell your home, you will be required to pay off your home-equity line of credit in full - just as you have to pay off your outstanding mortgages. "If you are likely to sell your home in the near future, consider whether it makes sense to pay the up-front costs of setting up a line of credit," says McCue-Perez.'

I never knew this. Yikes! This will be painful, when prices drop and owners need to sell. How many Boomers are thinking about this?

 
At 9:15 AM, Blogger Melody said...

IRVINE, Calif., May 6 /PRNewswire/ -- RealtyTrac(R) (http://www.realtytrac.com),
the leading online marketplace for foreclosure properties, today released it's
March 2005 Monthly U.S. Foreclosure Market Report(R). RealtyTrac publishes
the largest national database of pre-foreclosure and foreclosure properties,
with more than 550,000 properties in more than 1,900 counties across the
country, and is the exclusive foreclosure data provider to MSN House & Home,
Yahoo! Real Estate and HomeGain.com.
(Photo: http://www.newscom.com/cgi-bin/prnh/20050506/LAF014)
"Our March data includes approximately 62,422 new properties in some
stage of foreclosure -- a 17 percent increase from February," said Jim
Saccacio, RealtyTrac chief executive officer. "While some of this increase
can be attributed to new counties in our coverage area, foreclosures clearly
increased from February to March. We'll be watching the April numbers very
carefully to see if this is the beginning of a trend, or a one-month
aberration."
According to the report, five states constituted more than 45 percent of
all March foreclosures -- Florida, Utah, Georgia, Texas and Colorado. These
five states have the largest number of foreclosures, with more than twice the
national average. Florida and Texas alone make up one-third of national
foreclosures in March.

 
At 9:33 AM, Blogger Melody said...

Good read

"CEO's of KBH and PHM on CNBC
CEO's of KBH and PHM on CNBC


Well, it looks like we are back to the smartest guys in the room syndrome again. When shown David Tice's comments concerning the fact that in the latest quarter 36% of all new homes were bought by either investors (25%) or 2nd home buyers (16%), the CEO of KB Homes said that "Mr. Tice just does not understand the homebuilding industry".

What BS!

Let's look at a local KB Home neighborhood here in Houston that is kinda typical of what is beginning to occur all over the country.

Eaglewood subdivision in Houston, Texas:

KB Home development built 2001 to 2004

Currently 59 homes Active, Pending or Sold within the past 6 months.

30% of all those homes are FORECLOSURES!

38% of all those homes PENDING or SOLD are FORECLOSURES!

Roughly 40% of the market activity in a new neighborhood are FORECLOSURES ... and growing higher in percentage as the homeowners continue to throw in the towel becuase they cannot compete with the foreclosure market and they can't pay their mortgage any longer either.

This is not an isolated incident, rather just the easiest one that I can think of for illustration here. The problem has gotten so bad that KB Homes has fenced off the old neighborhood (to block the view from new buyers) and started the new section under a different neighborhood name. Pretty slick, huh?

It would seem that we just don't get it. Things are grand and all these leveraged buyers, speculators and 2nd home buyers are of no concern. 40% of the market activity in a new neighborhood should be foreclosures, huh?"

 
At 9:34 AM, Blogger Melody said...

No pensions
No dividends
No health care
No medicaid
No social security
No savings so no fixed income
Increased credit card payments
Can't declare bankrupcy

Ahh but you can ..

Flip your home to a greater fool.

 
At 9:41 AM, Blogger Ben Jones said...

Great post Melody,
Please watch the Houston market for us.

 
At 9:42 AM, Blogger goleta said...

Ben,

Check out the following links. Brits have been buying properties all over Europe just like Californians do to the rest of the US
and several European countries are now deep into debt crises because of the property boom.

http://www.themovechannel.com/News/2005/May/12c.asp

http://www.bulgariandreams.com/news/thebusiness040315.html


At a increase of 17.5% in a year the rise in debt equates almost exactly to the rise in property prices in Spain generally, and is three times the rate it was back in 1996 - the start of the current property boom.

...
Increasingly British buyers are buying property in Spain, much off-plan, taking advantage of the upward growth and buying with top-up mortgages, at almost half the rate of the rates levied on their UK homes. Until recently second home buying by non-residents was largely confined to coastal strips but this is not so any more and inland property prices are rising in line with holiday properties.

 

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