The double dip housing recession Pete the Banker spoke about on the program Friday is once again confirmed by the numbers this morning.
Here’s what he found Thursday afternoon by CNBC’s housing expert:
“Sales of bank-owned (REO) properties hit 34.5 percent of the market, according to the survey, resulting in a national price drop of 4.9 percent quarterly and 5 percent year-over-year. National home prices have fallen 11.5 percent in the past nine months, a rate not seen since 2008.” [emph added]
“With more than one-third of national home sales being REO (bank owned), market prices are being weighed down as many markets have not regained enough footing to withstand the strain of the high proportion of REO sales,” says Clear Capital’s Alex Villacorta.” Here.
Consultant and Analytics firm, Clear Capital, also confirms:
Zillow/WSJ 5-9-11 “Prices first reached a new low in California in March. But in April national prices fell 5% below levels measured one year ago and decreased 4.9% from the previous three months. National home prices sank 11.5% over the previous nine-month period, a decline not seen since 2008, Clear Capital said.“Markets have entered uncharted territory,” Clear Capital said.” Here.
And today from the WSJ (Here). Zillow also confirms the bad news:
Prices have now fallen for 57 consecutive months, according to Zillow.…[T]he improvements, spurred by federal programs that gave buyers up to $8,000 in tax credits, proved fleeting. Sales collapsed when the credits expired last summer, and prices in many markets have been falling ever since.[emph added][Zillow chief economist ]Mr. [Stan] Humphries now believes prices won’t hit bottom before next year and expects they will fall by another 7% to 9%. Other economists revised their forecasts. In April, the chief economist at mortgage company Fannie Mae, Doug Duncan, said home prices in the second quarter would be 5.3% lower than the previous-year period, down from his earlier estimate of a 2.6% decline.
Tell ’em where you saw it. Http://www.victoriataft.com
