Pending Home Sales Plunge 30% in May

Discussion in 'Politics, Religion, Social Issues' started by squeeks, Jul 1, 2010.

  1. squeeks macrumors 68040

    squeeks

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    #1
    http://www.examiner.com/x-51094-Gre...y2010m7d1-Pending-home-sales-plunge-30-in-May

    http://www.nydailynews.com/money/20...me_sales_plunge_record_30_percent_in_may.html

    Awesome job Mr. President keep up the good work! :rolleyes:
     
  2. stridemat Moderator

    stridemat

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    #2
    http://news.bbc.co.uk/1/hi/business/10473334.stm


    Much the same happening in the UK at the moment. Looks like we may have a few touch and go months left yet.
     
  3. squeeks thread starter macrumors 68040

    squeeks

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    #3
    or...that the President has no idea what he is doing and we're in a new freefall to the bottom
     
  4. tigres macrumors 68040

    tigres

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    #4
    Wait until Frank and Dodd's Financial reform bill gets signed- you ain't seen ANYTHING yet.

    Be ready for 4-7 banks, and no mortgage brokers left in this country w/in 3 years. They just regulated the way loan officers/brokers/ and the like out of business.

    Government will be doing home loans soon, with their vast knowledge of how the mortgage business. These home sale numbers are a direct reflection of how pending loans are falling out due to HVCC and other BS Government control schemes.
     
  5. flopticalcube macrumors G4

    flopticalcube

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    #5
    I don't see that the overfed, overmortaged housing market has any place to go but down, regardless of the abilities of the incumbent POTUS. I have not seen him be very "presidential" with regards to the economy lately, however.
     
  6. squeeks thread starter macrumors 68040

    squeeks

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    #6
    Is that like how they are experts in cleaning up oil and running health care?

    you're about 18 months late with that statement...or havent you heard the housing market has been in the gutter for almost the past 2 years?
     
  7. mcrain macrumors 68000

    mcrain

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    #7
    BP is cleaning up the oil as required by law, and the health care plan was almost identical to the 1992 Republican counterproposal to the Clinton plan. I would have preferred universal care, medicare for everyone, or some other single payor system, but oh well. Who's running health care, by the way? The new health plan keeps things pretty much the same, just more insurance customers. What's the problem?

    Really, because the home buyers tax credit made the housing market boom for a while there, all the way until it expired. The credit expired, people who had been in the market for a house had purchased, so what did you expect? Housing rates to stay as high as they were right before the credit expired? That's silly. http://abcnews.go.com/Business/wireStory?id=10511801
     
  8. flopticalcube macrumors G4

    flopticalcube

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    #8
    Just because its in the gutter doesn't mean it can't fall more. Another couple of years of slow falls followed by a long, flat bottom....
     
  9. itsjared macrumors regular

    itsjared

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    #9
    I work in the Foreclosure Auction business and we should be having awesome sales right now. We did have great numbers in 08 but as soon as, And I mean as soon as, Obama took office even our sales have stagnated. We laid off 25% of our workforce and we're an auction company! Trying to sell the over 2 million foreclosures last year alone!

    POTUS signed all those BS home mortgage schemes into law trying to prevent foreclosure and most, if not all of them dont prevent foreclosure. Just delaying the inevitable.
     
  10. Cave Man macrumors 604

    Cave Man

    #10
    You shouldn't be so hard on Bush. After all, he was only looking out for his friends.
     
  11. leekohler macrumors G5

    leekohler

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    #11
    Exactly- it's over-inflated and still is. There are only so many people who can afford these prices, and I bet most of them own houses already.

    Exactly. People don't buy what they can't afford, at least sensible people don't. The housing market is so over-inflated, I don't see an end in sight, TBH. People who bought $325,000 one bedroom condos at the height of this BS are going to lose no matter what.
     
  12. dmr727 macrumors G3

    dmr727

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    #12
    According to Wikipedia, the median household income for my city is $56,000/year. The median home price in the first quarter of 2010 was $455,000. How does that make any sense?
     
  13. bobber205 macrumors 68020

    bobber205

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    #13
    That's insane.
     
  14. Eraserhead macrumors G4

    Eraserhead

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    #14
    If the median house price in London is much less than $1m I'd be quite surprised.
     
  15. flopticalcube macrumors G4

    flopticalcube

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    #15
  16. Gelfin macrumors 68020

    Gelfin

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    #16
    Yeah, I do quite well, but there's no chance in hell I can afford a house in the foreseeable future. I am no real estate expert, but I know the traditional rule of thumb for lending is that you can afford a house up to three times your annual gross income. It is easy to infer a corollary rule of thumb that any housing market where the median home price is much more than three times the median income is overvalued. Given what house prices actually are, this seems too incredible to believe easily, but can anybody explain to me why it's wrong?
     
  17. flopticalcube macrumors G4

    flopticalcube

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    #17
    Its not wrong. When prices exceed 3 times income (its usually joint income these days but that's an excuse in itself), all sorts of reasons are put forward as to why its "different this time". Same thing when it goes under.
     
  18. awmazz macrumors 65816

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    #18
    It's important to understand that George Bush plunged the world into this mess and deserves 100% of the blame. The only reason we aren't all standing in soup kitchen lines right now is world govts borrowing and spending like drunken sailors over the last decade (Bush included) to maintain consumer spending, which has only resulted in us not hitting the massive lows we were due.

    For the last 10 years we've been following a predetermined path, but take note that the upswing in year 13 (1942 = 2013) is the bombing of Pearl Harbor and US massive govt spending and industry grinding up into war mode. And the stagnation after that in the late 1940s only ended with the Korean War.

    But Bush already used the 'war' tactic in year 3 when he invaded Iraq, which kept the markets from hitting their natural terminal point. But despite all that supposed but false 'economic good times', by the end of Bush's second term the US stockmarket still hit the exact same spot as in 1938. The massive 2009 bailouts have made the upswing look a little better but so far it's still the same predetermined path regardless so will we continue to reach the same points anyway no matter what anyone does?

    [​IMG]
     
  19. Shivetya macrumors 65816

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    #19
    Considering the special tax deduction for buying a home expired who didn't expect sales to plummet?
     
  20. mactastic macrumors 68040

    mactastic

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    #20
    Well, for one thing, if you have TWO median earners, or the equivalent, in the household, that doubles the amount one could reasonably afford under the 1/3 rule. Housing prices have certainly managed to soak up a lot of the increase in household income that came with the increase in women working.

    Exactly. Anyone who didn't see this coming has had their head in the sand.
     
  21. Desertrat macrumors newbie

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    #21
    awmazz, I hope the tuition for Remedial Fiscal History is not too onerous. :D

    How did Bush manage to pass the Community Reinvestment act, back in the 1970s? How did he get rid of Glass-Steagall, in the 1990s? How did Bush control the Federal Reserve Bank's interest rates? Before 1994 and after 2006, how did he control the House Appropriations Committee?

    I freely admit to his ignorance on economic matters, but who had control of the Congress when the first stimulus bill was passed? Who had control of Congress when TARP was instituted?

    Not only were home sales down, remember that a foreclosure counts as a sale. Some 29% of these home sales were foreclosures...
     

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