housing bear market

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The Myth of China’s “Ghost Cities”

Obviously there are only two scenarios to China’s growth. You can bring the people (first) to the sites of these new cities, and then try to build the cities around them; or you can build the cities first – and then bring the migrants to live in them. As for the “64 million empty apartments”, that’s enough housing for no more than a quarter of these migrants… Not only is the proportion of empty homes in the U.S. greater than that of China, but there will never be buyers for millions of these units.

31May2011 | | 9 comments | Continued
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The Price-Myth Regarding U.S. Foreclosures

“… when propaganda outlets like Realty Trac write that “the average discount for REO [bank-owned] properties is 35%”, this is a complete myth. The reality (when we reverse the arithmetic) is that the average non-foreclosed home in the U.S. is being priced at a 50% premium above the real price… The only way that someone could argue that these foreclosure prices are merely “temporary anomalies” rather than the future of the U.S. housing market was if there was some end in sight to these millions of foreclosures. There isn’t.”

26May2011 | | 8 comments | Continued
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Freddie Mac Ends Streamline Refi Come Spring

The Federal Home Loan Mortgage Corporation (FHLMC), more known as Freddie Mac, will no longer offer its streamlined mortgage refinancing option this coming spring, the lender recently announced… Borrowers can still get the same benefits of the streamlined refinance mortgages through the Relief Refinance option, Freddie Mac’s take on the government-supported Home Affordable Refinance Program (HARP) introduced in February 2009. The HARP is among the programs supported by the umbrella program, Making Home Affordable.

5Mar2011 | | 0 comments | Continued
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FreeRateUpdate.com: Foreclosures Forecasted to Flood Market in 2011

Foreclosure filings for the month of January experienced a 17 percent decline over last year, according to RealtyTrac, Inc., which publishes the most comprehensive database of home foreclosures online. But this positive news could slightly mislead consumers. Other background factors are at play. For example, many lenders are currently bombarded with the sheer number of […]

18Feb2011 | | 2 comments | Continued
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New housing crash trend and obvious severe risks in 15 key charts

The U.S. housing market is riddled with massive risks which will almost certainly lower prices.

4Dec2010 | | 3 comments | Continued
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QE2 Shows The Fed Has Failed; Has No Credibility

by Aaron Krowne ML-Implode.com founder How soon we forget. There has been a lot of good commentary on the Fed’s latest round in its programme of “quantitative easing” (or “QE”), announced Tuesday, for $600 billion in additional bond buying (or is it $900 billion?) But it all seems to have missed the most important point: […]

4Nov2010 | | 1 comment | Continued
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A Mammoth One in Five Borrowers Will Default

A leading mortgage analyst predicts over 11 million homeowners will default and lose their home if the government fails to take more radical intervention.

4Oct2010 | | 0 comments | Continued
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HousingStory predicts a nine percent fall in property prices nationwide in 2010

We make the call for a new decline in prices despite positive signals of higher prices including a gain of seven percent nationwide by Case-Shiller 10-City index from its post-crash bottom in April 2009.

10Sep2010 | | 0 comments | Continued
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Pending Home Sales Reconfirm the Market is Crashing

Three months of readings after the end of free down-payments, the inventory of purchase contracts rose just 5.25%. The inventory is still is at a record low with the exception of the two previous months – each of which were record lows in themselves.

3Sep2010 | | 2 comments | Continued
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Inventory Explodes Past the Worst of the Housing Crash

Soft demand for existing homes pushed up inventory to a record 12.5 months of sales and easily broke the previous high of 11.3 months scored in April 2008. By this basic measure, the price of homes may reasonably be expected to fall at the most torrential pace seen during our four-year-old crash.

25Aug2010 | | 1 comment | Continued