New home construction fell in May:
The government reported Wednesday that new home construction fell sharply in May -- the first month after a homebuyer tax credit expired.The oil spill may deal the Florida housing market a second blow:
Housing starts fell 10% from April to a seasonally-adjusted annual rate of 593,000 last month, the Commerce Department said.
"This oil coming in is going to affect values for years, and there is no telling how many years at this point," warns McCabe. "So it is not just going to have a temporary effect, this is going to have a long term effect on property values anywhere along the coastal regions."Some of the nation's immunozones might not be that immune:
A new report shows that the “shadow inventory” of homes, with delinquent mortgages that have yet to go through the foreclosure process, is growing fastest in areas that have so far avoided the biggest home-price declines, according to a report by ratings agency Standard & Poor’s. ...Fannie Mae and Freddie Mac are going to be delisted from the NYSE:
Indeed, cities that avoided the worst of the housing downturn so far—and which have seen fewer distressed sales—are now seeing a bigger increase in shadow inventory, as prices adjust in some of those late-to-the-party markets. Phoenix and Las Vegas, which have had the sharpest price corrections, also have among the lowest levels of shadow supply, at 18.5 and 21.4 months, respectively.
The federal regulator overseeing Fannie Mae and Freddie Mac ordered the mortgage finance giants on Wednesday to delist their shares from the New York Stock Exchange, dealing another blow to the battered companies. ... Both firms' stock prices plunged by nearly 40 percent after the announcement.The closing deadline for the home buyer tax credit may get extended until September 30:
More breathing room could be on the way for people racing to meet the June 30 closing deadline to qualify for a home-buyer tax credit.
The Senate recently passed a measure that would give buyers who met the April 30 deadline for signing a purchase agreement an additional three months to close their deals. The legislation, attached to a bill that would extend unemployment benefits, still needs final approval in the House.
The new closing deadline would be Sept. 30.
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Take away tax credits and other government support, and you have a housing market that cannot stand on its own legs. This is one of those scenarios where the clock always says midnight.
ReplyDelete"This is one of those scenarios where the clock always says midnight."
ReplyDeleteBut... at least its right twice a day?