Miami-area home sales fell on a year-over-year basis for the first time in 20 months during October, when an increase in condo resales failed to offset steep sales declines for existing single-family houses and newly built homes. The median sale price inched up a bit from September but remained lower than a year earlier for the 37th consecutive month, a real estate information service reported.
In the wake of yesterday’s announcement that WikiLeaks is planning to release damaging documents about one of our biggest banks, comes today’s rumor that the bank is Bank of America.
In October 2005, near the end of the bull real estate market that eventually collapsed and sparked the Great Recession, mortgage employment peaked at 535,400 based on government data. In September 2010, industry-wide headcount had fallen to 246,400.
Homeowners are so distracted by the desire to sell high, that they are putting their lives on hold and missing the opportunity to buy their next house for a great low price.
At some point, the cost of owning shot right past the cost of renting. Owners were losing money, month after month, on a real cash flow basis relative to renting. But they didn’t care because they felt rich from the implied increase in their house’s value. They could even refinance at the greater valuation implied by “comps” – appraisals or sale prices of similar properties nearby – and pull money out to cover their monthly shortfall.
“The national economy is certainly the number one issue for housing. Additionally, there is a large supply of houses on the market and further, hidden, supply due to delinquent mortgages, pending foreclosures or vacant homes. New construction is running at less than half the pace needed to meet normal demand, so a sustained recovery could be a ways off.”
Henry Blodget: “The folks who were tied to the whole real estate boom and construction and real estate sales and appraisals and everything else, still basically hosed.”