As much as we scoff at the National Association of Realtors data and analysis - these were the same people who denied the downturn well into the crash - even their latest numbers highlight the problem - "The median price of a previously owned home was $210,200 in November, down 3.3% from $217,300 in November 2006".
We are continually amazed that leading publications, including the WSJ continue to publish the so called analysis of the NAR. That it represents the interests of its main group - Realtors - who benefit when sales are high is not in question. But when media such as the WSJ publish its monthly reports it gives the group the credibility it does not deserve. The tobacco industry should be so fortunate. Click here for an excellent analysis of the work done by the NAR during the bust years of 2005 2006 - http://davidlereahwatch.blogspot.com/. Be sure to check out the graphic showing the deterioration of housing and the then Chief Economist's statements.
Here is the statement from their chief (subverter of numbers) economist Lawrence Yun. "Near term, existing-home sales should continue to hover in a narrow range, just as they have since September, and that's good news because it'll be a further sign that the housing market is stabilizing," NAR chief economist Lawrence Yun said.
GOOD NEWS - egads - either he is plain out lying or he actually believes it. We don't know which is worse. It is about time that the leading media publications take a look at this "analysis" and either report on its merits or use data from Commerce Department or Case-Shiller which provides a far more bleak (realistic, unbiased) picture of what is happening on Main Street, USA.
Monday, December 31, 2007
Friday, December 28, 2007
The Governor Visits Foreclosure Capital of America
California Governor Schwarzenegger visited Stockton today with US
Treasury Secretary Henry Paulson for a town hall meeting to discuss the woes caused by increasing numbers of foreclosures.
"No other state is more affected by the subprime mortgage crisis than California," Schwarzenegger said. "We need to continue to find solutions to this critical problem because foreclosures don't just hurt homeowners, they have an effect on all Californians through the economy and our state budget."
Property taxes can represent the 2nd largest financial burden that a homeowner faces, especially if they purchased a home in the prime bubble years. While lower property taxes probably won't help you avoid foreclosure - a reassessment may provide you with some relief.
Treasury Secretary Henry Paulson for a town hall meeting to discuss the woes caused by increasing numbers of foreclosures.
"No other state is more affected by the subprime mortgage crisis than California," Schwarzenegger said. "We need to continue to find solutions to this critical problem because foreclosures don't just hurt homeowners, they have an effect on all Californians through the economy and our state budget."
Property taxes can represent the 2nd largest financial burden that a homeowner faces, especially if they purchased a home in the prime bubble years. While lower property taxes probably won't help you avoid foreclosure - a reassessment may provide you with some relief.
Commerce Department - More Bad News
The Commerce Department issued a report today that confirmed the extent of the problem in the US housing market. November new home sales fell to a seasonally adjusted rate of 647,000 units. That is a 34.4% drop from last November. In the West the drop was just as pronounced with an estimate of 157,000 new homes sold from 237,000 a year ago. This drop is especially disheartening given the price drops, incentives and other means home builders have been making to dispose of their inventory. Inventory levels grew to 9.3 months which has only been surpassed twice since 1981.
It hardly takes an Econ degree from Yale to tell you that when demand has evaporated (due to the credit crisis), supply is growing (you can't just turn off the spigot) that prices will continue to fall. The massive write-offs being taken by the financial institutions will make their way to the underlying assets.
In this falling market the silver lining for California homeowners who purchased their property in the peak bubble years - 2004, 2005, 2006 - will be to apply for a decline in value in their property values to lower property taxes. Visit our parent site at http://lowercaliforniapropertytax.com/default.aspx to find out more.
It hardly takes an Econ degree from Yale to tell you that when demand has evaporated (due to the credit crisis), supply is growing (you can't just turn off the spigot) that prices will continue to fall. The massive write-offs being taken by the financial institutions will make their way to the underlying assets.
In this falling market the silver lining for California homeowners who purchased their property in the peak bubble years - 2004, 2005, 2006 - will be to apply for a decline in value in their property values to lower property taxes. Visit our parent site at http://lowercaliforniapropertytax.com/default.aspx to find out more.
Wednesday, December 26, 2007
Case-Shiller Index Percentage Change Yr/Yr
A picture is worth a thousand words - this one shows that on a national level houses are worth less in 2007 than 2005 and 2006.
If you own a home in California Contact Us today to see how we can save you money on your property taxes.
Home Values Decline - Again
The Case-Shiller index confirms what every Californian homeowner knows - with very few exceptional areas the price of homes has dropped across the state. The Case-Shiller index reports for the following Metropolitan areas in California the following drops:
Los Angeles: -8.8% 1 year change (Oct. to Oct.)
San Diego: -11.1% 1 year change
San Francisco: -6.2% 1 year change
January 1st marks the date on which the County Assessor will reassess your property at the Proposition 13 mandated 2% increase. The data confirms that this year Proposition 8 which allows homeowners to reduce their properties assessed value due to a "decline-in-value" will be utilized in record numbers.
For a California homeowner who purchased their home at the bubble prices of the past three years, the difference betweeen a Proposition 13 mandated increase of 2% and a Proposition 8 decline in value of 8% could amount to as much as $1012. (Assumed home purchased for $750,000 with a 1.35% property tax rate).
You must take action otherwise Proposition 13 increases will automatically take place. Contact us today for a no obligation evaluation of your potential savings.
Los Angeles: -8.8% 1 year change (Oct. to Oct.)
San Diego: -11.1% 1 year change
San Francisco: -6.2% 1 year change
January 1st marks the date on which the County Assessor will reassess your property at the Proposition 13 mandated 2% increase. The data confirms that this year Proposition 8 which allows homeowners to reduce their properties assessed value due to a "decline-in-value" will be utilized in record numbers.
For a California homeowner who purchased their home at the bubble prices of the past three years, the difference betweeen a Proposition 13 mandated increase of 2% and a Proposition 8 decline in value of 8% could amount to as much as $1012. (Assumed home purchased for $750,000 with a 1.35% property tax rate).
You must take action otherwise Proposition 13 increases will automatically take place. Contact us today for a no obligation evaluation of your potential savings.
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