House sales plunge to record low

Post #295,050 by JayMehaffey 10/24/07 1:44:47 PM Reply	House sales plunge to record low [link\|http://www.msnbc.msn.com/id/21451965\|MSNBC] Sales of existing homes plunged by a record amount in September as turmoil in mortgage markets added more problems to a housing industry in its worst slump in 16 years. The National Association of Realtors reported Wednesday that sales of existing homes fell 8 percent in September, the largest decline to show up in records dating to 1999. The seasonally adjusted annual sales rate of 5.04 million existing homes was also the slowest pace on record. Not pretty, the stock market did not respond well either as this drop was much bigger then expected. The question now becomes what does the Federal Reserve do? With the dollar tanking it won't be easy to cut rates further, but with housing continuing to drop there will be a lot of pressure to do something. Jay
Post #295,051 by boxley 10/24/07 2:53:24 PM Reply	sell all of the corrporations to furriners in exchange for good american dollars then buy them back when they go bankrupt. thanx, bill Quantum materiae materietur marmota monax si marmota monax materiam possit materiari? Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free american and do not reflect the opinions of any person or company that I have had professional relations with in the past 51 years. meep reach me at [link\|mailto:bill.oxley@cox.net\|mailto:bill.oxley@cox.net]
Post #295,052 by jbrabeck 10/24/07 2:59:00 PM Reply	Don't remember where I saw or read but the used housing market drop 28% Sep 07 compared to Sep 06. And my house is one of those sitting on the market. Already depreciated 30% A positive attitude may not solve all your problems, but it will annoy enough people to make it worth the effort. (Herm Albright)
Post #295,056 by Andrew Grygus 10/24/07 3:48:26 PM Reply	Well, we're going to have a little building boom out here. As of this morning's paper well over 1,100 homes have been left too long on the barbie, many of them rather upscale. I suspect there'll be a boomlet in rentals in the meanwhile. [link\|http://www.aaxnet.com\|AAx]
Post #295,058 by boxley 10/24/07 3:57:19 PM Reply	wondering about that... If my mortgage is 300k, house value in depressed prices 200k what number does the fire insurance pay and who eats the difference? thanx, bill Quantum materiae materietur marmota monax si marmota monax materiam possit materiari? Any opinions expressed by me are mine alone, posted from my home computer, on my own time as a free american and do not reflect the opinions of any person or company that I have had professional relations with in the past 51 years. meep reach me at [link\|mailto:bill.oxley@cox.net\|mailto:bill.oxley@cox.net]
Post #295,059 by Another Scott 10/24/07 4:03:06 PM Reply	Home insurance is for the building, etc. They don't pay to replace the land. ;-) That said, lots of policies cover replacement costs - so if your place has a $300k mortgage, is appraised at $200k (with land) due to the depressed market, but would cost $250k to rebuild, then the insurance check would be for $250k. You would still owe on the $300k mortgage. The house only guarantees the mortgage - the bank effectively doesn't care if it's not there any more, they'll still want their monthly check. They just have trouble getting the check if the house isn't there.... At least that's my understanding. Corrections welcome. Cheers, Scott.
Post #295,061 by Andrew Grygus 10/24/07 4:35:52 PM Reply	Generally that is so. That's why the banks want to be certain you have insurance, and if you don't they'll buy it for you and send you the bill. They want to make sure the value of the asset remains higher than the loan, and they only way that can happen is if a burned down house gets replaced with one of equal value. Of course you could take the cash, pay it against the loan and refinance the difference plus early payment penalties. [link\|http://www.aaxnet.com\|AAx]

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