The sales of new homes has gone up in September, compared with August as builders slash prices to move inventory as quickly as possible.
The median home price fell in September to $218,400, down over 9 percent from the same point one year ago. This is the lowest median house price since the $211,600 level of September, 2004.
A group in Detroit, Moratorium Now! is fighting the surge of foreclosures in the Detroit metro, one of the worst foreclosure-hit areas in the entire country.
The group is to meet with the intern Mayor Cockrel today (October 27th) to demand he declares Detroit in a “Economic State of Emergency,” which would help freeze foreclosure processes from going forward.
With the current bailout of Wall Street, the general public should not be who suffers from Wall Street’s greed. Detroit is suffering from one of the highest unemployment and foreclosure rates in the country; 18% of housing units stand vacant.
The people who should be benefiting from the bailout should be those who funded the bailout - the taxpayer who is getting foreclosed on, rather than the rich CEOs who caused this whole mess in the first place.
Good Luck
Nearly 766,000 homes in the USA in the last year have received one or more foreclosure notice from July -September.
Nationwide this is an increase of over 70 percent from just last year.
RealtyTrac, a foreclosure listing expert, expects over a million bank owner homes on the market by the end of 2008. This staggering number would represent about 30% of all properties on the market.
California, Florida, Ohio, Michigan, Arizona and Nevada account for over 60% of foreclosures in the last quarter. With over 25% of the nations foreclosures, California by far leads any state.
Detroit was one of only two (Atlanta was the other) citiies that were outside California, Florida, Nevada and Arizona to be in RealtyTrac’s list of the 20 hardest-hit areas.
The FHFA price index - the new agency that has taken over Fannie Mae and Freddie Mac- has fallen 0.6 % in the last month alone, and 6.5% since August 2007
The Pacific West Coast has seen the biggest drop dropping 21.5% from the high, 18 months ago in March 2007.
The region including Texas has seen the slowest drop in price averages, only down 1.5%
The fall in the West Coast prices is mainly due to overbuilding and price speculation - less prevalent in the Mid/SouthWest.
What is really driving the home prices down (and also, conversely, the reason they go up) is the tightening of credit. Take away the demand for housing and the desire for land goes down, meaning the drop in price.
If you relax credit and make money easily available the demand for land shoots up, and hence to, does the prices of homes.
You can take Atlanta for an example - There was massive overbuilding in the earlier parts of the decade. Since there was no natural barriers in Atlanta, properties were easily built, and in 2005, Atlanta had the most single family home permits in the USA. Now Atlanta home prices are falling since the land is not in as high demand. Fortunately, Atlanta did not realize the massive gains that properties in Florida or California saw and therefore home prices have not dropped as drastically.
Just as Cleveland’s home values hit all-time lows, CMHA spent $2.7 million on 33 properties on the West Side. That’s $1.1 million more than the houses previously sold for, most of them during Cleveland’s housing collapse of the past few years
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