I'm starting to think that we might see trouble in the housing sector.

U.S. foreclosure filings increased 71 percent in the third quarter from a year earlier to the highest on record as home prices fell and stricter mortgage standards made it harder for homeowners to sell or refinance...

"I wouldn't be surprised to see foreclosures increase as the economy slows down,'' Rick Sharga, executive vice president for marketing at RealtyTrac, said in an interview. "The people living paycheck to paycheck are at risk if they lose their jobs. It will cause more people to lose their homes.''

The worst U.S. housing slump since the 1930s is being compounded by a recession that began in the third quarter and may last a year or more...Home prices in 20 U.S. metropolitan areas fell in July at the fastest pace on record, and sales of previously owned homes in August were 32 percent below the peak reached in September 2005.

Memories: Heads in the sand, misunderstanding the problem, early warning.

Comments

[hugh]

The blog title made me think this was going to be about the Duke Lacrosse rape accuser's new book.

[Mick]

Nyuk Nyuk nyuk

[Mick]

Seriously, House sales up (way up) in Cali. I know... mostly foreclosure sales. But this thing started in Cali and maybe just maybe we can see bottom. Also, saw a dude predicting 30 yr fixed at under 5% within the next 12 months. Would be sweet for some folks.

As a real estate appraiser, I truly hope I can make it until we turn this thing around.

Wife still looking for job in Social Work field... anybody got a lead?

[hugh]

Mick, I've been helping a friend do research on property in Atlanta. It's butt-ugly there. One area just south of downtown was rehabbed down to vacant lots then sold off the builders starting in 2002-2003. Hundreds of homes were built from $200,000-$300,000+. Today there are scores of foreclosures listed for sale at $50,000-70,000, 75% drop in value. The folks who bought in there two years ago at $300K and are trying to sell their house are hurting badly.

[Mick]

There are plenty of issues here too particularly in certain price ranges and/or areas. We are somewhat better off than some but we have a ways to go yet. Lenders/Banks have got to figure out how to operate, make loans and do business before any of this will change.

Just seems more folks are using "bottom" type language in reference to stocks and housing. Maybe we can see it now but just dont have the confidence to believe it yet.

Only time will tell. I doubt winter will help housing.

4.8% 30 yr fixed sure would though. Wont do much good if lenders still have the willies about lending.

We need a return to true normalcy. I dont think anyone even knows or remembers what that is though.

[Beelzebubba]

Pointing a gun at the head of a bank president will not make him lend. Bottoms do not occur when every homeopathic remedy the government offers creates a hopeful gap up in S&P futures. If the current group of politicians can only get to the first week in Novemeber, they believe they can postpone their own executions or get preemeptive pardons from the outgoing Commander in Thief. The housing mania started with the index 6X lower where it currently rests. When a mania is cured, it rests well below the starting point. The remedy reminds me of the way my father said they "cured" hogs of cholera during the depression. Salt was placed in the hog's mouth. Someone then sucked on the hog's rectum until they could taste the salt. The cure is often worse than the disease, as the hog usually died anyway.