"RealtyTrac: Ohio foreclosures up 11% in June" Business First of Columbus

Link: RealtyTrac: Ohio foreclosures up 11% in June
Business First of Columbus
July 10, 2008

Foreclosure activity in June increased 11 percent in Ohio, giving the state the sixth-highest foreclosure rate in the nation, RealtyTrac reported Thursday.

Irvine, Calif.-based RealtyTrac, which compiles and sells real estate data, reported that the state logged 13,194 properties in a stage of foreclosure, or one property for every 382 in the state. Filings are up 7 percent from May and 11 percent from a year ago. The pace surpasses the nationwide foreclosure rate of one for every 501 properties.

The number of foreclosure filings in Ohio was the third-highest total in the nation, behind California and Florida...

"Fed to clamp down on lenders" The Columbus Dispatch

Link: Fed to clamp down on lenders
Jeannine Aversa
The Columbus Dispatch
July 9, 2008

The Federal Reserve will issue new rules next week aimed at protecting future home buyers from dubious lending practices, its most sweeping response to a housing crisis that has propelled foreclosures to record highs.

As for current homeowners in crisis, Treasury Secretary Henry Paulson said the Bush administration has been scrambling to help some hold on to their homes, but many others can't be saved.

Fed Chairman Ben Bernanke spoke of the much-awaited lending rules in a broader speech yesterday about the challenges confronting policymakers in trying to stabilize a shaky U.S. financial system...

"Fed plans new rules to protect future homebuyers" The Columbus Dispatch

Link: Fed plans new rules to protect future homebuyers
Jeannine Aversa
Associated Press
The Columbus Dispatch
July 8, 2008

...To prevent a repeat of the current mortgage mess, Bernanke said the Fed will adopt rules cracking down on a range of shady lending practices that has burned many of the nation's riskiest "subprime" borrowers - those with spotty credit or low incomes - who were hardest hit by the housing and credit debacles.

The plan, which will be voted on at a Fed board meeting on Monday, would apply to new loans made by thousands of lenders of all types, including banks and brokers.

Under the proposal unveiled last December, the rules would restrict lenders from penalizing risky borrowers who pay loans off early, require lenders to make sure these borrowers set aside money to pay for taxes and insurance and bar lenders from making loans without proof of a borrower's income. It also would prohibit lenders from engaging in a pattern or practice of lending without considering a borrower's ability to repay a home loan from sources other than the home's value...

"Vacant homes spread blight in suburb and city alike" csmonitor.com

Link: Vacant homes spread blight in suburb and city alike
csmonitor.com

...From Atlanta's urban core to leafy neighborhoods filled with chirping crickets in Charlotte, N.C., some 2.2 million homes are expected to go through foreclosure – and stand empty – by the time the mortgage meltdown ends, according to Global Insight, an economic research firm. As the housing dominoes fall far from Wall Street, growing urban "ghost towns" of vacant houses are resulting in a costly crush of weeds, trash, and dereliction on a scale unseen in American cities since the Great Depression, economists say.

      

As a $4 billion package to help municipalities deal with foreclosure-related blight hangs fire in the US Senate, US mayors met last weekend in Miami to vent about the scourge of abandoned homes. Cash-strapped cities are now scrambling – often using on-the-fly ingenuity – to rescue neighborhoods suddenly vulnerable to crime and stunned by millions of dollars in lost equity wrought by loose credit, opportunistic speculators, and predatory lending...

...Some 44.5 million homes in the US now stand next to an empty house, resulting in a drop of at least $5,000 in property value per house. By that calculation, a total loss of home value of $220 billion across the US can be attributed to the vacancy problem...

"Home prices in 20 cities down 15.3% in April from year earlier" USATODAY.com

Link: Home prices in 20 cities down 15.3% in April from year earlier
Anna Bahney
USATODAY.com
June 27, 2008

Home prices are poised to fall further in coming months, economists said Tuesday after a closely followed index showed that prices in April had fallen at their steepest year-over-year rate since at least 2000.

The price of a single-family home in April was 15.3% lower than in April 2007, the S&P/Case-Shiller index of 20 metro areas indicated. That was the largest year-over-year drop since the index was created eight years ago.

The sharpest declines were 26.8% in Las Vegas and 26.7% in Miami. For the first time, prices were down in all 20 cities; Charlotte saw its first year-over-year drop...

"Home sales climb, but big picture still dim" The Columbus Dispatch

Link: Home sales climb, but big picture still dim
Steve Wartenberg
The Columbus Dispatch
June 27, 2008

...A total of 2,064 central Ohio homes were sold in May, a 15.7 percent increase over April's total, the board announced yesterday. However, the number represents a 17.2 percent decline from the previous May.

For the first five months of the year, home sales in central Ohio were down 14.1 percent compared with the same period in 2007.

"We're still going through a market correction," said Greg Parsons, president-elect of the board, adding that sales in the next few months could come close to those of last year.

"But will we see the numbers we saw in 2005 and 2006? I don't think so," he said. "Those were record-breaking years."

Nationally, home sales rose 2 percent in May compared with April, but were 15.9 percent below May 2007 figures, according to a National Association of Realtors report. Nearly 5 million homes were sold in May; 4.49 million homes currently are on the market...

"May housing sales fall and listings decline" Business First of Columbus

Link: May housing sales fall and listings decline
Business First of Columbus
June 25, 2008

Sales of existing houses in Central Ohio dropped more than 17 percent in May, the second largest percentage decline this year, the Columbus Board of Realtors reported Thursday.

The board said sales of single-family houses and condominiums in the region fell to 2,064 from 2,492 in May 2007. It marked the largest monthly decline since January, when sales tumbled 19 percent to 1,225 homes.

Indeed, May sales have fared better in previous years. In May 2006, sales totaled 2,579 homes. In 2005, sales reached 2,653 homes, and 2,486 homes were sold in May 2004 - years when the region's housing market was robust...

"Commercial, housing contracts post big May declines" Business First of Columbus

Link: Commercial, housing contracts post big May declines
Business First of Columbus
June 23, 2008

Central Ohio's building pipeline narrowed dramatically in May, a new report indicating housing and commercial construction contracts plunged nearly 50 percent during the month.

McGraw-Hill Construction reported the value of contracts for the construction of single- and two-family houses and condominiums last month dropped 55 percent to $63.8 million from $143.1 million a year earlier. Commercial contract value, which registered a smaller decline this year, tumbled 40 percent to $118.3 million from $197.9 million last May.

That brought total building contract value in the eight-county region down 47 percent for the month at $182.1 million, versus $341 million in May 2007...

"Condo values plunge" The Columbus Dispatch

Link: Condo values plunge
Bill Bush
The Columbus Dispatch
June 22, 2008

...After the number of condos surged in Franklin County by almost 50 percent between 2000 and 2007, to more than 39,000, condo sales and prices plunged.

Valid sales recorded by the Franklin County auditor were down 44 percent last year from a peak of 4,700 in 2004. The countywide median price of a condo, which rose 46 percent between 2000 and 2006 to peak at $134,900, dropped almost 9 percent last year.

And the current market could be even worse...

"Forecast: Home prices to fall more" The Columbus Dispatch

Link: Forecast: Home prices to fall more
Marcy Gordon
Associated Press
The Columbus Dispatch
June 18, 2008

U.S. home prices are only about halfway through their decline, and most of the remaining erosion should occur this year, major bank economists said yesterday.

The 10 economists, including those from Wells Fargo Bank and JPMorgan Chase, also cited the negative overall tone of the economy, with consumer spending curbed, rising fuel and food prices, tight credit and relatively high unemployment.

"There are a number of headwinds that consumers are dealing with," said Peter Hooper, chief economist at Deutsche Bank Securities and head of the American Bankers Association's economic advisory committee. "There's plenty for consumers to feel gloomy about."...

"F.H.A. Faces $4.6 Billion in Losses" NYTimes.com

Link: F.H.A. Faces $4.6 Billion in Losses
Rachel Swarns
NYTimes.com
June 10, 2008

The Federal Housing Administration expects to lose $4.6 billion because of unexpectedly high default rates on home loans, officials said Monday.

Brian D. Montgomery, the F.H.A. commissioner, attributed the unanticipated losses primarily to the agency’s seller-financed down payment mortgage program, which has suffered from high delinquency and foreclosure rates in recent years.

Housing officials said the agency was also hurt by poor performance in its traditional mortgage portfolio. Deteriorating economic conditions led some of its core clients — first-time buyers, minorities and lower-income owners — to default, they said...

"County tax bills to stay the same" The Columbus Dispatch

Link: County tax bills to stay the same
Bill Bush
The Columbus Dispatch
June 8, 2008

For decades, the state prodded county auditors to make sure homeowners' tax bills reflected that prices were climbing.

This year, nine Ohio counties have a different option: changing nothing.

At least five of them, including Franklin, Delaware and Licking counties in central Ohio, are poised to take the state up on it. Auditors in these counties say they won't change any residential tax appraisals for their three-year update. The move effectively means that, for taxing purposes, nothing changed in these counties' housing markets from 2005 to 2007, despite a foreclosure crisis and price swings that have not been seen in decades...

"Franklin County freezing housing tax values amid slump" Business First of Columbus

Link: Franklin County freezing housing tax values amid slump
Matt Burns
Business First of Columbus
June 4, 2008

Franklin County residents won't see an automatic rise in real estate taxes for the next three tax years, and county Auditor Joseph Testa's reasoning behind the freeze shouldn't be surprising.

Testa this week said the county would not raise home valuations, which would effectively freeze property taxes payable in 2009 through 2011. The freeze was a response to the area's slumping real estate market and the run-up in foreclosures.

The state mandates counties adjust residential valuations every three years, which typically lead to higher property tax bills...

"Auditor: No Real Estate Tax Increase" nbc4i.com

Link: Auditor: No Real Estate Tax Increase
Angie Hissong
nbc4i.com
June 2, 2008

Franklin County Auditor Joe Testa has ordered no increase in residential values for the 2008 appraisal update. Unless homeowners improve their property or voters pass new levies, there will be no increase in residential real estate taxes payable in 2009, 2010, and 2011...

"Mortgage meltdown" The Columbus Dispatch

Link: Mortgage meltdown
The Columbus Dispatch
June 1, 2008

...The financially lethal cocktail of risky high-rate mortgages and naive borrowers has taken a toll in many neighborhoods across central Ohio. A wave of foreclosures during recent years has pushed property values downward for the first time in decades, a Dispatch analysis found.

Thousands of families have lost their dream homes. Their neighbors, surrounded by orange foreclosure stickers and for-sale signs, have seen their homes lose value as abandoned houses blight their communities. And many renters have been pushed out of their homes because of their landlords' problems. The worst might still lie ahead...

"Tax appraisals factor out foreclosures" The Columbus Dispatch

Link: Tax appraisals factor out foreclosures
Bill Bush
The Columbus Dispatch
June 1, 2008

Residents in neighborhoods hit hard by foreclosures shouldn't expect appraisers to factor in those fire-sale prices when they set tax values.

That's because county auditors in Ohio are required to factor foreclosure prices out of the tax mix, even if more houses are lost to lenders than sold through the normal market...

...In Franklin County, just over 2,000 sales of single-family houses were deemed invalid in 2000, or about 10 percent of the total. Last year, there were almost 5,900, nearly a third of sales...

"Tax relief not coming as house values slide" The Columbus Dispatch

Link: Tax relief not coming as house values slide
Bill Bush and Rob Messinger
The Columbus Dispatch
June 1, 2008

Unless homeowners challenge their bills, falling real-estate prices won't mean lower property taxes in Franklin County for at least three years.

Because home values are roughly the same now as they were three years ago and there are so many foreclosures, Auditor Joe Testa is making an unprecedented call: He will not change tax bills until the house-by-house reappraisal to be completed in 2010. "We've never had a market like this before," said Testa, who has been county auditor since 1992.

Home prices in Franklin County were increasing during the first part of the three-year appraisal period, so falling values took them roughly back to 2005 levels...

"Bursting bubbles" The Columbus Dispatch

Link: Bursting bubbles
Bill Bush, Geoff Dutton and Doug Haddix
The Columbus Dispatch
June 1, 2008

...The housing market's ascent in the early part of the decade coincided with a surge in risky subprime mortgages, which made homeowners of people who otherwise would have been locked out because of poor credit or forced to settle for a cheaper house. But thousands of these homeowners have lost their houses, driving down values.

Worse, monthly payments on a large wave of adjustable-rate subprime loans have yet to begin ratcheting up. That will happen this fall and early next year.

"The worst is yet to come," said Paul Bellamy of the Equal Justice Foundation, a Columbus-based legal advocacy group that helps homeowners fighting foreclosure. "We're now seeing the larger economy show the effects."...

"In Housing, the Strong Turn Weak" NYTimes.com

Link: In Housing, the Strong Turn Weak
Vikas Bajaj
NYTimes.com
May 28, 2008

America’s home-buying season, when for-sale signs sprout like dandelions, is shaping up to be even worse than expected this year, with prices falling, sales slowing and few signs of a turnaround emerging.

Two reports released on Tuesday captured the bleak picture. One showed that home prices nationally fell 14.1 percent in March from a year earlier. The other showed sales of new homes, although up slightly in April, remained mired near their lowest levels since 1991.

While Wall Street is growing hopeful that the economy may dodge a recession, many economists warn that the pain in the housing market may last for several years...

"Owning home a pretty good deal in Columbus" The Columbus Dispatch

Link: Owning home a pretty good deal in Columbus
Dan Gearino
The Columbus Dispatch
May 29, 2008

Columbus is one of the most affordable housing markets in the country, based on a survey that compares home prices with rental costs.

But that positive arises from what many also see as a negative: the tepid demand for houses and the resulting drop in prices.

"In general, Columbus has been, in terms of the broader economy, doing quite well compared to other metros in Ohio, but its housing market is quite weak," said economist Bodhi Ganguli of Moody's Economy.com...

"Realtors: Columbus home inventory, sales down in March, April" Business First of Columbus

Link: Realtors: Columbus home inventory, sales down in March, April
Business First of Columbus
May 23, 2008

While the Columbus Board of Realtors continues to see a promising trend as a logjam in supply of houses on the market eases this year, the group Friday reported two months of declining housing sales and sales contracts through April.

Sales of single-family houses and condominiums in the region fell 15 percent to 1,680 in March, from 1,966 a year earlier, the group reported. After a promising uptick in sales contracts in February, that measure fell 4 percent for March to 1,918 from 1,990 and continued its dip into last month...

"Housing numbers positive, but ..." The Columbus Dispatch

Link: Housing numbers positive, but ...
The Columbus Dispatch
May 17, 2008

Construction of new homes increased by the biggest percentage in more than two years in April, a rare spot of good news amid the worst housing downturn in more than two decades.

Analysts, however, played down the increase, noting that all the strength came from the volatile apartment sector. They said the housing slump is far from over as a record flood of foreclosures continues to add to the sizable stockpile of unsold homes...

"Home prices fall in 1st quarter" The Columbus Dispatch

Link: Home prices fall in 1st quarter
The Columbus Dispatch
May 14, 2008

Median home prices fell in two-thirds of the cities surveyed during the first three months of this year while sales declined in 46 states compared with a year ago, according to the latest report highlighting the depth of the nation's housing woes.

The National Association of Realtors said yesterday that median prices for existing single-family homes dropped in 100 of 149 metropolitan areas in the January-March period, while 48 metropolitan areas saw price increases and one reported no change...

...The biggest percentage price decline by metro area was a 29.2 percent drop in Sacramento, Calif. Columbus saw a 7.2 percent drop...

"Once bulletproof housing markets lose some luster" CNNMoney.com

Link: Once bulletproof housing markets lose some luster
Les Christie
CNNMoney.com
May. 6, 2008

NEW YORK (CNNMoney.com) -- Some of the last, best housing markets - the ones that continued to climb even as the rest of the country cratered - have turned south lately.

Seattle, Portland Ore., Charlotte, NC, and Salt Lake City all posted home price gains during 2007, even as more than half of the 150 markets tracked by the National Association of Realtors registered declines. Now they've joined the losers.

"What the numbers are saying is that the trend is broadening out," said Michael Larson, a real estate analyst with Weiss Research. "[The downturn started with] the markets that had flown the highest. When the speculative bubble popped, those got hit first. These [bulletproof] markets are now getting hit for traditional economic reasons."...

"Study: Expect home sales improvement soon" Business First of Columbus

Link: Study: Expect home sales improvement soon
Business First of Columbus
May 7, 2008

A new National Association of Realtors study shows existing-home sales remained soft in March, but the organization is forecasting sales will begin to improve over the summer.

The association's Pending Home Sales Index, a key measure of contract activity, dropped 1 percent to 83 in March from the month before and was 20 percent lower than the index level a year ago. The Midwest saw the strongest index decline among all four regions of the U.S., the score slipping 10 percent from February to 74.1, down more than 22 percent from the pace a year ago...

"More homeowners walking away from foreclosures without a fight" Business First of Columbus

Link: More homeowners walking away from foreclosures without a fight
[account required]
Kevin Kemper
Business First of Columbus
May 2, 2008

A shift in foreclosures appears to be gaining momentum as a difficult economy continues to take its toll on homeowners with trouble making mortgage payments.

Deeds-in-lieu-of-foreclosure are becoming a more popular way for strapped homeowners to get out of properties they no longer can afford. In short, the homeowners hand over deeds to their houses, rather than contest foreclosure actions through drawn-out, expensive court proceedings...

..."We're not going to hit bottom until housing prices stabilize," Steidtmann said.

Cosgrove says he is betting foreclosures will peak in Ohio between the fourth quarter of this year and the first half of 2009.

"Office vacancy rates buck national trend by remaining steady in 1Q" Business First of Columbus

Link: Office vacancy rates buck national trend by remaining steady in 1Q
[account required]
Laura Newpoff
Business First of Columbus
May 2, 2008

As office vacancy rates rise in major cities across the country, Columbus seems to be holding steady amid a restless economy and unemployment rate that's higher than the national average, according to first quarter data compiled by three of the city's largest brokerage houses.

Colliers Turley Martin Tucker Co. reports office vacancy rates in Columbus and its suburbs improved for the quarter.

Grubb & Ellis | Adena Realty Advisors' numbers show vacancies dipping in the city's central business district, but rising slightly in the suburbs.

And CB Richard Ellis reports downtown and suburban vacancies are up for the quarter, but by less than a percentage point...

"Home Prices Drop Most in Areas with Long Commute" NPR

Link: Home Prices Drop Most in Areas with Long Commute
Kathleen Schalch
NPR
April 21, 2008

Economists say home prices are nowhere near hitting bottom. But even in regions that have taken a beating, some neighborhoods remain practically unscathed. And a pattern is emerging as to which neighborhoods those are.

The ones with short commutes are faring better than places with long drives into the city. Some analysts see a pause in what has long been inexorable — urban sprawl...

"Fed cuts rates, willing to cut more" The Columbus Dispatch

Link: Fed cuts rates, willing to cut more
Kevin G. Hall
McClatchy Newspapers
The Columbus Dispatch
May 1, 2008

WASHINGTON -- The Federal Reserve lowered its benchmark lending rate by a quarter-point yesterday, the seventh such move since September, and made it clear that it was willing to cut rates in the future if the economy slows further or raise them if inflation sparks.

For the second consecutive meeting of the rate-setting Federal Open Market Committee, two voting members came out against the move in light of concerns that the high price of oil and commodities will increase inflation.

Many financial analysts had predicted that the Fed would issue language that signaled it would now pause, having brought its benchmark federal funds rate, which banks charge one another for overnight lending, down from 5.25 percent in September to 2 percent yesterday. But the Fed made it clear that it still sees an economy facing turbulence...

"How Low Will Real Estate Go?" Forbes.com

Link: How Low Will Real Estate Go?
Matt Woosley
Forbes.com
April 28, 2008

Though the national real estate market remains bleak--in some neighborhoods vacant homes outnumber those that are occupied and sellers are being forced to lower asking prices in a bid to lure bargain hunters--it's assumed that when housing dips to a point where buyers think it represents a bargain, they'll buy back in.

The problem is many of the markets that experienced steep 2007 price drops are still a long way from recovery.

That's based on a Moody's Economy.com report prepared for Forbes.com. It predicts that 2008 isn't going to be any gentler than last year on slumping markets like Los Angeles, Sacramento, Calif., Las Vegas and Tampa, Fla., where market weakness is expected to cause 10% to 25% drops over the next year...

"New home sales plunge to lowest level in 16 1/2 years" The Columbus Dispatch

Link: New home sales plunge to lowest level in 16 1/2 years
Martin Crutsinger
The Columbus Dispatch
April 24, 2008

Sales of new homes plunged in March to the lowest level in 16 1/2 years as housing slumped further at the start of the spring sales season.

The median price of a new home in March, compared with a year ago, fell by the largest amount in nearly four decades.

The Commerce Department reported Thursday that sales of new homes dropped by 8.5 percent last month to a seasonally adjusted annual rate of 526,000 units, the slowest sales pace since October 1991...

"Existing-home sales slide again" The Columbus Dispatch

Link: Existing-home sales slide again
From Wire Reports
The Columbus Dispatch
April 23, 2008

Sales of existing homes fell in March as a severe slump in housing showed no signs of abating. The median price of a home fell compared with the price a year ago.

The National Association of Realtors said sales of existing single-family homes and condominiums dropped by 2 percent in March to 4.93 million units...

"Ohio's foreclosure rate quickens in March; No. 7 nationwide" Business First of Columbus

Link: Ohio's foreclosure rate quickens in March; No. 7 nationwide
Business First of Columbus
April 15, 2008

...Irvine, Calif.-based RealtyTrac Inc. on Tuesday reported Ohio's foreclosure rate in March increased 9 percent from February with one filing for every 448 households, a ratio that was seventh-highest in the nation and 37 percent higher than in March 2007.

The state's foreclosure rate had dropped 19 percent in February, one of the few times over the past year the rate has fallen...

"Looming Deficit Impedes Federal Housing Agency" New York Times

Link: Looming Deficit Impedes Federal Housing Agency
Rachell Swarns
New York Times
April 9, 2008

...Housing officials say the agency will face a deficit for the first time in its 74-year history, starting in the fiscal year that begins in October. And they blame a rapidly growing and increasingly troubled sector of the F.H.A.’s mortgage portfolio, known as the seller-financed down payment loan program, which has suffered from high delinquency and foreclosure rates in recent years...

"Pending Home Sales Hit Low in February" The Columbus Dispatch

Link: Pending Home Sales Hit Low in February
Alan Zibel
Assoicated Press
The Columbus Dispatch
April 8, 2008

An industry group said Tuesday that pending U.S. home sales fell in February to the lowest reading since the index began, signaling the housing market distress is not yet over.

The National Association of Realtors' seasonally adjusted index of pending sales for existing homes fell to 84.6 from January's upwardly revised reading of 86.2. The index stood at 107.6 in February 2007...

"Condo market better in city than 'burbs" WOSU

Link: Condo market better in city than 'burbs
Mandie Trimble
WOSU
April 7, 2008

For many people the housing market is not the best place to be right now. It's almost inevitable that at least once a day one will hear something about home foreclosures, the credit crunch and the R word - that's recession. In this report, WOSU takes a look at how the nation's economy is affecting the condominium market in Franklin County...

"Columbus housing price slide comparatively mild, report says" Business First of Columbus

Link: Columbus housing price slide comparatively mild, report says
Business First of Columbus
April 3, 2008

A national report on housing sales shows Columbus' home values held up better than values in other big cities in January amid widespread market troubles, but they still moved into the red.

Prices in Columbus slipped 2.4 percent from a year earlier to $91.63 a square foot in the month, putting the city sixth best on the list of 25 communities, said the findings from Radar Logic Inc., a New York-based real estate researcher.

Only two cities showed price gains for the month - Charlotte, N.C., up 3.9 percent, and New York, up 2 percent...

"Receiver to sell 50 C.V. Perry & Co. properties" The Columbus Dispatch

Link: Receiver to sell 50 C.V. Perry & Co. properties
Maike Pramik
The Columbus Dispatch
April 3, 2008

Fifty C.V. Perry & Co. homes will be sold Friday morning, according to the receiver for the failed custom homebuilder.

Martin Management Services will offer condos, single-family homes and land with opening bids ranging from about $66,000 to more than $1.6 million. The sale begins at 10 a.m. at the German Village Meeting Haus, 588 S. Third St...

"Looking for a deal" The Columbus Dispatch

Link: Looking for a deal
Mark Ferenchik
The Columbus Dispatch
March 31, 2008

...The tour yesterday was one more reminder of the home foreclosure crisis that continues to ensnare the region. In 2006, lenders filed for foreclosure against one of every 124 homeowners in Franklin County alone -- 8,875 that year.

Not that this type of tour is unique to Columbus.

"I saw it on the Today show," said Donna Carstens of Coldwell Banker King Thompson, who hosted the tour with fellow real-estate agent Michelle Foster. "They were doing it in California. I thought, 'What a clever way.' "...

T"Fed chief's outlook grows drearier" he Columbus Dispatch

Link: Fed chief's outlook grows drearier
Michael M. Grynbaum
The New York Times
in The Columbus Dispatch
April 3, 2008

The chairman of the Federal Reserve presented his bleakest assessment yet of the economy yesterday, warning a congressional committee that economic growth was likely to stagnate -- and perhaps even contract -- over the first half of the year.

In his first public remarks since the Fed orchestrated an unprecedented bailout of the brokerage firm Bear Stearns, Ben Bernanke defended the central bank's actions against accusations of "moral hazard" and acknowledged considerable problems in the broader economy.

He also said the Fed's steps to restore confidence in the credit markets had "helped stabilize the situation somewhat" and probably would stimulate an economic recovery after the summer. But he warned that the current turbulence made the economic outlook difficult to predict...

"US Home Prices Drop in January" The Columbus Dispatch

Link: US Home Prices Drop in January
Vinnee Tong
Associated Press
The Columbus Dispatch
March 25, 2008

NEW YORK (AP) -- Home prices in many cities continued to plunge by record levels in January as sellers cut their asking bids and rising foreclosures took their toll, new data showed Tuesday.

While the spring selling season usually gives the market a bounce, some analysts say any notable improvement may not come until well into the summer. U.S. home prices fell 10.7 percent in January, and the Standard & Poor's/Case-Shiller home price index of 20 cities saw the steepest decline in the index's two-decade history.

Worst-hit were Las Vegas and Miami, both reporting 19.3 percent drops, as the regions are still paying the price for rampant speculation and overbuilding during the boom years. Those cities and 14 others, including Phoenix, San Diego, and Detroit, posted record lows...

"New home sales slip to 13-year low, but top forecasts" CNN.com

Link: New home sales slip to 13-year low, but top forecasts
David Goldman
CNN.com
March 26, 2008

NEW YORK (CNNMoney.com) -- New home sales fell to their lowest level in 13 years in February, according to a key government report on the battered housing market released Wednesday.

February sales came in at a seasonally-adjusted annual rate of 590,000, the Census Bureau report showed, down 1.8% from a revised 601,000 in January and 29.8% from a year earlier.

Though home sales slipped, the reading was still above the consensus forecast of 580,000, according to economists surveyed by Briefing.com...

"Home sales up in U.S., not in Ohio" The Columbus Dispatch

Link: Home sales up in U.S., not in Ohio
The Columbus Dispatch
March 25, 2008

After falling for six straight months, sales of existing homes rose unexpectedly in February, which might reflect aggressive price-cutting by sellers in some parts of the country, a real-estate trade group reported yesterday.

The National Association of Realtors said that sales of existing homes rose by 2.9 percent in February to a seasonally adjusted annual rate of 5.03 million units. Home sales were down nearly 24 percent from February 2007. Yet the gain from January was the biggest increase in a year and surprised economists, who expected a small decline. That expectation was met in central Ohio.

The Columbus Board of Realtors reported that home sales declined 5.8 percent in February compared with the same month a year ago, as the average sales price fell 4.8 percent, to $156,497...

"Existing Home Sales Rise in February" The Columbus Dispatch

Link: Existing Home Sales Rise in February
Martin Crutsinger
Assoicated Press
The Columbus Dispatch
March 24, 2008

WASHINGTON (AP) -- After falling for six straight months, sales of existing homes posted an unexpected increase in February which may have reflected more aggressive price cutting by sellers in some parts of the country, a real estate trade group reported.

The National Association of Realtors said that sales of existing homes rose by 2.9 percent in February to a seasonally adjusted annual rate of 5.03 million units. It was the biggest increase in a year and caught economists by surprise. They had been expecting a small decline...

"Realtors: Sales down, contracts up in February" Business First of Columbus

Link: Realtors: Sales down, contracts up in February
Business First of Columbus
March 20, 2008

Sales of existing houses in Central Ohio continued to lag last year's pace in February, but sales contracts saw their first increase in more than half a year, the Columbus Board of Realtors reported Thursday.

The board said sales of single-family houses and condominiums in the region last month fell 6 percent to 1,459, from 1,549 in February 2007. The number of homes with sales contracts, however, ticked up 6 percent to 1,689 from 1,599, perhaps a sign that buyers reacted to an easing of mortgage interest rates, board President Greg Hrabcak said in a release.

"Many buyers were waiting for the drop," he said. "Some used it to be able to afford their first home as the lower interest rates helped them to finally qualify for a home. Others jumped at the chance to move up to a larger home."...

"Sunny side of the slump" The Columbus Dispatch

Link: Sunny side of the slump.
Kevin Kidder
The Columbus Dispatch
March 17, 2008

...The problem of selling a home -- possibly even keeping a home -- in such a market presents a cornucopia of opportunity for those buying a home: Mortgage rates are low. Home prices are falling. And, because owners are struggling to sell homes, buyers have a lot of choices, said Greg McBride, senior financial analyst at Bankrate.com.

"For first-time buyers, the environment is a whole lot better than it was six months ago," McBride said. "In the last six months, first-time home buyers have seen not only home prices decline but mortgage rates decline as well."

Last week, the interest rate on a 30-year, fixed-rate mortgage averaged 6.07 percent, Bankrate reported. The average dipped as low as 5.3 percent in January...

"White House Offers Plan to Ward Off Credit Crises" New York Times

Link: White House Offers Plan to Ward Off Credit Crises
Stephen Labaton
New York Times
March 14, 2008

WASHINGTON — After months of watching a growing credit crisis made worse by steadily eroding home prices, the Bush administration responded on Thursday with the outlines of a plan that officials emphasized is meant more to prevent future crises than to address the current one.

The plan, which relies primarily on state regulators and private industry to tighten their oversight of financial markets, calls on states to issue nationwide licensing standards for mortgage brokers.

The plan would also require lenders to make more complete disclosures about payment terms to home buyers. And it would curtail possible conflicts of interest at companies that assign levels of risk to packages of mortgages that are sold to investors...

"Mortgage crisis hits neighbors' wallets, too" The Columbus Dispatch

Link: Mortgage crisis hits neighbors' wallets, too
Alan Zibel
The Columbus Dispatch
March 13, 2008

...Neighbors matter when putting a price tag on homes. Appraisers use comparable sales data to calculate the value of a home, a number lenders require for selling and refinancing. And comparable sales in neighborhoods plagued by foreclosures knock down the value of homes.

The problem, which makes it much more difficult for borrowers to pull cash out of their homes, is another sign of how a sick housing market infects the entire economy, one neighborhood at a time. If borrowers are unable to refinance at lower rates, that could cause even more foreclosures, real-estate experts say...

"Bernanke calls for home-loan cuts" The Columbus Dispatch

Link: Bernanke calls for home-loan cuts
Jeannine Aversa
Associated Press
The Columbus Dispatch
March 5, 2008

...Rising foreclosures threaten to worsen the problems in the housing market and for the national economy, which many fear is on the verge of a recession or in one already.

"Reducing the rate of preventable foreclosures would promote economic stability for households, neighborhoods and the nation as a whole," Bernanke said. "Although lenders and servicers have scaled up their efforts and adopted a wider variety of loss-mitigation techniques, more can, and should, be done," the Fed chief said.

One of the suggestions Bernanke made was for mortgage and other financial companies to reduce the amount of the loan to provide relief to a struggling owner. "Principal reductions that restore some equity for the homeowner may be a relatively more effective means of avoiding delinquency and foreclosure," Bernanke said...

"8% slide in prices accompanies drop in January home sales" The Columbus Dispatch

Link: 8% slide in prices accompanies drop in January home sales
Mike Pramik
The Columbus Dispatch
March 10, 2008

The Columbus Board of Realtors said home sales got off to an unsurprisingly poor start in 2008.

But the big drop in the average sale price of the properties might open a few eyes.

The board said 1,225 homes were sold within the Central Ohio Multiple Listing Service in January, down 18.9 percent from 1,510 sales in January 2007.

What is perhaps surprising is the 8 percent decline in the average sale price of those houses. They sold for $152,790, compared with a little more than $166,000 in January 2007...

"Home Foreclosures Hit Record High" The Columbus Dispatch

Link: Home Foreclosures Hit Record High
Associated Press
The Columbus Dispatch
March 6, 2008

WASHINGTON (AP) -- Home foreclosures soared to an all-time high in the final three months of 2007 and probably will keep rising, evidence of homeowners' suffering and the economic danger from the meltdown.

The Mortgage Bankers Association said Thursday the proportion of all mortgages that slipped into foreclosure set a record, 0.83 percent, from October through December. The previous high, 0.78 percent, came in the July-through-September period.

"Clearly it's the worst it's been," the association's chief economist, Doug Duncan, said in an interview with The Associated Press...

"Fed: Economy Has Weakened" The Columbus Dispatch

Times they are a changin'. No time like to present to start reinventing the system to be a bit more streamlined while the big economic engine slows down for a spell.

Where there is catastrophy, there is the opporunity to rebuild stronger, better and leaner.

Great time to recycle, reuse and revitalize what we've already got and spend more time thinking about how to build smarter, not faster and cheaper. I have a feeling that the current economic slump just might be the brush with reality that we need to turn our attentions back to the impotance of our under utilized cities.

For anyone who said this is just the real estate market correcting itself, it is just a small symptom of a much larger problem as we've been seeing over the past several months as the fallout continues to grow:

Link: Fed: Economy Has Weakened
Jeannie Aversa
Associated Press
The Columbus Dispatch
March 5, 2008

WASHINGTON (AP) -- The economy has weakened since the start of this year as shoppers turned even more cautious given the severe housing slump and painful credit crunch.

Manufacturers and other businesses, meanwhile, had to cope with skyrocketing prices for energy and other raw materials. The businesses' ability to pass along higher prices to their customers was mixed, according to the Federal Reserve's new snapshot of nationwide economic conditions released Wednesday. Oil hit jumped to a record of $104.52 a barrel.

Many economists fear that the country is teetering on the edge of a recession or is in one already...

"Billionaire's view: 'We are in a recession'" The Columbus Dispatch

Link: Billionaire's view: 'We are in a recession'
Josh Funk
Associated Press
The Columbus Dispatch
March 4, 2008

Billionaire Warren Buffett said yesterday that the U.S. economy is essentially in a recession, even if it hasn't met the technical definition of one yet.

Buffett said in an interview with cable network CNBC that the reports he gets from the retail businesses his holding company owns show a significant slowdown in purchases.

The chairman and CEO of Omaha-based Berkshire Hathaway Inc. pointed out that millions of people have lost equity in their homes because prices have dropped.

"I would say, by any commonsense definition, we are in a recession," Buffett said on CNBC...

"Ohio banks may be at risk" The Columbus Dispatch

Link: Ohio banks may be at risk
Tracy Turner
The Columbus Dispatch
February 27, 2008

The housing crisis that has claimed many victims among Ohio homeowners could be taking aim next at some of the state's banks.

Nationally, 76 banks are under scrutiny by the Federal Deposit Insurance Corp. and categorized as "problem institutions" based on their financial health.

The FDIC, which doesn't identify the troubled banks, is adding staff members in anticipation of an increase in bank failures...

"Realtors: Holidays drive 19% home sales slide in January" Business First of Columbus

Link: Realtors: Holidays drive 19% home sales slide in January
Business First of Columbus
February 28, 2008

Sales of existing houses in Central Ohio limped into 2008 with a drop of nearly 20 percent last month, though the Columbus Board of Realtors is calling the decline no big surprise given the timing and market conditions.

The board reported Thursday that sales of existing single-family houses and condominiums in the region dropped 19 percent to 1,225 in January from 1,510 a year earlier. Houses in sales contracts fell 12 percent to 1,438 from 1,629 in January 2007.

Board statistics don't include sales of newly built houses...

"Foreclosures jump 57 percent in January" The Columbus Dispatch

Link: Foreclosures jump 57 percent in January
Alex Veiga
Associated Press
in The Columbus Dispatch
February 26, 2008

The number of homes facing foreclosure jumped 57 percent in January compared to a year ago, with lenders increasingly forced to take possession of homes they couldn't unload at auctions, a mortgage research firm said Monday.

Nationwide, some 233,001 homes received at least one notice from lenders last month related to overdue payments, compared with 148,425 a year earlier, according to Irvine, Calif.-based RealtyTrac Inc. Nearly half of the total involved first-time default notices.

The worsening situation came despite ongoing efforts by lenders to help borrowers manage their payments by modifying loan terms, working out long-term repayment plans and other actions...

"Housing prices continue descent" The Columbus Dispatch

Link: