Implode Explode

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"Dubai World received approval from creditors to alter the terms on $24.9 billion of debt, nine months after the state-owned holding company’s proposal to delay repaying loans sent emerging market stocks tumbling."

Interesting; good charts. Looks like around 4 months supply is a bull market and above 8 definitely a bear market for existing home sales (we are heading above 8 again now); 6-7 months of supply seems "normal" for new homes.

The confusion comes because homebuyers were eligible for two different credits, depending on when their homes were purchased.

Those who bought properties during 2008 were to deduct, dollar for dollar, up to 10% of the home's purchase price or $7,500, whichever was less. The catch: The money was a no-interest loan that had to be repaid within 15 years.

Had they waited to buy until 2009, they could have gotten a much sweeter deal. Congress extended the credit and made it a refund rather than a loan.

"At least 70 of the 315 houses that Habitat for Humanity has built in New Orleans since Hurricane Katrina hit the city in 2005 have tested positive for corrosion problems caused by defective Chinese drywall, leaving people who were once grateful to Habitat for their homes feeling betrayed by the organization they had trusted."

"Developers are able to buy land for as little as a third of peak 2007 prices, London-based Savills Plc estimates. Those savings will more than make up for any weakness in the property market in the next three years, according to a shareholder in the industry’s biggest company."

"Still, investors remain concerned about the future of the market. The central bank’s Assistant Governor Guy Debelle said foreign investors continue to question him about the nation’s housing market."

"Ocwen Financial, which last week closed the acquisition of mortgage firm HomEq Servicing, said that it will absorb any job losses and will not rehire staff elsewhere."

"It boggles the mind to think that anyone can possibly think of Olympics as doing anything more than throwing taxpayer money straight down the toilet. Of course vendors and real estate agents do not give a damn about the long-term consequences as long as a quick buck can be made."

""Overall, prices look poised to continue their deceleration with a likely drop into negative territory by the end of the year," "

"The rebuilding effort after New Zealand’s worst quake in 80 years will help spur an economic rebound over the next 12 months, economists forecast, citing experiences from disasters in Japan and the U.S. While the disruption will wipe 0.6 percentage points off gross domestic product this quarter, reconstruction will boost growth by 1.5 percent over the next year, said Nick Tuffley, chief economist at ASB Bank Ltd. in Auckland."

"“Purchase applications increased last week, reaching the highest level since the end of May. However, purchase activity remains well below levels seen prior to the expiration of the homebuyer tax credit, and is almost 40 percent below the level recorded one year ago,” said Michael Fratantoni, MBA’s Vice President of Research and Economics, in a release."

``What’s not to love? Banks win by getting more for the property than would otherwise be the case. Investors win through earning a return that averages 15% on their investment. Banks win by getting more for the sale of the properties than would result from foreclosure. Our society, our economy and other homeowners win from a reduced the number of foreclosures. So, why do Fannie Mae and Freddie Mac both say no. Neither will approve a short sale under such circumstances.''

"A recent New York Times article raises the possibility that government intervention may have done all it can, and that the market must be left alone."

``Lindell lives in Michael's Landing, a 347-acre development on the southwest side of West Des Moines that's been stalled since the owners of Regency Homes announced in April 2008 that the company was going out of business... Regency Homes failed to keep its promise to spend millions of dollars on new streets and storm water drainage for the new houses and townhomes. Now, West Des Moines won't issue building permits until the four banks that took control of the development can figure out a way to keep those obligations.''

``The FHA short refinance program is really a reduction in principal program. The current first lien holder must be willing to write off at least 10 percent of the unpaid principal balance of the mortgage so that the refinanced FHA insured mortgage has a loan to value ratio of no more than 97.5 percent. In addition, any second lien holders must agree to re-subordinate. The new loan, which includes the first and any second liens, may not have a combined loan to value ratio above 115%.''

"U.K. house prices unexpectedly rose for a second month in August as a strengthening economy helped support demand, Halifax said."

"That said, the chief economist of the National Association of Home Builders told the NY Times a $25,000 homebuyer tax credit would really get “people off the bench,” but the chances of such a measure making its way through Congress was nonexistent."

"Overall, the numbers show that despite the decrease in volume, subprime mortgages still account for the grand percent of current delinquent loans and foreclosures across the board."

"Builders are buying lots at less than half their original prices from lenders eager to move distressed construction loans off their books. Developments are being resuscitated from Florida, California, and Las Vegas to Utah and the suburbs of Washington, D.C., according to Brad Hunter, chief economist for Metrostudy, a Houston-based housing researcher."