Comments on: Home Prices: The Statistic That Matters Most?

By: Mortgage Market, Filled with Confusing Signals — Morning Mortgage Notes

Mortgage Market, Filled with Confusing Signals — Morning Mortgage Notes — Wed, 07 Jul 2010 11:24:50 +0000

[...] agree with Tim Manni, of HSH Associates, in his assessment that housing price stability is the only important indicator of economic recovery. Homes are typically 60-75% of the average homeowners’ net worth. If that is running to zero [...]

By: Visionary Realty News » Best #Realestate Home Price Numbers in Years

Visionary Realty News » Best #Realestate Home Price Numbers in Years — Wed, 26 Aug 2009 02:50:15 +0000

[...] Newport seem up on the news. Newport equated the slowing pace of decline from March to April to the busy spring home-buying season. Yet, after several positive reports from different sources, Newport seems ready to cast the home [...]

By: Tim Manni

Tim Manni — Tue, 07 Jul 2009 13:28:31 +0000

Hey Mike,

We’re going to keep an eye on this one. One of the president’s big campaign promises was no tax hikes for the middle class. We will see.

Thanks for commenting, please visit us again,
Tim

By: Tim Manni

Tim Manni — Tue, 07 Jul 2009 13:26:55 +0000

Hey Lucia,

Sorry it me so long to respond to your comment, I think this one got lost in the shuffle — I apologize. For prices to stabilize first and foremost I would argue that foreclosures need to subside tremendously. Home prices are being weighed down by the sore thumbs next door, down the street or around the corner. But yes, demand is also a huge part — perhaps the most fundamental. While a big aspect, credit availability does impact demand greatly, but lack of demand is also being fostered by falling home prices and the deteriorating value of the home as an investment. Haha, you’re right, it is like the chicken verse the egg almost.

I think your “naive” question is a really good one. My only point would be that loosening up lending standards for good borrowers is better than loosening lending standards for bad ones — which is already beginning to happen again.

Always a pleasure,
Tim

By: Mike for Smooth Ceilings

Mike for Smooth Ceilings — Wed, 01 Jul 2009 23:53:44 +0000

If they pass the cap and trade bill, none of this is gonna matter anyway. With the additional taxes and price increases this bill will cause, any chance the economy had to recover will be smashed.

By: Lucia

Lucia — Wed, 01 Jul 2009 22:19:44 +0000

This may be a chicken vs egg question, but doesn’t price stabilization depend on demand which depends on credit availability? And isn’t credit availability a factor in business health which strengthens job stability and increases demand for housing? Is it naiive to focus on loosening lending standards a tiny bit so good borrowers can apply the demand principle to the housing supply?

By: Tim Manni

Tim Manni — Wed, 01 Jul 2009 15:39:50 +0000

Nash,

Yeah you’re right — year-over-year stats are ugly! We could blog about this topic for years to come.

Thanks for commenting, we really appreciate your input,
Tim

By: Mortgage Market, Filled with Confusing Signals | Morning Mortgage Notes

Mortgage Market, Filled with Confusing Signals | Morning Mortgage Notes — Wed, 01 Jul 2009 13:33:27 +0000

By: Nashville Homes

Nashville Homes — Wed, 01 Jul 2009 00:57:23 +0000

As a Realtor in the middle of this exact market, I concur with the findings of Pat Newport. The gains are little more than seasonal and the year over year statistics are not nearly as rosy. The current housing devaluation is NOT over and there may even be another 2 years before the bottom. I could list the 50 reasons why this statement is true, but there is simply not enough room in this comment field.