Oyster Property Search
Some briefs from news stories on the other side of the pond:
July 24 (Reuters) - U.S. 30- and 15-year mortgage rates spiked upward in the latest week amid fears of greater housing market weakness and expectations of higher interest rates going forward, according to a survey released on Thursday by home funding company Freddie Mac.
U.S. 30-year mortgage rates rose to an average of 6.63 percent from 6.26 percent a week ago, while 15-year mortgages averaged 6.18 percent, up sharply from 5.78 percent a week ago.
May 08 - Head of the US Federal Reserve, Ben Bernanke shows off new tool in understanding Real Estate price change across the USA with the USA Property Prices Map
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June 08 - A recent report on the state of the Real Estate market in California suggests 3 out of every 4 homes in Stockton, about 85 miles East of San Francisco, is in or heading for ´Foreclosure´ (Repossession). Where properties valued at $500,000 at the height of the market 2 years ago are now selling for around $200,000!!!
Tempted? Speak to Oyster International before you do, you´ll be glad you did....
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As the Fallout from the Sub-prime lending continues, the question is how long and how bad?
Not an easy question to answer, so I´ve been out asking a few ´City´ contacts for their take on the subject. They all appear to agree that the media have blown parts of the story out of proportion. Well that will be a first!!!!
Seriously though, few Bankers seem to think the overall financial markets are doomed, just correcting the imbalance created over the past few years. A view shared by us. Financial worlds move in cycles, most cycles have had mitigating circumstances which prelong or prematurely shorten a cycle. This cycle in the US has been prelonged by a few factors, which makes the correction seem worse than it actually is. Tha main factor has been cheap lending, when lending is cheap, people borrow, the more they borrow, the more they spend, and Real Estate has been one of the most popular choices. However, the period of cheap borrowing came to an end starting with the first increases in interest rates a couple of years ago. Multiple increases have squeezed lending and created problems for borrows over exposed to debatable markets. Therefore ´defaults´ (Mortgage payment arrears) have increased and ´foreclosures (Repossessions) have increased by 50%.
What does this mean to Real Estate values?
Basically, it means that buying property in the states is not a quick way to make a fortune, property is now flooding onto the market is some areas and some owners are going to loose money as property prices continue to decrease.
| Home price index posts largest drop in history |
May 08 (AP) - A home-price index considered to be the most comprehensive reading of the U.S. market posted the sharpest decline in its 17-year history, and analysts say housing has yet to bottom out.
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