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Subscribe to RSSCould the housing sector be the biggest rebound bet? Scott Ryles, CEO of Home Value Insurance, seems to think so.
Ryles appeared on CNBC on Wednesday to discuss his company’s new insurance policy aimed at offsetting the impact of declining home values. San Francisco-based Home Value Insurance will use calculations based on the Standard & Poor’s/Case-Shiller home price index to decide whether to pay out if a homeowner policyholder sell a house below its insured value.
Watch Ryles’ appearance on CNBC for more:
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it wont happen until the fed stops proping up failing banks and they actually let them shed the bad debt.
house prices have yet to hit bottom
Of course some high-paid guy who's paycheck depends on his fortune telling is going to indicate the positive. In another year when the housing market is still depressed, this guy will be working for someone else making more for being just as wrong and lying about the situation. That's modern day executives for you.
We agree on the what (not hitting bottom), but not the why.
House prices aren't going to hit bottom until the massive glut fades and homes are once again seen as a place to live, rather than an ATM that happens to have some space on the inside.
Everyone that rushed headlong into a mortgage because they were led to believe [and foolish enough to go along with] the idea that a mortgage was a license to print money need to finish getting out...and stay out...before we have a hope of finding the true bottom.
And as long as the overall mindset exists...that any market is simply a place to gamble and make a quick buck...the bubble-and-bust cycle isn't going to stop, just move from market to market.
MORE GAMBLING ON FAILING?
"to discuss his company’s new insurance policy aimed at offsetting the impact of declining home values."
translation - if your house is below water, take out an insurance policy with us. if you sell your house, and it's still below value...cha-ching, you win!
but wait...there's always fine print right?
"San Francisco-based Home Value Insurance will use calculations based on the Standard & Poor’s/Case-Shiller home price index to decide whether to pay out if a homeowner policyholder sell a house below its insured value."
so, in the end...they might decide NOT to payout after all. Wah, wah waaaaaaaaaahhhhhhhhh
thanks for playing, it's like taking candy from a mentally handicapped baby that doesnt even realize they have candy!
Home prices are still a bubble compared to historic norm. According to case shiller index, we are still 20% above long term averages. Typical bottom comes at 20% below average. But this is not your typical recession. This is a deflationary crash. This is Great Depression material. These averages themselves are based on a money supply that was inflated by borrowing for many decades. When the money supply deflates, existing prices and salaries cannot be sustained:
www.kondratieffwavecycle.com/housing-bubble-bust/
Whatever you do, do not get into debt. If you want to buy, buy cash down. Even if prices do not fall, in many cases, rent is cheaper if you consider mortgage interest, property taxes, condo fees, maintenance, lost interest/investment income...
Obviously, this guy is being paid for his (optimistic) opinion. By predicting the market will rebound (he hopes), everyone will go out and take advantage of current low prices and low interest rates, and, voilà, it looks like the market rebounded. I have to see it yet.
Leave it to NBC to give this clown airtime and print a housing propaganda headline for it.
What a joke.
Wow, there's business that will go under in a big hurry.....or their payout to the insured will be so small as to be a waste of the premium money, because housing prices aren't going to rebound for one hell of a long time!
Ha Ha Ha...there is NO bottom to the housing market...because..like Florida..the entire real estate market is based on new generations of buyers...with over 310 million...nearly half minorities and undereducated in the U.S....where are these blue collar workers going to find the money to pay $200K and $300K mortgages...NEVER..its over...ruff transition period..followed by a Hispanic America. Unfortunately the torch has to be dropped before it's passed!!!
NO FREE TRADE WITHOUT FULL EMPLOYMENT!!
"Bet" being the operative word. You're much better off taking your money to the casino, at least there a pretty girl in a short skirt serves drinks while they steal you blind.
Ulness and untill housing prices come more in line with incomes, housing is doomed, no matter what the Fed cooks up next to prop up rotting assets on bankster's balance sheets. if they mark to market, rather than mark to fantasy, prices would come down even further, despite the morally bankrupt monthly reports dreamed up by the special interest group, the MBA: Talk about a bunch of hypocrites pushing their own, twisted agenda, and foisting their jacked up monthly reports are "facts" and "trends". The MBA are as reliable as Bernake has been over the past three years: right about NOTHING!! The only thing the MBA has not done is lie to Congress, as helicopter Ben has done a few times in the past two years. Criminals, All!
Unless and untill housing prices come more in line with incomes, housing is doomed, no matter what the Fed cooks up next to prop up rotting assets on bankster's balance sheets. If they mark to market, rather than mark to fantasy, prices would come down even further, despite the morally bankrupt monthly reports dreamed up by the special interest group, the MBA: Talk about a bunch of hypocrites pushing their own, twisted agenda, and foisting their jacked up monthly reports as "facts" and "trends". The MBA are as reliable as Bernake has been over the past three years: right about NOTHING!! The only thing the MBA has not done is lie to Congress, as helicopter Ben has done a few times in the past two years. Criminals, All! Stop the Looting, and Start the Prosecuting!
Welcome to Pottersville, USA
So we are to believe some guy who has a vested interest in what he's selling. More MessNBC cheerleading.
there is no rebound in sight anywhere ! even gold is falling because of fear of total collapse ! invest in chickens and other bartering things ! forget the blame game ! an prepare for hard times ahead !
If that gang of 12, in D.C., can't make a decision on what to cut; then they'll be a 2.1 trillion dollar cut automatically. That's about how much money there is in the current U.S. housing market. That ought to help the housing market some because right now it's messed up. They need to take A.R.M.'s or Adjustable Rate Mortgages out of the banking system. They don't benefit either the borrower or the lender. So do away with them. A Fixed Rate Mortgage or F.R.M. is always the way to go. That way, you know what your mortgage payment is every month because it stays the same. At whatever rate you're locked in at. There's a lot of work that needs to be done to get America back on her feet. So analysts, economists, politicians and others have decided to start with housing. After all, home ownership is the American dream. Everybody deserves and should have decent affordable housing. Eventually, the housing market will recover, in about 10 years or so. We didn't get into this mess overnight and we won't get out of it right of way either. Just be patient and watch as things change, hopefully for the better.
Adjustable rate mortgages are great, if you have the money to pay it off when the rate rises. They are not meant for people living paycheck to paycheck.
A.R.M.'s are government sponsored LOAN SHARKING.....
Where I live, Henderson, Nevada which is just outside Las Vegas, we were hit particularly hard by the economic crisis. We were number one in the country for foreclosures for some time. Currently we have seen people flocking here in droves to buy up the real estate both residential and commercial. 52% of all sales have been all cash. Canadian, Chinese and Europeans are buying up the inventory like crazy. You can buy a house here right now for 70% of what it costs to build. Property values have gone up for the past 4 months and we are down to less than 3 months inventory. My neighbors put their house on the market and got 6 offers and sold it for $15,000 more than list price...all cash. Something is going on.
"Canadian, Chinese and Europeans are buying up the inventory like crazy...Something is going on."
It's called the end of America, look around. Take pride in knowing that you willingly blew hot air into the bubble that bought the house of cards down.
Coastal South Florida is seeing impressive foreign-buyer sales, strong market that is not being properly reported in the media. South Beach business has been roaring this year. The media just feeeds on negative news, which creates unjustified hysteria.
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One foreigner is too many when it comes to land ownership . Lots of countries do not allow foreigners to buy land in there country. I feel we should be the same way. If you are not a American citizen you should only be allowed to rent not buy.
Even the dumbest, most virulent anti-immigration zealot knows that there are many law abiding non-citizens who enjoy legal status as permanent resident aliens, which status is granted to them by Immigration and Customs Enforcement (ICE), formerly known as the Immigration and Nationalization Service (INS) . Is it really your position that, although they are living in the United States with the full imprimatur of our government, they have no right to rent residential property? Even if you believe that land ownership should be restricted to US citizens, why would you want to prohibit legal residents of the US from being able to rent shelter for themselves and their families? Maybe you should rethink your position.