Friday, January 14, 2011

Long economic downturn paints grim future for Privatopia

As the owner of this blog has observed, there's years more excess to be wrung out of the real estate bubble that burst five years ago.

Before it's done, it could take down a lot of HOAs with it. Witness the "the fading fortunes of gated communities and condominiums" in Florida as the Palm Beach Post put it in this article, where desperate HOAs have resorted to locking out inmates behind on their assessments and removing the doors of their mailboxes.

Hot topics for community associations in 2011 -

Hot topics for community associations in 2011 -
Pamela McKuen of the Chicago Tribune focuses on the financial problems of associations. Thanks to my student, Brittany Ryan, for this link.

Over 1 million Americans seen losing homes in 2011 - Yahoo! News

Over 1 million Americans seen losing homes in 2011 - Yahoo! News: "The bleakest year in the foreclosure crisis has only just begun. Lenders are poised to take back more homes this year than any other since the U.S. housing meltdown began in 2006. About 5 million borrowers are at least two months behind on their mortgages and industry experts say more people will miss payments because of job losses and also loans that exceed the value of the homes they are living in. '2011 is going to be the peak,' said Rick Sharga, a senior vice president at foreclosure tracker RealtyTrac Inc. The firm predicts 1.2 million homes will be repossessed this year."
Bucking the trend, I managed to conclude the refinancing of my home yesterday. I feel like the guy who gets onto the spaceship last just before the door closes, and it flies away, and the meteor crashes into the earth.

Interest rates are going up and the banks are behaving like complete idiots (i.e., taking zillions in cheap money from the taxpayers and then refusing to lend it). During 2011 they will drop the hammer on the huge backlog in foreclosures that accumulated during the "robo-signer" scandal.

Wednesday, January 12, 2011

Housing and Economy: Housing Market Slips Into Depression Territory - CNBC

Housing and Economy: Housing Market Slips Into Depression Territory - CNBC:
Home values have fallen 26 percent since their peak in June 2006, worse than the 25.9-percent decline seen during the Depression years between 1928 and 1933, Zillow reported. November marked the 53rd consecutive month (4 ½ years) that home values have fallen. What’s worse, it’s not over yet: Home values are expected to continue to slide as inventories pile up, and likely won't recover until the job market improves.
And in other news, the Democrats who control the Illinois state legislature just raised the state income tax by 67%, corporate taxes by over 40%, and continued their 8 year refusal to address their over-spending.

This is the first of many state and local tax increases to come. California and other big states are going to jack up taxes.

How anybody can talk about economic recovery now is just beyond me. The housing market is still deteriorating, unemployment remains high, and the crisis state of government financing at all levels is getting worse.