Widespread Fear Freezes Housing Market – NYT
Clearly, Mr. Yun needs to get out a little more often. Specifically, he ought to talk to people on the ground — like mortgage lenders or prospective borrowers. Talking to these people would probably give him a more sober take on the larger meaning of the latest sales numbers for existing homes. Sometimes, you see, lemons really can’t be turned into lemonade.
In Defense of Home Ownership – NYT
“Had we rented, we would be paying more than we’re paying for a mortgage,” said Ms. Williams, who had lived in the same two-bedroom rental for 12 years before she and her family moved into their new house in Eagle Rock earlier this month. “I don’t see how we could really regret having made the move when it’s so much better for us on so many levels.”
Pimco’s El-Erian Sees ‘Lost Decade’ for U.S. Jobs – BusinessWeek
“This country has very weak safety nets,” he said in a radio interview today on “Bloomberg Surveillance” with Tom Keene. “It is built on the assumption that our labor markets are very flexible, that if you lose your job in California you move somewhere else, you get another job, and what we’re seeing is structural unemployment.”
No Decision on Reviving Homebuyer Credit: Donovan – NYT
“It’s too early to say whether the tax credit will be revived,” Donovan said in an interview on CNN’s “State of the Union” program. He said the administration would “do everything we can” to stabilize the shaky U.S. housing market.
US consumers split into two camps – FT
This bifurcation of the US consumer has become apparent across the spectrum, from restaurants and grocery stores to products such as coffee and beer.
In each case, a consistent trend has emerged: people who have survived the worst of the economic downturn of 2008-2009 with secure jobs are spending the way that consumers normally spend at the tail end of a recession. But unlike the circumstances after previous US recessions, where spending rebounded across the board, an entire segment of American consumers has been left behind.
Another Home Buyer Tax Credit? – Diana Olick
Just when I thought the housing market was finally being left to correct on its own, I’m starting to hear talk regarding yet another home buyer tax credit. From HUD to the hedge funds, it sounds as if it is gaining steam yet again. This one could involve not just first time/move-up buyers, but a credit for buyers purchasing foreclosed properties or short sales (when the bank allows you to buy a home for less than the value of the outstanding mortgage).
What are the obstacles to being a landlord? – Felix Salmon
The days of lending only against home values are long gone; we have to move back to a world where lenders look at borrowers’ wealth and income too.
Foreclosures of million-dollar-plus homes on the rise – LA Times
Flipper Cash Propping Up Housing Market – NPR
In cities across the country, there are investors like Fuhr taking advantage of depressed housing prices to snap up dozens of properties on the cheap. When they’re not flipping those houses, they’re turning them into rentals.
