Hopefully the biggest part of the housing decline will be over by the end of the year."

Transcription

1 Reuters Hopefully the biggest part of the housing decline will be over by the end of the year." - U.S. Treasury Secretary Henry Paulson Source: Reuters News 6/24/08

2 Reuters We are at the beginning of the end of the downturn. It will be a long painful ending, but this is the first step in bringing the downturn to a close. - Mark Zandi, chief economist at Moody's Economy.com Source: Reuters News 6/26/08

3 Reuters It is still too early to call a bottom in the home sales market, but the vast majority of the declines in sales are behind us. - Adam York, economic analyst at Wachovia Corp in Charlotte, NC Source: Reuters News 6/26/08

4 National Assoc. of Realtors Sales of previously owned houses rose 2% last month. Source: NAR 6/08

5 Source: CNN Money.com 6/2/08

6 CNN Money.com With the national median price of a single family home at $204,229, mortgage rates around six percent and the average household earning nearly $50,000, the average home buyer spent about 23 percent of their income on housing during the first quarter of 2008.

7 Fortune Magazine.com On the path to a housing rebound So the first time in a decade renters can carry the mortgage payments and taxes on a new house for what they're paying a landlord. Source: Fortune Magazine.com 6/25/08

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9 Case-Shiller There were a total of eight metropolitan areas with month-to-month gains, led by a 2.9 percent increase in Cleveland.

10 Source: Wall Street Journal 6/05/08

11 New York Times I don t think people appreciate how long it s going to take to get the inventory level back down enough to give sellers some pricing power. It s going to take, in our opinion, two to three years. -Paul D. Puryear, a real estate analyst at Raymond James & Associates. Source: New York Times 5/25/08

12 First American CoreLogic REOs 660, , ,000 January 2007 January 2008 April 2008 Source: Wall Street Journal 6/02/08

13 Source: Credit Suisse

14 Associated Press Lenders stung by the housing bust are slashing prices dramatically to rid themselves of an unprecedented number of foreclosed properties. Source: Associated Press 6/12/08

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16 Reuters Home prices, based on the S&P/Case-Shiller data, have fallen about 15 percent and I am expecting them to drop another 10 percent before reaching a trough in the spring of Mark Zandi, chief economist at Moody's Economy.com Source: Reuters News 6/26/08

17 Reuters Home prices may fall 25 percent to 30 percent from their peak in 2006 and not hit bottom until 2010, with greater drops still in subprime mortgage debt markets. -Peter Acciavatti, credit analyst and managing director at JP Morgan Securities Inc Source: Reuters 6/11/08

18 National Assoc. of Realtors The median existing-home price is likely to decline 8.4 percent in the first half of this year, and then begin to stabilize in the second half. Source: NAR 6/09/08

19 Bank s Lending Standards April 2002 June 2008 Source: Federal Reserve

20 Mortgage Rates 30 year fixed Source: mortgage-x.com 6/10/08

21 Mortgage Rates 30 year fixed May 22 June 26 Source: Federal Reserve

22 Financing flexibility How can the seller make their home more attractive to a greater pool of buyers?

23 Washington Post The number of FHA loans issued rose 126 percent in the first quarter of 2008, compared with the same period a year ago. Source: The Washington Post 6/10/08

24 Wall Street Journal Rates on jumbo-conforming loans are currently 6.59 percent compared to non-conforming jumbos which are averaging 7.4 percent. Source: The Wall Street Journal 6/19/08

25 Wall Street Journal At J.P. Morgan Chase & Co., the volume of jumboconforming applications has doubled since prices began to fall in early May. Source: The Wall Street Journal 6/19/08

26 Wall Street Journal For some California lenders, jumbo-conforming loans now account for as much as 25 percent of applications, says Pete Ogilvie, president of the California Association of Mortgage Brokers. "Most of the activity is in purchases. Source: The Wall Street Journal 6/19/08

27 Wall Street Journal In March 2007, before the credit crunch hit, jumbo loans accounted for more than 12% of loan applications, based on the number of loans, according to the MBA, with the share of jumbo loans much higher in many high-priced markets. The jumbo share stood at 6% in May, after falling to as low as 4.4% in March. Source: The Wall Street Journal 6/19/08