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Mortgage Crisis in US Will Total 945 Billion in Losses

Naomi M — Thu, 01 May 2008 13:55:55 -0500

Earlier this month the International Monetary Fund said the worldwide losses resulting from the US subprime mortgage crisis could hit 945 billion dollars as the fallout spreads throughout the global economy.

The IMF report said that falling US housing prices and rising defaults of residential mortgages could lead to losses of 565 billion dollars.

Housing Slump Continues as New Starts Drop 25 Percent

Naomi M — Thu, 17 Jan 2008 09:25:33 -0600

Housing starts for 2007 were down 25 percent, the biggest drop since 1980, to 1.354 million according to a Commerce Department report released today.

Building permits declined by the most in 12 years, indicating the housing slump will deepen as it enters a third year. Rising foreclosures will throw even more houses onto the market, hurting property values and threatening to push the economy into recession, economists said.

More Bad News for Housing Market as Supply of Homes Hits Highest Level in 22 Years

Naomi M — Thu, 29 Nov 2007 16:23:53 -0600

The supply of homes for sale is up to the highest level in 22 years. The National Association of Realtors reported Wednesday sales of existing homes fell for an eighth straight month in October while more properties came on the U.S. housing market.

Sales are down 20.7% in the past year and are down 31% from the peak of 7.21 million two years ago. The inventory of unsold homes rose by 1.9% to 4.45 million, representing a 10.8-month supply, the highest in at least eight years.

Housing Slump Adversely Affecting Sales of Big-Ticket Items

Naomi M — Thu, 15 Nov 2007 09:23:33 -0600

A weak housing market and a slowing economy continue to reduce demand on big-ticket items like furniture products.

La-Z-Boy posted a loss of $9.9 million, or ($0.19) per share, compared with a profit of $2 million, or $0.04 per share, in the year ago period.

Consumers Have Empty Pockets
Consumers continue to shy away from purchasing big-ticket items like furniture amid weak housing conditions, higher gas prices, and mounting credit worries. As a result, the outlook for La-Z-Boy remains uncertain.

Housing builder, M.D.C. Holdings taking losses from housing slump

Fri, 02 Nov 2007 01:27:32 -0500

Denver home builder M.D.C. Holdings Inc. battled a "turbulent" housing market in the third quarter of 2007.

The builder suffered a net loss for the period ended Sept. 30 of $155.4 million, or $3.40 per diluted share. For the third period of 2006, M.D.C. (NYSE: MDC) posted net income of $48.7 million, or $1.06 a diluted share.

M.D.C.'s third-quarter revenue decreased to $686.7 million this year, compared to $1.08 billion for the same period of '06.

Home sellers, builders and agents need to pull out the stops to sell homes

Thu, 01 Nov 2007 22:57:34 -0500

Across the country, Bob Schultz, a Florida-based sales consultant, has been holding "Home Sales Boot Camps" for agents.

"Every builder and every real estate broker should be training their people how to deal with this kind of market," Schultz said. Agents who don't adapt won't be around much longer.

During a recent training session at Prudential's Brea office, about 50 agents heard tips on pricing, prepping and photographing homes to get them ready for market.

Luxury home owners very optimistic about real estate

Thu, 01 Nov 2007 19:45:14 -0500

Despite the recent cooling of the real estate market, luxury homeowners remain positive about the market, according to the 2007 Coldwell Banker Previews International(R) Luxury Survey.