The housing market seems to remain all over the place. Some of the headlines seem to be more positive but we are still very concerned about the summer months and going forward.

• Freddie and Fannie are clearly bankrupt but continue to get tax payer funding.
• Interest rates will have to move higher and government incentives have gone by the wayside.
• It is very difficult to get a mortgage right now, and most are coming in one form or another from the government agencies, which are in very bad shape.
• What really scares sellmyhouse.com, is the fact that there are so many foreclosures in the pipeline and default notices have increased over the last few months, not decreased.
• The supply side of the equation is about to be throw out of whack again, and that is never good for prices.

Preparing for this, if it does unfold as we suspect, will be about surviving the next year or so. Large inventory + low mortgage base = owner financing explosion. Only time will tell if we are correct but we began positioning for this a few months ago with our new website and service.

A recap and links provide the story:

1. Foreclosure Inventory = 103 Months
2. New Home Sales Still Ailing
3. Home Prices Fall in Major Cities
4. Despite Positive Signs in Housing, More Declines Expected
5. The Mortgage Problem Hasn’t Gone Away
6. Does Freddie Mac Deserve Another $10.6 Billion?
7. Fannie Mae: Where the Bankrupt Only Get More Bankrupt
8. The Disconcerting Truth About Fannie and Freddie Default Rates

SellMyHouse.com Staff Writer

fannie mae · Foreclosures · Freddie Mac · Home Prices · housing market · Pending Home Sales · sell my house · seller finance · sellmyhouse.com

On April 30, the Tax Credit will be gone. Banks seem to be holding ’shadow’ REO inventory that has been reported in the 4-8 million range. Interest rates are set to go higher because of all of the government debt that has been added to the books trying to avert all this.

However, the real scary issue is relayed in a recent Charlie Rose interview with housing expert Robert Shiller:

Charlie Rose: You’ve said that 90% of the housing market is supported by the government.
Robert Shiller: Well, it’s 80% or 90%. Really almost the whole market now is government. And we know this can’t last.

Rose: And that means prices are being artificially inflated?
Shiller: It seems to. Government support is especially prominent in sales of existing homes, which shot up to over 6 million on an annual rate in November 2009, the month that the home buyer tax credit initially was supposed to expire.

Fannie Mae has reported the rate of serious delinquencies (90 Days overdue) for conventional loans in its single-family guarantee business jolted to to 5.52% in January from 5.38% in December. This is a 100% increase since January 2009. But look at the chart below and explain to me how we are anywhere near an end to this housing crisis!

It is our stance that we still have some real issues to work thru before we can claim “an end to the housing crisis”.

Jason Roberts

Founder & CEO

www.SellMyHouse.com

Bank Owned · fannie mae · Foreclosures · Freddie Mac · Home Prices · housing market · Pending Home Sales · sell my house · sellmyhouse.com · short sale · stop foreclosure

How are these for statistics:

Last year Freddie lost almost $26 BILLION. Over the last 3 years that total is approaching $80 Billion. Almost 4% of loans on their books are at least 3 Months behind. Between Freddie and Fannie last year, they backed almost 70% of the new mortgages.

Freddie Mac warned there is “significant uncertainty as to whether or when we will emerge” from government control. “We now have unlimited taxpayer exposure to the bailout of Fannie and Freddie, a bailout nation where the big get bigger, the small get smaller and the taxpayer gets poorer,” Rep. Jeb Hensarling, R-Texas, said at a House hearing Wednesday.

Charles Haldeman, Freddie’s CEO warned today of a “potential large wave of foreclosures” still to come.

At www.sellmyhouse.com, the number of phone calls we get daily from people afraid of losing their house has gone up, not down. We worry that after this Spring season is over and the Tax Credit is gone, and the massive wave of foreclosures hit the market, and the job market keeps getting worse, and the…. and the…..we’ll have to pay the piper. And the payee this time is the Government. We’ve just put of the inevitable for a few more years and made everybody feel like all is well. Of course everybody does not include main street America. We’ve been paying the piper the entire time…guess where the Government gets their money!

Hold on..it’s not over yet! Our investor network is going to have a tremendous few years.

www.SellMyHouse.com Staff Writter

fannie mae · Freddie Mac · housing market · sell my house