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S&P Case-Shiller Home Price Index: Yearly Declines but Monthly Gains July 28, 2009

Posted by John Watch in News Feed.
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Although home prices continue to decline, it may seem like the worst has passed for the housing market.

According to Standard & Poor’s report released today and public records, the 20-city index fell 17.1 percent in May from last year. This is the smallest drop in nine months. Economists forecasted a steeper decline at 17.9 percent, possibly indicating stabilization in the market. On a month-over-month basis, the property data index increased slightly at 0.5% in May, the first increase in the monthly index since July 2006.

So what does this mean?

While the report highlights positive signs of a recovery, many obstacles continue to hinder promising progress. With banks administrating strict guidelines on lending, unemployment creeping to 10 percent and foreclosures mounting, the rebound will be slow one.

Homeowners are feeling the most strain, as loan modifications are being stalled by banks. We propose this Mortgage Assistance Program that would allow a homeowner to remain in their house, while restructuring their mortgage payments for a time period with government assistance. Call it a 21st Century Lend-Lease Program.

Yesterday a man left a poignant comment on our ActiveRain Blog about the accountability that everyone needs to take in this issue. Whether it is trying to get your voice heard or being the voice, we all must take responsibility and produce vaible solutions for the problems.

“At this point, I think that what caused this crisis is becoming irrelevant. If lenders don’t start relaxing their guidelines a bit it’s going to become a lot worse. Obama’s plan isn’t working, loan modifications are being stalled by banks, and investors have been completely cut off unless they have pockets full of cash. Where is the accountability for all the bailout money the banks got? Why are laws that hurt homebuyers & investors being passed in this economy? They just passed one in AZ to let banks go after default judgements with homeowners who short sold their homes! What choice does an owner have if his home value is now less than his mortgage and he is forced to sell, for whatever reason? They are even trying to stop homeowners from doing ‘owner carryback” financing. In some cases that is the only way to sell a home. If no one can get conventional financing what other choice is there. Bottom line – something has to be done about the bank’s lending policies and harmful government intervention before we see a turn around in the housing crisis. Pay attention to what’s going on and make your thoughts known to the ‘powers that be”.”

For more information regarding the Mortgage Assistance Program or Market Reports, CLICK HERE

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