Monday, April 14, 2008

Losing Faith on the Home Front


April 14, 2008
1:15 P.M.

A recent Associated Press-AOL Money & Finance Poll says homeowners are becoming more pessimistic about the housing market and won't be looking to move anytime soon if they can avoid it.

Break Down: The Associated Press-AOL Money & Finance Poll

60% of homeowners say they definitely won't buy a home in the next two years. That's up 7% since 2006.

11% are likely to buy soon. That's down from 26% two years ago.

25% of homeowners worry their home will lose value over the next two years.

One in seven mortgage holders fear they won't be able to make monthly payments over next six months.

The Post Standard Reports Syracuse Not Affected by Subprime Mortgage Crisis
EXPERTS SAY SYRACUSE HOUSING MARKET ESCAPED SUBPRIME CRISIS - IT WASN'T OVERHEATED TO BEGIN WITH, SO THERE'S LESS DANGER OF A MELTDOWN.
Post-Standard, The (Syracuse, NY) - March 15, 2008
Author: Rick Moriarty Staff writer
Many other markets, including Syracuse, did not experience huge run-ups in prices, never bothered with subprime mortgages and are not seeing price declines or rising foreclosures now, two economists said.

"The big declines are all about these super-overheated markets in California, Florida and Las Vegas," said Robert Denk, assistant staff vice president for forecasting and analysis at the National Association of Home Builders. "Most other markets, they're not marching to the cliff and diving off."

Ken Fears, manager of regional economics for the research division of the National Association of Realtors, said the meltdown in subprime mortgages - loans to people with poor credit ratings - has even helped places like Syracuse. As banks have redirected mortgage money away from subprime loans to safer conventional mortgages, interest rates have fallen, making homes more affordable, he said.

In Onondaga County, sales of single-family homes fell 10.9 percent between 2005 and 2007, but median prices rose 6.5 percent, from $123,000 in 2005 to $131,000 in 2007. The two economists said 2005 was a particularly strong year nationally for home sales, making the sales from just about any other year look poor in comparison.

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