Freddie Mac: House Prices Still Only 1/3 of the Way to the Bottom

[El Pinko]

People looking for a bottoming-out in housing this year will be waiting quite a bit longer than that...


http://www.marketwatch.com/news/story/ceo-says-freddie-mac-sees/story.aspx?guid=%7B4980245A%2D5B7E%2D4EA6%2DB68B%2D8119100162E4%7D

Freddie Mac sees home prices falling further
By Robert Schroeder, MarketWatch

WASHINGTON (MarketWatch) -- Already under pressure, U.S. home prices have much further to fall, the chief executive of major mortgage-buyer Freddie Mac said Wednesday.
Speaking to analysts on a conference call, CEO Richard Syron estimated that housing prices, from peak to trough, have dropped only a third as far as he thinks they're going to. The McLean, Va.-based company's expecting a peak-to-trough decline of 15% in all.
According to the purchase-only price index of the Office of Federal Housing Enterprise Oversight, or OFHEO, prices are down 2.5% from the peak.
Meanwhile, according to the Case-Shiller national index, prices are down 10.2% from the peak.
On Feb. 28, Freddie Mac (FRE) reported a fourth-quarter loss of $2.5 billion, blaming the weakened U.S. housing market and credit-related expenses.


The 15% figure will be in non-bubble areas. Look for declines of 30-50% in CA, FL, DC/MD/VA, PHX, possibly Boston & Seattle.

[ScreamingMeemie]

1. The housing market has been propped up and will continue to be

propped up until there is nothing left. FHA underwriting Jumbo loans for those who would never have qualified... 100% to 120% loan to value loans etc...

http://ml-implode.com/

[CountAllVotes]

2. my brother's house has lost 25% of its peak value

haven't spoken with him in quite awhile. I suspect he is in agony being he tapped the equity on the house he still doesn't own after living in it for over 25 years several times.

I don't really feel sorry for him. He had 5 cars the last time I heard from him. He never has enough of anything.

And then, he lost his job. And now he wonders why no one will hire him for $100,000 a year. He has no formal education nor specialized skills really.

What a nightmare! I'm sure he is not alone with his "American greed" problem.

I wonder when he'll sell his RV and boat?

:kick: