Old Man Cap

Calculated Risk – Fitch Projects additional 25 percent House Price Declines (real terms)
PIMCO, Phil Gross – MOOOOO
From the above articles, there looks to be an additional 33% decline in real prices over the next 5 years for San Francisco.  This is good news for those saving to buy a house in 5 years but bad [...]

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M&I Bank conference call
We have seen further deterioration in the residential land portfolio during the second quarter. … M&I has $2.3 billion in residential land loans to individuals and developers. $1.5 billion, or 66%, are located in Arizona . The bulk of the Arizona loans, nearly 70%, are in Maricopa County . … LTVs are [...]

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Click on these for the full % drops. They’re both down around 50% since Thursday.

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Calculated Risk – Krugman on the GSEs
Gov’t Plan to bail out Fannie Mae & Freddie Mac
The above are a couple good links describing the current state of affairs and the Fed’s plan to lend them cheap money. The links say it better than I can. Check them out. Especially the first one.

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IndyMac Bank fails, seized by FDIC
Fannie Mae & Freddie Mac in trouble
The second largest bank failure in US history happened yesterday around 5:30pm. They held a majority of junk mortgages and were technically insolvent. NY Senator Chuck Schumer publicized a few letters to regulators questioning IndyMac’s solvency. Everyone ran to take out their deposits before [...]

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Housing & Transportation Affordability Index

Maps + Statistics = Happy Me. You can get a great view of the % of income people spend on housing, gasoline, transportation, mass transit, etc…
What’s scary is that the majority of home owners in San Francisco spend over 45% of their income on housing + transportation costs alone. The numbers [...]

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