Tuesday, November 27, 2007

Quick Takes: U.S. Real Estate Crisis Score Card

  • $500B in loan related write-downs at banks and rising.
  • $2 Trillion in economic credit impairments in lending.
  • 446,726 homes currently in foreclosure (1 for every 196 households).
  • 1.4 Million or more homes expected to enter foreclose in 2008.
  • Foreclosures increasing at over 34% per quarter.
  • U.S. GDP projection for 2008 lowered to 1.9% due to mortgage problems – down a full percentage point.
  • Likelihood of 6.4% unemployment with an additional 3 million jobs lost.
  • Property value drops nationwide estimated at 7% for 2008 – a loss of $1.2 Trillion to homeowners.
  • U.S. Home Prices fall 4.5% nationwide in Q3 of 2007 – the largest decrease ever.
  • 191 Mortgage Lenders out of business.
  • Cities expected lose a minimum $400B of economic activity due to the housing crisis.

Was loosening the traditional lending standards really worth it?


S&P: 3Q Home Prices Fall by 4.5 Percent
S&P Says 3rd-Quarter Housing Prices Dropped by Sharpest Rate in Index's 21-Year History

Report: Foreclosures Will Sap U.S. Cities

Since late 2006 - 191 major U.S. lending operations have "imploded" (11/27/2007 figure)

Have We Seen Worse of Mortgage Crisis?
New Wave of Mortgage Failures Could Create a Nightmare Economic Scenario

Housing to slow growth in 2008
A report warns of 20 percent hit on Triangle economy; U.S. growth may slow 25 percent