“… as stricter lending terms reduced the number of buyers,”
“…reduced availability of jumbo mortgages…”

This tells me people still refuse to accept how far prices have to drop, or that prices were actually inflated. This sounds like NAR-speak refusing to acknowledge we are in the middle of a severe correction as if prices are being artificially depressed. They just increased the Jumbo conforming limit!

Granted the high end is more resilient, (although far less as the job market continues to deteriorate) and it also didn’t climb as high, but that doesn’t mean prices aren’t inflated and won’t continue to fall.

“… as stricter lending terms reduced the number of buyers,”
“…reduced availability of jumbo mortgages…”

This tells me people still refuse to accept how far prices have to drop, or that prices were actually inflated. This sounds like NAR-speak refusing to acknowledge we are in the middle of a severe correction as if prices are being artificially depressed. They just increased the Jumbo conforming limit!

Granted the high end is more resilient, (although far less as the job market continues to deteriorate) and it also didn’t climb as high, but that doesn’t mean prices aren’t inflated and won’t continue to fall.

Just a little reminder of the growth in inequality which surely must be reflected in house price trends between areas.
——————

US household incomes fail to grow
By Steve Schifferes
Economics reporter, BBC News

US households have failed to benefit from the strong economic growth in the last six years of expansion.

Despite an economy that expanded by 18% since 2000, real income for the median family fell by 1.1% from 2000 to 2006.

Job creation was much slower as well, with jobs growing by just 0.6% per year, one-third of the previous rate.

But people at the top of the income distribution, the top 1%, tripled their income between 1989 and 2006, according to the Economic Policy Institute.

“While most Americans were struggling, the good times were rolling for the top 10%,” said EPI president Lawrence Michel.

With the US economy now slowing, household income is likely to fall further behind, the group predicts, with African-American and Hispanic households especially hard-hit.

Just a little reminder of the growth in inequality which surely must be reflected in house price trends between areas.
——————

US household incomes fail to grow
By Steve Schifferes
Economics reporter, BBC News

US households have failed to benefit from the strong economic growth in the last six years of expansion.

Despite an economy that expanded by 18% since 2000, real income for the median family fell by 1.1% from 2000 to 2006.

Job creation was much slower as well, with jobs growing by just 0.6% per year, one-third of the previous rate.

But people at the top of the income distribution, the top 1%, tripled their income between 1989 and 2006, according to the Economic Policy Institute.

“While most Americans were struggling, the good times were rolling for the top 10%,” said EPI president Lawrence Michel.

With the US economy now slowing, household income is likely to fall further behind, the group predicts, with African-American and Hispanic households especially hard-hit.

Just a little reminder of the growth in inequality which surely must be reflected in house price trends between areas.
——————

US household incomes fail to grow
By Steve Schifferes
Economics reporter, BBC News

US households have failed to benefit from the strong economic growth in the last six years of expansion.

Despite an economy that expanded by 18% since 2000, real income for the median family fell by 1.1% from 2000 to 2006.

Job creation was much slower as well, with jobs growing by just 0.6% per year, one-third of the previous rate.

But people at the top of the income distribution, the top 1%, tripled their income between 1989 and 2006, according to the Economic Policy Institute.

“While most Americans were struggling, the good times were rolling for the top 10%,” said EPI president Lawrence Michel.

With the US economy now slowing, household income is likely to fall further behind, the group predicts, with African-American and Hispanic households especially hard-hit.

Here is an excellent post from Mr Mortgage about the Jumbo-Prime Universe

“Jumbo-Prime Under Attack by the Raters – Big Banks Beware
Posted on August 28th, 2008 in Uncategorized

More news for you on the Jumbo-Prime and Alt-A front. The recent flurry of action by the raters is almost too much to keep up with. In the past month, all three primary ratings agencies have torn apart the Jumbo Prime and Alt-A RMBS market. Now Moody’s is going one step further by stepping up scrutiny, which means more downgrades shortly, on ALL Jumbo Prime deals from 2006-2007.”

http://mrmortgage.ml-implode.com/2008/08/28/jumbo-prime-under-attack-by-the-raters-big-banks-beware/

Also, I posted about this on the Pain in La Jolla thread from Manhattan Beach Confidential, it is a recent Karate chop sale in exclusive Manhattan Beach

http://mbcon.blogspot.com/2008/08/homers-shocking-fall.html

Home
“decent-sized 3br/3ba, 2300 sq. ft. home with substantial ocean views. Contemporary, clean, and nice, nestled in a very quiet part of the South End…”

List Price $2.3 M

Sold $1.7 M

Last sale 2002 $1.37 M

Keep in mind the increase in the median price in MB (nominal) was 161% from 2000-2008, and beach-adjacent properties usually outperform the median.

This was not a tear down and according to the comments the seller was a successful RE Investor (commercial) and moved into a $6 M home (point being this was an educated seller). So this is what it looks like when sellers in the high end markets don’t cancel the listing and make the sale at what the market will bear. This one got people’s attention around here. The data is suggesting with each passing day that the high end is cracking.

Here is an excellent post from Mr Mortgage about the Jumbo-Prime Universe

“Jumbo-Prime Under Attack by the Raters – Big Banks Beware
Posted on August 28th, 2008 in Uncategorized

More news for you on the Jumbo-Prime and Alt-A front. The recent flurry of action by the raters is almost too much to keep up with. In the past month, all three primary ratings agencies have torn apart the Jumbo Prime and Alt-A RMBS market. Now Moody’s is going one step further by stepping up scrutiny, which means more downgrades shortly, on ALL Jumbo Prime deals from 2006-2007.”

http://mrmortgage.ml-implode.com/2008/08/28/jumbo-prime-under-attack-by-the-raters-big-banks-beware/

Also, I posted about this on the Pain in La Jolla thread from Manhattan Beach Confidential, it is a recent Karate chop sale in exclusive Manhattan Beach

http://mbcon.blogspot.com/2008/08/homers-shocking-fall.html

Home
“decent-sized 3br/3ba, 2300 sq. ft. home with substantial ocean views. Contemporary, clean, and nice, nestled in a very quiet part of the South End…”

List Price $2.3 M

Sold $1.7 M

Last sale 2002 $1.37 M

Keep in mind the increase in the median price in MB (nominal) was 161% from 2000-2008, and beach-adjacent properties usually outperform the median.

This was not a tear down and according to the comments the seller was a successful RE Investor (commercial) and moved into a $6 M home (point being this was an educated seller). So this is what it looks like when sellers in the high end markets don’t cancel the listing and make the sale at what the market will bear. This one got people’s attention around here. The data is suggesting with each passing day that the high end is cracking.