{"id":5993,"date":"2008-12-09T08:32:05","date_gmt":"2008-12-09T15:32:05","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=5993"},"modified":"2008-12-09T08:32:05","modified_gmt":"2008-12-09T15:32:05","slug":"can-we-stop-falling-house-values-an-op-ed-piece-by-the-nahb","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5993\/can-we-stop-falling-house-values-an-op-ed-piece-by-the-nahb\/","title":{"rendered":"Can We Stop Falling House Values? An Op Ed piece by the NAHB"},"content":{"rendered":"

This is excerpts from an op ed piece written by Steve Hodgkins.\u00a0\u00a0 I\u2019ll throw some comments in to explain\/clarify what he\u2019s saying and why I don\u2019t agree with a large portion of it.<\/p>\n

The decline in single-family home values is the predominate reason for the current economic collapse\u2026\u2026<\/em><\/p>\n

Tom here – which came first, the chicken or the egg?\u00a0\u00a0 Did the subprime mortgage lending boom send housing prices way too high because credit was too easy?\u00a0\u00a0 Or did housing prices fall because those loans went bad?\u00a0\u00a0 Or both?<\/p>\n

Falling values have decimated the single-family construction industry, which normally supplies roughly 16% of the gross national product of the United States\u2026\u2026<\/em><\/p>\n

At the height of the housing boom, developers and home builders were buying land, developing lots and building houses based on an economy fueled by subprime mortgages. <\/em><\/p>\n

They neither asked for nor were even aware of this giant social experiment conceived by our political leaders and the heads of mortgage giants Fannie Mae <\/a>and Freddie Mac<\/a>.<\/em><\/p>\n

Tom here – so they didn\u2019t ask for increased lending?\u00a0\u00a0 They weren\u2019t even aware of the fact that lending was significantly more lenient than it was before?\u00a0\u00a0 They are saying that they never lobbied for easier lending?\u00a0\u00a0 I\u2019m sorry I\u2019m not buying it\u2026.<\/p>\n

As entrepreneurs and job creators, home builders were simply responding to perceived market conditions. Likewise, their banks and financial partners were making decisions based on historical market data.<\/em><\/p>\n

Tom here – \u201cmaking decisions based on historical market data?\u201d\u00a0\u00a0 So he\u2019s saying that the sudden relaxation of mortgage guidelines was based on historical data?\u00a0\u00a0 How does he figure that?\u00a0\u00a0 I\u2019m absolutely positive that I\u2019m not the only mortgage lender who said, \u201cWow, I can\u2019t believe that Fannie and Freddie will buy this loan\u2026..\u201d<\/p>\n

After the subprime loans were pulled out of the marketplace, builders were left with large inventories of land, lots and houses and far fewer buyers who were able to qualify\u2026..<\/em><\/p>\n

Tom here – I\u2019m not sure that it\u2019s quite an accurate description of the market dynamics.\u00a0\u00a0 Did the subprime mortgages get pulled or did buyers stop buying a new home because prices have gotten too high and the increase Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This is excerpts from an op ed piece written by Steve Hodgkins.\u00a0\u00a0 I\u2019ll throw some comments in to explain\/clarify what he\u2019s saying and why I don\u2019t agree with a large portion of it. The decline in single-family home values is the predominate reason for the current economic collapse\u2026\u2026 Tom here – which came first, the […]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[26],"tags":[274,275],"class_list":{"0":"post-5993","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-lending","7":"tag-housing-prices","8":"tag-nahb","10":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":4582,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4582\/bloodhound-blog-radio-interviews-matt-padilla-author-of-chain-of-blame\/","url_meta":{"origin":5993,"position":0},"title":"Bloodhound Blog Radio Interviews Matt Padilla, author of Chain of Blame","author":"Brian Brady","date":"September 22, 2008","format":false,"excerpt":"We interviewed Matt Padilla, author of Chain of Blame- How Wall Street Caused the Mortgage and Credit Crisis.\u00a0 This book, released in May, 2008, details a history of non-prime lending, the S&L crisis, securitization of mortgages, and what went wrong. Download and Listen to the 45 minute interview here An\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":10192,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10192\/with-help-like-this\/","url_meta":{"origin":5993,"position":1},"title":"With help like this…","author":"Al Lorenz","date":"October 29, 2009","format":false,"excerpt":"Robert Worthington is right.\u00a0 Do you want to know how right he is?\u00a0 According to Goldman Sachs, who ought to know about government intervention, the feds interventions into the housing have pushed home prices 5% higher on a national average than they would have been otherwise, Goldman Sachs estimates in\u2026","rel":"","context":"In "Dirty Laundry"","block_context":{"text":"Dirty Laundry","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dirty-laundry\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":146,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/146\/theres-a-reason-they-call-it-a-buyers-market\/","url_meta":{"origin":5993,"position":2},"title":"“There’s a reason they call it a ‘buyers’ market”","author":"Greg Swann","date":"July 28, 2006","format":false,"excerpt":"Catherine Reagor in the Arizona Republic runs down all the bad news, but there is a better lens for interpreting this information. Take note of M. Anthony Carr in Realty Times:Buyers scurry, afraid of buying at the height of the market. So why aren't builders running scared? Because the underlying\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14488,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14488\/housing-might-not-be-a-good-investment-but-its-not-a-bad-hedge-against-inflation\/","url_meta":{"origin":5993,"position":3},"title":"Housing Might Not Be a Good “Investment” But It’s Not a Bad Hedge Against Inflation","author":"Brian Brady","date":"April 26, 2011","format":false,"excerpt":"Debra and I had the good fortune to met Anthony Randazzo at a Reason Foundation dinner last week.\u00a0 Mr. Randazzo published an article today, about real estate as a \"store of value\" (which was consistent with what we've been talking about here on BloodhoundBlog). Few people will dispute that more\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":16209,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/16209\/americans-will-downsize-and-live-multigenerationally-in-order-to-offset-the-fraud-they-know-exists-in-real-estate-until-there-is-wage-growth-and-that-could-be-years-or-decades-away-people-will-n\/","url_meta":{"origin":5993,"position":4},"title":"“Americans will downsize and live multigenerationally, in order to offset the fraud they know exists in real estate. Until there is wage growth, and that could be years or decades away, people will not trust any upward movement in real estate values.”","author":"Greg Swann","date":"September 27, 2012","format":false,"excerpt":"A searing indictment of The Bernanking System in Business Insider:Once people start to come out of negative equity, even more of them will sell and try to get out from under the cloud they are under. So, the housing bubble orchestrated by the Fed and by the hedge funds and\u2026","rel":"","context":"In "Investment"","block_context":{"text":"Investment","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/investment\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":17049,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/17049\/overnight-news-riots-what-riots\/","url_meta":{"origin":5993,"position":5},"title":"Overnight News: Riots? What\u00a0riots?","author":"Greg Swann","date":"September 18, 2020","format":false,"excerpt":"You got news? I got news: Present company excepted, the real estate industry seems to be terrified to talk about the riots. You know, the ones roiling the never-more-local real estate markets? Evidence abounds and none dare call it by its right name. The simplest explanation to fit the facts\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-content\/uploads\/2020\/08\/BHBNewTopImage-300x225.jpg?resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/5993","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=5993"}],"version-history":[{"count":2,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/5993\/revisions"}],"predecessor-version":[{"id":5995,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/5993\/revisions\/5995"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=5993"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=5993"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=5993"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}