1 First Time Underwater The Impact of the First-time Homebuyer Tax Credit Dean Baker April 2012 Center for Economic and Policy Research 1611 Connecticut Avenue, NW, Suite 0 Washington, D.C
2 CEPR First Time Underwater: The Impact of the First-time Homebuyer Tax Credit i Contents Introduction... 1 The Impact of the First-time Homebuyer Tax Credit on the National Housing Market... 2 Regional Differences in the Impact of the First-time Homebuyer Credit... 8 Conclusion Appendix About the Author Dean Baker is an economist and Co-director of the Center for Economic and Policy Research in Washington, D.C. Acknowledgements The author thanks Alan Barber, Kris Warner, and Nicole Woo for helpful comments and edits.
3 CEPR First Time Underwater: The Impact of the First-time Homebuyer Tax Credit 1 Introduction One of the items that Congress added to the American Recovery and Reinvestment Act of 2009, President Obama s stimulus package, was a first-time homebuyer tax credit. The tax credit gave people buying their first home, or who had not been homeowners for at least three years, a tax credit equal to 10 percent of the purchase price of the home, up to $8,000. The intention was to spur home buying and put an end to the plunge in home prices, which were dropping at an annual rate of close to 20 percent at the time. According to the Government Accountability Office, 2.3 million people took advantage of the credit, at a cost to the government of $16.2 billion. 1 The impact of the tax credit is easy to see in the data. There was a sharp jump in existing home sales almost immediately after the credit was passed into law. It was also successful in ending the plunge in prices. Prices stabilized in the second quarter of 2009, just after the first-time credit went into effect. They actually rose somewhat in the second half of the year as homebuyers rushed to take advantage of the credit before it was initially scheduled to end in November. There was a second surge in buying, and a corresponding rise in prices, in the second quarter of 2010 as an extension of the credit ended. In this sense the credit had a substantial impact on the housing market, as was intended. However, if its proponents expected the credit to permanently sustain bubble-inflated home prices, they would have been badly disappointed. After the expiration of the extension of the credit in April of 2010, sales plunged and prices followed. The effect of the credit was primarily to pull purchases forward. There were not many people who would be motivated to buy a home who would not have otherwise, even with this relatively generous credit. Essentially, the credit persuaded many people who might have bought a home in the second half of 2010 or 2011 to buy their home in 2009 or the first half of This delayed the deflation of the bubble, but did not stop it. By the end of 2011, nationwide home prices had fallen by 8.4 percent since the credit-induced peak reached in the second quarter of They are continuing to fall into The temporary boost to the market from the credit allowed many homeowners to sell their homes at prices that were still partially inflated by the bubble. This was good for these homeowners, as well as their creditors, who might have otherwise been forced to accept short sales. However, it was bad news for homebuyers who were persuaded to buy homes at prices that were often still above trend values. This paper briefly outlines the impact of the homebuyer credit. The first part produces a set of calculations of the amount of wealth transferred to sellers and creditors as a result of the credit. These calculations are intended to determine the additional amount that homebuyers paid for homes as a result of the credit, as opposed to a situation in which the housing market had been allowed to continue its decline unchecked. The second part of the paper focuses on some of the cities where the credit appears to have had the greatest impact. It looks at the extent to which buyers of less expensive homes the segment of the market most influenced by the credit experienced losses as a result of buying homes at bubble-inflated prices. 1 Government Accountability Office, Usage and Selected Analyses of the First-Time Homebuyer Tax Credit, GAO R, available at 2 This drop is based on data from the Case-Shiller nationwide home price index.
4 number of homes CEPR First Time Underwater: The Impact of the First-time Homebuyer Tax Credit 2 The Impact of the First-time Homebuyer Tax Credit on the National Housing Market There can be little doubt that the first-time homebuyer tax credit had a large impact on the country s housing market. Sales took off almost immediately after the credit took effect. Sales had fallen below 0,000 a month in January and February of In June, the first month when buyers could be motivated by the credit (existing home sales measure closings, which typically take two months from the signing of a contract and people usually look for a period of time before buying a home), sales jumped to 4,000 as shown in Figure 1. Sales continued to rise through the summer, peaking at 0,000 in November, the month when the original credit was scheduled to expire. Sales remained high through the first half of 2010 as the credit was extended to apply to any home with a contract signed by April. Sales then fell to 3,000 in July of 2010 as the boost from the credit ended abruptly. FIGURE 1 Existing Home Sales (seasonally adjusted) 7,000 0,000 6,000 0,000 5,000 0,000 4,000 0,000 3,000 0, Source: National Association of Realtors, Existing Home Sales The impact of the credit on prices is just as clear as can be seen in Figure 2. Nationwide, home prices had been falling at a rate of close to 2.0 percent a month through 2008 and into They stopped dropping almost immediately after the credit was passed, with prices in the second quarter of 2009 little changed from the first quarter. By the third quarter of the year, prices were rising as people rushed to take advantage of the credit before its original expiration date in November. 3 The credit was subsequently extended to cover home sales that were contracted by the end of April of This led to another spurt of buying and further increases in prices. 3 The original expiration date of November, 2009 was based on closing dates, which meant that a sale had to be contracted by the end of September to ensure enough time to close before the expiration date.
5 Q = CEPR First Time Underwater: The Impact of the First-time Homebuyer Tax Credit 3 FIGURE 2 Change in Home Prices, Q1 Q1 Q1 Q Source: National Association of Realtors, Existing Home Sales After the end of the extended credit, home prices began to resume their fall. By the end of 2011 they had fallen by 8.4 percent from the credit-induced peak. The credit gave people an incentive to buy sooner than would otherwise have been the case, pulling many purchases forward. That meant an increase in demand for the months when the credit was in effect, at the cost of lower demand in subsequent months. The result was that many people were persuaded to buy homes at bubbleinflated prices who would have otherwise purchased them at prices that were more consistent with the longer-term trend in the housing market. This amounted to a substantial transfer of wealth from new homebuyers to home sellers. It also benefitted lenders, who in many cases may have been forced to accept a short sale with an underwater mortgage. Figure 3A shows the size of the transfer from new homebuyers to home sellers as a result of the purchases spurred by the credit. The fast adjustment calculation assumes that home prices would have continued to fall at the same rate as they had fallen in the months preceding the introduction of the tax credit, until they reached the December 2011 level. It also assumes that home buying would have remained at the early 2009 pace (3,0 a month) until the end of the period in which the credit was in effect (June of 2010 for closings). The gap between the number actually sold over this period and the 3,0 is spread over the remaining 18 months between the end of June 2010 and December (See the Appendix for a fuller explanation.) In the slow adjustment, it is assumed that the rate of price decline would have slowed even without the tax credit. In this scenario, prices decline at a steady rate from April of 2009 to December of 2011 so that the price level at the end of 2011 is the actual price level. In this scenario, the gap between the number of homes actually sold in the months when the credit was in effect and the 3,0 average for the first three months of 2009 is spread over the whole period from April of 2009 and December of The middle scenario is simply an average of these two scenarios.
6 billions of 2009 dollars billions of dollars CEPR First Time Underwater: The Impact of the First-time Homebuyer Tax Credit 4 FIGURE 3A Homebuyer Tax Credit Induced Transfer Fast Adjustment Middle Adjustment Slow Adjustment Source: Author s calculations, see Appendix. Figure 3a shows the amount of money transferred in each case. In the fast-adjustment scenario, the amount of money transferred from people who bought homes over this period to sellers would be $1.5 billion. In the slow scenario, it would be $84.9 billion. In the middle scenario, the amount of the transfer is $127.7 billion. The amount of the transfer in the fast-adjustment scenario comes to more than $10,0 for every homeowner who purchased a home over the 34 months since the passage of the first time buyers credit through the end of In the slow-adjustment scenario the transfer would come to $5,0 for every homeowner, with the transfer in the middle scenario equal to a bit less than $8,000 per home buyer. In real terms, the transfers were even larger, since cumulative inflation over this period was just under 6.9 percent using the consumer price index. This means that in real terms, by the end of 2011 prices had fallen by 11.6 percent from their credit-induced peak in the spring of The implied transfers as a result of the tax credit are correspondingly larger after adjusting for inflation. Figure 3B shows the transfers from homebuyers as a result of the tax credit in the same three scenarios described above, measured in 2009 dollars. FIGURE 3B Homebuyer Tax Credit Inflation-Adjusted Induced Transfer Fast Adjustment Middle Adjustment Slow Adjustment Source: Author s calculations, see Appendix.
7 billions of 2009 dollars CEPR First Time Underwater: The Impact of the First-time Homebuyer Tax Credit 5 Measured in 2009 dollars, the transfer in the fast price-adjustment scenario would have been $353.2 billion. In the slow-adjustment scenario it would have been $193.6 billion. In the middle scenario it would have been $273.4 billion. There is one other scenario worth considering. Prices were still falling at the end of Given the continued oversupply of housing by many measures (vacancy rates remain near record highs), it is likely that home prices will continue to fall through Suppose that prices fall another 5 percent in real terms over the course of 2012, a negative but hardly impossible scenario. This would imply that the tax credit was even more successful in delaying the collapse of the bubble and led to larger transfers from the people who bought homes during this period. Figure 3C shows the size of the implied transfers from new homebuyers in this scenario. In the fast-adjustment scenario, where home prices continued to fall rapidly until hitting a level that is 5 percent lower in real terms than the December 2011 level, the amount of the transfer from new homebuyers as a result of the credit would be $581.7 billion. In the slow-adjustment scenario, where home prices gradually fall to this level over the period from April of 2009 to December of 2012, the transfer would be $287.0 billion, while in the middle scenario it would be $434.3 billion (all in 2009 dollars). FIGURE 3C Homebuyer Tax Credit Inflation-Adjusted Induced Transfer, with Further Price Declines in Fast Adjustment Middle Adjustment Slow Adjustment Source: Author s calculations, see Appendix. These are clearly substantial sums that new homebuyers ended up paying in the form of higher home prices as a result of the effect of the tax credit on the housing market. It is important to note that most of this money did not come from recipients of the credit. Most of this money came from people who bought homes but did not qualify for the credit. Of course people who did not qualify for the first-time homebuyer credit likely were able to sell their former homes at higher prices as a result of the credit. In this sense, the credit was essentially a wash for them. They paid more than would have otherwise been the case for their new home, but they were able to sell their old home for a higher price as a result of the credit. The lenders were clear gainers in this story. If prices had fallen more quickly to the level reached in December, 2011 then many more homeowners would not have been able to pay off their mortgages. Many of these sales would have required lenders to write down a portion of the mortgages in short
8 billions of dollars CEPR First Time Underwater: The Impact of the First-time Homebuyer Tax Credit 6 sales or, alternatively, they may not have allowed the sales to go through at all. There is no symmetry from the lenders side, since the overwhelming majority of new mortgages issued in this period were guaranteed in some way by the government, either through mortgages purchased by Fannie Mae or Freddie Mac or guarantees from the Federal Housing Authority or Veterans Administration. Holders of mortgages and mortgage-backed securities at the time the credit was put in place were unambiguous winners from the first-time homebuyer tax credit. The tax credit also provided a benefit to builders who were better able to dispose of their inventories of unsold homes, which were reaching record levels during this period. The number of new homes being sold fell by more than two-thirds from the peaks of the bubble to the lows reached in 2009 and The sales price data do not control for quality, so there is no easy way to separate price declines that may be attributable to a change in the mix of homes being sold from price decline that reflects an actual drop in home prices. However, as a first approximation it is probably reasonable to assume that the gains to homebuilders in the form of higher prices and increased volume were proportional to their share of the market. Using this assumption, in the fast-adjustment scenario the gains to homebuilders would have been $12.9 billion. In the slow-adjustment scenario the gains would have been $6.4 billion, and the middle scenario $9.7 billion, as shown in Figure 4A. Figure 4B shows the same calculations, adjusted for inflation and measured in 2009 dollars. In this case, the transfer in the fast-adjustment scenario would be $26.6 billion and $14.6 billion in the slow-adjustment scenario. Figure 4C shows the size of the transfers to homebuilders, assuming a further real price decline of 5 percent in In this case, the transfer in the fast-adjustment scenario would be $43.8 billion. In the slow adjustment scenario it would be $21.6 billion. FIGURE 4A Homebuyer Tax Credit Induced Transfer to Builders Fast Adjustment Middle Adjustment Slow Adjustment Source: Author s calculations, see Appendix.
9 billions of 2009 dollars billions of 2009 dollars CEPR First Time Underwater: The Impact of the First-time Homebuyer Tax Credit 7 FIGURE 4B Homebuyer Tax Credit Induced Transfer to Builders (Inflation Adjusted) Source: Author s calculations, see Appendix. FIGURE 4C Homebuyer Tax Credit Induced Transfer to Builders (assuming 2012 price decline) Fast Adjustment Middle Adjustment Slow Adjustment Fast Adjustment Middle Adjustment Slow Adjustment Source: Author s calculations, see Appendix. In short, the first-time homebuyer credit slowed the process of deflating the bubble. This meant that many homes were sold at higher prices than would otherwise have been the case. This unambiguously benefitted lenders, who were able to collect a higher percentage of outstanding mortgage debt as a result of the delay in the bubble s deflation, and also homebuilders who were able to sell newly-built homes at higher prices than they could have otherwise. Homeowners who sold in this period would have benefited if they moved into a rental unit; if they bought another home, the gain from the higher sale price would be largely offset by a higher purchase price. 4 On the buying side, most of the cost of higher home prices was borne by people who did not benefit from the credit, although if they had another home to sell, the higher buying price is largely offset by the higher selling price. First-time homebuyers would have paid more for homes than they would have in the absence of the credit. While the credit in many cases would have offset some or 4 The extended credit also included a $6,0 credit for people moving up to a more expensive home.
10 Jan 2006 = CEPR First Time Underwater: The Impact of the First-time Homebuyer Tax Credit 8 all of the subsequent decline in prices, in many markets this would almost certainly not be true. This issue is discussed in more detail in the next section. Regional Differences in the Impact of the First-time Homebuyer Credit While the impact of the first-time homebuyer credit can be seen clearly in the national data, its impact differed substantially across regions and by home type within a region. The structure of the credit as a first-time homebuyer credit that was capped at $8,000 meant that it would have the largest impact on the lower portion of the market in less expensive cities. This is true both because firsttime buyers are most likely going to be buying lower-cost homes and also because $8,000 will have more impact in cities like Atlanta and Minneapolis, with relatively inexpensive housing markets, than cities like New York and Boston, with considerably more expensive housing. These differences show up clearly in the data. Figure 5A through 5P show the path of home prices since January of 2006 in 16 of the 20 cities in the Case-Shiller index for which tiered data is available. While prices have declined everywhere since the end of the first-time homebuyer tax credit, in 13 of these 16 cities, the sharpest declines have been in the bottom tier of the market. (The three exceptions are the California cities in the index: Los Angeles, San Diego, and San Francisco.) FIGURE 5A Atlanta Metro Area Home Prices,
11 Jan 2006 = Jan 2006 = Jan 2006 = CEPR First Time Underwater: The Impact of the First-time Homebuyer Tax Credit 9 FIGURE 5B Boston Metro Area Home Prices, FIGURE 5C Chicago Metro Area Home Prices, FIGURE 5D Denver Metro Area Home Prices,
12 Jan 2006 = Jan 2006 = Jan 2006 = CEPR First Time Underwater: The Impact of the First-time Homebuyer Tax Credit 10 FIGURE 5E Las Vegas Metro Area Home Prices, FIGURE 5F Los Angeles Metro Area Home Prices, FIGURE 5G Miami Metro Area Home Prices,
13 Jan 2006 = Jan 2006 = Jan 2006 = CEPR First Time Underwater: The Impact of the First-time Homebuyer Tax Credit 11 FIGURE 5H Minneapolis Metro Area Home Prices, FIGURE 5I New York City Metro Area Home Prices, FIGURE 5J Phoenix Metro Area Home Prices,
14 Jan 2006 = Jan 2006 = Jan 2006 = CEPR First Time Underwater: The Impact of the First-time Homebuyer Tax Credit 12 FIGURE 5K Portland Metro Area Home Prices, FIGURE 5L San Diego Metro Area Home Prices, FIGURE 5M San Francisco Metro Area Home Prices,
15 Jan 2006 = Jan 2006 = Jan 2006 = CEPR First Time Underwater: The Impact of the First-time Homebuyer Tax Credit 13 FIGURE 5N Seattle Metro Area Home Prices, Bottom tier Middle tier FIGURE 5O Tampa Metro Area Home Prices, FIGURE 5P Washington, D.C. Metro Area Home Prices,
16 CEPR First Time Underwater: The Impact of the First-time Homebuyer Tax Credit 14 In several of the cities the decline in the bottom tier has been quite dramatic. For example, in Seattle, prices for homes in the bottom tier fell by 19.6 percent from June of 2010 to December of In Chicago, the decline was 31.4 percent. And in Atlanta, the drop was an incredible 49.1 percent. Figure 6 shows the cutoff price for the bottom tier of the housing market as of June 2010 in each of the 10 cities with the largest price declines. It shows the implied price for these homes today, based on the movement in the Case-Shiller index and the implied loss. In all 10 of these cities the price of homes in the bottom tier of the Case-Shiller index dropped at least 10 percent between the credit-induced peak in 2010 and December of In each case, the implied loss would vastly exceed the size of the credit, if the homebuyer was able to get it. Undoubtedly, many of the people who bought into these markets during the run-up caused by the tax credit are now underwater in their homes. This would almost certainly be the case for many people who got loans through the Federal Housing Authority, which allowed them to put just 3.0 percent down. At least for these homebuyers, it is difficult to view the tax credit as very wise policy. FIGURE 6 Impact of First-time Homebuyer Credit in 10 Cities $0,000 $2,000 $200,000 $1,000 $,000 $,000 $0 June 2010 price December 2011 price Loss
17 CEPR First Time Underwater: The Impact of the First-time Homebuyer Tax Credit 15 Conclusion The fact that the first-time homebuyer credit would have the effect of luring millions of homebuyers into paying too much for a home should not have been a surprise. At the time the credit was put into effect, the housing bubble had not fully deflated, in the sense that home prices were still above their long-term trend. In this context, there was little reason to believe that a temporary tax credit could stabilize prices. The basic problem remained that home prices were above a level where supply and demand could be brought into balance. By pulling purchases forward the credit could only temporarily delay this adjustment process. The tax credit could redistribute the losses on housing, from the homeowners at the time the credit was passed and the holders of their mortgages to new homeowners and the holders of new mortgages, which was primarily the government. The size of this redistribution was in the hundreds of billions of dollars. It was remarkable that the Federal Reserve Board, the Treasury Department, the Council of Economic Advisers and other top economic officials managed to overlook the largest asset bubble in the history of the world as it was growing. It was even more remarkable that they continued to overlook it even as its collapse wrecked the economy and gave us the worst economic downturn since the Great Depression. If these officials had been paying attention, there would presumably have been more opposition to the first-time homebuyer tax credit.
18 CEPR First Time Underwater: The Impact of the First-time Homebuyer Tax Credit 16 Appendix Figure 3A To construct the counterfactual set of prices and sales in order to calculate the amount of money transferred from sellers to buyers, the fast-adjustment assumed that home prices continued to fall at the same real rate they had been falling in the year prior to the passage of the first-time homebuyer tax credit (5.0 percent a quarter), until they reached the real level of December (The rate of price decline is taken from the Case-Shiller national index.) It assumed that the sales rate for all of 2009 would have remained at its level for the first four months of the year (3,0) in the absence of the credit until the end of the credit s impact in June of The additional sales over this period (1,537,000 houmes) are then spread evenly over the subsequent 18 months from July 2010 until December of The revenue transferred is then the difference between revenue calculated using actual sales prices and quantities and these assumed counterfactuals summed over the period from June 2009 to June In the slow-adjustment scenario, it is assumed that prices would have adjusted at an even pace to their December 2011 level, falling at a real rate of 0.35 percent per month. This calculation assumes that in the absence of the credit the additional 1,537,000 in home sales calculated above would have been distributed evenly over the months from June of 2009 through December of 2011, with this number (49,0) being added to actual sales for the months after the end of the credit s impact in In the months for which the credit was having an effect, this number was added to 3,0 baseline assumed in the fast decline scenario described above. The size of the revenue transfer was calculated in the same way described above. The middle scenario is a simple average of these two calculations. Figure 3B The calculation in Figure 3B uses the consumer price index to express the totals in Figure 3A in 2009 dollars. Figure 3C The fast-adjustment scenario assumes a counterfactual with the same rate of price decline as in Figure 1, except this rate of price decline continues until real prices hit a level that is 5 percent below their December 2011 level. The slow adjustment scenario assumes an even rate of price decline so that prices in December 2012 hit a real level that is 5.0 percent below the December 2011 level. The rate of home sales assumed in these counterfactuals is the same as described for Figure 1 above. The middle scenario is also calculated in the same way. Figures 4a, 4b, and 4c These were constructed in the same way as Figures 3a, 3b, and 3c, with the only difference that data on new homes sales and prices were used.
The Key to Stabilizing House Prices: Bring Them Down Dean Baker December 2008 Center for Economic and Policy Research 1611 Connecticut Avenue, NW, Suite 400 Washington, D.C. 20009 202-293-5380 www.cepr.net
The Impact of Cutting Social Security Cost of Living Adjustments on the Living Standards of the Elderly Dean Baker and David Rosnick September 2011 Center for Economic and Policy Research 1611 Connecticut
US HOUSING MARKET MONTHLY th Oct. Editor: Ed Stansfield New build sales finally making some headway Overview: The drop in mortgage rates towards the end of September has given mortgage applications a boost,
Insight. Education. Analysis. M a r c h 2 0 1 5 More than Just Curb Appeal Factors that affect the Housing Market By Kevin Chambers Not only is buying a house usually the largest purchase anyone will make,
The Cost of Maintaining Ownership in the Current Crisis Comparisons in 20 Cities Dean Baker, Danilo Pelletiere and Hye Jin Rho April 2008 Center for Economic and Policy Research National Low Income Housing
The Obama Administration s Efforts To Stabilize the Housing Market and Help American Homeowners March 2015 U.S. Department of Housing and Urban Development Office of Policy Development and Research U.S
Has an Unavoidable Decline in Home Prices Begun? October 6, 2014 by Keith Jurow In late September, the former head of Goldman Sachs housing research team sent a lengthy report to President Obama. In it,
cepr Center for Economic and Policy Research Issue Brief Homeownership in a Bubble: The Fast Path to Poverty? Dean Baker and Simone Baribeau 1 August 13, 2003 Center for Economic and Policy Research 1611
EXECUTIVE OFFICE OF THE PRESIDENT COUNCIL OF ECONOMIC ADVISERS CEA NOTES ON REFINANCING ACTIVITY AND MORTGAGE RATES April 9, 2009 EXECUTIVE OFFICE OF THE PRESIDENT COUNCIL OF ECONOMIC ADVISERS WASHINGTON,
Home Price Gains Lead Housing According to the S&P/Case-Shiller Home Price Indices New York, July 28, 2015 today released the latest results for the S&P/Case-Shiller Home Price Indices, the leading measure
The financial crisis What led up to the crisis? Short-term interest rates were very low, starting as a policy by the federal reserve, and stayed low in 2000-2005 partly due to policy, partly to expanding
Relocation Policy I S I T T I M E T O L O O S E N T H E R E I N S? Your Panelists Moderator: Pam Jacknick, CRP, GMS Vice President, Client Development NEI Global Relocation Donna E. Barber, CRP Manager,
W RESEARCH BRIEF The Impact of Lock-In Effects on Housing Turnover and Implications for a Housing Recovery FEBRUARY 2014 TABLE OF CONTENTS SECTION I Introduction 3 SECTION II Background Lock-In Effects
The Distressed Property Market and Shadow Inventory in Florida: Estimates and Analysis Introduction Florida was one of the states hardest hit by the real estate downturn. Delinquencies, foreclosures and
Do Tax Cuts Boost the Economy? David Rosnick and Dean Baker September 2011 Center for Economic and Policy Research 1611 Connecticut Avenue, NW, Suite 400 Washington, D.C. 20009 202-293-5380 www.cepr.net
Federal Reserve Bank of Kansas City: Consumer Credit Report Tenth District Consumer Credit Report May 29, 2015 By Kelly Edmiston, Senior Economist and Mwai Malindi, Research Associate FIRST QUARTER 2015
November 214 The Wealth of Households: An Analysis of the 213 Survey of Consumer Finances By David Rosnick and Dean Baker* Center for Economic and Policy Research 1611 Connecticut Ave. NW Suite 4 Washington,
PRESS RELEASE Sustained Recovery in Home Prices According to the S&P/Case-Shiller Home Price Indices New York, December 26, 2012 Data through October 2012, released today by S&P Dow Jones Indices for its
2 HOUSING MARKETS Although the news was mixed in 214, housing markets made some advances that set the stage for moderate growth. Singlefamily construction continued to languish, but multifamily construction
The Obama Administration s Efforts To Stabilize The Housing Market and Help American Homeowners April 2014 U.S. Department U.S Department of Housing of Housing and Urban and Urban Development Development
The Obama Administration s Eﬀorts To Stabilize The Housing Market and Help American Homeowners August 2013 U.S. Department of Housing and Urban Development Office of Policy Development Research U.S Department
2 Housing Markets After another year of healthy growth in 213, the housing market paused in the first quarter of 214. The renewed weakness in residential construction, sales, and prices raised fears that
Overview The housing market is finally showing signs of life, with many metropolitan areas having hit the elusive bottom and seeing home value appreciation, however negative equity remains a drag on the
Home Prices Rise Further in August 2013 According to the S&P/Case-Shiller Home Price Indices New York, October 29, 2013 Data through August 2013, released today by S&P Dow Jones Indices for its S&P/Case-Shiller
Statement by Dean Baker, Co-Director of the Center for Economic and Policy Research (www.cepr.net) Before the U.S.-China Economic and Security Review Commission, hearing on China and the Future of Globalization.
cepr CENTER FOR ECONOMIC AND POLICY RESEARCH briefing paper Defaulting on The Social Security Trust Fund Bonds: Winner and Losers Dean Baker 1 July 23, 2001 SUMMARY The United States government has never
Celebrating Pork The Dubious Success of the Medicare Drug Benefit Dean Baker March 2007 Center for Economic and Policy Research 1611 Connecticut Avenue, NW, Suite 400 Washington, D.C. 20009 202 293 5380
Why home values may take decades to recover by Dennis Cauchon, USA TODAY 200 180 160 140 120 100 80 The history of housing as an investment 1950 1952 1954 1956 1958 1960 1962 1964 1966 1968 1970 1972 1974
Support Under the Homeowner Affordability and Stability Plan: Three Cases Family A: Access to Refinancing In 2006: Family A took a 30-year fixed rate mortgage of $207,000 on a house worth $260,000 at the
The housing bubble and the financial crisis Dean Baker [Center for Economic and Policy Research, USA] Copyright: Dean Baker, 2008 The central element in the current financial crisis is the housing bubble.
Multifamily Market Commentary July 2014 The Nation s Aging Multifamily Housing Stock Although America s population is rising at its slowest pace in more than 70 years, and it has taken 76 months for employment
THINGS TO CONSIDER WHEN SELLING YOUR HOUSE SUMMER 2014 EDITION TABLE OF CONTENTS 1 3 4 5 6 7 9 5 REASONS TO SELL NOW EVERYONE AGREES: YOU SHOULD USE AN AGENT FUTURE HOUSE PRICES: A LOOK INTO THE CRYSTAL
The Obama Administration s Eﬀorts To Stabilize The Housing Market and Help American Homeowners June 2013 U.S. Department of Housing and Urban Development Office of Policy Development Research U.S Department
The Obama Administration s Eﬀorts To Stabilize The Housing Market and Help American Homeowners July 2013 U.S. Department of Housing and Urban Development Office of Policy Development Research U.S Department
The Obama Administration s Efforts To Stabilize The Housing Market and Help American Homeowners March 21 U.S. Department of Housing and Urban Development Office of Policy Development Research U.S Department
Widespread Gains in Home Prices for February According to the S&P/Case-Shiller Home Price Indices New York, April 28, 2015 today released the latest results for the S&P/Case-Shiller Home Price Indices,
ERIK NORLAND, SENIOR ECONOMIST AND EXECUTIVE DIRECTOR, CME GROUP 9 MARCH 5 Eight Reasons Why Home Construction and Sales Could Boom All examples in this report are hypothetical interpretations of situations
2015 Salt Lake Housing Forecast A Sustainable Housing Market By James Wood Director of the Bureau of Economic and Business Research Commissioned by the Salt Lake Board of REALTORS By year-end 2013 home
University of St. Thomas Minneapolis St. Paul Residential Real Estate Index Welcome to the latest edition of the UST Minneapolis St. Paul Residential Real Estate Index. The University of St Thomas Residential
Update on the Single-Family Credit Guarantee Business Rick Padilla Director, Corporate Relations & Housing Outreach The Changing Economy: The New Community Lending Environment June 1, 29 The GSEs Are Helping
Home Prices in the New Year Continue the Trend Set in Late 2009 According to the S&P/Case-Shiller Home Price Indices New York, March 30, 2010 Data through January 2010, released today by Standard & Poor
U.S. Home Prices Keep Weakening as Nine Cities Reach New Lows According to the S&P/Case-Shiller Home Price Indices New York, January 25, 2011 Data through November 2010, released today by Standard & Poor
Home Prices Increases Slow Down in August According to the S&P/Case-Shiller Home Price Indices New York, October 26, 2010 Data through August 2010, released today by Standard & Poor s for its S&P/Case-Shiller
The Fourth Quarter Starts with Broad-based Declines in Home Prices According to the S&P/Case-Shiller Home Price Indices New York, December 27, 2011 Data through October 2011, released today by S&P Indices
hometrends The State of the Market December 2013 A letter from Joseph A. Horning, President of Shorewest, REALTORS Southeastern Wisconsin s solid real estate market started to slow in October; sales of
Some More Seasonal Improvement in Home Prices According to the S&P/Case-Shiller Home Price Indices New York, July 26, 2011 Data through May 2011, released today by S&P Indices for its S&P/Case- Shiller
What Will 2015 Hold for the Seattle Economy & Residential Real Estate Market? A Presentation to Windermere Wall Street Group Presented by: Matthew Gardner Managing Principal 415 Westlake, Seattle 524 Second
Annual Rates of Change Continue to Improve According to the S&P/Case-Shiller Home Price Indices New York, October 25, 2011 Data through August 2011, released today by S&P Indices for its S&P/Case-Shiller
Issue Brief September 2009 Center for Economic and Policy Research 1611 Connecticut Ave, NW Suite 400 Washington, DC 20009 tel: 202-293-5380 fax: 202-588-1356 www.cepr.net The Value of the Too Big to Fail
From the Desk of Renee Carnes-Rook Vice President, Real Estate Services In the midst of unprecedented economic and market pressures, tight credit markets, difficult-to-obtain loans, and a cloudy employment
Home Prices Lose Momentum According to the S&P/Case-Shiller Home Price Indices New York, February 25, 2014 Data through December 2013, released today by S&P Dow Jones Indices for its S&P/Case-Shiller 1
Property Tax Reductions to Diminish as Housing Market Improves MAC TAYLOR LEGISLATIVE ANALYST MAY 5, 2014 Executive Summary Property Tax Reductions for Millions of Properties Due to Real Estate Crisis.
POLICY BRIEF JUNE 28, 2013 The Recent Homebuyer Tax Credit: Evaluation and Lessons for the Future By Karen Dynan, Ted Gayer and Natasha Plotkin By early 2008, the U.S. housing market was in critical condition.
July 30, 2009 Federal Trade Commission Office of the Secretary Room H-135 (Annex T) 600 Pennsylvania Avenue NW Washington, DC 20580 Submitted online at https://secure.commentworks.com/ftcmortgageactsandpractices
The Savings from an Efficient Medicare Prescription Drug Plan Dean Baker January 2006 Center for Economic and Policy Research 1611 Connecticut Avenue, NW Suite 400 Washington, D.C. 20009 Tel: 202-293-5380
Lien Stripping and Chapter 13 By Mark Saiki 8/10/2010 I. Strip Off Second and Third Mortgages. Homeowner has a first and second mortgage on a primary residence (Home). If the value of your house has fallen
Page 1 of 2 'Magic number': Loans below 5% drive home sales, refinancing By Sue McAllister firstname.lastname@example.org Posted: 10/08/2009 04:40:05 PM PDT Updated: 10/09/2009 09:30:14 AM PDT Real Estate
Presentation to the University of Washington Business School For delivery November 15, 2001 at approximately 8:05 AM Pacific Standard Time (11:05 AM Eastern) By Robert T. Parry, President and CEO of the
MPRA Munich Personal RePEc Archive Is there a revolution in American saving? John Tatom Networks Financial institute at Indiana State University May 2009 Online at http://mpra.ub.uni-muenchen.de/16139/
Home Price Increases Slow Down in February According to the S&P/Case-Shiller Home Price Indices New York, April 26, 2016 S&P Dow Jones Indices today released the latest results for the S&P/Case-Shiller
Federal Reserve Bank of Minneapolis Q u a r t e r l y R e v i e w Winter 1979 A Case for Variable Rate Mortgages ( P. d Last Fall's Policy Changes: A Sound Program for Reducing Inflation < P. 5) District
The Impact on Inequality of Raising the Social Security Retirement Age David Rosnick and Dean Baker April 2012 Center for Economic and Policy Research 1611 Connecticut Avenue, NW, Suite 400 Washington,
A mortgage is a loan that is used to finance the purchase of your home. It consists of 5 parts: collateral, principal, interest, taxes, and insurance. When you agree to a mortgage, you enter into a legal
The Business Cycle and The Great Depression of the 1930 s With the stock market crash in October, 1929, the U.S. entered a period in its history known as the Great Depression. This lasted for almost the
Prepared Remarks of Richard Cordray Director of the Consumer Financial Protection Bureau The Brookings Institution Washington, D.C. January 13, 2015 Thank you for having me today and I bring you best wishes
2014 Fourth Quarter & Full Year Refinance Report Borrowers Who Refinanced in 2014 to Save Approximately $5 Billion in Interest Payments As the origination market evolves from a refinance boom to a purchasemoney
CBRE Cap Rate Survey A CBRE Publication pg 2 pg 8 pg 17 pg 26 pg 36 pg 41 pg 45 Click to Enter United States Key National Observations The CBRE Cap Rate Survey for mid-year 2014 points to meaningful declines
THE STATE OF THE NATION S HOUSING 2016 KEY FACTS Facts from the 2016 State of the Nation s Housing Report from the Joint Center for Housing Studies of Harvard University PURPOSE The State of the Nation
New York State Housing Finance Agency State of New York Mortgage Agency New York State Affordable Housing Corporation 641 Lexington Avenue, New York, NY 10022 (212) 688-4000 www.nyhomes.org Testimony by
Answer Outline ECONOMICS 353 L. Tesfatsion/Fall 06 EXERCISE 6: Six Questions (8 Points Total) DUE: Tues, October 10, 2006, 2:10pm **IMPORTANT REMINDER: LATE ASSIGNMENTS WILL NOT BE ACCEPTED NO EXCEPTIONS**
PRESS RELEASE Home Prices Continued to Rise in August 2012 According to the S&P/Case-Shiller Home Price Indices New York, October 30, 2012 Data through August 2012, released today by S&P Dow Jones Indices
Home Price Gains Ease in April According to the S&P/Case-Shiller Home Price Indices New York, June 30, 2015 today released the latest results for the S&P/Case-Shiller Home Price Indices, the leading measure
Where Have All the Good Jobs Gone? John Schmitt and Janelle Jones July 2012 Center for Economic and Policy Research 1611 Connecticut Avenue, NW, Suite 400 Washington, D.C. 20009 202-293-5380 www.cepr.net
KARL E. CASE Wellesley College The Central Role of Home Prices in the Current Financial Crisis: How Will the Market Clear? ABSTRACT This paper begins by describing some patterns in home price movements
Percent change, year ago PRESS RELEASE Home Prices Closed Out a Strong 2012 According to the S&P/Case-Shiller Home Price Indices New York, February 26, 2013 Data through December 2012, released today by
THE ROLE OF ACCOUNTING IN THE FINANCIAL CRISIS: LESSONS FOR THE FUTURE S.P. Kothari Rebecca Lester MIT Sloan School of Management London School of Economics June 27, 2011 Genesis of the Crisis Unusually
Consumers mortgage shopping experience A first look at results from the National Survey of Mortgage Borrowers January 2015 Table of contents Table of contents... 2 Preface... 3 1. Survey overview and key
Condominium Financing: Clifford Hockley, President, Bluestone & Hockley Real Estate Services Source: RMLS Condominium developers built more condominiums than the market could absorb from 2006-2009. They
Q: What is a Short Sale? Answer: In a short sale, the lender agrees to settle the debt owed on the property for less than the full amount. Settled means that the lender is writing off the debt (which is
A Summary of the San Diego Regional Economy Brought to you by San Diego Regional EDC analyzes key economic metrics that are important to understanding the regional economy and San Diego s standing relative
For release at 8:30 a.m. EST February 10, 2016 Statement by Janet L. Yellen Chair Board of Governors of the Federal Reserve System before the Committee on Financial Services U.S. House of Representatives