NBC: More Tales of house sales woes in Cleveland

232 house sold in Cleveland the week of November 2nd

8 sold for over 100K with the most expesive being 135K

135 sold for 10K or less with 63 of that 135 selling for $2,750 or less.


No matter what happens in this economy it seems to come back around to this
housing situation. Until this is rectified we will not see any recovery in
our economy IMO. The economy has become to dependenat on the consumer over
the years as more jobs have left the country. It's the spending that has
driven our economy for many years now. We are seeing the spiral continue to
unravel. Unless we can put a floor on the falling home price we won't see
that happen and I don't see the floor coming anytime soon.


There has literally been nothing done to help the home owner on the brink.
I see more and more everyday on the route I deliver in a very stable middle
class neighborhood, or what once qualified as one. If you don't stabilize
the home prices you still have the problem that some of these folks have of
refinancing a house that is worth less than they owe. You now have groups
of home owners petitioning their county auditors to have property values
reaccessed to bring them in line with the new price realitites which drain
money tax monies from the coffers (that's a whole nother discussion). You
are seeing banks that massaged their books still coming out with putrid
earnings months after this crisis began. Look for PNC to cry this week
after the bank they thought they got such a good deal on National City
reports far worse than expected. And why should NCB's results be such a
shock? They are located in Cleveland and they did a lot of lending locally.
This area has been decimated over the past few years again and our home
prices counting the foreclosure sales have dropped 28% in the last year.
They are holding the bag on millions of dollars of underwater loans and
loans that have yet to go to foreclosure but are sure to in the next 6
months- lots of soon to be laid off auto workers and many from the Alcoa
plant here ( speculation on my part, but the biggest press they have is
broken and they have been shifting work to other presses and other plants
around the country -it's only a matter of time).

For years the average american has been told the house is the best
investment and all that junk and their eyes have been opened. It's no
wonder they are entering the bunker when you consider the jobs market,
consumer prices have not dropped here, and the home situation. I here a lot
of rhetoric about the economy, but it comes from the mouths of people who
are so far removed from what the average american is experiencing.

Inventories were way up in December so I think we see more layoffs coming
through most of the year. Unemployment will get to between 9-11% this year
and I think we see 1M unemployed reported in a month. Batton down the
hatches.

Dave


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