David Blitzer and his crooked bow tie make the usual psycho-babble comments on CNBC:
“Consumer attitudes have gotten a lot more negative about long-term commitments, and the No. 1 long-term commitment most people in this country made is buying a house,” David Blitzer, chairman of the S&P Index Committee, told CNBC.
Prices in August were also revised to show a decline of 0.3 percent after originally being reported as unchanged. The index has leveled off in recent months and analysts are hoping the market is at least stabilizing.
“Over the last year home prices in most cities drifted lower,” Blitzer said in a statement.
“The plunging collapse of prices seen in 2007-2009 seems to be behind us. Any chance for a sustained recovery will probably need a stronger economy.”
This was probably the more pertinent comment from the same article:
The number of U.S. homeowners who are underwater on their mortgages decreased modestly in the third quarter, though levels remained high, data analysis company CoreLogic said Tuesday.
The number of properties with so-called negative equity — in which the amount owed on the mortgage exceeds the property’s value — was 10.7 million, or 22.1 percent of all residential properties with a mortgage.
That is a slight decrease from 10.9 million, or 22.5 percent, in the second quarter, CoreLogic said.
“Although slightly down, negative equity remains very high and renders many borrowers vulnerable when negative economic shocks occur, such as job loss or illness,” Mark Fleming, chief economist at CoreLogic, said in a statement.
As the housing market struggles to recover, the large number of underwater homeowners has prompted concerns of more foreclosures to come if borrowers become unable to keep up with their payments or decide to walk away.
Lately, San Diego’s ride has been smooth, not bumpy, with September’s SA off -0.5%:
The last few years close-up: