“It’s naïve to assume the worst is past us…”

Posted on July 5, 2007 by grim

From Bloomberg:

U.S. Subprime Defaults Set to Rise, Credit Suisse’s Parker Says

Delinquencies and defaults on U.S. subprime mortgages will keep rising as problems in the housing market persist, said Robert Parker, vice chairman of Credit Suisse Asset Management.

The share of U.S. subprime mortgages entering default in the first quarter was the highest in almost five years, according to the U.S. Mortgage Bankers Association, as the country suffers its worst house-price decline since the 1930s.

“It’s naïve to assume the worst is past us in the U.S. subprime market,” Parker said at a bond market conference today in Hong Kong. “At least over the balance of this year, the subprime default rate will rise.”

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7 Responses to “It’s naïve to assume the worst is past us…”

  1. essex says:
    July 5, 2007 at 8:25 am

    Blah…blah….freaking blah. My neighbors house just sold….after about a month on the market….See? Nice homes at decent prices still sell…..maybe people just got tired of paying top dollar for fixer uppers in Parsippany. LMFAO

  2. James Bednar says:
    July 5, 2007 at 8:35 am

    A friend of the family just sold as well. Home was priced just under the $2m mark. Desirable town, well priced in comparison to comparable homes on the market. Took a bit over a month to move.

    jb

  3. bairen says:
    July 5, 2007 at 9:23 am

    I saw a beautiful 80 year old, renovated colonial in downtown Basking Ridge in mid May for 600k. It was under contract when I drove past it yesterday.

  4. James Bednar says:
    July 5, 2007 at 9:40 am
  5. 3b says:
    July 5, 2007 at 10:05 am

    #1 Decent price. Well now thats the thing is it not? How does one define decent price?

    Did your neighbors close yet?

  6. UnRealtor says:
    July 5, 2007 at 1:14 pm

    3b #5, if you look at comps over the last 5 years, you’ll see that a “decent price” 4-5 years ago may have been $350K, and today the seller thinks a “decent price” is $750K.

    Of course, they installed $5K in granite counters, so that’s easily worth $400K to a bagholder, er, buyer.

  7. HOUSE OF CARDS says:
    July 6, 2007 at 12:35 am

    It’ll be fun to go back and mock the housing pumpers

    Good youtube video from faux news’ business gurus from 2006

    on what was expected for housing prices in 2007.

    Two of the guys hopefully have found new lines of work. Not only were they wrong, but they were jackasses. Must have been homedebtors themselves who were long REIC stocks.

    http://housingpanic.blogspot.com/2007/07/itll-be-fun-to-go-back-and-mock-housing.html

    And as always, Peter Schiff is the man.

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