articles 11 to 15 of 73
Falling Prices, Foreclosures and Fear: What's Next for the Housing Market?
The U.S. housing market has been wobbly for several years, but it has shown some signs of perking up in recent months. The latest reports, however, indicate a setback, with median home prices dropping slightly and sales well below the already depressed levels of 2009. Yet a combination of low mortgage rates and apparent home-price bargains should still be drawing some buyers into the market. Knowledge@Wharton spoke with Wharton real estate professor Susan M. Wachter about the housing market's slow recovery, the prospect of another sharp dip in prices, the effect of foreclosures on the economy, and what it will take to get the market back on track.
From: October 27, 2010
The Walls Keep Tumbling Down: Foreclosure Flap and Other Housing Industry Woes
After suspending foreclosures in order to review cases that may be flawed by procedural errors or fraud, major mortgage companies have injected new uncertainty into the already weak housing market. But the foreclosure flap is just the most recent of many setbacks for the troubled industry, even as a new generation of potential buyers is rethinking the traditional dream of homeownership. As one Wharton professor notes: "Buying a home doesn't make sense for a large proportion of the population."
From: October 13, 2010
Home Is Where the Money Is: A New Incentive Program Aims to Slow Rising Mortgage Defaults
As the housing market languishes in the doldrums, an astoundingly high number of homeowners in the U.S. are defaulting on their mortgages. While some simply cannot afford the payments, others own properties that are in "negative equity" -- that is, the value of their homes is less than the amount of the mortgage. As a result, these homeowners have decided to stop paying their mortgages and start fresh. A new incentive program from Wharton finance professor Alex Edmans, however, might give the latter group another choice that could benefit them -- along with lenders and society at large.
From: September 29, 2010
Real Estate's Future: 'It Depends on What Degree of Risk You Are Looking For'
With the financial crisis wiping out trillions of dollars in property values worldwide, the challenges facing the global real estate industry are greater than they have been in decades. Within the turmoil, however, are opportunities for players in both the commercial and residential real estate markets, a point made by members of a panel at the recent Wharton Global Alumni Forum in Madrid called, "Real Estate: Exploring the Road to Recovery."
From: July 14, 2010
Drowning or Hedging? The Risks and Rewards of Owning a Home
Nearly 11 million homeowners -- or about one-fifth of those paying mortgages -- are now considered "underwater" because they owe more on their houses than they are worth. But while sharp declines in prices might be enough to make even the most cavalier consumer think twice before buying a home, new Wharton research suggests that homeownership is less risky than might be expected. Indeed, it can effectively hedge against volatile prices for shelter, including rental rates, if a buyer does not take on excessive debt to make the purchase.
From: March 31, 2010
