Industry News

Three ‘specters’ stalk builders

Real estate roundup

Don't miss the real estate event of the summer
Join 4,000 real estate pros at Connect SF, Aug 7‑11, 2017

The following is a real estate news roundup: Fitch: Three 'specters' stalk home builders The spring selling season was a bust, and the housing downturn is spreading to other sectors of the economy, analysts at Fitch Ratings said. In a report focused on home builders and new-home sales, Fitch projects further slippage in starts and new-home sales, thanks to three "specters": poor buyer psychology, falling prices and excessive inventories. Fitch analysts expect improvements in affordability will largely be offset by tightened credit standards. The market for subprime loans -- which accounted for 20 percent of loans in 2005 -- is "essentially non-existent." Only a limited number of alt-A loans that have the characteristics of prime loans are being originated (alt-A loans accounted for 13.4 percent of originations in 2006). "The highly visible problems in the housing finance system and steadily decreasing prices are contributing to a wait-and-see atti...