U.S. Homeowners Cut Asking Prices $27.8 Billion, Led by Nevada
Aug. 14 (Bloomberg) -- U.S. homeowners cut their asking prices by $27.8 billion with some of the biggest reductions in Nevada and Florida, states hardest hit by the property slump, Trulia Inc. said.
Owners slashed prices by 15 percent in Nevada and by 13 percent in Florida and Arizona in the year through Aug. 1, the San Francisco-based real estate data provider said today. A quarter of home sellers lowered prices at least once, by an average of 10 percent. “Sellers are resetting their expectations in line with falling prices,” Pete Flint, Trulia’s chief executive officer, said in an interview. “We’re still clearly in a downturn even though we’re coming out of it.”
The median U.S. price of an existing single-family house dropped a record 15.6 percent to $174,100 in the second quarter, according to the National Association of Realtors, whose figures date to 1979. Sales increased 11 percent for new homes and 3.6 percent for existing homes, Commerce Department and Realtors data show, as buyers took advantage of discounts. (bloomberg.com)
*what's importante to me is what is missing from this report: what about other states in america? What will hosue prices look like when the rest of the country starts to show the fatigue from job loss and low tax revenue? Collapse thats what.
BofA Sees Big Upside in Citigroup (C, BAC)
Posted by 24/7 Wall Street
Citigroup, Inc. (NYSE: C) is trading higher this morning on an analyst upgrade. This would probably be a much more impacting call had financials not run so much. Bank of America Merrill Lynch raised its rating to BUY from Underperform this morning. The old $2.50 target has now been raised up to $5.75.
Again, it is hard to wonder if Bank of America Corp. (NYSE: BAC) is really he one being upgraded as is often the case when brokerage firm and bank analysts upgrade competitors. The reasons cited were stabilization of some credit quality and the removal of the supply overhang of all the new stock. BoA believes that the core value gives limited downside and believes that the investor psychology is no longer anti-Citi at all costs like it has been for a year or more.
BofA also noted that the book value could approach $7.00 out after 2010. Citi’s shares are indicated up 2.9% at $4.18 on active volume ahead of the open.