“”Early responses to our October survey point to traffic levels that are well below expectations, a meaningful slowdown in home price appreciation, and a build-up of inventory of homes for sale, which likely indicates further weakness in pricing trends in the months to come,” BofA analysts Daniel Oppenheim and Michael Wood wrote in a research note to clients.”

CBS Marketwatch

Lifted from the following excellent analysis: Hoisington Management

“Sales at No. 1 automaker General Motors Corp. were down 57 percent compared with early October 2004, while Ford Motor Co.’s sales were down 45 percent. The other seven major automakers also showed declines.”

57 percent? As a practical matter, this means sales have stopped.

AP

More detail from Reuters: “Retail new-vehicle sales were down 33 percent across the industry in the first nine days of October compared with the same period a year ago, the Power Information Network said.”

Reuters

“I am a lawyer and I represent illegal aliens in deportation. In all but one of 35 cases I currently have on docket the illegal owns a home. But it is the loan terms that fascinate me. One lady finished school at second grade, speaks no English, and works for a recycling company binding cardboard boxes. She makes about $30K per year and is a single mom with three children. She has a $430K interest only loan that she used last year to buy a $430K condo - 100% financing - she paid $3,000 in closing costs. I tried to explain that her monthly payments will rise substantially in four years. She does not believe me, did not understand what I said and told me the loan and real estate agents specialize in real estate and would have told her if her payments could go up. If 34 of my clients with risky loans and no school past at best eighth grade are surprised by rising loan payments, we should be afraid. This is the last group desperate lenders pander to, meaning we’re near the end.”

Mortgage Abuse

Quick profits for flippers are a thing of the past in California as the rush for the exits has begun.