US Housing debt Crisis: A Beginning of the end.? Part I

US Housing crisis surfaced in 2007, when Housing Prices were riding on Easy Money, Sub Prime Mortgaging and Financial Engineering. The Prices were sort of rigged, Lending standards were abysmally low and mortgages were subdivided and were re-jigged into ' product ' and was freely traded and integrated into system. Banks, Housing Agencies, Insurers and wall street all got into it and many were swept away and remaining stood holding Sand of nothing.
The Institution were saved, and survived. The debt shifted to Public Debt, Many failed the debt repayment and institutions were holding the houses, which are now valued less than half. This created ' Ghost Inventories' of Houses and Condos. The demand for Housing remains subdued and Construction of new houses dwindled to record low levels.
But, the data seems slowing changing the tide.. and the slowness is irrespective of the interest rates, prevalent financial sources. and as the time changes the ray of hope has emerged on the horizon...

The Shadow Inventory Continued To Shrink Steadily

Since the beginning of 2010, the total volume of distressed loans has been falling and continued to decline in the second quarter of 2011. As of June 2011, this amount stood at $405 billion, the lowest level since December 2008. This trend reflects default rates that have been falling since first-quarter 2009 and liquidation rates that appear to be stabilizing. 

Highlights Of July's Existing Home Sales

• Seasonally adjusted existing home sales were down 3.5% based on the transactions completed in July. This is the third decline in the previous four months. However, existing sales were up 21% year over year, and this jump was related to the expiration of the homebuyer tax incentives. The 12-month change has usually been negative from July 2010 until last month.
• Existing home sales peaked in September 2005 and declined about 35.6% through July 2011. However, existing sales improved significantly during late 2009 through early 2010, primarily as a result of the U.S. government's now-expired tax incentives.
• Existing sales declined in the South and West in July. Existing sales in the South declined 1.6% in July, and are 19.5% above their July 2010 level. Existing sales in the Midwest increased 1% in July and are up 31.3% from a year ago. Existing sales in the Northeast increased 2.7% and 19% year over year. Finally, existing sales in the West declined 12.6% in July but are up 16.9% year over year.
• Existing condominium and co-op sales were flat in July, and single-family home sales declined 4%.
• First-time home buyers accounted for 32% of sales in July, up from 31% a month ago. Also, cash transactions were 29% of July sales.
• The national median home sale price was $74,000 in July, down 0.9% from June and 4.4% from a year ago. Median home sale prices were down in all four regions year over year.
• July's official inventory was 3.65 million homes, down 1.7% from a month earlier. The months' supply increased to 9.4 months in July from 9.2 months in June at the current sale pace. This does not include the unofficial shadow inventory, which remains a key concern for the housing market recovery in addition to high unemployment rates.
• High levels of distressed sales are likely to push home prices lower because distressed homes are usually sold at a discount. Distressed sales were about 29% of total sales in July, down from 30% in June. Distressed sales were 32% of July 2010's total.