This story is possibly more annacdotal, but presents a possible growing trend — energy efficient microhomes. In stark contrast to “McMansions” microhomes efficiently use space and are priced at under $150,000.

It is reasonable to think that smaller new homes could temporarily fill a market glut while US housing pricing correct. Higher interest rates mean higher monthly payments; downward trending pricing should create psychological resistance of consumers to purchase more than they can afford. As this gap narrows the appeal of microhomes from a financial standpoint may drop.

Read more & see a video at ABC News.

This week some have predicted real estate doom and gloom while others have said now is a perfect buying opportunity (I remember lots of people saying this as the market slid in 2000.) Economist Nouriel Roubini of Roubini Global Economics is leaning on the doom and gloom side of things:

“‘This is the biggest housing slump in the last four or five decades: every housing indicator is in free fall, including now housing prices,” Roubini said. The decline in investment in the housing sector will exceed the drop in investment when the Nasdaq collapsed in 2000 and 2001, he said. And the impact of the bursting of the bubble will affect every household in America, not just the few people who owned significant shares in technology companies during the dot-com boom, he said. Prices are falling even in the Midwest, which never experienced a bubble, ‘a scary signal’ of how much pain the drop in household wealth could cause.”

Via MarketWatch

This article reads like a press release:

“Real estate goes up in spurts, like over the last five years, when the average annual increase was almost 21 percent, according to data from the National Association of Real Estate Investment Trusts and FTSE, a British index publishing company. And so far this year, real estate mutual funds have returned 16.57 percent to investors, reports Morningstar, putting them at the top of the fund research firm’s list. But even when real estate stocks and funds aren’t racing up in price, they tend to pay you in solid dividends that are really rent payments collected by the companies you invested in. Even after the last rip-roaring five years, REITs are paying about 4 percent in dividends, according to their trade association.”

Via Washington Post/Reuters

Speaking of H&R Block:

“The company said it would take a charge of $61.3 million, or 19 cents a share, to reflect an increase in the number of its subprime mortgage customers falling behind on their loan payments. H&R Block’s woes will likely extend to other subprime lenders, analysts said, as borrowers with less-than-stellar credit histories struggle to keep up their payments as rates rise.”

Via MSNBC

While Florida and other hot condo real estate markets have been crashing, not everyone may be in for a rough ride.

“Although the median price of a condo rose nearly 14 percent last year, double-digit increases are a thing of the past. The NAR expects prices to rise 3 to 4 percent in 2006 (compared with 6 percent for single-family homes). And the outlook varies by region. Condo owners in the Midwest, concentrated in the Twin Cities and Chicago, probably have the least to worry about. The South and West have taken the biggest hits. Sales there have fallen 14 percent in the past year, and prices are lower, too.”

From Kiplinger’s Personal Finance

Morningstar has posted an article and homebuilder stocks, including specific recommendations like Toll Brothers. Sometimes when everyone else is running for cover thats the time to buy.

“Second, we run through the land inventory account. Because the land approval process is becoming more difficult–thanks to stricter zoning laws and NIMBY (not in my back yard) movements–homebuilders have prudently invested in land for future development. Many own or option enough land to meet two to six years of future demand. We prefer builders with a higher proportion of optioned to owned land; options are cheaper and easier to walk away from or renegotiate. By contrast, creditors may force a fire sale on owned land.”

From Yahoo

“Home sales fell across the country last month, but in Florida they took a dramatic nosedive, according to numbers released by state and national Realtors’ groups Wednesday. Sales of existing single family homes fell 5 percent nationally, 33 percent statewide and 45 percent in the Tampa Bay area in July compared with the same month a year ago. Sales of existing condominiums rose 3 percent nationally, fell 37 percent statewide and plunged 52 percent in the Tampa Bay area.”

This drop sounds comparable to other previously hot Florida markets like Boca Rotan. Anyone left claiming there is not enough housing in Florida to meet demand anymore?

Via St Petersburg Times

Everyone is reporting the latest real estate data which shows blatantly clear signs of a cooling off. The New York Times paints a pretty bleak picture:

“The housing market is deteriorating by the month. In the latest and strongest indication that the home buying and selling frenzy is over, the National Association of Realtors reported yesterday that sales of previously owned homes fell to the lowest level in July in more than two years, prices flattened and sellers waited longer and longer to find buyers for their homes. The supply of unsold houses on the market hit a record high.”

Just two days ago I saw someone on FOX saying that it wasn’t so bad. Just like gold, this pull back is no suprise. Toss in the seasonal summer slow down and you have a recipe for a serious housing market retreat.