If you are in a bad mood or are looking to stop drinking coffee, here’s a scary summary of the national housing market by [Comstock Partners](http://www.comstockfunds.com/[Commstock](http://www.comstockfunds.com/index.cfm?act=Newsletter.cfm&CFID=8162040&CFTOKEN=76697441&category=Market%20Commentary&newsletterid=1263&menugroup=Home) via [WSJ](http://online.wsj.com/article/SB115832212927464276.html) pointed out by [Barry Riholz](http://www.ritholtz.com/site/) of [BigPicture](http://bigpicture.typepad.com/). I hate to simply present the list again but is a summary of the state of the housing market based on national statistics thats a little disturbing. Each item on its own can be explained but the combination paints a more powerful picture.

Whats important to realize is that the stats are national and represents the worst elements of different markets. You can pick out specific examples of [stats on the list that are hyped](http://matrix.millersamuelv2.wpenginepowered.com/?p=852) but even after doing that, the numbers presented in total are a concern (are you reading this Ben?) and builds the argument that we are in the midst of a hard landing.

Warning: viewer discretion is advised (its nationally orientated so it doesn’t apply to all markets).

* 32.6% of new mortgages and home equity loans in 2005 were interest only, up from 0.6% in 2000.
* 43% of first-time home buyers in 2005 put no money down.
* 15.2% of 2005 home buyers owe at least 10% more than their home is worth.
* 10% of all home owners have no equity in their homes.
* $2.7 trillion in loans will adjust to higher rates in 2006 and 2007.
* 70% of borrowers who took out pay-option ARMS in the past year have loan balances larger than their initial loan.
* Homeowners face higher payments as mortgages are reset. Generally, monthly payments rise between $200 and $500 depending on the size of the mortgage.
* [According to Reality Trac, August foreclosures were up 23% over July and 53% over a year ago.](http://matrix.millersamuelv2.wpenginepowered.com/?p=852)
* The number of homes for sale is at record highs, and inventories are 59% higher than a year earlier.
* New home sales are down 22% and existing home sales down 11%.
* The NASB housing market index has recorded an all-time decline.
* The housing affordability index is at a 15-year low.
* The house price-to-income (rents) ratio is off the charts. According to HSBC, in 18 states accounting for over 40% of national home values, the price-to-income ratio is 3.6 standard deviations above the mean.
* The OFHEO index of house prices deflated by the consumption price deflator has soared to a record high of 350 from 250 in 2001. From 1976 to 1996 it never was above 220.
* According to the NAR the year-to year prices of existing homes are now flat. A short time ago they were rising at a yearly rate of 16%.
* Nationally, home prices have not declined on a year-to-year basis since 1933. Recently, however, prices have been dropping in the North East, West and Mid-West.
* Sales incentives are now estimated at 3% to 7% of selling prices.

Maybe I will get that cup of coffee.