Punters on Bus

(agent)

The next property you'll be looking at 5146 Strawberry Way...

     00:00

VO

IT'S A BUS TOUR WITH A DIFFERENCE.

EVERY SATURDAY A STOCKTON REAL ESTATE AGENCY TAKES PROSPECTIVE BUYERS ON INSPECTIONS QUITE UNLIKE ANYTHING THEY'VE EXPERIENCED BEFORE.

00:04

Female agent

THIS PROPERTY FEATURES 3 BEDROOMS AND 2 BATHS, PROPERTY LISTED ON 4320 CHRISTIAN LIFE WAY, THE PROPERTY IS LISTED FOR $199,900.

      00:14

VO

AMONG THE HOUSE HUNTERS IS

26 YEAR OLD EZRA STANTON WHO'S DRIVEN 800 KILOMETRES FROM NEIGHBOURING OREGON HOPING TO PICK UP A BARGAIN

00:26

Ezra Stanton

HOMEBUYER

WE ARE LOOKING FOR SOME INVESTMENT PROPERTIES AND HOPING JUST TO FIND SOME GOOD DEALS ON A PROPERTY TO TURN INTO A RENTAL OR MAYBE EVENTUALLY MOVE DOWN HERE

00:35

VO

HE MAY BE IN LUCK.

ALL OF THE HOUSES ON TODAY'S LIST ARE IN FORECLOSURE.

00:44

Stanton

IT'S ONE OF THOSETHINGS WHERE IT IS SOMEONE'S MISFORTUNE BUT NOW THE BANK OWNS IT SO WHAT ARE YOU GOING TO DO WITH IT?

00:49

VO

IT'S BEEN CALLED A TASTELESS MARKETING GIMMICK BUT THE ‘REPO HOME TOUR' IS DOING A ROARING TRADE.

STOCKTON, ABOUT 100 KILOMETRES EAST OF SAN FRANCISCO, IS AMONG THE AMERICAN CITIES WORST HIT BY THE HOUSING MARKET'S COLLAPSE.

IT'S BEEN FLOODED BY FORCED SALES, AS MORE AND MORE HOMEOWNERS SUCCUMB TO THE RISING INTEREST RATES OFTEN LOCKED INTO SUB-PRIME MORTGAGES.

AT THE HEIGHT OF THE REAL ESTATE BOOM THESE HOMES WERE AMONG THE MOST EXPENSIVE IN THE REGION.

NOW THEY'RE GOING FOR A SONG.

00:55

CESAR

THIS IS A SMALL APPETISER. WE ARE GOING TO HIT SOME BIG ONES IN A MINUTE

01:25

VO

CESAR DIAS, WHO'S BEEN RUNNING THE REPO HOME TOUR FOR MORE THAN FIVE MONTHS, INSISTS HE'S PERFORMING A PUBLIC SERVICE.

01:31

SUPER:

Cesar Dias

REAL ESTATE AGENT

THEY ARE ALREADY GONE. THEY ARE ALREADY VACANT AND THEY HAVE TO BE SOLD. I WOULD SAY THE AREAS, THE COMMUNITIES WE ARE SHOWING ARE ACTUALLY HAPPY AND GLAD THAT THESE PROPERTIES ARE BEING SOLD QUICKLY SO THEY ARE NOT VACANT PROPERTIES SITTING THERE GETTING DETERIORATED.

01:36

VO

THE IMPACT OF HOME FORECLOSURES EXTENDS WELL BEYOND INDIVIDUAL NEIGHBOURHOODS.

MORE EMPTY HOMES MEANS LOWER PROPERTY TAXES AND CUT-BACKS IN RESIDENTIAL SERVICES.

LOCAL OFFICIALS SAY PROFIT HUNGRY BANKS MUST TAKE A LARGE SHARE OF THE RESPONSIBILTY FOR STOCKTON'S PREDICAMENT.

01:51

SUPER:

Bob Bressani

CITY OF STOCKTON

I WON'T SAY ALL LENDERS AND BANKS WERE COMPLETELY TO BLAME BUT CERTAINLY THERE WERE SEGMENTS OF THE LENDING COMMUNITY THAT CLEARLY IF NOT CONDUCTING ILLEGAL PRACTICES, VERY UNETHICAL PRACTICES IN TERMS OF HOW THEY WERE QUALIFYING PEOPLE FOR MORTGAGES

02:07

VO

JUST AS THEY WERE FALLING OVER EACH OTHER TO SELL CUT PRICE MORTGAGES THE BANKS ARE NOW SCRAMBLING TO OFFLOAD A GLUT OF VERY CHEAP HOUSES.

02:30

SUPER:

Peter Morici

UNIVERSITY OF MARYLAND, WASHINGTON

A CLOUD OF PESSIMISM HAS CAST A LONG SHADOW OVER THE US ECONOMY. PEOPLE JUST AREN'T SPENDING MONEY. THEY ARE VERY PESSIMISTIC ABOUT THE FUTURE. BUSINESSES ARE PULLING BACK, EMPLOYMENT IS SLOWING AND SO WE ARE GETTING INTO A PERFECT STORM. THE ECONOMY IS ABOUT TO DECLINE.

02:28

VO

THE WORLD'S LARGEST ECONOMY IS ON TEETERING ON THE BRINK.

THE US FEDERAL RESERVE HAS JUST SLASHED ITS FORECAST FOR ECONOMIC GROWTH THIS YEAR.

ALTHOUGH IT'S YET TO TECHNICALLY FALL INTO RECESSION, MANY ECONOMISTS BELIEVE A SERIOUS CONTRACTION IS ALREADY WELL UNDERWAY.

02:53

SUPER:

Jared Bernstein

ECONOMIC POLICY INSTITUTE, WASHINGTON

WELL YOU HAVE TO UNDERSTAND THAT 60-PER-CENT OF AMERICANS ALREADY THINK WE ARE IN A RECESSION ALREADY AND FOR MANY OF THESE FOLKS IT FEELS LIKE ONE, SO WHEN THE ECONOMIC PROFESSORS ACTUALLY DATE THIS THING OFFICIALLY IT COULD BE OVER.

03:09

VO

WORRIED ABOUT THEIR HOME BEING WORTH LESS THAN THEIR MORTGAGE OR THEIR JOB SUDDENLY DISAPPEARING, AMERICANS ARE STARTING TO WATCH THEIR PENNIES.

IT'S AN OMINOUS DEVELOPMENT FOR AN ECONOMY THAT'S BEEN PROPPED UP BY ROBUST CONSUMER SPENDING.

THE BUSH ADMINISTRATION IS NOW SHOWERING AMERICANS WITH CASH, THROUGH A MASSIVE ECONOMIC STIMULUS PACKAGE, TO EASE THIS CRISIS IN CONFIDENCE.

03:25

SUPER:

Washington, 13 February

George Bush

US PRESIDENT

(applause)

NOW, I KNOW A LOT OF AMERICANS ARE CONCERNED ABOUT OUR ECONOMIC FUTURE. OUR OVERALL ECONOMY HAS GROWN FOR SIX STRAIGHT YEARS, BUT THAT GROWTH HAS CLEARLY SLOWED.

03:50

VO

ANALYSTS LIKE JARED BERNSTEIN OF WASHINGTON'S ECONOMIC POLICY INSTITUTE FEAR IT'S MUCH TOO LATE TO PREVENT THE INEVITABLE.

04:02

BERNSTEIN

I DON'T THINK THE GOVERNMENT'S FISCAL STIMULUS IS GOING TO PRECLUDE A RECESSION. I THINK IF IT IS DONE RIGHT AND DONE IN A TIMELY MANNER THAT IT WILL MAKE THE RECESSION LESS DEEP AND LESS PAINFUL AND WILL ACTUALLY HELP A NUMBER OF PEOPLE.

04:08

VO

THE SPECTRE OF A RECESSION LOOMS LARGE ON THE PRESIDENTIAL CAMPAIGN TRAIL.

THE US ECONOMY IS BY FAR THE KEY ISSUE IN THE ELECTION AND THE DEMOCRATS ARE KEENLY TAPPING INTO VOTERS' ANXIETIES.

04:24

SUPER
Ohio

Hillary Clinton

DEMOCRATIC CANDIDATE

PEOPLE ARE STRUGGLING....THEY'RE WORKING THE DAY SHIFT, THE NIGHT SHIFT. THEY'RE TRYING TO GET BY WITHOUT HEALTH CARE.THEY'RE JUST ONE PAY CHEQUE AWAY FROM LOSING THEIR HOMES.

04:36

VO

BUT SOME DOUBT JUST HOW COMMITTED THE CANDIDATES ACTUALLY ARE TO FUNDAMENTAL ECONOMIC REFORM, IN PARTICULAR TIGHTENING THOSE DANGEROUSLY LOOSE HOME LENDING STANDARDS.

04:47

MORICI

I DON'T THINK THE DEMOCRATS ARE OFFERING MUCH OF AN ALTERNATIVE. THE REPUBLICANS WANT TO DO MORE OF THE SAME. WE NEED FUNDAMENTAL, SYSTEMIC REFORM ON WALL STREET TO REVIVE THE ECONOMY. SADLY BOTH POLITICAL PARTIES RAISE OF A LOT OF MONEY ON WALL STREET FOR THEIR CAMPAIGNS AND WHILE THEY ARE HARVESTING CAMPAIGN CONTRIBUTIONS, THERE ARE NOT GOING TO BE TALKING ABOUT BANKING REFORM.

04:57

VO

IT'S NOT ONLY AMERICANS WHO ARE WORRIED ABOUT THEIR ECONOMIC FUTURE.

THE REST OF THE WORLD IS WATCHING ON ANXIOUSLY AS THE ENGINE ROOM OF THE GLOBAL ECONOMY SPLUTTERS.

05:15

BERNSTEIN

THE US CONSUMER HAS BEEN NOT JUST DRIVING OUR ECONOMY BUT THE ECONOMIES OF MANY OTHERS AND ALSO SOME OF THE CONTAGIONS IN OUR DEBT INSTRUMENTS ARE AFFECTING OTHERS ARE WELL SO IT'S NOT GOOD NEWS FOR THE GLOBAL ECONOMY THAT THE US IS UNDERGOING THESE ECONOMIC STRESSES. WILL IT BRING THE REST OF THE WORLD DOWN TO A GLOBAL RECESSION? I DON'T THINK SO THERE'S STILL ENOUGH STRENGTH OUT THERE TO KEEP MANY OF THOSE ECONOMIES GOING, BUT IT WILL HURT THEM TO.

05:25

VO

JUST HOW LONG AMERICA'S ECONOMIC DOWNTURN WILL LAST IS ANYBODY'S GUESS.

EVEN THE FEDERAL RESERVE CHIEF BEN BERNANKE CONCEDES IT'LL BE TOWARDS THE END OF THE YEAR AT THE EARLIEST BEFORE GROWTH MAY PICK UP AGAIN.

BACK IN STOCKTON CESAR DIAS SEES HOPE IN THE LIMP HOUSING MARKET   STIRRING BACK TO LIFE.

05:53

DIAS

AND IT IS REVIVING, AND IT'S MOVING RIGHT NOW WE SEE A GREAT MOVEMENT IN THE PRICE RANGE FROM 150 TO 250, THEY ARE MOVING QUICKLY. SOME OF THE PROPERTIES ARE GETTING MULTIPLE OFFERS QUICKLY AND THEY ARE SELLING.

06:12

VO

IT'S LIKELY TO BE A BUYERS' MARKET FOR SOME TIME TO COME.

06:26

06:30

Credits:

Reporter Michael Rowland