Comments (68)
 |
Post Comment |  |
Comments RSS |
| This is NOT business as usual. Feel it in your gut as well as see it in the numbers. All money is going to the wars and the Executive Branch is NOT HOME right now. End the wars or redeploy where the expense is less wasteful. Bring the money home and re-apply towards our state-side financial woes. Of course you may not agree with this- Good Luck. |
| Above Posted By: Sarah | Wed, 7 Nov 2007 00:11:58 EST |
| I live in Cali and I too will wait until the housing market corrects itself. The prices right now are beyond rediculous and I agree that greed is the primary reason for all this. So, I will hold off from buying for another year or so...however long it takes until this injustice is solved! |
| Above Posted By: Green&Greed | Wed, 25 Jul 2007 16:14:34 EST |
| If you haven't bought - DON'T BUY!!! Lenders are going to tell you it's time to buy, and that's because they need to make a living. Great point - try to qualify yourself for a home with today's pricing, and most of you will not qualify. BE PATIENT, our time will be soon. For those of you that believe you should buy, when's the last time homes appreciated 200 to 300% over 3 to 5 years??? My home appreciated 250%, and I sold at the top, and I'm glad I did, and now I rent. |
| Above Posted By: Carolyn Anguiano | Thu, 18 Jan 2007 15:21:40 EST |
| For all home owners who think that their value will not drop, please try to rebuy your house for what you think it is worth with no down payment and see if you can either afford it or qualify. There lies your answer about why values will come down. If people cannot afford a product, it does not sell. If it doesn't sell, it will come down in price until it does sell. Simple. |
| Above Posted By: Dan | Sat, 9 Dec 2006 08:59:41 EST |
| I'm from MD. My neighbors have been listing homes for up to $50,000 less than just months ago. I see no reason for this bubble "bursting" all of a sudden or why homeowners should bear the brunt of any fallout. The economy and the still low interest rate do not support this "burst" bubble. I believe it is mostly media hype and perhaps maybe too many homes on the market at one time. Our homes have not lost value. The market has simply slowed. We must be patient. |
| Above Posted By: Stephanie | Thu, 30 Nov 2006 12:43:12 EST |
| I am noticing that many homes that have been on the market in Old Saybrook Connecticut for months and months keep popping up as new listings. It may change the statistics but folks who are watching know the truth. |
| Above Posted By: Anonymous | Thu, 9 Nov 2006 00:36:12 EST |
| The builders, loan officers, real estate agents, escrow companies, inspectors, appraisers are in panic mode as they don't have the income to support themselves, so 2nd jobs are all the rage. Rents are way down as sellers who are unable to sell attempt to rent at huge negative cash flows.
Many in Pay Option Arm mortgages that are readjusting to 3 or 4 times the previous payment. Same for the Interest Only Arms. Reno is predicted to not hit bottom until summer 2008 so we have a lot of very ugly months ahead of us. And from what I read, Reno is not unique in the housing bubble burst - it's nationwide! |
| Above Posted By: Jack Olson | Tue, 7 Nov 2006 18:01:52 EST |
| Here in Reno the bubble has burst and it's a hard landing as we're still going down. Delinquencies are way up, foreclosures are way up, short sales are all the rage until the sellers get those 1099-C's in Feb of 2007, and find out they have to pay Federal and State income tax on that relief of debt. Complaints against Realtors are way up. Real estate agents are setting the days on market clocks but everyone knows how to get the real number and it's ugly. Many properties on the market now for more than a year, and many of them vacant! Inventory is way up. Buyers are convinced the values are going further down so they are waiting instead of buying. |
| Above Posted By: Jack Olson | Tue, 7 Nov 2006 18:00:37 EST |
| Low interest rates drive home prices up. We've had 40 year lows - lucky us. Everyone won if they refinance/purchased a new home even with an ARM. Interest rates and home prices work opposite of each other. Does it make sense to sit on the sidelines, pay less for a house but cost you more monthly because the rates went up? Right now is a perfect time to buy, rates are still at 30 yr lows and prices are edging down. In real estate what goes down, goes right back up & usually higher. |
| Above Posted By: Cheryl | Mon, 23 Oct 2006 22:35:06 EST |
| Is the Fort Worth Texas Real Estate Market softening? |
| Above Posted By: Anonymous | Sat, 21 Oct 2006 12:27:02 EST |
| It is the amazing downward trend in Southern California. The NOD's are up over 140% year over year in Riverside county alone. Looks like the frenzy is over, and things will be back where it should be. Nobody ever talks about the last trend, the same thing happened then too. Wait another year or so, then it will be a good buy for those looking!! |
| Above Posted By: Tonya | Thu, 19 Oct 2006 18:26:01 EST |
| It may be a soft landing for some folks that didn't take all the appreciation out of there home. The devistation is the ones that took everything out of there home with an arm loan. They are the ones that are going to suffer with the high loan payment. Plus, when it comes to refinancing, it's going to be a problem, because they owe more than what it's worth. I wouldn't call it a soft landing. More so than not took the equity out of there homes. Very scary situation for alot of home owners. |
| Above Posted By: Carolyn Anguiano | Fri, 13 Oct 2006 11:00:31 EST |
| I have a question. My husband and I have been looking to buy a house for a few years now. I want to know if Louisiana will fell any kind of decrease in home value. ( We suffered two major hurricanes in the past year) |
| Above Posted By: JO | Mon, 25 Sep 2006 15:05:29 EST |
| "Cooling trend" followed by a "soft landing"? No one has a problem touting appreciation, why can't people accept depreciation as a natural occurance in any real estate cycle? Most heavy/influential investors I know are anticipating 30-40% drop due to creative financing, over financing, foreclosures and snowball effect from all of the above. I know my home has appreciated 85% over last 5 years and is not atypical so 30% downward doesn't seem un-realistic. |
| Above Posted By: Andrew | Tue, 12 Sep 2006 13:56:45 EST |
| The BIG bubble that no one is talking about is this HB 4050. This has become and will be a big problem on the southside of Chicago. I can't believe that no one is talking about how this has basically closed the real estate buisness on the southside. PLEASE wake up people before it is to late for our neighborood. This is RED LINING at its highest. |
| Above Posted By: Terence B. Harris | Wed, 6 Sep 2006 12:26:52 EST |
| Necolumen & Gary Anderson may want to wake up since June of 2006. Things are coming down folks, and it's really coming down. All I heard was real estate was going to get better in the summer, well...it hasn't. Don't buy, let it come down, so it can be corrected. I feel for the folks that bought, but it has too be corrected. The economy will suffer for sometime. Retail will start feeling it during the holidays and sometime after. |
| Above Posted By: Carolyn Anguiano | Wed, 30 Aug 2006 14:58:06 EST |
| It's happening like I thought back in March 06". It's going to get quite rough for alot of folks for a while. Not going to be that great Christmas that a lot of people got used too. I'm really scared for our economy and the US future status. Save whatever you can and learn to live on a more conservative budget, because of alot of employers are going to take the hit and that means layoffs. I pray I'm wrong... |
| Above Posted By: Carolyn Anguiano | Wed, 30 Aug 2006 14:41:36 EST |
| AMAZING...Very few seem to be being honest about what is at hand...In Los Angeles, I have seen homes being discounted 7 to 10K a week over the last 6 weeks (28 to 40K a month)...Things are starting to get really bad...really fast!!! With those kinds of discounts happening now, imagine what it is going to look like over the next 18 months...40% to 60%? or maybe 66% to 70% as some people are now starting to state! |
| Above Posted By: Vulture | Mon, 28 Aug 2006 07:04:30 EST |
| The market will deflate. But, when investors can get rents to pay for the mortgage, they will enter the market again. I kept my rentals rather than flipping them. If there was equity, I refinanced the loan to a 10 year interest only,rather then selling the property to get the equity. I don't pay taxes on the gain. In fact, I reduced my tax burden because the interest payment is tax deductible. RENTS PAY the mortgage. Now that housing is flat, rents are going up....wow, even more cash flow. |
| Above Posted By: Jason | Sun, 27 Aug 2006 16:19:15 EST |
| The media needs to report on topics they know something about. There isn't just one bubble covering the entire United States. Small towns cannot compare to a large metropolis like Chicago, NY, or LA. Quit making blanket statements. You're scaring everyone. Be more specific. |
| Above Posted By: Christine | Fri, 25 Aug 2006 16:26:11 EST |
| I live in Orange County Southern California. I'm waiting till I can afford the monthly payments. I have the 20% down but wouldn't be able to afford $2500 a month in owning versus $1600 month in renting. So I'm renting for now. The housing supply might be back to normal and today's yoy prices seem reasonible HOWEVER the cost to own is still way out of wack. The prices need to be adjusted to historic norms. Prices will fall for at least the next 5 years to make up for the insane increases since 2001. |
| Above Posted By: Paul | Fri, 25 Aug 2006 16:03:38 EST |
| Most of my future security depends upon the increasing appreciation of my home. I am nervous now, so I have put my name on the waiting list of a low income retirement complex which should be completed in a year. Does anyone think it is possible that a year may be too long, and I could still lose everything I have accumulated in equity? How will I know if it is time to pull? |
| Above Posted By: Zelda | Fri, 25 Aug 2006 14:00:50 EST |
| Much of the hype about a Bubble may still cause prices to decline, may be of self fulfilling prophecy. Most the hype may have been created by Wall street economists as a way of getting us to run with the Bulls.The laws of supply and demand still work. However we still need to have shelter. Real Estate is still a good investment and time heals many wounds. |
| Above Posted By: Tony D | Thu, 17 Aug 2006 21:40:49 EST |
| I believe the crack in the housing will begin in September. It has been flat all summer (investors holding out) but as the fall approaches we will begin to see houses being taken off the market, prices beginning to lower by more than just the 5K we have been seeing lately, perhaps 20K or more for people who need to sell. Then in '07 a deflation in value with increases in interest rates bringing that 220K house back down to 90K. (where it belongs) . |
| Above Posted By: Michael | Thu, 17 Aug 2006 16:49:26 EST |
| Most of these dolts fell into the old trap of believing that past performance = future results - the market keeps going up so it must continue going up. Pyramid scheme falls apart when people stop buying in at the bottom. New buyers unable to buy at these prices, the prices start coming down. Meanwhile, billions worth of mortgages adjust this month and more every month for the next five years. |
| Above Posted By: Filmsafety | Wed, 2 Aug 2006 20:33:10 EST |
| Prices and sales in NYC (Manhattan) continue to rise. This is only anectodal. Two and three bedroom apartments are way out of reach, but not coming down in price! Would appreciate other comments from those living in the City and looking to buy. Thanks, Claire |
| Above Posted By: Claire Voyant | Wed, 2 Aug 2006 19:12:02 EST |
| I recently sold a house in South New Jersey. The market is already slowing down and prices are dropping. We had our house on the market for a month without one offer, then we dropped our price...still no offers...finaly we ended up selling to a family member off of the market at a dicounted price. It was very odd to not get one offer, not even a low ball offer. I believe housing got inflated because of investors buying homes and flipping and now the trend is over. |
| Above Posted By: dave g | Wed, 19 Jul 2006 23:58:48 EST |
| What is happening in Birmingham is amazing. The residential real estate market is way over built here but developers and builders keep pushing project after project. My friends wife who is a realtor says the real estate agents here are sitting around with nothing to do but the developers go right on developing. It's like they are on another planet. What fools. |
| Above Posted By: jeff milligan | Tue, 18 Jul 2006 22:03:30 EST |
| I am sick of overly optimistic analyses of the housing market by real estate developers, mortgage brokers, and otherwise biased sources. I know that in the Washington DC area it sure does feel like a bubble ... from Alexandria to Arlington to Capitol Hill trouble is brewing on the horizon. Intelligent people need the facts in most cases in our area it makes a helluva lot more sense to rent than to buy. And I dont want to see my friends with their interest-only mortgages to go belly up. |
| Above Posted By: Waiting4Bubble2Burst | Tue, 18 Jul 2006 14:14:51 EST |
| It's not whether we have a soft landing or a hard landing, it's the how much distance south that prices will effect the economy. Soft landing or hard landing there are gonna be a lot of people ending up on their bottoms. |
| Above Posted By: soft landing | Thu, 13 Jul 2006 10:54:27 EST |
| You should all be greatful you're not in Atlanta! |
| Above Posted By: Ellen | Wed, 12 Jul 2006 18:13:12 EST |
| Greenspan said if you know it is a bubble then it isn't. Guess what...the NASDAQ tanked and sucked 3 trillion out of the US economy. The average joe still doesnt trust Wall St. A lot more homeowners will be in payment shock after their ARMS expire. Foreclosures will rise. Then there will be a balance between buyers and sellers. The age of the "flippers" is over and then it will become "day traders" once again. A shift of wealth from one area to another. Hold on to your hat. |
| Above Posted By: Chuck Wackerman | Tue, 11 Jul 2006 17:44:33 EST |
| ... Continued from below
The sellers and their realtors are resetting the DOM (Days on Market) although easy to pull up property history to catch that trick. It looks to me that some properties are now on the market a true average of 12 months. First-Time buyers prime the pipeline of Move-Up Buyers by creating buyers for those homes allowing existing homeowners to move up, something we don't have much of in our current market - First Time Buyers. It's not the down payment that has the First-time Buyers worried, there's plenty of loan programs to cover that. It's the monthly payment of the loan, real estate taxes, utiltites, insurance, mortgage insurance, home owners dues, gasoline, food, health costs, etc. |
| Above Posted By: Jack | Fri, 7 Jul 2006 18:13:09 EST |
| ... Continued from below
National home values, adjusted for general inflation, increased almost 61% from 1981 to 2003. That's an average of 2.9% a year. In the past three years, home prices have shot up another 35% for an average of 11.7% a year, but much of those gains are lost and we may be heading back to the 2.9% average after this loss adjustment. Reasons for being an increasingly cautious buyer: In this market its amazing that the price reductions are not more. Sellers putting cash out to protect decreasing equity?! The interest rates are up so every home borrower now qualifies for less. Home equity loan payments have more than doubled as Prime, their index, has more than doubled, further raising their payments for more cash out of pocket. Fuel costs have sky-rocketed causing a further cash-out-of-pocket hemorrhage to borrowers. Continued... |
| Above Posted By: Jack | Fri, 7 Jul 2006 18:06:49 EST |
What we're seeing right now is a lot of overoptimistic sellers coupled with increasingly cautious buyers. That's keeping a lot of inventory on the market. The pieces are in place for price reductions to continue deeper. I think Reno/Sparks over priced now, and for quite a while to come prices will come further down. Gone are the days of multiple offers over the asking price and buyers agreeing to waive inspections. Some categories of real estate may fall farther than others. NAR reports a record 40% bought last yr were not primary. Some of those 2nd Home purchases were done with Mortgage/Occupancy Fraud as they were rented out at COE, a criminal violation of the 2nd Home Rider. We're seeing a return of housing as a place to live. It's NOT an investment. Housing is an expense (only the land is investment, & generally a poor returning one at that). I expect we'll see a return of 1988-1992 with lots of foreclosures on the market. Continued.. |
| Above Posted By: Jack | Fri, 7 Jul 2006 17:59:13 EST |
| As a home owner in Valencia, California I have observed a definite slow down in my neighborhood. There are 8 houses for sale in my 3 year old neighborhood. I have seen the prices drop up to 30k in the past 12 months. I would think now is the time to sell and then wait until the end of the year to purchase the same home again for what I paid 2 years ago. |
| Above Posted By: jason | Fri, 7 Jul 2006 16:56:11 EST |
| I have the money to buy a house in California. I bought in 1993 (my first house) and I sold last year at a ridiculous price. I know that this can not be sustained. I KNOW that this will not be a soft market. I KNOW to many people jumping into the real estate at the top without any financial education and no idea what is in store for them. I am boycotting this market until it makes sense. |
| Above Posted By: Rozy in California | Mon, 5 Jun 2006 13:16:00 EST |
| Here in California prices have soared insanely for some years. The ironic thing is that people think since asking prices are still very high that there will be no bursting bubble. This is ironic because it is the high prices and corresponding "creative financing" which makes it much more likely that people will lose their homes. The market will soften with oversupply, but will crash because of forclosures. |
| Above Posted By: Judy in California | Mon, 5 Jun 2006 04:42:17 EST |
| I could not purchase a home before the boom because I was working on my degree. Now that we are out and searching for a home we realize that to be able to afford anything you need to bring at least $450,000 to the table. That is more that half of our combined income when we include taxes and insurance. I would like to know who is buying these houses? Sellers and realtors will tell you with a straight face that a 2/1 in a terrible neighborhood is $400,000. That seems to be the magic number. |
| Above Posted By: Frustrated in Miami | Sun, 4 Jun 2006 23:49:04 EST |
| Florida real estate & especially vacant land will continue to rise, expecting 10 to 25% in 2007. The huge wave of immigrants entering this state will dominate vacant land prices.This process will continue for 5 years before making a soft landing. Condo's priced at $ 200 K & under will be sought, closer to work, cutting travel costs in $ & time. |
| Above Posted By: Maurice | Sun, 4 Jun 2006 20:39:35 EST |
| Well, there are always shills of the housing industry that are opting for a soft landing. Maybe they will be correct, however, where I live in Reno, houses have been sitting for close to a year. We have 5000 houses for sale in a city of 380,000 people. So, I hope we have a soft landing but I believe that in many areas of the country it could be a lot worse. |
| Above Posted By: Gary Anderson | Sat, 3 Jun 2006 20:20:07 EST |
| ...Continued Another thing is interest only, it is made for the lower income, along with 40 and 50 year loans. The rich usually have Option ARM's if they are smart. Option arms are great if you have high income and multiple propertys, or if you are on a commission only income. It allows you flexibility and anyone who flips property uses a Option-ARM, it just makes more economic sense. Reducing the price of a California home by 100K is really nothing, considering that in some neighborhoods the median house price is 1.5 Million. You wont see that kind of decrease in a home under 700,000 dollars. I get the impression that none of you are aware of the secondary market in mortgages and how that works. If you dont understand that or configure it into your predictions, you might as well just be making it up. And about Florida housing prices being lower, Southern Florida has the Third highest appreication rate in the country the other two being Nevada and California. |
| Above Posted By: Necolumen | Fri, 2 Jun 2006 17:33:34 EST |
| Most of you err, on the side of logic. First and foremost to compare the housing market here to that of Germany, which is a economy with heavy socialist leaning, and Japan, where loans exist with terms above 80 years, you are talking about an entirely different economy. If you compare Alaska to South Carolina it would look as though there would be a crash in South Carolina. You cannot compare apples to coconuts people it just doesnt work. And apparently you all have forgotten the 12%+ rate of the 80's, our economy boomed fine then and still will. And you could never compare cars to houses because car ALWAYS depreciate, the second you buy them they depreciate. And about taking multiple equity loans out, perhaps refinances, but it is quite hard to obtain more than two liens on a single property. Continued... |
| Above Posted By: Necolumen | Fri, 2 Jun 2006 17:32:37 EST |
| I'm an Australian who Googled his way here. Australia had its real estate boom several years earlier than America. I too expected a savage correction but it hasn't happened and I don't think it will. Instead of collapsing housing prices, what we've got is stalled or gently falling housing prices. They're probably not going to move much for some time, but nobody's been badly hurt. Cheer up America. We've been there before you and it's not so bad! |
| Above Posted By: Christopher D Fox | Wed, 24 May 2006 07:25:13 EST |
| There is still money to be made in the southeastern US. People and businesses will flock because of affordable housing, cheaper state and county taxes, and an overall cheaper cost of living. Anytime you have something that is undervalued it is only a matter of time before someone realizes the value and pushes prices upward. Look for Alabama, Georgia, Mississippi and the Carolinas to play catch up with there northern and western cousins. |
| Above Posted By: Joe | Tue, 23 May 2006 16:23:11 EST |
| THE PARTY IS OVER!!!! and its about time. We can't wait for it to all come crashing down and it will quickly like a snowball effect. The government knows what is coming but down plays it. They have changed the bankrupcy laws and now Freddie Mac in conjunction with 14 top financial institutions have set up a counseling program for borrowers to avoid foreclosures. Do you think they know something is going to happen???? WE'RE READY.....LET IT BLOW....HOLD OFF AND WAIT......... |
| Above Posted By: Waiting in New York | Fri, 12 May 2006 23:07:57 EST |
| There will a drop in housing prices in a large number of areas. Why are we certain? The use of the term "paradigm change" and the dramatic shifts in some markets in the number of homes for sale versus actual sales. What the real estate positivists forget is that when markets turn downward, liquidity (in this case buyers) drys up. There are simply no transaction participants. See Long-Term Capital and behavioral finance. |
| Above Posted By: REDOC | Wed, 10 May 2006 15:03:32 EST |
| In California there is no bubble? ROFL WHAT ARE YOU ON? Is that why developers are slashing their pricing by 100K+ already? This is pure entertainment. |
| Above Posted By: Tom | Sat, 6 May 2006 10:17:34 EST |
| This is sheer entertainment. Oh those figures of 'price' increases - these people are insane. Tell the increases to the hoards "trying" to sell right now! Tell them that one that their property has increased because they can't even get viewings at old prices. I know three developers who have reduced their prices three times and three neighbors who cannot sell at what they bought at three years ago. |
| Above Posted By: Tom | Sat, 6 May 2006 10:16:36 EST |
| The entire scenario to this is outlined in history, just look up the florida real estate crash of 1926. Look it up. I rest my case. |
| Above Posted By: reality | Sat, 6 May 2006 09:38:27 EST |
| I live in the panhandle of Florida where I have seen the prices dropping steadily. They still havn't dropped enough for me to want to buy a house just yet, so we are waiting it out. If the prices do not drop by next year, we will buy elsewhere. The houses are overvalued. Everybody wants to make 100k on their homes. The inventory of homes for sale have more than doubled in the past 5 months. Buyers like us are just not buying. We don't want half of our income to go to housing. |
| Above Posted By: Trish | Mon, 24 Apr 2006 02:11:27 EST |
| Greed, greed, and more greed. The party is over. If you bought a house in the past few years you might have out bid me, but get ready it is going to hurt. Especially if you were creative in this greedy housing market and put 0% down or used an interest only loan or have relied on Option ARM's instead of using common sense. Gas prices and home heating prices are way up and wages and home prices are falling fast. Remember that you helped make all this possible. |
| Above Posted By: Allen | Sun, 23 Apr 2006 20:44:35 EST |
| I think that local bubbles are much more dangerous that any concept of a "national" bubble. There are local markets all over the country that are primarily investor driven. Those are declining in price now, and will continue to suffer slow erosion of selling prices. As interest rates increase this effect will intensify. |
| Above Posted By: Donna | Sat, 15 Apr 2006 14:30:13 EST |
| The real estate propaganda is pouring out from the media and even the White House as "they" downplay the housing bubble that has clearly burst. Most people do not really own anything in America. Almost everyone I know is just making payments on things that the banks really own such as a home and a car. Americans spend more than they earn and many people who purchased a home between 2001 & 2006 are in for a really rude awakening. The "artificial equity" game is over people. |
| Above Posted By: arcticblueice | Fri, 14 Apr 2006 22:21:02 EST |
| I think "California Home Owner" may be like many home owners who are trying to make themselves believe that the helium will never run out of the balloon. My wife and I were determined to buy a new home in Valencia, a Los Angeles suburb, and the ever-increasing homes being placed on the market (at reduced prices) is unmistakable. You know it's bad when your realtor is telling you to wait until the end of the year to get a better deal. |
| Above Posted By: Anthony | Thu, 13 Apr 2006 14:57:22 EST |
| Housing, just like any other commodities follow a cyclical trend. What goes up must go down. The bubble will burst and there will be many speculators running to dump their house. As a mortgage professional, it's not good news. But I can't wait until things slow down so we can separate the real professionals from the order takers. |
| Above Posted By: Larry | Wed, 12 Apr 2006 17:52:24 EST |
| Bubble? Consider that small town South of San Francisco that has become a model of housing booms. Fully 97% of the population of this 77,000 member community can not afford a house in their town. They now have about a thousand houses on the market and 7000+ houses currently in the process of being built. The "speculators" are still trying to make 50K on their houses, instead of just getting out while they might still have a chance to get out. Greed, that is what is powering things. |
| Above Posted By: daniel | Tue, 11 Apr 2006 22:05:40 EST |
| "Peering even further into the future, the report projects continued appreciation of 7.0 percent in 2007 and 6.3 percent in 2008." Dream on. The party is officially over. Only the greatest of fools accepts an invitation to housing, until a correction of 20% or more in the bubble areas has occured. |
| Above Posted By: John | Tue, 11 Apr 2006 16:04:51 EST |
| Being a home owner on the West Coast... I can't help but like the ARMs because it helps me afford my home. With fixed rates as they are now, not many of the people I know can or will be homeowners any time in the near future. I believe that this is no bubble. But if rates were to sky rocket, then not only will the housing market be affected, but we would be looking at a market crash. |
| Above Posted By: Ron | Tue, 11 Apr 2006 15:09:49 EST |
| Prices are definately going to soften. It won't affect the average homeowner that doesn't need to sell, but there are a good amount of speculators out there relying on the 'bigger idiot' principle to make their money. Also people who have relied on Option ARM's and such to buy their house hoping they'd either be making more money, or their house will have appreciated enough will be sunk... |
| Above Posted By: PA Investor | Tue, 11 Apr 2006 12:50:15 EST |
| I'm not sure where "California Home Owner" got his/her facts, but although demand will probably remain stable, inventory will reach a surplus very soon. Property values have already begun to decrease. There is a bubble of sorts. I would suggest those who need to refinance within the next 2 years do it now, while their property values are still peaked. And steer clear of the "Option ARMs" that most mortgage loan officers are trying to push. They're only benificial to the loan officer. |
| Above Posted By: California Lender | Fri, 7 Apr 2006 19:10:10 EST |
| In California, there is no bubble. Demand is high and will remain high. Inventory will remain low even if the building rate continues as is for the foreseable future. If anything will hurt the housing market in California, it will be a bad natioanl economy or catostrophic disaster. Even then, foreign investors will still keep home prices high. |
| Above Posted By: California home owner | Tue, 4 Apr 2006 21:26:23 EST |
| I believe once the housing prices begin to decline there will be a huge panic. Many people will not want to wait 5, 10 or even 15 years for the housing market to gain confidence again as it has in the past few years. I believe investors are beginning to sell and dump money back into the stock market running on a whim that people will want to keep invested somewhere. This will be fine for a while but eventually as housing goes down so will spending and thus the stock market. |
| Above Posted By: Thinking hard | Mon, 3 Apr 2006 19:51:44 EST |
| I think the housing bubble is going to much more extreme in the areas where homes have appreciated beyond what they are actually worth. In my opinion this includes areas such as California, Florida, New York, etc. I live in South Carolina and I am not nearly as concerned about the bubble as I would be if I lived in one of the areas mentioned above. Actually I think there is still much room for growth in my area and I look for the markets to continue to improve, even if it is at a slower pace. |
| Above Posted By: SC Agent | Mon, 3 Apr 2006 10:52:14 EST |
| I believe that greed is to blame. Why in the heck would someone get into an interest only loan when the interest rates were at a low. What it did was allow us to buy more home than we could afford. Example: true fixed loan with a mortgage of 500,000 would be 3200 @ 6%, but with an interest only you could get a home of 620,000 for the same payment. They sold a bigger home, but very risky product. The rich are the only ones that should get into an interest only loan. |
| Above Posted By: Carolyn Anguiano | Wed, 22 Mar 2006 18:51:59 EST |
| Look at the home your parents bought. A person that bought a home in the past 35 years, with the big boom their home appreciated on an average of 10k a year. Do you think our salaries can substain that kind of appreciation. I know people that bought big SUV's with their appreciation, and with gas prices going up, they are renting cars and leaving their SUV's in the drive way because it's cheaper to rent than put gas in their vehicles. Sales are down. Call a car dealership up and they will tell you sales are down. In the past 3 years, some people have taken 3 equity loans out of their home and lived off of that. The money has run out and the new mortgage has kicked in. No one can afford to purchase anything because of debt to income. I believe bankruptcy laws changed because our government knew there would be an economic crash. We are in need of help and future buyers can help by putting it off and allow for homes to come down. |
| Above Posted By: Carolyn Anguiano | Wed, 22 Mar 2006 18:44:06 EST |
| Germany and Japan had a big burst in home prices prior to 1991, and since then the homes have come down every year. To date, their homes have depreciated as much as 40% since 1991. Check out their economy also..not good. We have spent our future with this booming appreciation and that is extemely scary to me. People have to be crazy. They are paying way more than they can afford, and this will stop all retail spending and causing future $$ problems for the economy. Don't buy...wait. I believe interest rates will go up, and let the ones that have to refinance take the hit. Eventually, they will come down. Our federal reserve has to rebuild. Natural disasters and the war have drained our reserve. Once this gets replensed interest rates will come down because our economy will have to be supported by home buyers. Right now, who can afford it? All you are buying is a mortgage....think before you buy. |
| Above Posted By: Carolyn Anguiano | Wed, 22 Mar 2006 18:33:25 EST |
| Don't trust Greenspan, he is why we are here today. He allowed Fannie Mae and Freddie Mac to continue over allowing loans to buyers. Fannie Mae's CFO was eventually fired because he wasn't reporting all their earnings. They didn't want the rest of the market to know who much they were making. Unfortunetely, the people that bought in the last 5 years will have to suffer, along with the people that took all the equity out of the home. The home prices have to come down, or we will be like Germany. |
| Above Posted By: Carolyn Anguiano | Wed, 22 Mar 2006 18:25:24 EST |
Post A Comment
Please fill out the form below to submit a comment.
Can I Link To This Resource?
The answer is YES. We appreciate links to our resources because our site has grown mostly by word of mouth. However, it is not ok to post this copyrighted content on your webiste.Adding a link to this website is simple. Please follow the instructions below.
Your link should look like this:
Bubble Talk - Housing Bubble Discussion
