Looking at the seventies , nobody buys them ...Originally Posted by cubical
Looking at the seventies , nobody buys them ...
The problem with locking in for 30 years is that we really have no idea how the madmen controlling our money will make the economy lurch back and forth in three decades - just review the last three.
As far as a housing bottom goes... no chance. Shadow inventory is higher than ever, and at some point the banks will need to unload, as their accounting fraud can't make up for a lack of actual cash when the electricity bill comes due. Interest rates, of course, have nowhere to go but up.
“If ye love wealth greater than liberty, the tranquility of servitude greater than the animating contest for freedom, go home from us in peace. We seek not your counsel, nor your arms. Crouch down and lick the hand that feeds you; May your chains set lightly upon you, and may posterity forget that ye were our countrymen.”
- SAMUEL ADAMS
Not sure its hit the bottom yet. Depends if we have a double dip or not. Also, with the politicians and the fed manipulating things not sure how things will end up. My guess is that sooner or later it will go lower. But they are doing everything they can to prop it up currently. My guess is we have not hit the bottom because the economy and jobs are not coming back fast enough. You need a stable job long enough to have good enough credit to get a loan. Many people have been devastated by the depression and it will take a while for them to get back on the housing market. We need a more stable job market and growth for years for the housing market to really rebound is my guess. If the economy continues to improve the housing market should too.
Last edited by rockerrockstar; 03-26-2012 at 01:55 AM.
Good point.
I was involved in real estate, mostly as a large production builder. Those days are over. There is room for residential real estate to fall. Particularly in states like California, Texas and Florida which I believe to be 10 to 25% overvalued as of today. The poster is correct the commercial real estate market went over the cliff this Winter and will be sliding down all summer and beyond.
This is neither good or bad. But an opportunity for those who are awake imho.
P.S. The residential market may get a dead cat bounce plus the next few months is tax return time and housing sales will increase as a result, for a time.
Last edited by airborne373; 03-26-2012 at 07:54 AM.
Life is not a movie & liberty will not be delivered on a bed of feathers.
Actually, higher interest rates would mean lower prices on properties. Think about it -- higher interest rates means people are less likely to buy.
However, I don't believe interest rates will go up significantly until inflation forces them up -- and inflation means rising prices.
So, I do think now is a good time to buy.
“If you're on the wrong road, progress means doing an about-turn and walking back to the right road; in that case, the man who turns back soonest is the most progressive.” -CS Lewis
The use of force to impose morality is itself immoral, and generosity with others' money is still theft.
If our society were a forum, congress would be the illiterate troll that somehow got a hold of the only ban hammer.
the faster the banks steal the houses from folks. The better the banks are screwing the country. People are losing homes they could afford but the banks are feeing folks to the point of walking away or unwilling to help working folks!
<span style="font-family: Verdana"><font color="#111111">http://www.youtube.com/watch?v=LjPZQPHBEU8
Ok Folks Ad Lib the MSM, use that to call them out, example here: http://www.ronpaulforums.com/showthr...Ad-Lib-the-MSM
Higher rates would increase the cost of borrowing which would mean that on the same income you could afford less of a house (or a less expensive one)- that would put downward pressure on prices. If you bought today and got a fixed rate loan you are locked in and in great shape.
One should keep in mind that if there is high inflation and high interest rates, rental rates will probably also be rising. If you buy and lock in, you avoid that risk as well.
Freedom is a state of mind. Nobody can take that from you unless you let them.
I would also add ending the IRS which adds about 20% to the value of a home through the tax code. Basically meaning, you paid too much and your interest being paid is too much - wealth stealing going on by the government. Most people really don't benefit from the write off their mortgage today anyways. Rather, the biggest beneficiaries are those that mainly itemize - 80% of home owner deductions goes to top 20% of income earners.Housing will not hit bottom until the millions of properties that are in or will be going into foreclosure are settled, the FED, banks and GSE's clear their books of the trillions worth of crap loans, and housing prices return to normal levels. In other words, not anytime soon.
Wait till the commercial property defaults start to hit...
Right now the government has done everything possible to prop up home values from keeping the free market bottom from actually being reached.
Be responsible. Take care of yourself. Don't tread on other people. Slow down. Question everything. Start now.
We are all born libertarians then something goes really wrong. Despite this truth, most people are still libertarians yet not know it.
http://www.zerohedge.com/contributed...tracts-rise-14
More evidence - some of the anecdotal comments are also worth reading.
As stated in the OP...I do NOT think US housing has hit it's absolute bottom. But it is getting relatively close. If you play your cards right there are a TON of fantastic opportunities to be had.
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