Legit bottom forming in housing

[Seraphim]

http://www.zerohedge.com/contributed...chases-rentals

If you are at a point in your life where you want a home, can afford it and you are not dependent on the asset appreciating in price - lock in a fixed rate and go for it.

Especially now that it is clear that the printing presses are perpetually on - this is a good entry point for a lot of areas in the USA.

[Brian4Liberty]

Deja vu?

http://www.ronpaulforums.com/showthr...om-is-emerging

[Seraphim]

That first post was indicating that the trend was EMERGING. Im now stating that the trend is solid.

Figured there would be people in the forums who want to buy a house but aren't sure. RESIDENTIAL housing has some stability to it (as much as it can have under these circumstances).

[kathy88]

That first post was indicating that the trend was EMERGING. Im now stating that the trend is solid.

Figured there would be people in the forums who want to buy a house but aren't sure. RESIDENTIAL housing has some stability to it (as much as it can have under these circumstances).

Are you a realtor or a loan officer?

[brandon]

These interest rates are propping up values big time still. I'm probably going to buy a home soon anyway, but I realize over the time I own it the value will probably drop like crazy when interest rates start to come up. It's a trade off though, at least I'll be getting money for dirt cheap.

[ctiger2]

I don't think so. A $200K house today will prob sell for ~$50K in 5yrs. I'll wait.

[Brian4Liberty]

That first post was indicating that the trend was EMERGING. Im now stating that the trend is solid.

Figured there would be people in the forums who want to buy a house but aren't sure. RESIDENTIAL housing has some stability to it (as much as it can have under these circumstances).

Yep, the bottom was last year. It's going up now.

[PaulConventionWV]

I don't think so. A $200K house today will prob sell for ~$50K in 5yrs. I'll wait.

Part of me hopes this is the case, since I am looking to enter the market in the near future.

[PaulConventionWV]

I don't see any evidence that the bottom is here yet. Anyone care to state the case for that?

[ctiger2]

I don't see any evidence that the bottom is here yet. Anyone care to state the case for that?

Do you really think housing prices are going to go up as the US finally realizes it's bankruptcy and the monetary system falls apart? I didn't think so. The reality is NO ONE knows what's really going to happen. Everyone's just guessing. Even the best of them are.

[Seraphim]

No, I'm Canadian, live in Canada and entirely impartial to your housing market.

Are you a realtor or a loan officer?

[Seraphim]

Housing is still over-valued relative to other real assets.

Here's the key - do you think the value of the USD will hold - and therefore the value of the debt?

That's why the key is to fix the interest rate and make sure you can AFFORD the whole venture.

Housing, relative to the future value of the debt, is now affordable in many places. A lot of areas have reverted back to prices that are much more inline with incomes.

If you have a job in which the skill you provide is needed and you're good at what you do - put as much down as you can, lock the rate and hedge your long term savings with gold/silver. Success.

:-)

I don't see any evidence that the bottom is here yet. Anyone care to state the case for that?

[Seraphim]

50K in a new currency, maybe.

If you've saved in gold/silver and do not need/want a house - it's not a bad idea to wait.

I'm screaming at the top of my lungs screaming there's no better time then now.

All I'm saying is that real opportunity and well thought out housing plans are now viable.

I don't think so. A $200K house today will prob sell for ~$50K in 5yrs. I'll wait.

[cbc58]

No, I'm Canadian, live in Canada

I'd worry about your market up there... talk about a bubble.

IMHO - prices are overpriced here still - being supported by the FED and banks not moving on foreclosures. A true bottom won't happen until all the artificial supports are taken away. Fiscal cliff and mounting debt are not going to help matters as jobs are cut and people burn through their savings.

[Seraphim]

Ok the impartial part is a lie.

I'd love to one day buy a house in New Hampshire.

:-)

No, I'm Canadian, live in Canada and entirely impartial to your housing market.

[Seraphim]

Our housing market is overpriced by a fair bit. Some places a lot, some barely.

Our mortgage market, however, is NO WHERE near as bad as the USA.

What ever correction we will have in housing, will be nothing like the USA.

For example....NINJA loans don't even exist. The worst of the subprime borrowers in the US that really collapsed the market, are simply not in effect here.

Next, our loans that ARE subprime are insured to the hilt, the banks are far more hedged than in the US.

The market most in trouble in Canada is the CONDO market in the big cities.

Believe me, I know the housing market in Canada is not valued correctly, but it's no where near as bad as the US.

I'd worry about your market up there... talk about a bubble.

IMHO - prices are overpriced here still - being supported by the FED and banks not moving on foreclosures. A true bottom won't happen until all the artificial supports are taken away. Fiscal cliff and mounting debt are not going to help matters as jobs are cut and people burn through their savings.

[kathy88]

No, I'm Canadian, live in Canada and entirely impartial to your housing market.

I was just messing with you

[Seraphim]

^^ by the way I think a 10-20% correction is in order (location dependent, of course) and for some condo's as much as 35%. Some of these new condos are built like $#@! and bid way too high.

[cbc58]

Our mortgage market, however, is NO WHERE near as bad as the USA.

Correct me if I am wrong... but doesn't the Bank of Canada insure or underwrite all mortgage loans?

[PaulConventionWV]

Do you really think housing prices are going to go up as the US finally realizes it's bankruptcy and the monetary system falls apart? I didn't think so. The reality is NO ONE knows what's really going to happen. Everyone's just guessing. Even the best of them are.

I know. I'm trying to get someone to base this in fact. After all, Ron Paul predicted the collapse. Those people should be able to use the same indicators to tell me WHY they think the bottom has been reached. I don't think they can. And yes, you are right that the nation's bankruptcy is only going to spiral further and drag the housing market down. Forgive me for being inconsiderate, but it seems like it's almost a positive side effect to the crash as far as I'm concerned. Even as the dollar becomes worth less, the housing prices fall. That helps new homebuyers like me tremendously.

[Seraphim]

Yes. We're a fascist, centrally controlled "market" just like the US.

It just so happens that lending standards are and have been much tighter than the US (but still loose, compared to what the free market would allow for).

Correct me if I am wrong... but doesn't the Bank of Canada insure or underwrite all mortgage loans?

[Seraphim]

Housing prices will rise vs the dollar and drop vs gold/silver.

5 year time period.

2 cents.

I know. I'm trying to get someone to base this in fact. After all, Ron Paul predicted the collapse. Those people should be able to use the same indicators to tell me WHY they think the bottom has been reached. I don't think they can. And yes, you are right that the nation's bankruptcy is only going to spiral further and drag the housing market down. Forgive me for being inconsiderate, but it seems like it's almost a positive side effect to the crash as far as I'm concerned. Even as the dollar becomes worth less, the housing prices fall. That helps new homebuyers like me tremendously.

[anaconda]

I don't think real estate has hit bottom. BUT if very high inflation occurs it won't matter much, because the nominal prices will take off like wildfire. And for those who can lock into low fixed rate mortgages may find that they are paying off their homes with increasingly worthless money.

[Seraphim]

Exactly my point.

I don't think real estate has hit bottom. BUT if very high inflation occurs it won't matter much, because the nominal prices will take off like wildfire. And for those who can lock into low fixed rate mortgages may find that they are paying off their homes with increasingly worthless money.

[TheTexan]

When the collapse happens, people aren't going to have money to buy homes. Everyone is in debt currently. The rental market is going to explode imo.

Additionally, as long as you get a reasonable deal, it really doesn't matter how much you pay for the house as long as you take out a 30 year fixed rate mortgage. Inflation is going to hit like a bitch, cutting that debt by huge amounts.

Just IMO

[Qdog]

Im happy that I bought when I did back at the end of 2010. I had enough of a down payment, and made enough extra payments that I only owe 60k on my house, which I got as a foreclosure for 100k.

Here in Dallas, I was paying, $850/month for a 1 bedroom, 900 sq foot apartment, which was in a decent place with no cockroaches and not too much crime. I had $#@!ty credit, and was only 25, but I got a 4% interest rate on 2006 foreclosure selling for 100k, with 4 bedrooms, 2 bath, and 2000 sq feet. my payment on a 15 year loan was only $900/month including homeowners insurance, and taxes.

Its sort of a no-brainer. piss $850 down the drain for a 1 bedroom apt, or $900 for a practically brand new, 4 bedroom house, and build equity. Of course there are some hidden costs of home ownership like maintenance, etc. But seriously, if anybody is renting you should consider buying a house if at all feasible.

[Seraphim]

Can't get anywhere near that much house in Canada for that price.

Congratz. 60k left on a home is nothing to be honest.

If you save up 100 ounces of silver and keep working, you'll have that paid off in under 5 years.

Im happy that I bought when I did back at the end of 2010. I had enough of a down payment, and made enough extra payments that I only owe 60k on my house, which I got as a foreclosure for 100k.

Here in Dallas, I was paying, $850/month for a 1 bedroom, 900 sq foot apartment, which was in a decent place with no cockroaches and not too much crime. I had $#@!ty credit, and was only 25, but I got a 4% interest rate on 2006 foreclosure selling for 100k, with 4 bedrooms, 2 bath, and 2000 sq feet. my payment on a 15 year loan was only $900/month including homeowners insurance, and taxes.

Its sort of a no-brainer. piss $850 down the drain for a 1 bedroom apt, or $900 for a practically brand new, 4 bedroom house, and build equity. Of course there are some hidden costs of home ownership like maintenance, etc. But seriously, if anybody is renting you should consider buying a house if at all feasible.

[brandon]

In my area prices are up a few percent from last year. Every area is different of course. Some places have bottomed, others are still sky high. Even in one region, homes at different price points may be closer or further from the bottom.

Where I live I think middle class homes have to fall more. I'm far from an expert and I don't know all the data, but just from looking at median income to median home price, there's no way most young people can afford the entry level homes. You need to be on the high end of the 25-35 yr old income bracket to afford a decent starter home.

[newbitech]

http://www.zerohedge.com/contributed...chases-rentals

If you are at a point in your life where you want a home, can afford it and you are not dependent on the asset appreciating in price - lock in a fixed rate and go for it.

Especially now that it is clear that the printing presses are perpetually on - this is a good entry point for a lot of areas in the USA.

Temporary and fleeting. Everyone is looking for optimism in real estate. It's nice to see some stability in the market and there is definitely some deals to be had for those willing to put in the effort of finding those deals.

If I am johnny homeowner tho, I am waiting it out. Housing prices are hitting their historical inflation adjusted rates in some areas, but you also need wages to catch up and you certainly need credit to free up. In other words, you need qualified buyers.

Right now, that is investors with cash looking for a place to call home. I expect prices to over correct to the down side. Looking for one more panic leg down.

I am thinking it's gonna come right after the election. At the very least, I wouldn't buy until maybe next spring, but only buy the run down fixer uppers without financing.

[Brian4Liberty]

I don't see any evidence that the bottom is here yet. Anyone care to state the case for that?

Houses are selling above asking price with multiple offers in California and Arizona.