Housing value crisis

[bj229r]

Originally posted by AKIron
Much as I hate admitting it, Hillary does have the media (except Fox) in her camp and "news" will be rosey if the unimaginable happens and she wins the presidency.

Case in point: CBS main anchor, Katie Couric, FLEW TO NEW HAMPSHIRE to ask Hillary these important questions:

COURIC: I asked her about the new, more aggressive tone of her campaign.
     [Hillary Clinton: "I have absorbed a lot of attacks" and "hardly a day goes by when I'm not attacked."]
     COURIC: It was announced today that Oprah Winfrey will be campaigning with Senator Obama in three key states -- Iowa, New Hampshire and South Carolina. How do you feel about that?
     ["I think it's great..."]
     COURIC: But are you concerned that this will give him a big boost?
     ["No..."]
     COURIC: If it's not you, how disappointed will you be?
     ["Well, it will be me..."]
     COURIC: I know that you're confident it's going to be you, but there is a possibility it won't be. And clearly you have considered that possibility.
     ["No I haven't."]
     COURIC: So you never even consider the possibility?
     ["I don't."]

Can you imagine what her tone would have been with Mitt Romney or Fred Thompson?

[AKIron]

Was listening to Hannity and Colmes a half hour ago and heard Alan say that some poll has Clinton and Obama tied at 29%. This may not be clinched for Clinton as I believed.

[Reschke]

Its things like that and people listening to the so-called brains of the market like Jim Cramer who keep saying that the FED should drop interest rates a full point that are going to keep pushing our money into the toilet. Instead of creating a super weak currency by dropping interest rates I think they should tack on about 2 points in the interest rate to slow things down and create money that is worth a little bit. We are headed towards a huge change in currency valuation now that the Euro was around 1.50 USD today. The housing market is not the cure for our financial woes.

Originally posted by Chairboy
The dropping value of the dollar, the skyrocketing price of real-estate...  things are not super duper right now.  The sub-prime market isn't the problem, it's just the first symptom.  Buckle down, folks, and hang on.

[Shamus]

And Dhabi buys 7.5 billion of Citi-Bank paper at 11%...Citi is paying above junk bond rates...go figure.

shamus

[SteveBailey]

Originally posted by john9001
it's the "investment buyers" (speculators), house flippers, that will get burned,  

I used to flip houses... quit when the interest rates started creeping  up enough to eat into quick profits....
Additionally, the trends were easy to see.  Anyone that got burned was just too silly to stop dancing and found themselves without a chair when the music stopped.

As for the economy, I personally suspect that we are just seeing the tip of the iceberg,,, that we are in for a significant recession.  I'm out of the market, besides some undeveloped land and gold.

[DREDIOCK]

Originally posted by john9001
it's the "investment buyers" (speculators), house flippers, and people that fell for the equity loan thing that will get burned, people that bought a house they could afford just to live in will still have a house to live in even if the price drops.

I'm looking to pick up a nice condo at a discount price.

And will also be the ones still able to sell at a profit because they kept it long term.

[Chairboy]

I'm thinking the problem is going to be bigger than a momentary housing value burp.  My concern is that this is the latest sign of an upcoming big time recession.  If that's the case, then picking up some condos 'for a song' might not be practical in a couple years if all the consumables pricing goes out the window because of the lowered value of the dollar.

[LePaul]

Well I'm confused.

When home values are high, the headlines are "Prices so high, first time homebuyers find it difficult to buy homes"

So then Congress insists that banks grant loans to borrowers it know can't afford the mortgage payments.

Now we have this "mortgage crisis" because...surprise!  Those folks CANT afford a home after all.  So the banks take a huge hit dealing with defaults and foreclosures.

Yet..now that the home prices are low, "Prices so low, most elderly are concerned about the lowering values of their homes for retirement".

So you can't seem to win this sort of news story.  If its high value, its bad.  If its low value, its bad.

[Nilsen]

People in general borrow too much money for everything including homes.

You should only borrow half the purchase money or less, and be able to handle tripple the interest you signed up for when you bought. If you cant handle that then get a lesser home.

[bongaroo]

mother bought her small 2 bed 1 bath home in the mountains of NC about 8 years ago for around 70,000.  It was recently valued at over 160,000!!!!

At this rate I'll never be able to move back to where I grew up!!  what a jip.

[john9001]

LePaul is right, the news is always bad.

high dollar=US will lose exports,jobs.
low dollar= US is heading for recession. job losses.

high house prices=runaway housing prices. unaffordable housing.
low house prices=housing market collapsing, foreclosures rampant.

[lazs2]

I don't much care.. I am on prop 13 so my taxes stay stable..  My house is almost paid off so if it is worth $700,000 I will have to pay almost that for the place I move too.

If it is worth $300,000 then the place I move to will be worth about that too.  

lazs

[LePaul]

Originally posted by john9001
LePaul is right, the news is always bad.

Well there's something i dont see everyday  

[airspro]

Have to say I am with Lazs on this one .

My home is where I live and plan on living till I die or can't take care of myself anymore .

It's not a "investment" to me it's HOME . We in Michigan have something like Prop13 here also . If I don't sell then I am caped at the old rate plus some . Good for long term home owners .

===
Not seen any neg returns in our Mutual Funds yet , was high in June and got even higher just a few weeks ago . Yes it's went down again , how far will it go , who knows .

I got 8 years yet just till retirement , then how long yet to live ? Donno but figure a few more good years . Better to stay in then market time . Market timers have to be "right" twice , very hard to do .

Ever hear of this ? Someone picks up a bunch of grapes , he gets it 7" high or so , then "shakes" the bunch and then gets it 10" high and so on .

Might be we are seeing some shakeing going on .

One last thing to give some thought on , if your hearing it's bad time to be in stocks etc from the media , more than likely the BIG boys are buying what your selling , so to speak . They sell into strength and buy into weakness .
Got to have alot of buyers to sell out on the top as they have LOTS to sell ( then it won't drive the price down much )

Same  with their buying ( got to have alot of bad news to offset their buying or it will drive up the price )

Most always better to buy when they are crying about how bad it is on radio or TV .

[lazs2]

yep.. if you get a 20 or thirty year loan you stay 20 or 30 years or.. you keep trading up until you retire and then you sell the place for a bunch of money and move to where you would like to live and buy a home free and clear.

You can move to the places that are not desirable because there is no work because... you ain't gonna work in any case.   you are gonna play.

Ain't America wonderful?  to think.. an old ex drug addict criminal can do these things here.... brings a tear to your eye eh?

lazs