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(CNN)   Well, it's Tuesday, so it must be time for another one of CNN's "could the housing recovery be just around the corner?" articles. Stay tuned Wednesday for its followup on how the housing recovery is nowhere in sight   (money.cnn.com ) divider line
    More: Asinine, CNN, direct effect, High Frequency Economics  
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1127 clicks; posted to Main » on 07 Aug 2012 at 9:35 AM (4 years ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2012-08-07 09:36:30 AM  
After years of depressed activity, home prices and new construction have started to pick up in recent months as foreclosures have slowed,

That's because banks realized they were shooting themselves in the foot by keeping up the normal foreclosure process, so they slowed things down to a crawl to keep the market from being flooded. If the 3.5 million homes currently in the foreclosure process or with mortgages more than 90 days delinquent were suddenly added to existing home inventory (currently 2.39 million units), there would be a big drop in housing prices and the banks would face huge loses. Plus, a bunch of homeowners who are already underwater might decide to walk away if their home value dipped another say 15%. It's a careful balancing act.
 
2012-08-07 09:36:50 AM  
DRILL BABY DRILL!

Wait - is that right?
 
2012-08-07 09:37:41 AM  
Housing is just waiting for the Obamacare initiative to kick in. Being inadequately insured has an impact on their health.
 
2012-08-07 09:41:20 AM  
Well they didn't say which corner it is around.
 
2012-08-07 09:41:32 AM  
 
2012-08-07 09:44:14 AM  
We're putting on an addition right now (as in I can hear the nail guns popping) all of the trades we've hired and are currently interviewing say that things have picked up quite a bit. Most of them are still not so busy as to be throwing out crazy bids (see 2006 - 2009) but they are not available on a moments notice either.

Anecdotal evidence is anecdotal but there ya go.

/Ohio
 
gja
2012-08-07 09:44:27 AM  
Fark CNN and other sites with these damned pop-overs. Fark them so hard.
 
2012-08-07 09:46:49 AM  
Now why would the news run an article like that?
img338.imageshack.us
 
2012-08-07 09:47:59 AM  
I'll bet a can guess what the parasitic con artists at the National Association of Realtors is going to say for the 15th time in the last 4 years...
 
2012-08-07 09:49:33 AM  
Could the hookers and blow recovery be right around the corner? Lets hope so.
 
2012-08-07 09:54:48 AM  
Home prices are still too high. Let 'em drop, I say.
 
2012-08-07 09:56:20 AM  
Prices are still too high and proprty taxes are not reflecting the new home value. With the job market still shaky, no one wants to buy a home they're immediately upside-down on and can't sell. Especially new construction homes. Who wants to but a slightly lived-in home when the one next door still has the new home smell to it?
 
2012-08-07 09:58:13 AM  

dbrunker: Now why would the news run an article like that?
[img338.imageshack.us image 375x290]


I dunno. What does it mean when Fox reports it?
 
2012-08-07 09:58:29 AM  
Cleveland here ... housing is recovering quite nicely.

Our custom home construction business is booming. Added 10 more staff (40% increase in workforce) in the last year, and we broke 20 year sales records in 2010, 2011, and 2012 is set to be the largest year we've ever had by a 20% increase in volume over last year ...

Cleveland-area housing market showing signs of recovery
 
2012-08-07 10:02:28 AM  
Although I have to say that housing has picked up in our area recently. We're looking at possibly selling our house and finding one with two bathrooms, and the realtors we've been talking to say that things are picking up. We might actually be able to get out of our house without losing money, which would be great at this stage of the game.
 
2012-08-07 10:04:20 AM  

dbrunker: Now why would the news run an article like that?
[img338.imageshack.us image 375x290]


hey, look - your little cartoon is easily countered by actual facts!
 
2012-08-07 10:04:20 AM  
Could the housing market recover? Yes. To the levels of the 1980s? Not for a long ass time.

There was a huge housing boom in the 1980s. And it wasn't just houses, it was houses, luxury cars, luxury items like back yard swimming pools and fancy watches. And these are numbers that we aren't going to see in these areas for a long time. The reason why is the baby boomers. In the 1980s you had a huge demographic like none before who reached a stage in their lives where they could afford those things. Now, they are facing retirement and death, so the sales of houses and luxury items have dropped off. Now those who want to make money off of the baby boomers are going from real estate to financial planning and presold funeral services.

Home ownership is the way to go. But, you need to go about it smartly. First, if the person you're getting your mortgage from is saying that the best way to go is an ARM, get up and walk away. ARMs are the worst way to go and are a big reason why the housing market crashed several years ago (people with subprime credit got an ARM, and when it adjusted up, it went up higher than the home owner could afford). Fixed rate mortgages are the way to go. Also, don't do a 30 year mortgage, go for a 15 year. If you can't afford it, look for a smaller house. If banks are too stuck on the idea of ARMs, then fark them.

My wife and I have a different plan. We're putting money away into a long terms savings fund through a financial advisor, getting a 10 to 14% rate of return on our investments (suck it banks, 401k, IRAs, etc...) so that in a few years instead of getting a mortgage we can just pull out of our investment and buy a house in full.
 
2012-08-07 10:05:27 AM  

seadoo2006: Cleveland here ... housing is recovering quite nicely.

Our custom home construction business is booming. Added 10 more staff (40% increase in workforce) in the last year, and we broke 20 year sales records in 2010, 2011, and 2012 is set to be the largest year we've ever had by a 20% increase in volume over last year ...

Cleveland-area housing market showing signs of recovery


Im in Dayton.

...I pay less than 400 dollars a month for my mortgage, and I own a 1500 sq. ft. house in a nice part of town. My friends with apartments pay twice that much for half the space.

Its mind-boggling how awesome it is.
 
2012-08-07 10:06:01 AM  
call me kookie but how about not building houses that cost $350K and up? here in Action Park country house construction has been dead for many years outside of pricey condos and rich folks homes.

young people still want to get married, buy a home and do their thing. if our government wanted to create jobs for Americans they could make money available for the construction of affordable housing. the mortgage payments would be rolling in in no time and the whole thing could become self-sufficient.
for every roofer, dry waller and painter you would see busy there would be a slew of invisible people building doors, windows and what-not in factories across America. making money they can put back into the economy. like i said: call me kookie.
 
2012-08-07 10:12:36 AM  
Also, it needs to be said more times than people can ... being underwater on a home mortgage is not a bad thing. It only becomes a bad thing when you think of a home as a short term investment and not a long-term investment. Buy a home and figure to stay there for at least 15-20 years, any less, and YOU BECOME THE PROBLEM.
 
Ehh
2012-08-07 10:18:05 AM  
Could a wage recovery be around the corner? The national association of workers reports that Boss Scrooge may finally be clicking open the Vice Grip and letting a few pennies fall! Here's Betty with more.
 
2012-08-07 10:19:28 AM  

Great Janitor: Could the housing market recover? Yes. To the levels of the 1980s? Not for a long ass time.

There was a huge housing boom in the 1980s. And it wasn't just houses, it was houses, luxury cars, luxury items like back yard swimming pools and fancy watches. And these are numbers that we aren't going to see in these areas for a long time. The reason why is the baby boomers. In the 1980s you had a huge demographic like none before who reached a stage in their lives where they could afford those things. Now, they are facing retirement and death, so the sales of houses and luxury items have dropped off. Now those who want to make money off of the baby boomers are going from real estate to financial planning and presold funeral services.

Home ownership is the way to go. But, you need to go about it smartly. First, if the person you're getting your mortgage from is saying that the best way to go is an ARM, get up and walk away. ARMs are the worst way to go and are a big reason why the housing market crashed several years ago (people with subprime credit got an ARM, and when it adjusted up, it went up higher than the home owner could afford). Fixed rate mortgages are the way to go. Also, don't do a 30 year mortgage, go for a 15 year. If you can't afford it, look for a smaller house. If banks are too stuck on the idea of ARMs, then fark them.

My wife and I have a different plan. We're putting money away into a long terms savings fund through a financial advisor, getting a 10 to 14% rate of return on our investments (suck it banks, 401k, IRAs, etc...) so that in a few years instead of getting a mortgage we can just pull out of our investment and buy a house in full.


Sounds reasonable, but double-check your finance guy, make sure he's not pulling a Madoff on you.
 
2012-08-07 10:26:34 AM  

Sybarite: That's because banks realized they were shooting themselves in the foot by keeping up the normal foreclosure process, so they slowed things down to a crawl to keep the market from being flooded. If the 3.5 million homes currently in the foreclosure process or with mortgages more than 90 days delinquent were suddenly added to existing home inventory (currently 2.39 million units), there would be a big drop in housing prices and the banks would face huge loses. Plus, a bunch of homeowners who are already underwater might decide to walk away if their home value dipped another say 15%. It's a careful balancing act.


Doing that also allows them to pay the "extend and pretend" game. If they have a mortgage outstanding that has a balance of $400,000 but the house is only worth $250,000, not foreclosing allows them to continue to carry that loan on the books as a $400,000 asset rather than eating the $150,000 loss that foreclosing and selling would entail.

museamused: I'll bet a can guess what the parasitic con artists at the National Association of Realtors is going to say for the 15th time in the last 4 years...


"There's never been a better time to buy a home!"

KrispyKritter: if our government wanted to create jobs for Americans they could make money available for the construction of affordable housing.


The #1 thing they could do would cost next to nothing (at least not directly) and that would be to pre-empt "snob zoning" and streamline the regulatory process for building new housing. In most high-cost areas of the country, the zoning-and-permitting thicket is so onerous that you need to be a developer with very deep pockets to navigate it. If you manage to do that, you're going to want to make it pay--which means you're going to construct the most expensive houses you can. I'm at work so I'm too busy/lazy to dig up the research right now but there was a study done maybe five years ago about how much of the housing cost in places like California and the Northeast is due to scarcity of buildable land and how much is due to the regulatory process. They figured out it's pretty much all due to the regulatory process. Living in Massachusetts as I do, I know that there is no shortage of people who are willing to spend every spare waking moment in church basements drinking bad coffee to ensure that no new housing gets built anywhere, ever.
 
2012-08-07 10:27:40 AM  

dbrunker: Now why would the news run an article like that?
[img338.imageshack.us image 375x290]


Pretty amazing the amount of flat out campaigning the major news outlets are doing for Obama. Time Magazine online saying the rise in unemployment is a good sign? WTF?
 
2012-08-07 10:31:44 AM  
Permabears and permabulls only get it right 50% of the time.
 
2012-08-07 10:34:56 AM  

Great Janitor:

First, if the person you're getting your mortgage from is saying that the best way to go is an ARM, get up and walk away. ARMs are the worst way to go and are a big reason why the housing market crashed several years ago (people with subprime credit got an ARM, and when it adjusted up, it went up higher than the home owner could afford). Fixed rate mortgages are the way to go. Also, don't do a 30 year mortgage, go for a 15 year. If you can't afford it, look for a smaller house. If banks are too stuck on the idea of ARMs, then fark them.


I've got to say, that's really simplistic advice. An ARM is perfectly fine when you understand how it works and how it fits your particular situation. With rates likely rising over the next ~10 years (because they're way too low now) it wouldn't be a great decision now, but there's nothing inherently wrong with the product if you know how to use it.
 
2012-08-07 10:38:43 AM  

Great Janitor: Could the housing market recover? Yes. To the levels of the 1980s? Not for a long ass time.

There was a huge housing boom in the 1980s. And it wasn't just houses, it was houses, luxury cars, luxury items like back yard swimming pools and fancy watches. And these are numbers that we aren't going to see in these areas for a long time. The reason why is the baby boomers. In the 1980s you had a huge demographic like none before who reached a stage in their lives where they could afford those things. Now, they are facing retirement and death, so the sales of houses and luxury items have dropped off. Now those who want to make money off of the baby boomers are going from real estate to financial planning and presold funeral services.

Home ownership is the way to go. But, you need to go about it smartly. First, if the person you're getting your mortgage from is saying that the best way to go is an ARM, get up and walk away. ARMs are the worst way to go and are a big reason why the housing market crashed several years ago (people with subprime credit got an ARM, and when it adjusted up, it went up higher than the home owner could afford). Fixed rate mortgages are the way to go. Also, don't do a 30 year mortgage, go for a 15 year. If you can't afford it, look for a smaller house. If banks are too stuck on the idea of ARMs, then fark them.

My wife and I have a different plan. We're putting money away into a long terms savings fund through a financial advisor, getting a 10 to 14% rate of return on our investments (suck it banks, 401k, IRAs, etc...) so that in a few years instead of getting a mortgage we can just pull out of our investment and buy a house in full.


So your entire plan is not buy a house now, but home ownership is the way to go? Why? What's wrong with continuing how you are living now? You've figured out society's biggest scam!

A house is not an investment. You've demonstrated that yourself by investing elsewhere at (you claim) 10%. And that's liquid. A house is just a house. No matter how much it "appreciates", all the other houses go up as well!

You don't make money with a house since you have to live somewhere. A house is just a house. It's a liability, and expense and it limits your lifestyle and disposable income.
 
2012-08-07 10:40:38 AM  
Housing has bottomed. There is little doubt to that. The problem is that the bottom was so far down, a slow recovery doesn't really feel like one at all. Same goes for jobs.
 
2012-08-07 10:45:55 AM  
Anecdote time.

I sold my house in DC back in february, it was only on the market for 6 days and I made a profit over when I bought in 08. It took us 3 months to close on a house in Louisville because of the lack of homes that fit our parameters, I got twice the size for 80% of what I paid for the original house and I only took a 2% paycut to move here. Since buying the house, I'm still skimming the house listings and I'm still not seeing houses that I'd want last long on the market.

/House younger than 20 years
//no HOA
///no crime, central location, SUCK IT!
 
2012-08-07 10:55:44 AM  
Three words: "Mark to market."
 
2012-08-07 10:58:21 AM  

Sybarite: That's because banks realized they were shooting themselves in the foot by keeping up the normal foreclosure process, so they slowed things down to a crawl to keep the market from being flooded. If the 3.5 million homes currently in the foreclosure process or with mortgages more than 90 days delinquent were suddenly added to existing home inventory (currently 2.39 million units), there would be a big drop in housing prices and the banks would face huge loses. Plus, a bunch of homeowners who are already underwater might decide to walk away if their home value dipped another say 15%. It's a careful balancing act.


Yep. As someone who still buys the occasional foreclosure, the banks have definitely changed tactics. Now, instead of dumping big inventories every quarter & having a fire sale, they're letting them trickle out a few every week.

It seems to be working; houses are still going fast & mostly to investors, but many have multiple bids and most reach asking price.

While I wouldn't mind the chance to scoop up a few more deals yet, anything that helps stabilizes prices is a good thing all around.
 
2012-08-07 11:05:40 AM  
My house will probably never worth what it was before the crash. I don't care because I bought it to live in, not as an investment.
 
2012-08-07 11:06:56 AM  

TheRameres: DRILL BABY DRILL!

Wait - is that right?


No, in this case "We need more government so this doesn't happen again!" applies.
 
2012-08-07 11:07:27 AM  
The other issue is that the prices of houses rose way to fast during the late Clinton to mid Bush years. This value house had where to high due to the sub prime mortgage bubble. Basically there was allot of money to throw around on houses. Now with the rescission, and erosion of the middle class in this country. House prices simply will not go back up at anything less than a snail's pace. Very bad news for a generation of people who where told that their house is the best investment one can make.

there are a few bubbles of hope in some areas, but in most of those cases it has more to do with land value. Selling in high value areas to cash out, and move to an area with low land cost to buy a subjectively better house. New houses are being built, but their sale rate is nowhere near spectacular. But some good news on the new house market is that builders are factoring in a much smaller margin when setting value, so it is a good time to buy a new house.
 
2012-08-07 11:24:49 AM  
In areas that were not hit as hard, basically anywhere that has more than 1.5 seasons a year, prices have stabilized and started to rise. The sunbelt is never going to recover and it shouldn't. This is how low the water level is on Lake Mead

www.fredmiranda.com

It is 100 feet lower than it was in 1998. Another 100 feet and the Hoover Dam can not produce electricity. A full recovery in Nevada and Arizona will dry up that last 100 feet.
 
2012-08-07 11:28:47 AM  
Sybarite: "That's because banks realized they were shooting themselves in the foot by keeping up the normal foreclosure process, so they slowed things down to a crawl to keep the market from being flooded"

Yes - they're manipulating supply.
No - they never kept up the normal foreclosure process.

They were playing games with their inventory and the foreclosure process from the first wave of real estate shocks.
 
2012-08-07 11:39:02 AM  
If things don't change soon I might be forced to pick up a third multifamily. Nooooooooo!
 
2012-08-07 11:55:12 AM  

Girion47: Anecdote time.

I sold my house in DC back in february, it was only on the market for 6 days and I made a profit over when I bought in 08. It took us 3 months to close on a house in Louisville because of the lack of homes that fit our parameters, I got twice the size for 80% of what I paid for the original house and I only took a 2% paycut to move here. Since buying the house, I'm still skimming the house listings and I'm still not seeing houses that I'd want last long on the market.

/House younger than 20 years
//no HOA
///no crime, central location, SUCK IT!


Heh. Louisville.

/I'm glad you're happy, though
//there is some pretty country outside of it
 
2012-08-07 12:24:33 PM  

seadoo2006: Also, it needs to be said more times than people can ... being underwater on a home mortgage is not a bad thing. It only becomes a bad thing when you think of a home as a short term investment and not a long-term investment. Buy a home and figure to stay there for at least 15-20 years, any less, and YOU BECOME THE PROBLEM.


Good luck finding a job that will keep you for 15-20 years.
 
2012-08-07 12:27:42 PM  
Definitely recovering here - low interest rates and inventory that is down over 40% compared to last year.... We pulled the trigger on a new home before things start really recovering next year and prices skyrocket. Time on market is down to an average of 14 days. I'm sure it will vary widely from market to market. Minneapolis has always had a solid housing market and our unemployment rate is lower that the US average.
 
2012-08-07 12:36:36 PM  

Asako: seadoo2006: Also, it needs to be said more times than people can ... being underwater on a home mortgage is not a bad thing. It only becomes a bad thing when you think of a home as a short term investment and not a long-term investment. Buy a home and figure to stay there for at least 15-20 years, any less, and YOU BECOME THE PROBLEM.

Good luck finding a job that will keep you for 15-20 years.


Then you need to find a better job. Either that or buy a home that you can feasibly afford if you do lose your job. I rent because I would rather not tie myself up for the next 20 years just yet. But, when I do finally settle into a place I want to live permanently, 15-20 years isn't that big of a deal. My parents moved once when I was 10 years old ... they lived in their first home for 16 years and they are now in their 16th year in the home they bought when I was 10.

People are just eejits these days and well, I guess there's your answer. FWIW, this mortgage:
- $150k borrowed
- 10% ($15k down)
- 4.5% fixed 30-year
- $3k/year in taxes
- $1500/year in insurance
- PMI: 0.52%

Is only $1150/month. Seriously, if you can't find $1150/month working just about anywhere, you're doing it wrong. People in the 1990s had this vision of McMansion grandeur ... set your sights slightly lower and you'll figure out that job security isn't really necessary to home ownership, intelligence, however, is absolutely a requirement.
 
2012-08-07 12:41:53 PM  

soj4life: In areas that were not hit as hard, basically anywhere that has more than 1.5 seasons a year, prices have stabilized and started to rise. The sunbelt is never going to recover and it shouldn't. This is how low the water level is on Lake Mead

[www.fredmiranda.com image 850x566]

It is 100 feet lower than it was in 1998. Another 100 feet and the Hoover Dam can not produce electricity. A full recovery in Nevada and Arizona will dry up that last 100 feet.



yet if you don't keep your lawn green, the HOA or your neighbors will come down hard on your ass.
 
2012-08-07 01:20:11 PM  

Sybarite: After years of depressed activity, home prices and new construction have started to pick up in recent months as foreclosures have slowed,

That's because banks realized they were shooting themselves in the foot by keeping up the normal foreclosure process, so they slowed things down to a crawl to keep the market from being flooded. If the 3.5 million homes currently in the foreclosure process or with mortgages more than 90 days delinquent were suddenly added to existing home inventory (currently 2.39 million units), there would be a big drop in housing prices and the banks would face huge loses. Plus, a bunch of homeowners who are already underwater might decide to walk away if their home value dipped another say 15%. It's a careful balancing act.



And that whole act inflates house prices. The recovery would be if the housing prices dropped like crazy, adjusting to meet what the market can actually handle; but the banks would then lose a ton of money.

That loss of course is the cost of giving mortgages out to people who can't afford them. It's the cost of tempting people with tax rebates that cost them money. It's the cost of selling a home as an "investment" so people think they'll get rich by selling it in 3 years. Now the banks get to pay the cost of having some jackass in a house who can't pay his mortgage, and not being able to repossess, not being able to sell the house. They may have to re-negotiate, give longer terms or just forgive part of the debt--this avoids the expense of transferring a loan, and some of the risk.

Homeowners get to pay for their indiscretions in terms of a poor credit score, an expensive mortgage they can't escape without more credit damage, and higher interest rates to go along with that low FICA.

Renters like me get to spend half as much money every month, lest I get married and move to a bigger place as the family goes. Don't pay utilities on a house that's too big for me, don't pay taxes on the unit though (here, everything above the 2nd floor is tax free--a 3 story building is taxed at 2/3, so my rent pays 1/9 of the building's taxes), maintenance is amortized and rolled into rent, no closing costs, and for a decade and a half I'm ahead of buyers--not considering sudden run-ups or crashes in the housing market. It's never a bad time to move into another apartment, and if it is you can move out when rent comes down 6 months later.
 
2012-08-07 01:37:43 PM  

Great Janitor:
Home ownership is the way to go. But, you need to go about it smartly. First, if the person you're getting your mortgage from is saying that the best way to go is an ARM, get up and walk away. ARMs are the worst way to go and are a big reason why the housing market crashed several years ago (people with subprime credit got an ARM, and when it adjusted up, it went up higher than the home owner could afford). Fixed rate mortgages are the way to go. Also, don't do a 30 year mortgage, go for a 15 year. If you can't afford it, look for a smaller house. If banks are too stuck on the idea of ARMs, then fark them.
.



ARMs are fantastic. When I was looking at mortgages--mind you I didn't buy a house, because all options were supremely more expensive than renting (when the market crashed, buying became slightly actually BETTER than renting)--I looked at my options and I liked ARMs.

With a 5/5 ARM, I could get a rate of 2.25%. That's insane. Consider a house with a $250,000 purchase on the loan, all done and said. At the time I was looking at 30 year mortgages at 4.25%, with 1.25% property tax and 0.5% PMI that comes down to a solid $1542/mo.

With a 5/5 ARM, I would take the risk of interest rate changes. The 30 year mortgages are a gamble on risk: the bank decides interest rates are 1%, but in 30 years they may shoot up and the bank may come under, so they charge you 5%. You pay extra. With an ARM, they charge you 2%, making 1% off you. In this case, 2.25% was the rate I'd pay. That's $1286, a savings of $256/mo.

Over 5 years, that $256 becomes $15360. Over 30 years at 4.25% interest, that's about $118-$136 THOUSAND dollars (yeah, a lot of interest). At any time in an ARM, you can initiate an interest rate adjustment: 3 or 4 years in, you can say, "Rates are low, and are going to go up. Time to adjust." You can then re-finance or have your rate adjusted, giving you a fresh 5 year start. If you think interest rates are going to go up a LOT, you may want to refinance to a fixed rate.

It works out well if you can afford the mortgage in the first place. You take the ARM, you move the saved money into your payment, you avoid some interest. Also, if you pay double payments (say you have $2000 available per month, and you pay that much in instead of $1200), you're heading off some interest; if the interest rate you get is high, the initial months are the most significant and you have diminishing returns. That's why a down payment is so significant: it knocks off a LOT of interest. Similarly, taking an ARM rate and manipulating the interest rates allows you to attack your loan with more financial resources up front.

Buying a house is like anything else. Either you accept it as a loss and you throw as much money at it as you can willy-nilly; or you have a financial strategy and you try to minimize the costs. If you want to minimize the costs, don't play your house as an investment: you're interested in purchase price and interest rates, not later sale price and profits. Interest rates fluctuate; if you think they'll be stable, definitely get an ARM. If you have an abundance of money, get an ARM and make excess payments. When you fear interest rate increases, get a fixed mortgage. When interest rates drop, get an ARM. Never get an */1 ARM (even a 10/1) because you'll never be able to hold an interest rate for very long without a refinance after it falls into its adjustment period (1 year adjustment at bank discretion? No thanks).
 
2012-08-07 01:48:41 PM  

soj4life: In areas that were not hit as hard, basically anywhere that has more than 1.5 seasons a year, prices have stabilized and started to rise. The sunbelt is never going to recover and it shouldn't. This is how low the water level is on Lake Mead

[www.fredmiranda.com image 850x566]

It is 100 feet lower than it was in 1998. Another 100 feet and the Hoover Dam can not produce electricity. A full recovery in Nevada and Arizona will dry up that last 100 feet.


Is it wrong that the first thing I thought of when I saw that picture was Fallout: New Vegas?
 
2012-08-07 01:50:29 PM  

Krieghund: Girion47: Anecdote time.

I sold my house in DC back in february, it was only on the market for 6 days and I made a profit over when I bought in 08. It took us 3 months to close on a house in Louisville because of the lack of homes that fit our parameters, I got twice the size for 80% of what I paid for the original house and I only took a 2% paycut to move here. Since buying the house, I'm still skimming the house listings and I'm still not seeing houses that I'd want last long on the market.

/House younger than 20 years
//no HOA
///no crime, central location, SUCK IT!

Heh. Louisville.

/I'm glad you're happy, though
//there is some pretty country outside of it


I grew up here, I like that I can push people around in traffic(the little there is) thanks to my DC beltway training, the cheap housing, the cheap AND awesome restaurants, cheap bars, easy to get around, and lots of people to party with.

Plus living in the same city as my in-laws results in a TON of free meals
 
2012-08-07 01:50:31 PM  

bluefoxicy: ...That loss of course is the cost of giving mortgages out to people who can't afford them. It's the cost of tempting people with tax rebates that cost them money. It's the cost of selling a home as an "investment" so people think they'll get rich by selling it in 3 years...


Nothing to do with tranches and toxic assets and fake AAA ratings? Seems to me that if the banks hadn't lied about how good the loans were, the rest of the problems would have been minor.
 
2012-08-07 02:14:01 PM  
In my little neck of the woods (Redondo Beach, CA) I've definitely noticed an uptick in home sales. A lot of homes that have had 'for sale' signs out front for quite a while are now sold or they're in escrow. This area wasn't hit nearly as hard as some other parts of the country, but still...it's nice to see.
 
2012-08-07 02:15:22 PM  
We shouldn't base our economy on an industry that is a necessity to the populace. Don't treat your house like a savings bond, treat it like a place you live.
 
2012-08-07 02:22:04 PM  

seadoo2006: Asako: seadoo2006: Also, it needs to be said more times than people can ... being underwater on a home mortgage is not a bad thing. It only becomes a bad thing when you think of a home as a short term investment and not a long-term investment. Buy a home and figure to stay there for at least 15-20 years, any less, and YOU BECOME THE PROBLEM.

Good luck finding a job that will keep you for 15-20 years.

Then you need to find a better job. Either that or buy a home that you can feasibly afford if you do lose your job. I rent because I would rather not tie myself up for the next 20 years just yet. But, when I do finally settle into a place I want to live permanently, 15-20 years isn't that big of a deal. My parents moved once when I was 10 years old ... they lived in their first home for 16 years and they are now in their 16th year in the home they bought when I was 10.

People are just eejits these days and well, I guess there's your answer. FWIW, this mortgage:
- $150k borrowed
- 10% ($15k down)
- 4.5% fixed 30-year
- $3k/year in taxes
- $1500/year in insurance
- PMI: 0.52%

Is only $1150/month. Seriously, if you can't find $1150/month working just about anywhere, you're doing it wrong. People in the 1990s had this vision of McMansion grandeur ... set your sights slightly lower and you'll figure out that job security isn't really necessary to home ownership, intelligence, however, is absolutely a requirement.


165k? That is a double wide here in VT.
 
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