Your housing market overvalued?

[NewYorkBuck]

Sorry to resurrect an old thread, but I thought this was relevant news -

From cnn -
Home prices plummet in steepest drop in 16 years

An index of 10 major U.S. cities shows a 4.5 percent decline in July from the year-ago period - the biggest since 1991.

September 25 2007: 9:34 AM EDT


NEW YORK (AP) -- The decline in U.S. home prices accelerated nationwide in July, posting the steepest drop in 16 years, according to the S&P/Case-Shiller home price index released Tuesday. Home prices have fallen by more every month since the beginning of the year.

An index of 10 U.S. cities fell 4.5 percent in July from a year ago. That was the biggest drop since July 1991.
"The further deceleration in prices is still apparent across the majority of regions," MacroMarkets LLC Chief Economist Robert Shiller said in a statement.

 

[martinss01]

Sorry to resurrect an old thread, but I thought this was relevant news -

From cnn -
Home prices plummet in steepest drop in 16 years

An index of 10 major U.S. cities shows a 4.5 percent decline in July from the year-ago period - the biggest since 1991.

September 25 2007: 9:34 AM EDT


NEW YORK (AP) -- The decline in U.S. home prices accelerated nationwide in July, posting the steepest drop in 16 years, according to the S&P/Case-Shiller home price index released Tuesday. Home prices have fallen by more every month since the beginning of the year.

An index of 10 U.S. cities fell 4.5 percent in July from a year ago. That was the biggest drop since July 1991.
"The further deceleration in prices is still apparent across the majority of regions," MacroMarkets LLC Chief Economist Robert Shiller said in a statement.

kinda hard to call this unexpected news.

 

[SparkyOSU]

Its all part of my devious plan, to vote another idiot into the White House so our economy continues to plounder. Then interest rates and cash flow will stall and housing prices will reach $0.01 per square foot and then BAM!!!!
I buy 27-36 Houses/Apts/Condos and become rich

Mwah ha ha ha, Moo wah haha!!!!

 

[Piney]

Sorry to resurrect an old thread, but I thought this was relevant news -

Don't be sorry... I love reading about this stuff as you always bring up solid points to think about. I have a friend that works for a bank in their mortgage collections departments and she has been telling me for months that the housing market is going to collapse.

I just hope that in 2-3 years when I upgrade from my current home to a bigger house that things will be moving up again. But I am not holding my breathe.

 

[Thump]

But I am not holding my breathe.

No, but you may want to hold your "breath."

 

[PlanetFrnd]

The Bay Area and SJ valey is imploding toward San Francisco... If we can just get a bottom around, oh, Feb of 2009... that would be great. Thx.

 

[Thump]

Home starts at 14 year low, CPI up on energy - Yahoo! News

 

[NJ-Buckeye]

Housing in my NJ town is relatively unaffected... pricing is virtually the same outrageous highs... a neighboring house that I was amazed listed for $1.1M went for $1.07M... but my house in Toledo is now listed at $16K BELOW what I paid for it three years ago.. and still hasn't sold...

 

[NewYorkBuck]

ARM resets peaking: Borrowers unprepared - Oct. 17, 2007

Subprime schmubprime. The subprime crash is effecting us because it is scaring investors and drying up liquidity, but I believe it is only the death knell. The above phenomenon is going to effect prime borrowers as well - you know the people who spend money to keep the economy afloat. Of course, there are going to be calls for a govt bailout (a disaster on every level) and cries that people were "mislead, fooled, and duped", which of course are code words for "Too fucking stupid/lazy to read the contract on the single largest purchase of my life."

Get used to the words "modification" and "recast" because they are going to be thrown around like frisbees over the next 12 months. Despite the best efforts of every asleep-at-the-switch politician who ignored all of this during the boom times (like they always do), this market is going to continue to adjust back to mean, and we still have quite a ways to go. There simply isnt enough money to throw at it to stop that from happening, not that we really should want to anyway.

On another note - NJ - could you please get the greedy Wall Streeters from buying in your area so I can finally go down there and purchase an oversized house from a distressed and frantic seller? :)

 

[fourteenandoh]

[quote='BusNative;94028;1]The Bay Area and SJ valey is imploding toward San Francisco... If we can just get a bottom around, oh, Feb of 2009... that would be great. Thx.[/quote]

Maybe by Feb 2010 now?

ARM resets peaking: Borrowers unprepared - Oct. 17, 2007

Subprime schmubprime. The subprime crash is effecting us because it is scaring investors and drying up liquidity, but I believe it is only the death knell. The above phenomenon is going to effect prime borrowers as well - you know the people who spend money to keep the economy afloat. Of course, there are going to be calls for a govt bailout (a disaster on every level) and cries that people were "mislead, fooled, and duped", which of course are code words for "Too [censored]ing stupid/lazy to read the contract on the single largest purchase of my life."

Get used to the words "modification" and "recast" because they are going to be thrown around like frisbees over the next 12 months. Despite the best efforts of every asleep-at-the-switch politician who ignored all of this during the boom times (like they always do), this market is going to continue to adjust back to mean, and we still have quite a ways to go. There simply isnt enough money to throw at it to stop that from happening, not that we really should want to anyway.

On another note - NJ - could you please get the greedy Wall Streeters from buying in your area so I can finally go down there and purchase an oversized house from a distressed and frantic seller? :)

supposedly there is a new wave of hybrid resets coming along this year. i'll have to do some digging to find an article or two.

 

[PlanetFrnd]

Maybe by Feb 2010 now?

uh, yeah. bonuses paid in options aren't good for buying houses.

 

[fourteenandoh]

there are some real gems around here in old threads.

 

[OSUsushichic]

I wasn't sure where to put this, but some friends that have been looking to buy a condo have run into some absurdity.

Basically, because our county (and every other county in Mass.) is considered "distressed", if you want to buy a condo in a building that has less than 4 units, you MUST have 10% down. If there's more than 4 units, then you can have as little as 3.5%.

So, while my friends were approved for $325K for a place in Cambridge that had 6 condos, they can't get $280K for a place in Jamaica Plain (where I live) because there's only 3 units in the building. However, if they get a mortgage in only in one person's name, then they are approved for whatever they want with just 3% down. (Despite the fact that they're showing only half of their income and could never afford a place on only one of their salaries.) After everything is set, they'd then need to hire a lawyer to make sure that it's clear the house is owned by both of them.

This sounds incredibly ridiculous! This doesn't seem to be the answer to stopping people from getting a mortgage they cannot afford.

 

[Piney]

Funny this thread got revived.

I just hope that in 2-3 years when I upgrade from my current home to a bigger house that things will be moving up again.

Cuz Sunday morning our realtor put the For Sale sign up on my house. We actually got 4 calls already to our realtor. It was just funny that a house 2 doors from us that has been on the market since the fall finally had an open house. Great timing as it seemed like a few people walked on over to our house to check it out (as it looks 5 times better than our neighbor's house)

But to more of the point of this thread. (I have good credit with a score over 700, but my wife's score is an insane 800) A financing guy we saw last weekend kept telling us that we could afford two mortgage payments and we can always 'borrow' money from our family for that downpayment and when we sell our house we can pay them back.

And then told us we could afford $1,000 more a month than we felt comfortable actually paying per month even with two mortgages.

I just died laughing. Another one of those "No wonder people are losing houses left and right" stories. When you have finaning guys selling this stuff to poor saps looking to buy homes that don't know what they are doing.

 

[MililaniBuckeye]

But to more of the point of this thread. (I have good credit with a score over 700, but my wife's score is an insane 800) A financing guy we saw last weekend kept telling us that we could afford two mortgage payments and we can always 'borrow' money from our family for that downpayment and when we sell our house we can pay them back.

And then told us we could afford $1,000 more a month than we felt comfortable actually paying per month even with two mortgages.

Report his ass...