Wow dave, you still don't get it.
Prove to me that a used home costs significantly *LESS* than new homes. Provide hard data, statistics, and long-run projections. Furthermore, I would love to see it broken down by developer and the source of funding.
I doubt you can't even provide median cost of new vs used homes.
The only way that there is a difference is the "new" premium. People like buying new stuff and the latest boom is no difference. Of course people will pay a premium for something nobody else has used. It's the nature of the consumer. It's just that a used home is slightly better than a refurbished computer part or a used car.
Don't be such a dolt.
Lastly, if used prices were significantly cheaper, then wouldn't consumers flock to those prices, raising the prices to an equal level of utility? I am 99% sure you have failed to take any economic or finance class dave, because your logic is so misguided and stupid that not even a podunk college finance/econ graudate could be at your level.
I have personal proof of bank manipulation.
Had a signed contract on a 4 year`old home and the bank took off $20,000.
Same bank sold new developer house 6 houses down which was smaller for $60,000 more.
Vic
Elite Member
- Jun 12, 2001
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Why would banks want to drive down the cost of used homes? They typically have more of a vested interest in the value than the homeowner (think 0% down financing where someone buys a house with less money up front than they'd have to pay to rent an apartment). After all, a homeowner with negative equity is far more likely to default and walk away from the house (because he can't sell if he gets into financial trouble), leaving the bank saddled with the loss (and no legal recourse whatsoever to go after the homeowner for the difference if the mortgage was for purchase or no cash-out refinance -- this isn't like a car loan).
If a real estate bubble the like of which the doomsayers predict actually happens, I guarantee that financial institutions will begin failing in droves. And Dave here tells us that the banks conspired for just that to happen!!
Anyone here who has been looking for proof that Dave is FUD-spreading moron need look no further.
If a real estate bubble the like of which the doomsayers predict actually happens, I guarantee that financial institutions will begin failing in droves. And Dave here tells us that the banks conspired for just that to happen!!
Anyone here who has been looking for proof that Dave is FUD-spreading moron need look no further.
I found his thread about the republican nanny state in democratic chicago the most proof anybody could possibly need
Slew Foot
Lifer
- Sep 22, 2005
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Cashed out my put options today for a $22K profit in less than a wekk For those who were asking, put options are kinda like short selling a stock, except that by using put options, you are able to control a greater number of shares for less $$. It's VERY risky though, and if you have to ask, you probably shouldn't try it yourself.
Sacramento/CA news channels are going crazy with the news today, once the average Joe realizes that housing is a crap investment, youll see the downward momentum pick up pace with astonishing speed.
For those who were asking, put options are kinda like short selling a stock, except that by using put options, you are able to control a greater number of shares for less $$. It's VERY risky though, and if you have to ask, you probably shouldn't try it yourself.Sacramento/CA news channels are going crazy with the news today, once the average Joe realizes that housing is a crap investment, youll see the downward momentum pick up pace with astonishing speed.
You guys are queens, queens of denile, meanwhile thoudands and thousands more everyday are losing their homes:
8-24-2006 For five straight months, Colorado has had the highest home foreclosure rate in the nation.
Federal officials blame Colorado's growing number of FHA foreclosures on broad economic factors such as a housing surplus, stagnant prices, layoffs and excessive home refinancing.
One government source estimates 20,000 illegal immigrants hold FHA-insured loans in metro Denver alone.
From her front steps on West Dakota Avenue, Kathleen Dias can see six homes that were foreclosed. Her Denver neighborhood has been devastated by 26 foreclosure notices on four blocks of her street. Nearly half came to people who bought homes with FHA loans, including three to the couple who recently moved out next door.
The foreclosures, Dias said, have turned a close-knit community of homeowners who watched one another's children grow up into a place where vacant homes attract prostitutes, drug users and gunfire.
"I've never seen it this bad," she said. "Not like this year. Not like this year."
=======================================================
It's all coming home to roost like a collapsing house deck of cards.
Of course it's all Clinton's fault
8-24-2006 For five straight months, Colorado has had the highest home foreclosure rate in the nation.
Federal officials blame Colorado's growing number of FHA foreclosures on broad economic factors such as a housing surplus, stagnant prices, layoffs and excessive home refinancing.
One government source estimates 20,000 illegal immigrants hold FHA-insured loans in metro Denver alone.
From her front steps on West Dakota Avenue, Kathleen Dias can see six homes that were foreclosed. Her Denver neighborhood has been devastated by 26 foreclosure notices on four blocks of her street. Nearly half came to people who bought homes with FHA loans, including three to the couple who recently moved out next door.
The foreclosures, Dias said, have turned a close-knit community of homeowners who watched one another's children grow up into a place where vacant homes attract prostitutes, drug users and gunfire.
"I've never seen it this bad," she said. "Not like this year. Not like this year."
=======================================================
It's all coming home to roost like a collapsing house deck of cards.
Of course it's all Clinton's fault
Vic
Elite Member
- Jun 12, 2001
- 50,422
- 14,337
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That's FHA, Dave. Government-insured mortgages. Those and VA mortgages always have the highest default rates. Usually 3-4 times higher than the so-called predatory lenders, and 10 or more times higher than Fannie/Freddie conforming. In fact, the default rate of government-backed mortgages is so high that for years there's been an industry out of selling off the foreclosures, called "HUD Homes."
- May 21, 2001
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Dave, can you just once realize that some problems in the world are not the fault of a president? Not Bush's fault, not Clinton's fault, no president's fault.
House foreclosures are mostly the fault of the people who took out mortgages that they couldn't afford (this includes affording them during a bad period such as unemployment). To a lesser extent, they are also the fault of the lenders who lend to people who can't afford the mortgages.
Only very, very indirectly could you even link a president to a foreclosure. And even then that link is debatable.
Meh, if it's not the President then it has to be the Republicans. If not them, then most assuredly the Illuminatti.
Dave always has to blame somebody, the naswer *CAN'T* be that people were just stupid, greedy, and foolish. No, there is no such thing as personal responsibility in Dave's world. There is no such thing as free will either.
In fact, we were all forced at gun point to buy an over-inflated house, because the Republican Illuminatti wanted to create a housing bubble.
Ah, you touched on exactly the point.
Your President hero and the rest of the GOP faithful especially on here insist the Economy is booming so how can people be unemployed and can't afford a house?????????
TheSlamma
Diamond Member
- Sep 6, 2005
- 7,625
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That area has zero issues with hookers. I don't know what the DP is writing about.
Timothy Lewis, a 43-year-old craftsman, sits in the living room of his home that he can no longer afford. He bought the now-foreclosed ranch house in Henderson with help from the FHA. "They gave me more money than I ever should have had."
Now who's fault is that?
While I am not onboard with the way that house prices go this is an example of accountability, if it was more money then you ever could have afforded you should have never taken it.
But from the start, he worried they had borrowed beyond their means with the blessing of the federal agency insuring the loan
Duh! this is back to blaming McDonalds for making people fat.. who knew.. Please this info is all over town.
Pity level = ZERO
I do believe the 20,000 II's that have FHA loans here, now THAT is their screwup and they need to accept accountability for that.
- May 21, 2001
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I detest Bush and most of his policies, I'm not a GOP faithful (I'm halfway between democrat and libertarian), and I don't insist the economy is booming. The economy is good on many measures but it is on very shaky ground. The economy can be stabolized and become a great economy at this point, but it is equally likely to collapse due to its poor foundations.
A person should be able to afford their mortgage even if the president himself fires that person. Even then, it is that person's fault for going into foreclosure - not the president's fault. He/she should have had savings, should have gotten a different job, or should have sold the house instead of allowing the foreclosure. Personal responsibility for the win.
"This year she lost a job assembling jackets when her employer moved much of its work to China. She tried to sell her home, could not get what she owed"
Of course, blame the sheeple that their job went to China.
She tried exactly what you said and could not get it done.
That is a failed American Dream from the top, not the bottom.
Shame on all that expect such dismal expectations for America, shame.
- May 21, 2001
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No she didn't. She got a mortgage that she couldn't afford if she lost her job (shame on her). And she got a ~0% down mortgage (shame on both her and the lender).
There is a reason 20% down was a long-time rule of thumb. You can sell the house if need be and still have a lot of play. Heck, even if you must sell in a rush and took a 20% hit, you'd still be ok and not have to foreclose.
Shame on you, Dave, for blaming it on anyone but her and her lender. Here is a quote from your article: "They gave me more money than I ever should have had." Shame on him for taking that much of a mortgage and shame on the lender for lending too much.
Slew Foot
Lifer
- Sep 22, 2005
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Not much direct news about housing out this week, but a lot of economic indicators to come out. I think the Fed is in a tough spot right now. Do they continue to fight inflation and risk putting a bunch of Americans into bankruptcy? Or do they devalue the dollar to save the fools who bought more than they could chew off these last few years? Personally, I dont think that wages will be rising anytime soon so by devaluing the dollar, they end up screwing all of America. If they keep rates on the upward trajectory, theyll probably cause a recession of sorts in the upcoming years, afterwhich, normal economic growth can commence. Either way, some interesting pieces of info to come otu this week.
Text
Home builder in Lincoln CA (near Sacramento), holds a nearly half off sale, $1,000,000 -->>high 500s
Not that anything in Lincoln should cost 7 figures.
Text
Home builder in Lincoln CA (near Sacramento), holds a nearly half off sale, $1,000,000 -->>high 500s
Not that anything in Lincoln should cost 7 figures.
- May 21, 2001
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The feds have made their policy clear. They will gladly place our economy into a recession if that will help fight off inflation. The feds job is not to keep the GDP growing; I don't know why that myth keeps on running.
As for economic indicators:
[*]Housing affordability fell for the 5th straight month. This means people are less able to afford houses.
[*]Consumer confidence is at a 9-month low.
[*]The 2.5% GDP growth number gets its first revision tomorrow. I expect it'll be slightly changed to the upside. But that is just a hunch and I could certainly be wrong.
It is amazing how many times one can paint the picture of govt intervention in an open market failing and people dont get it.
At times I agree and disagree with government intervention in this sector. On one hand, defaults are higher, which isn't always good for the market, but at the same time the interest rate is usually higher, compensating for that fact.
Some may say that it drives prices higher. I somewhat dispute that, as people looking for the homes aided by FHA or VA aren't entering into the market where we have seen the highest over-pricing.
Default rates for HUD homes are usually 2x as high as standard FHA loans, which average ~6% default. This is quite a bit higher than conforming loans, maybe 3x as high.
Now, 6% seems pretty large, on a relative basis to conforming loans. With conforming loans, which are usually larger dollar amounts, this would mean a larger % of obligors are defaulting.
However, overall, 6% means that 94% of obligors on a static pool basis are doing just fine. That means that we are giving loans to a vast majority of people that CAN and DO pay on them in the long-term. What is so wrong with that?
To those who say that we should eliminate tax write-offs of interest. Why? So people are that much less incentivized to purchase houses?
How much *more* does home ownership give society as a whole?
Before you guys start poking sticks at every small theory you see, the current problem isn't driven by FHA, HUD, or VA loans, it isn't driven by tax write-offs (especially since the effect is much less in a low IR environment), it was driven by plain and simple greed compounded by stupidity and ignorance of reality. To blame that upon projects intended to help people out, which works 94% of the time, is stupid.
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