Housing Crash #2 Under Way?

[Acanthus]

I guess if we were being fully honest, it would just be the same housing crash that was hidden by QE, QE2, and home buyer tax credits.

Home Prices: Double Dip Confirmed.

http://finance.yahoo.com/news/Home-...7.html?x=0&sec=topStories&pos=3&asset=&ccode=

This is a huge deal, because with home prices falling ~5% (>10% in some areas) under a period of heavy inflation, they are in fact falling even faster in a hidden manner.

I really hope Bernake doesn't roll out QE3 because it'll be devastating to the bottom 80% (even more rapid inflation).

 

[IndyColtsFan]

Ugh, not good news especially when we still have a property we can't move and are looking at some other financing options.

 

[LegendKiller]

I guess if we were being fully honest, it would just be the same housing crash that was hidden by QE, QE2, and home buyer tax credits.

Home Prices: Double Dip Confirmed.

http://finance.yahoo.com/news/Home-...7.html?x=0&sec=topStories&pos=3&asset=&ccode=

This is a huge deal, because with home prices falling ~5% (>10% in some areas) under a period of heavy inflation, they are in fact falling even faster in a hidden manner.

I really hope Bernake doesn't roll out QE3 because it'll be devastating to the bottom 80% (even more rapid inflation).

The dip has been going on for months and is actually declining in speed. Only a .156% decline for the Composite-20 and .07% for the Composite on a seasonally adjusted basis. That compares to a .17% and .19% dip the prior month.

 

[spidey07]

Buy, buy, buy, buy!

But yeah, until the foreclosures are gone prices are going to keep dropping making it an incredible buying opportunity. We're getting ready to purchase and our RE agent is saying some 70% of their business is foreclosures or short sales.

Indy, if you want to sell that property price it below what comparables have actually sold for and you'll sell it. supply/demand. We had ours on the market last year for 8 months and not a single offer. Listed it again in march for 5k under sold comps and had offer in 3 days. Buyers are bargain hunting which is exactly what I'm doing. Hope to find our dream home for 250-300k discount.

 

[manimal]

Ugh, not good news especially when we still have a property we can't move and are looking at some other financing options.

add a couple of free HDTVs you can buy cheap into your listing before you lower the price. I included the projector and audio in the last home I had for sale and it went quick!

 

[IndyColtsFan]

Indy, if you want to sell that property price it below what comparables have actually sold for and you'll sell it. supply/demand. We had ours on the market last year for 8 months and not a single offer. Listed it again in march for 5k under sold comps and had offer in 3 days. Buyers are bargain hunting which is exactly what I'm doing. Hope to find our dream home for 250-300k discount.

It is my wife's old condo and the problem is that condos in that area just aren't moving -- period. We tried to rent it for a few months and just about everyone who applied had serious credit issues, including one lady who had something like a 430 credit rating. Seriously?!?!

 

[ElFenix]

It is my wife's old condo and the problem is that condos in that area just aren't moving -- period. We tried to rent it for a few months and just about everyone who applied had serious credit issues, including one lady who had something like a 430 credit rating. Seriously?!?!

don't you get 400 points just for putting your name on it?

 

[blackangst1]

Buy, buy, buy, buy!

YEP! I put an offer on my first home last week, 50k under comps in the same neighborhood. And with interest rates as low as they are, its a fantastic time to buy!

 

[yllus]

don't you get 400 points just for putting your name on it?

Maybe she spelled her name wrong?

 

[IndyColtsFan]

don't you get 400 points just for putting your name on it?

I thought it was 300 points, but still, how can you have a rating that low and expect us to accept "I always pay my rent on time"?

 

[Jaepheth]

What? You mean building cheap houses in bulk using the lowest bidder for the last several decades resulting in a huge boost in supply, but reducing the average build quality of a home yet still having the gall to increase prices year after year and then giving credit to people who anyone with half a brain knew couldn't pay back their lenders came back to bite us!? Say it ain't so!

Seriously, a lot of new houses have more problems that need fixing than a house built 50 years ago. They're not to code, and only get put on the market due to corruption or over-worked inspectors.

 

[dullard]

The dip has been going on for months and is actually declining in speed. Only a .156% decline for the Composite-20 and .07% for the Composite on a seasonally adjusted basis. That compares to a .17% and .19% dip the prior month.

Existing home prices from NAR.

The existing home prices are much more broad based than the S&P/Case-Shiller index, so I like the existing home price data more. Prices were stable (almost exactly 100% of the value they were the year before) for the entire year of 2010. But, then in 2011, they fell off the mark again. They have been about 5% lower than they were in 2010 and 2009. From this data, I don't see any decline in speed yet.

It is my wife's old condo and the problem is that condos in that area just aren't moving -- period. We tried to rent it for a few months and just about everyone who applied had serious credit issues, including one lady who had something like a 430 credit rating. Seriously?!?!

I'll buy it for $1. It'll move at that price, I guarantee it. Like Spidey07 said, all homes move if you price it right.

 

[abaez]

I wish this was the case for L.A. I want to buy a place and there's nothing decent under like 350k.

 

[manimal]

how big was the sample size in that original report?
at work and cant get yahoo...

 

[JockoJohnson]

don't you get 400 points just for putting your name on it?

I think that is SATs

 

[desy]

I want to buy property in Texas along the coast as a winter property coming from Canada, just like a two bedroom condo . . .
Anybody know how to make that happen?

 

[Zebo]

:whiste:

Rural properties/acreage/farmland is way up though.

 

[ayabe]

What? You mean building cheap houses in bulk using the lowest bidder for the last several decades resulting in a huge boost in supply, but reducing the average build quality of a home yet still having the gall to increase prices year after year and then giving credit to people who anyone with half a brain knew couldn't pay back their lenders came back to bite us!? Say it ain't so!

Seriously, a lot of new houses have more problems that need fixing than a house built 50 years ago. They're not to code, and only get put on the market due to corruption or over-worked inspectors.

You mean you don't want a shitty house built with Chinese drywall that will poison you and your kids?

Get off your high horse already!

 

[IndyColtsFan]

I'll buy it for $1. It'll move at that price, I guarantee it. Like Spidey07 said, all homes move if you price it right.

It won't move for a reasonable price. Taking a small loss is one thing, but taking a huge loss is another. We might as well try to find a renter because we could break even or even make money.

 

[blackangst1]

What? You mean building cheap houses in bulk using the lowest bidder for the last several decades resulting in a huge boost in supply, but reducing the average build quality of a home yet still having the gall to increase prices year after year and then giving credit to people who anyone with half a brain knew couldn't pay back their lenders came back to bite us!? Say it ain't so!

Seriously, a lot of new houses have more problems that need fixing than a house built 50 years ago. They're not to code, and only get put on the market due to corruption or over-worked inspectors.

Overgeneralize much?

 

[Jaskalas]

In a government run economy you either keep the printing presses running or you face the inevitable default you've been trying to avoid.

Getting this shit over and done with back in 2009 would have helped the economy greater than a long and protracted ordeal under which people eventually snap. We would have had two years to work on our recovery since then, instead of the fear of anticipating more to come. This is the government destroying the economy while it screams valiantly that they are trying to save it.

How many more years of this do you want? Pull the plug NOW!

 

[Jaepheth]

Overgeneralize much?

Yeah I know; I'm just royally pissed that I had to spend my weekend pulling fiberglass insulation out of attic eave vents where there shouldn't be any insulation. Also, found a gas main was running totally unsupported for ~30 feet.

 

[ProfJohn]

The really strange thing is that we may end up with a housing shortage when this is all said and done.

The problem isn't so much that there are too many houses on the market, but that there isn't enough buyers and money chasing after those houses. On top of that too few new houses are being built right now, again lack of demand.

So when the economy does recover and we enter a real recovery we could be in a situation where there aren't enough houses for those who want to buy them.

 

[manimal]

The really strange thing is that we may end up with a housing shortage when this is all said and done.

The problem isn't so much that there are too many houses on the market, but that there isn't enough buyers and money chasing after those houses. On top of that too few new houses are being built right now, again lack of demand.

So when the economy does recover and we enter a real recovery we could be in a situation where there aren't enough houses for those who want to buy them.

Most analysts believe this will happen in about 4-5 years.


This is why I am investing in property in florida with a 5-10 year position.

 

[Zebo]

The really strange thing is that we may end up with a housing shortage when this is all said and done.

The problem isn't so much that there are too many houses on the market, but that there isn't enough buyers and money chasing after those houses. On top of that too few new houses are being built right now, again lack of demand.

So when the economy does recover and we enter a real recovery we could be in a situation where there aren't enough houses for those who want to buy them.

It'll be a long time but you're correct about not many buyers. We need to figure out how to get money/jobs in people hands. All signs I've seen point to the opposite just ask Wisconsin teachers or Auto Workers you wanted to disenfranchise.