Housing Crash #2 Under Way?

[Trianon]

Why do we not look at the other side of this?
Aren't low house prices great for Americans that want to buy?
People are living in hard times right now, I think we're better off that people can more easily afford places to live.

who are these people? Unemployed, with trashed credit, 40+ millions in SNAP people? I am all for affordability, the problem is, eligible buyer pool is very small these days.

 

[wirednuts]

when i called my new mortgage company, pnc bank (through aquisition of natcity), i asked about help since i was 2 months behind.

i was told they dont offer help for people 2 months behind. just tell us when you can pay and well let you pay then. he said most people they help are 5 to 8 payments behind at least! i was shocked by that.. he pretty much told my record is one of the best hes seen (never late except last two months over 10 years. im in the process of moving).

whats sad is i fixed this house up, the last part on credit cards. 10K now in debt and i cant sell the house, they say it wouldnt even sell for $20K right now and i owe 30K on it.

so i have to rent it for $700 a month, which will cover my credit card minimums plus my mortgage... so ill be ok but son of a bitch i dont want to wait another 10 years to get rid of this place.

 

[spidey07]

Contract offer submitted. Listed for 850, offered 620. That's less than 100/sqft, ASKING price, with a pool/awesome patio. Let's see if they bite. Never been a better time to buy. 4.5%.

 

[LegendKiller]

Contract offer submitted. Listed for 850, offered 620. That's less than 100/sqft, ASKING price, with a pool/awesome patio. Let's see if they bite. Never been a better time to buy. 4.5%.

Glad the taxpayers could fund your house.

 

[alkemyst]

Glad the taxpayers could fund your house.

bitter much?

 

[LegendKiller]

bitter much?

lol, says the assclown who thinks drinking 12 beers and 3 shots wouldn't affect a driver, don't care much. You were the one who bragged about being some sort of billion dollar baller too, you're a joke.

The guy is a fucking hypocrite, a spade is a spade. He brags about his wife's bloated public salary while bitching about "big government".

 

[alkemyst]

Yeah, I'm so jealous...lol.

lol, says the assclown who thinks drinking 12 beers and 3 shots wouldn't affect a driver, don't care much. You were the one who bragged about being some sort of billion dollar baller too, you're a joke.

The guy is a fucking hypocrite, a spade is a spade. He brags about his wife's bloated public salary while bitching about "big government".

No, I said that one can't say it had an affect.

I think you have a problem with basic comprehension here due to your bitterness of the world influencing it. In all your posts it's pretty apparent.

Never said I was a billion dollar baller. I do make much more than an average income though.

 

[LegendKiller]

No, I said that one can't say it had an affect.

I think you have a problem with basic comprehension here due to your bitterness of the world influencing it. In all your posts it's pretty apparent.

Never said I was a billion dollar baller. I do make much more than an average income though.

No, my comprehension is quite good. You're just a fucking moron. A reasonable person can't stay it can't have an effect. I don't give a shit if you're 400lb and have had 12 beers and 3 shots, the cumulative effects are too massive. But you're a doof, so who cares.

No bitterness, just suffer no fools like you and spidey.

I believe you were the one bragging about hanging around millionaires and such, as if I should be amazed by that, apologies if that wasn't you.

Edit: Did some searching, it wasn't you, I apologize.

 

[spidey07]

lol, says the assclown who thinks drinking 12 beers and 3 shots wouldn't affect a driver, don't care much. You were the one who bragged about being some sort of billion dollar baller too, you're a joke.

The guy is a fucking hypocrite, a spade is a spade. He brags about his wife's bloated public salary while bitching about "big government".

Look fucktard, I am the bread winner in this family and your jealousy is showing. I don't brag at all of my wife's salary at all save for a few posts.

You jealous fucking liberal NY fuck.

And yeah, that house is in KY, it's fucking incredible. Resort is what it is. Now go use your "big city thinking" to live like me. You stupid, jealous idiot. This is no McMansion, it's a REAL mansion that your jealous ass can't comprehend as you live in your 1700 sqft APARTMENT.

 

[alkemyst]

No, my comprehension is quite good. You're just a fucking moron. A reasonable person can't stay it can't have an effect. I don't give a shit if you're 400lb and have had 12 beers and 3 shots, the cumulative effects are too massive. But you're a doof, so who cares.

No bitterness, just suffer no fools like you and spidey.

I believe you were the one bragging about hanging around millionaires and such, as if I should be amazed by that, apologies if that wasn't you.

Edit: Did some searching, it wasn't you, I apologize.

There is a difference and talking about one's life and another thinking that is bragging.

You are indeed a bitter man.

 

[LegendKiller]

Look fucktard, I am the bread winner in this family and your jealousy is showing. I don't brag at all of my wife's salary at all save for a few posts.

You jealous fucking liberal NY fuck.

And yeah, that house is in KY, it's fucking incredible. Resort is what it is. Now go use your "big city thinking" to live like me. You stupid, jealous idiot. This is no McMansion, it's a REAL mansion that your jealous ass can't comprehend as you live in your 2000 sqft APARTEMENT.

Yeah, I'm so jealous...lol. I sure wish my wife had a bloated salary courtsey of taxpayers while i could bitch about people leeching off of taxpayers. If you've got to brag about it, you don't have it (class or money). I don't live in NY dumbass.

You think I am impressed by your 600k or 850k home? Really?

 

[spidey07]

Yeah, I'm so jealous...lol. I sure wish my wife had a bloated salary courtsey of taxpayers while i could bitch about people leeching off of taxpayers. If you've got to brag about it, you don't have it (class or money). I don't live in NY dumbass.

You think I am impressed by your 600k or 850k home? Really?

I am not here to impress you. Just to show you how stupid your life choices are and how wrong your line of thinking is - you dirty, dirty, fucking liberal. You keep saying I'm bragging, I'm not. I'm advising others how to take advantage of this tremendous opportunity to get real estate at a bargain price at terrific rates.

Are you not taking advantage?

 

[LegendKiller]

I am not here to impress you. Just to show you how stupid your life choices are and how wrong your line of thinking is - you dirty, dirty, fucking liberal. You keep saying I'm bragging, I'm not. I'm advising others how to take advantage of this tremendous opportunity to get real estate at a bargain price at terrific rates.

Are you not taking advantage?

Sure you are, otherwise you wouldn't brag about this shit continuously. I'm quite comfortable with my life choices, I avoided the .bombs and housing quite nicely and managed to keep my job in a tough environment. It's laughable you call me a "liberal" though, when you're the one sucking off the government tit, you fucking communist. Nothing more liberal than stealing other people's money and then bragging about it.

Fuck no, housing is falling, in case you didn't get the news. I'd say it's going to go down some more, maybe 5-10%, then stay flat on a real basis for several more years. I'd rather be in assets that at least earn inflation+.

I'm not jealous of you, I laugh at your ass for being so fucking blind to what you actually are. A liberal.

 

[Jhhnn]

Already addressed them being paid off via forced principal pay down. And rent inflation is not relevant because rent is obviously not a good investment, either. However, if your mortgage is $1500/month and your rent is $1000/month, say, and you invest that $500/month somewhere else after 30 years you could buy that same house anyway. I live in a house, it beats an apartment, but I'm under no illusions that it's an investment, it's not, it's a very expensive roof over my head.And a person could if they wanted buy a house with money otherwise saved or they could continue to rent with money they have theoretically saved by not living a live of home ownership. Again this is not for me. I have a house because I want a house, not because it's a good investment.No argument here, trickledown has been a bit screw job. It's a miracle that people still believe in it.

We've just been through a period with a lot of anomalies, one of which is that house payments were much, much higher than rent on comparable properties, due to the housing bubble. That's changing- it has to. Prices are not yet in line with incomes in the traditional pre-bubble sense, at all.

You missed my point wrt the price of payments vs rent entirely. Once a fixed rate mortgage is in place, payments never go up. If rent & wages go up at the same rate, then the rent/investment ratio never changes for renters. Payment/investment ratio can change radically for the better for homeowners over the period of decades, however. The payment remains a fixed dollar amount, so a higher % of income can be used for investment as time goes on. Both scenarios depend on the relative vicissitudes of life, with the homeowner scenario having fewer variables & requiring less financial savvy than the rent/investment scenario. Obviously, anybody can invest/save more if they hold housing costs low.

Your paragraph #3 is a bit incorrect. When you say they need more upfront...not really true. Many lenders still have 0 down options...USDA and VA are 0 down...FHA is 3.5% down...Home Path is 3% down...unless you meant something else?

and interest rates are the lowest theyve ever been.

I offered that young families need more upfront because they set their sights higher, realizing that a modest "starter home" may end up as a trap because of current downward pressures on prices. People who bought 5-7 years ago are in no position to move up today, other things like employment remaining equal. First time buyers realize that they may well have zero to negative equity in 5-7 years, locking them in to whatever house they buy today.

FHA & VA loans can't possibly clear away the current backlog, because they're picky about the condition of the house. Owners who are not paying, waiting for the axe to fall aren't doing upkeep, at all, and that currently can go on for years. Lots of what's coming onto the market qualifies as fixer uppers which require conventional financing.

The whole thing about low interest rates is deceptive, imho, because most people buy on the basis of monthly payments, which is also how most houses are sold. Rates are super low today for one reason- to prop up the price. Rates won't stay that way forever, meaning it'll be easy for today's buyers to get stuck in a "can't sell" situation in the mid term if prices remain stagnant or decline further, because they have no equity and potential buyers would have to pay more to buy. The pool of potential buyers will shrink. It all boils down to the idea that if you pay too much, you're stuck with the place for many years, regardless of interest rates. That's how we got to where we are today. Plan accordingly.

 

[Trianon]

good article with video, Chicago housing still bound to go down

http://www.businessinsider.com/janet-tavakoli-housing-prices-2011-6

 

[spidey07]

good article with video, Chicago housing still bound to go down

http://www.businessinsider.com/janet-tavakoli-housing-prices-2011-6

I'm even seeing it here in Louisville, KY. Fabulous homes for less than 100/sqft (130-140 was the norm for these kinds or properties) and they aren't selling. Buy, buy, buy. Supply/demand, live it learn it, love it.

 

[irishScott]

Hate to be a vulture, but for me this means house prices will be nice and low when I graduate.

Granted it's still bad, but at least I've got a silver lining.

 

[spidey07]

Hate to be a vulture, but for me this means house prices will be nice and low when I graduate.

Granted it's still bad, but at least I've got a silver lining.

If you can get a job. Didn't know you were that young. Best of luck to you.

I hope you realize home prices aren't just "because". It's because people are losing their jobs and means to pay for their home.

Good luck. It's prime buying time if you have the means to do so, but it's only doing down.

 

[Jhhnn]

Hate to be a vulture, but for me this means house prices will be nice and low when I graduate.

Granted it's still bad, but at least I've got a silver lining.

Well, if you can gain employment, which is increasingly difficult for fresh grads...

 

[irishScott]

If you can get a job. Didn't know you were that young. Best of luck to you.

I hope you realize home prices aren't just "because". It's because people are losing their jobs and means to pay for their home.

Good luck. It's prime buying time if you have the means to do so, but it's only doing down.

I'm 23. Thanks!

Oh I know. Hence the reason I said "still bad".

I'm a Computer Engineer major, I talk to my professors, getting into undergrad research, and I've already had a paid 2 year software engineering summer internship with a major defense contractor. Still got 1-1.5 years to line up a job, should have near zero debt by graduation (family's pretty well off financially, I'm lucky). I'll be alright unless shit really hits the fan.

 

[Slew Foot]

you live in your 1700 sqft APARTMENT.

Dude a 1700 sqft apartment in Manhattan is fucking penthouse living.

 

[alkemyst]

florida is under an upswing now...

unfortunately our new governor now authorized insurance increases.

Some are seeing 50% bumps.

I just changed to a new carrier last year. Paid $150 for my roof inspection...the guy was there all day.

Two weeks ago Citizens ordered a new inspection, guy was there less than an hour.

My rates went up 15%.

 

[spidey07]

I'm 23. Thanks!

Oh I know. Hence the reason I said "still bad".

I'm a Computer Engineer major, I talk to my professors, getting into undergrad research, and I've already had a paid 2 year software engineering summer internship with a major defense contractor. Still got 1-1.5 years to line up a job, should have near zero debt by graduation (family's pretty well off financially, I'm lucky). I'll be alright unless shit really hits the fan.

Sounds like you're solid, but nothing is guaranteed. Keep separating yourself from the competition and you'll be good. You sound motivated, keep it up.

Without insulting you, because of my perception on this forum, you sound a lot like me in my college years.

 

[chucky2]

Dude a 1700 sqft apartment in Manhattan is fucking penthouse living.

No matter where you are, that's a pretty sizable appt...that's like a small house, in appt. form. Just sayin....

 

[irishScott]

Sounds like you're solid, but nothing is guaranteed. Keep separating yourself from the competition and you'll be good. You sound motivated, keep it up.

Without insulting you, because of my perception on this forum, you sound a lot like me in my college years.

Thanks, no insult taken. I'll probably never go your route politically (hell you even take the 2nd amendment further than I do, which is saying something), but reasonable people can agree to disagree and I've got nothing on you personally.