Boy, the WSJ is sure playing catch-up on the bubble bursting. A bit too late fellas... your readers (unlike longtime housingpanic and housingbubble2 readers among other bubble blogs) are gonna get killed. The time to sell was last summer, when you were still pumping real estate.
As many real-estate markets soften, speculators are finding they can't flip their investment properties for a quick gain. That leaves them with a tough decision: Should they hang on and rent or should they bail out, possibly at a loss?
Got caught up in the real-estate fever? Let's start with the painfully obvious: If you have no choice but to sell, then you ought to sell -- and you should probably sell quickly.
To find out if you're in the "no choice" camp, simply run the numbers. And don't kid yourself: If you have a cash-flow problem now, it could get a lot worse.
Indeed, this reluctance to sell at a loss helps explain why a slowdown in home sales typically precedes a price decline. Homeowners have a target selling price -- it might be the price they paid, or the price they could have got at the market peak -- and they initially refuse to accept anything less.
But waiting to "get even, then get out" could be a huge mistake
April 12, 2006
WSJ: When to bail out (even though it's already too late)
Subscribe to:
Post Comments (Atom)
12 comments:
There are many MANY people who will soon have NO choice but to sell at whatever price they can get. As the panic and desperation sets in these fools will be rushing to lower their price before the neighbor. indeed the inverse of the price increases of 2005 will take place.
BATTEN HATCHES AND HANG ON, IT'S GOING TO BE ONE HELL OF A RIDE....
Sell now or face foreclosure tomorrow. That is the choice for flippers. I figure there are alot of idiots out there who will choose the latter. The RE agent told them that home prices NEVER go down and they believed it
I REALLY HOPE that the Hardcore Flippers are Dumb enough to hang on to their "Golden Goose-EGGS" until they GET their PRICE.
Between Energy/Gasoline/Credit cards and the re-set loans rates, they SHOULD get really RIPPED by their monthly Burn Rates by Jan-Feb 2007. Better put off buying those new Hummers UNTIL after the Bankruptcies Ethel!
The developers can't find enough land to build here in North Texas. Houses are sprouting up like grass. They are building all the way from Dallas up north to Oklahoma and east to the Louisiana border. Forests are being cleared, land is being razed, and houses are going up. I have no idea who is going to buy all those houses though. Everyone I know who wanted to buy a new house did so the past few years when interest rates were about 2 points lower.
I work with a few of the fools who live up by the Oklahoma border and make the 2 hour drive to the office. Most of them drive SUV's and are always complaining about gas prices. LMAO
I figure it's costing them $600/mo for commuting.
Yahoo, Dupage Co. IL just topped 10k listings. Was about 6.5k at 1/1/06, and is about 200% above ave. Ziprealty also, lists about 26% of the 10k have had price reductions.
I work with a few of the fools who live up by the Oklahoma border and make the 2 hour drive to the office. Most of them drive SUV's and are always complaining about gas prices. LMAO
I figure it's costing them $600/mo for commuting.
Sounds like a couple morons I used to work with. They lived an hour away from work to buy a cheaper house but spent $800 a month between truck payment (not econobox, full size pickup), gasoline, and insurance not to count the wasted hour in the morning and 90 minutes in the evening.
Doing the math it makes sense to live closer to work, pay a little more for a house, and save a little money but any fool driving a SUV 2 hours a day who is complaining about gas prices will never 'get it'.
The Mexican fascists of La Raza(the Race), MECHa, Aztlan are not here to assimilate. They are here to take over our country. Read this article written on their website. Similar to the Nazis, Leftists and Taliban, they blame all of the world's problems on Jews.
http://www.aztlan.net/hitler_frank.htm
MECHa leaders have already called for ethnic cleansing in the Southwestern US, meaning that all whites, blacks and Asians be forcibly removed. I don't remember the original inhabitants of America to have surnames like Rodriguez, Martinez, Gonzalez etc etc
Enjoy the coming race wars
What percentage of people do you think are leveraged out on home financing??
I mean leveraged out, like they have no equity position.
I haven't seen any figures on that. As an investor myself (who can cash flow even with a crash in the RE market), and a good one, I just don't see the reason to panic.
I hope you folks do frighten plenty of people into getting out of their property for less than market price, I'll be right there waiting... if they are in the right market that makes sense to invest in.
You can never catch the top of any market. The best one can do, realisitically, is within 10% of the top. That is where we are at now (atleast here in N. California). A much better time to sell than six months from now.
WSJ is right to finally get the word out publicly.
Those who were astute, knew it was wrapping up last summer. It gave them a chance to get out at the top. A reward for being "ahead of the pack"!
Now WSJ is warning those who are still in denial that now's the time to MOVE on this if you need to.
That warning will get the next-smartest folks out with at least half a shirt on.
But we all know there will be a ton of people who are still RE believers and will need to actually SEE there local market crashing before they can even possibly begin to come to terms with it.
They'll ignore the WSJ article and be the ones who really get burned.
There are still enough stupid buyers out there so the WSJ article should be able to save a few sellers.
Anonymous said . . .
"The Mexican fascists of La Raza(the Race), MECHa, Aztlan are not here to assimilate. They are here to take over our country. Read this article written on their website. Similar to the Nazis, Leftists and Taliban, they blame all of the world's problems on Jews."
What many Americans don't realize is that Islam is a fast-growing religion among poor, uneducated Mexicans, and the wholesale entry of illegal immigrants nto the United States may at some point pose a serious threat to our national security. Our politicians, of course, couldn't care less.
Islam has infected many, many groups, including many liberal organizations, with its anti-Semetic propaganda, so that the Jews are now blamed for 9/11, economic problems, and everything else. When people encounter these stories, it's most important to consider the sources. If the author of a particular "non-fiction" book or the writer/producer of a particular "factual documentary" is insane, has a history of paranoia and political fanaticism, or stands to make a fortune from his claims, one should move very carefully. Checking the names of the people or organizations sponsoring these 9/11 conspiracy and anti-Jewish Web sites might also be helpful.
It is human nature to blame others for ones problems, but it doesn't solve the problems; it simply creates bigger ones. Mexicans are responsible for their own miserable government, which they refuse to address, and if they seize the southwest, it will simply become as poor and oppressive as the rest of Mexico. Then what? Will they have to move farther north? If they can't manage the country they already have, what makes them think they can manage an even bigger one?
This pro-Islam, anti-Semetic rubbish needs to be brought to the attention of the American Press. Does anybody here know how to do that? I do not.
Anonymous said . . .
"The Mexican fascists of La Raza(the Race), MECHa, Aztlan are not here to assimilate. They are here to take over our country. Read this article written on their website. Similar to the Nazis, Leftists and Taliban, they blame all of the world's problems on Jews."
What many Americans don't realize is that Islam is a fast-growing religion among poor, uneducated Mexicans, and the wholesale entry of illegal immigrants nto the United States may at some point pose a serious threat to our national security. Our politicians, of course, couldn't care less.
Islam has infected many, many groups, including many liberal organizations, with its anti-Semetic propaganda, so that the Jews are now blamed for 9/11, economic problems, and everything else. When people encounter these stories, it's most important to consider the sources. If the author of a particular "non-fiction" book or the writer/producer of a particular "factual documentary" is insane, has a history of paranoia and political fanaticism, or stands to make a fortune from his claims, one should move very carefully. Checking the names of the people or organizations sponsoring these 9/11 conspiracy and anti-Jewish Web sites might also be helpful.
It is human nature to blame others for ones problems, but it doesn't solve the problems; it simply creates bigger ones. Mexicans are responsible for their own miserable government, which they refuse to address, and if they seize the southwest, it will simply become as poor and oppressive as the rest of Mexico. Then what? Will they have to move farther north? If they can't manage the country they already have, what makes them think they can manage an even bigger one?
This pro-Islam, anti-Semetic rubbish needs to be brought to the attention of the American Press. Does anybody here know how to do that? I do not.
Post a Comment