So many will be hurt by this, how can we possibly toast the death of the housing ponzi scheme? Because it would have been so much worse if it kept on, that's why.
Cheers to getting back to a sane housing market, where people can afford homes, with traditional loans, and not have to worry about their values collapsing.
Here's to young kids getting jobs out of college and being able to buy a house.
And this toast from HP'er JM:
Cheers to the end of the housing bubble, let's all raise our glasses of MD 20/20!
May 26, 2006
Here's to the Housing Bubble bursting!
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11 comments:
MD 20/20? I haven't heard that since high school. Pretty funny.
As one of the evil BABY BOOMER generation, I am happy that younger people are soon going to get some good deals on houses. It doesn't make me happy that young families cannot afford their own homes.
Go for it. But don't buy until those prices go way way down- by at least 30-40%.
Even if homes drop 50% from my average here in Irvine of 700k it will still be tough to pull for a new graduate. Its still going to suck for some if it drops 50%? DAMN
Don't kid yourself. The kids graduating college are big participants in the bubble. Where have you gotten your data? A sane housing market will be one in which kids aren't buying condos before they graduate. A sane housing market will have kids renting until they find their mission in life. A sane housing market is not liquid and infinitely rising so kids won't be lying to themselves that "owning" a condo is like putting money in a bank. You can't count on flipping condos every week like your last date.
A sane housing market keeps college kids out of condos!
A sane housing market mean recent grads have to save money for a downpayment.
As an evil realtor myself, I have no problem with the coming correction in the market. Been seeing way too many local young families not be able to buy a decent starter home.
For now though, renting is cheaper than buying and there is plenty of SFR's to rent.
My hope is that younger folks that are renting are at least putting aside the difference of the rent amount and what a mortgage payment amount is in savings so they can acrue money for a healthier down payment when the time comes to buy a home.
Owning a SFR is not an investment or should be viewed as such. It's a luxury, one that could be affordable if the cards are played right.
For those calling for 30 to 40% drops in price, I think that is fine. The lower the price on my listings the faster I sell the home. Demand is way down and that should bode well for those not in the home buying market right now.
You've never tried to sell a house in a down market. Yes the prices are going lower but no one offers on your listings.
God it is so refreshing to see people of all stripes cheering on a 30-40% drop in the price of housing.
I am so glad I came to this blog to see that.
Can it be true? Is the psychology of home buying changing back to home as "hearth"? Instead of home as "lottery ticket"?
It will be SUCH a benefit to our society if people can once again know that, if they are responsible and work hard, they can be rewarded with buying a home TO LIVE IN.
The nonsense of the past several years has begun stripping away people's hope for their futures. That is a recipe for disaster. A whole country full of malcontents.
YES! Bring on those 30/40/50% price drops.
And make it happen SOON!!
Let's SELL those houses!
Keith,
veritas_faust is right. I am hooked bad, and if your HP Blog closes, I will need more than MD 20/20 to ease the withdrawals. What up, Keith. Do we all watch the after math of the "blood bath" together?
I see several postings hoping for 30% to 40% drops in pricing. Where do you see these happening and when? I like to note these predictions and follow up later with the facts. I am guessing Phoenix and some cities in Virginia? I can not believe L.A. Today's story in the local paper - a proposed condo in San Pedro on the water sold out to "clamoring crowds" on the first day of offering. I don't even like to drive through that area.
renting-
housing does not collapse on a dime. the market STARTED getting soft end of last summer.
Now there are a lot of price reductions and a build up of inventory (means people are not as eager to buy).
Next step, price cuts. In FLA in some places '05/'06 appreciation has already been wiped out. (See Barrons article above). That means they are already back to 2004 prices in some places.
Hang on to your hats, this could go down a lot faster than previous RE colllapses.
Here's hoping it does!! I want to buy a home!!! At a SANE price!!! Which means yeah, 30-40% off, minimum.
Hey Fellow, you have a top-notch blog here!
If you have a moment, please have a look at my sell annuity payments site.
Good luck!
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