From Maryland comes this article that gives you a peek at so many problems to come - empty houses as oversupply runs rampant, foreclosures, bankruptcies, people living large but living paycheck to paycheck, and falling state tax receipts as the bubble bursts...
Oh, we reap what we sow....
Thousands of Frederick County's so-called "McMansions" could be back on the market in coming years as deadlines on interest-only loans come due, mortgage payments skyrocket, and homeowners' pocketbooks are stretched to the breaking point.
"There could be thousands of homes on the market at the same time and nobody's quite sure if there will be enough equity to take the houses off the market," Ms. Jackman said.
A flood of vacant houses "is one possible outcome," said Thomas Shaner, executive director of the Maryland Association of Mortgage Bankers. "I don't want to say it couldn't happen. It absolutely could happen, and that kind of stuff worries everyone."
He was "shocked" to find out more than 50 percent of mortgages taken out in the past several years were interest only. Impractical expectations played a part, he said.
"The local governments have been riding on a wonderful windfall with everybody else as the housing market has risen," Mr. Shaner said. "
May 15, 2006
In come the waves.. getting ready for "a flood of vacant houses"
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16 comments:
What do you mean "get ready", we already have plenty of vacant McMansions and other spec homes out here in CO. The fool builders are even putting workers and relatives in them while they wait for buyers. Nothing like four muddy, beat-up, pickup trucks in the driveway to boost curb appeal - LOL!
On the commercial side, we have several brand-new but empty strip malls waiting for small-biz tennants that aren't appearing.
New mexico will fall after colorado. I know many, many, coloradans that moved to new mexico when the bubble there was ramping up, and they were priced out of the market. This slowdown will happen region by region, but it will happen everywhere. The californians went everywhere throwing their imaginary money around. (one bought our house, and a house afriend was renting) The end is near.
I found another Realtor wearing the last pair of rose colored glasses.Check out www.bostonreb.com
A flood of vacant houses "is one possible outcome," said Thomas Shaner, executive director of the Maryland Association of Mortgage Bankers. "I don't want to say it couldn't happen. It absolutely could happen, and that kind of stuff worries everyone."
Thaat is exactly what I've been saying would happen in the burbs. Just as in the 70s when the boomers moved from the city to create the burbs. Between 2010 and 2020 the boomers wil leave the bloated burb houses behind for a life they can afford on fix income.
Actually Frederick county is much better off than it's neighbor Montgomery County - This will be Maryland's Fairfax County.
But here is the real kicker - That house in the village of Urbana - I know where that subdivision is - I built the streets for it. I will build the streets for the new houses those folks flee to.
Keith,
What is the source of this article? Thanks
I made the previous post here...looks like it's the Frederick News-Post.
Is that a real McMansion in the picture at the top of this topic? It looks like something in a computer-generated cartoon. It that what people are buying?
That's the most ridiculous looking house I've ever seen. It looks like a fairly big house trying to look like an even bigger McMansion/place/actualy Mansion. Gives the same effect as some 8 year old wearing her mothers makeup, shawl and highheels. It looks like a playhouse on steroids.
There are a lot of low IQ humanoids buying houses they can't afford. They deserve the foreclosure awaiting them.
I bought my first house in 1988 for $36000. About 850 sq ft w/ detatched garage on a double lot. Sold it for a ridiculous 62000 in 2003. Built my new house for 4800 sq ft. for ~200k.
These tards these days think they have to be at the top immediately. Total losers who will get one giant kick in the nuts that will set them back so far they will never return to a silimar house that they couldn't afford in the 1st place.
re: house looks like a play house - yes indeed, and it probably will not withstand the perils of time as well as a play house. a friend of mine who is an architect tells me that in a few years those mcmansions will start to melt - literally - the ply wood is wood chips and glue - if the roof goes then those houses will in a sense melt. i wonder what the environmental impact will be. god what has this country done to itself.
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Just a general question to everyone.
Do you or someone you know live paycheque to paycheque right now?
I myself don't, but I know plenty that do.
K.
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