It's amazing to watch the collective conscious change right in front of our eyes. Here's some quotes from last night's CBS lead report on the housing crash underway:
"Prices are down 8% in Florida, 5% in California, and outside DC, nearly 4%. Prices are slipping in other cities too ..."
"Rather than reduce the price, which builders hate to do, they're offering automobiles, televisions, trips, they'll pay part of the closing costs" - David Lereah quote
"At this point sellers are willing to try anything, anything but lower the sales price... many of these sellers seem to be in denial"
"It could get worse... it could do even lower"
August 24, 2006
CBS News lead story last night: Housing Market Cools - "Once hot markets now seem frozen"
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13 comments:
I watched the video. As usual for newscasts, it was short on substance but long on hype, fear, and sound bytes.
At least one of local newspapers is starting to catch up with the idea that real estate markets are often night and day different by price range or other criteria.
Here's a recent article in the RMN on how luxury real estate isn't feeling the pinch as badly as the low end. By the way, this is one of the reasons I do my analysis by price point in our market.
watch the other report there too - "a buyers market" where they interview a couple who feel they got a deal on a $1.1 million house in cali
he's a community college teacher
'nuff said
News are reporting its a buyers markets, yet when a person considered the taxes he/she has to pay on a new purchase it just doesn't make sense unless home prices continue to appreciate or salaries catches up.
http://www.pbs.org/
newshour/bb/business/
july-dec06/
housing_08-23.html
was it a buyers market when yahoo pets.com started dropping? it's a long way down
A couple of guys here where I am at have this idea that they are going to build some small apartment like like houses for some retirees. They apparently think those will sell easily when there are a ton of older houses still for sale all over the city. They will be getting their asses handed to them.
we won't need any new housing construction for the better part of a decade I'd say
Don't forget that 30% of all houses purchased the past couple of years have been second homes
Just like the overbuilt telecom situation. A good thing, as it drastically lowered telecom costs but the companies who built the infrastructure all went belly up
houses will be very cheap again, but anyone who bought one the past couple of years, or builds them, is going to go belly up
a handful of people I know bought 2nd homes. i find it the stupidest thing I have seen yet. 1st you are buying now, whne in 6 months to a year, it would have cost $25k les at a minimum.
2nd, and most important. What are you thinking...ok, you aren't. You bought because someone you know bought one and told you about it and the lemming mentality kicked in. So now you got this 2nd home that you are paying for and not living in. You may get to go there 3 or 4 weeks out of a year. STUPID! So you go up there to take a week of vacation....and you work on the house you never see.
LMAO!!!!!!!
News Hour on PBS last night (8/23). Two ecomomists (one from the realtors organization). Gwen did the interview. Chinese (?) economist says slight correction, other dude says will last several quarters.
I told you they'd be giving 'em away before long.
Southern california is toast, all those people taking all that money out of their houses so they can live it up. All that new crap (kitchens, cars, trucks, vacations and playing all the time) Those houses are not worth anything close to what the bank loaned on. I have inlaws who have done it all wrong down there and now they are sharing a small house and owe tons more then its worth. Kept trying to talk sense to the father in-law and he thought I was crazy and said " don't worry about my finances" so I don't, but the day will come I will hate to say it, but I told you so. They are not the only ones there. Just drive around the "Northern state of Mexico" and you'll see what I'm talking about.
Anon 4:40:16,
We're on the same boat. I did try to warn my in-laws before. Instead, they bought at the peak with IO and/or ARMs. They even thought that I was envious and also brag during family gatherings about how fast their equity is rising. I was like an outcast. I can't even join the conversation since I'm a total opposite. Don't get me wrong, my wife and I have a house too, but just a fraction of the price they paid.
Now, I tried to do the opposite. I would tell them;"I bet you may already have a lot of equity built up huh." They just looked at me like; "yeah - right."
My formally favorite radio show is avoiding thoe subject as well. Coast to Coast AM blackballs Housing Bubble story. Read about my experience.
As I sat in the Costco food court, sipping a coke, a visual image along with a feeling came into my mind. I saw my wife and I at some future date having a despaired discussion. A feeling of hopelessness hung like a pall over the scene. We were cleaned out and unable to make a house payment. The money we had put down was gone and we had nothing. The American dream had become a noose around our necks. I sensed that this was at least a nationwide thing and that there was pain everywhere. I sensed the tragedy of murder suicides occurring in some instances as families lost everything.
This was back in March of 2006. I had watched the housing market and was contemplating purchasing a house. Something didn’t feel right so I was trying to tune in. I have always felt that I had some level of intuition but also have had a lot of doubt about my ability to “bet the farm” on that intuition. I heard that the conscious mind is the intuition’s biggest critic, so I decided to open the door and listen, but to back that up with LOTS of research.
I discovered that astute analysts have been warning about the housing bubble for at least two years and that the warnings have gotten louder in the last several months. The mass awareness of the bubble broke wide open yesterday, August 23rd when the bubble was the lead story on ABC, CBS, NBC, and The Drudge Report. The domino effects of this process will be admitted into the mass awareness later and with great resistance.
From the moment of this intuitive impression, remote viewing, whatever you want to call it, I began doing massive research. My analysis went up-down-left-right as my mind was batted around by all the information and commentary I took in. I started sending emails to friends with links from the news and analyst’s commentaries. My sister, whose family is heavily involved in real estate, began blocking my emails.
Several weeks ago, I laid this story in the lap of George Noory of Coast to Coast AM radio fame. He could have run with the story and been out ahead of most of the media. He proceeded to blackball and ignore this subject. On August 23rd, when this story broke wide open and was the lead story everywhere, George refused to even mention the story during his review of the day’s news. Later that night when his guest brought up the subject of the bubble, George quickly changed the subject. I have no explanation for his behavior. My only motivation has been to warn my neighbor. This is a huge story and it makes no apparent sense that George would not run with a plum story.
This made me sad. I have listened for over 15 years and believed the Coast hype that we are a smart audience, calling us the Coast family. I sat in the Coast classroom for many years laughing and listening intently, telling my family that Coast time was my time and that I wanted to listen. It seems that we are being patronized and that hurts. I was right when I told my friends that a little cartoon short on the Tracey Ullman show would be big and I believe I’m right when I say that Coast is on the downslide.
I’m the canary in the coal mine. I believe that the ratings may be high, but that the quality of the show is deteriorating. The ratings will eventually catch up.
I have other useful inputs, but you know what they say about caring for your pearls.
California City California -The Biggest Little Crapper of Boxes in the World!!!
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