Daddy, what did you do at work today?
Well, son, I bilked people out of their money, I spread lies in the press, and I looked like a total buffoon to HousingPanic readers
Here's an article in American Chronicles by a mortgage broker, published as an article and not an advertisement. Man, another tool for the shed...
Nearly a full third of households are still renting...but if you are one of them, you could be paying a hefty price. Additionally, the children of the baby boomer generation are close to or at the home buying age, but these "echo boomers" could mistakenly decide to put off the purchase of a home because of all the noise about a "bubble" in home prices.
Is there a "bubble"? The simple answer is "no". Even if interest rates move a bit higher, it won't be enough to cause a nationwide slide in home prices. The key to a healthy housing market is the job market.
So with the currently low levels of unemployment and the beefy gains in job creations, it looks like the housing market will remain vibrant. Although it will be difficult to sustain the double-digit gains that much of the country has seen, price declines are highly unlikely. Expect a more moderate rate of appreciation, perhaps closer to the historical 6-7% range, which is still very good.
But this talk of a housing bubble has been going on for a few years now, and those who were unfortunately victimized by continuing to rent instead of purchasing a home are painfully mulling over their missed opportunity. But is it too late? Even with the more moderate levels of appreciation expected, procrastinating on that home purchase could cost you a bundle.
Don't be victimized by the bubble hype. Buying a home is a big step, but it is almost always one in the right direction
August 22, 2006
"Is there a "bubble"? The simple answer is 'no'... Don't be victimized by the bubble hype"
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36 comments:
funny to read this corrupt dolt's spin in the context of the posting above from fleckenstein, isn't it?
No Bubble, I said. End of story.
I recommend purchasing HERE:
http://tinyurl.com/onqwa
Just you and your family...
...whiling away the hours...
...rows of empty houses stretching out to what seems like infinity...
*a tumbleweed blows by --
*then there's only the wind noise...
Waaaait a second -- Is this -- I'm in NAR Purgatory! AAAUUUUUGGGGHHHHHHH!!!!
This guy is more educated than all you monkeys put together.
I would say 99% of this blog is made of people who don't own a home and people who wish they owned a home.
Take your finger and shove it up you...well, you know.
lots of reic trolls to be expected.
funny, this blog is made up of significantly higher educated people than the high-school degreed (if they were lucky) societal losers that make up the mortgage broker and realtor ranks. you don't need an education or any track record to get those "we'll take anyone" jobs
typical blame the messenger
If prices never come down, like he's saying, why am I watching prices come down with my own eyes? Why aren't people buying if real estate is always great and the time to buy is is now?
Sorry dude, but you're wrong. Florida, California, and especially Arizona are definitely going to burst wide open. Come back here in December 2007, and try telling me how much better it's gotten since your last blog, jackass!
People like this should be shot, isn't it illegal to spread lies?
-Dragasoni-
He's right. I feel so victimized.
I sold my house at the peak and made big bucks. I'm sitting on a pile of cash and renting. I'm living in a sweet place for low low rent and the idiot owner is losing money. I'm going to pick up my next home at a great bargain.
I've been so VICTIMIZED by the media...
Please help me...
Why is my realtor telling me that the houses aren't moving.
I drive by them everyday and they sit. Then a couple more for sale signs sprout up, prompting the owners of nearby houses to reduce their price. Then more homes sit idly by waiting for the next sucker, I mean buyer.
By all means, if you can find a good home at a reasonable price go for it. Otherwise, simply wait things out. You'll be happy you did.
this idiot most likely watches cnbc.same crap, parade a bunch of economists' out in front of the camera to spout off on how the job market remains strong.what a joke, jobs will tank with housing including most of the ones that have been shipped overseas.what an ass.
Idiot. I hate how they skew the true cost of ownership figures.
First of all, his calcs talk about standard 30yr, but then he also treats the figs without any mention of PMI etcetc. Sooo, I would use the 20% estimate for a 360k house.
What happened to the money I would have used as a down payment (let us say... 60k) on the house while I am renting? 4% after taxes is a gain of $13,000.
How about the cost to buy a home (closing costs, title insurance)?
What about the dishwasher breaking, roof leaking, yard maintenance.... etc etc?
What about the cost to sell in five years?
What about all the people who take the standard deduction on their taxes?
Who hear also thinks that they can get a MUCH better rental for $1500, than anything costing $360k?
A 30yr fixed of 300,000 mortgage at 6.75% is $1945 a month.
Is he saying that taxes and insurance are less than $3060 per year?
Beefy job creations? In another dimension beefy must mean lean.
Perhaps it's a clever way of saying that the job market got mad cow disease and is wasting away.
Historical return of 6-7% a year?!?!?! Don't buy that lie! Housing tracks about 1% above inflation.
Job No. surprise coming.
http://tinyurl.com/zhm4m
So with the currently low levels of unemployment and the beefy gains in job creations.
beefy gains??
Is this guy for real..or plastic just like the rest of our economy.
The jobs report will be like anyother Number the fed puts out "bullshit". With Ford shuting plants down and moving jobs out of the country where are these Beefy Jobs??
This guy needs to get of, I mean lay off of the beef.
I would say 99% of this blog is made of people who don't own a home and people who wish they owned a home.
Spoken like a valued troll hahahah!
Annon #2.
I must be in the 1% category. I own my home with no encumbrances (that means no mortgage).
My home would qualify as a McDaddy, not a McMansion. Approx. 4000 sq. ft. with 25 acres, less than 10 miles from the center of medium size city.
There appears to be many bloggers here that want to buy a home, that's true. But, how many can afford a 200% overpriced POS in those bubble markets. I'd be mad too.
Real estate prices in those multiple bubble markets will decrease. Some will collapse 80%. Be prepared!
Check out
www.daveramsey.com
IMO, unless you own your home outright, you are renting.
It has been said that "you're either renting an apartment or you're renting money."
the bad thing about the bubble is that fiscally conservative people get in troube because the fiscally liberal ones do stupid things with their money/borrowing.
Anon 3:10, you're correct.
Another thought: That money that was borrowed at 4.25% won't be a good deal if the product (house) de-values 20-80%.
Borrowing is a form of renting. Why borrow in a bubble area?
Not all markets are bubbles, but all areas will be effected by the bubble markets.
"This guy is more educated than all you monkeys put together.
I would say 99% of this blog is made of people who don't own a home and people who wish they owned a home.
Take your finger and shove it up you...well, you know".
Anyone who studies can pass the Realtor exam....what makes you think WE are not educated?
My husband and I live in a beautiful home at Lakeridge Golf Course, Reno, NV - its great - NO HOA fees, or property taxes. NO improvements necessary, this house is fully equipted. We pay $1100 mo. in the best area of Reno.
Why struggle with a high mortgage, AND re-adjusting property taxes? I do the investing for us, and we make a heck of alot more money with Gold stocks and CD's than with holding onto a depreciating asset like a house!
We sold our Alameda bayarea home of 15 yrs with multiple offers over asking back in late 04'...we think it was the last time for multiple offers over the asking price. Now, sellers dont have the luxury of even getting ONE offer above asking, let alone multiple offers...
Sounds like you maybe are one of the unlucky people who believes RE always goes UP and got yourself into a sucide loan that is re-adjusting UPWARDS at the end of this year.
Ta-Ta, your equity is going down as fast as the titanic.
The key to a healthy housing market is 'F'ing Affordability!
I don't care how strong the jobs market is, if i'm not making the money to afford these inflated prices!
As I'd said in the other realtor bashing thread...
Realtors need to earn a living so I'm not too upset with them because to some extent, they have to lie to themselves in order to successfully lie to others. All is fair in love and war.
The people who I have absolutely no respect for are these self-righteous full time corporate drones who constantly banter the 'RE only goes up' mantra again and again even though they'd lost big when Cisco went from $150 to $10 parroting exactly the same thing as if they were a cross product of Warren Buffett and Jeanne Dixon. It's these losers that society can do without because ultimately, they're little more than trained monkeys in jobs where corporate cronies keep them around to prevent smarter people from potentially displacing them.
Realtors are at least subject to the laws of the jungle where they either sell or pack their bags. It's kinda like the stock trading business but easier especially during bubble times. On the other shoe, a group of cronies in a company are very hard to fire because if they go, as a team, a lot of work goes missing which is why so many of them can survive even after rounds of layoffs. The key for them is to hire some entry level people, give the entry level people the redundant work, and when the orders from above come in for a layoff round, they just layoff the new guy who doesn't have the critical experience.
>>There appears to be many bloggers here that want to buy a home, that's true. But, how many can afford a 200% overpriced POS in those bubble markets. I'd be mad too.<<
Actually more like 400%. I had a realtor e-mail an announcement of a house that was available for $430,000. Built in 1926, the 1100 sq ft house had 3 bedrooms and 2 baths.
Folks, I can buy a condo or house...
I have about ~$120K in CDs, precious metals, and bonds and about ~$60K in my IRA/401K.
Here's why I don't want one. For one, if I lose my job, there's a good chance of me having to move to find equivalent work, partly because RE is expensive where I live, and companies prefer to start up in cheaper locales.
Now, with my savings, I have absolutely no fear of going through periods of joblessness which is a godsend especially if the next recession is as deep as everyone anticipates on this board. And finally, I've living in a nice apartment for $1200/month whereas owning it would expect me to put out some $2500/month and since the purpose of owning is having a place to live in, well, I've already accomplished that so why take on the burden of doubling my living expenses?
My Parents live in up state New York and rent.
There has been an unreal build up in their town crazy I mean unreal.
So the other day they went to an open house for shits and giggles..asking price last year 1.2 million thie year $789,000.
So they walked thru it and my mom who by no means is picky at what she looks at..could not belive the aking price for the thrown up mini mansion. She said other that the 30 ceiling in the foyer the place was not worth $250,000 if that.
they will remain renting for $1000 with everything included..nice!!
Owners: Freaking out about the equity they're losing, the payment they have to make, the inability to sell their home, the association fees, the real estate taxes, the maintenance costs, the leverage they've exposed themselves to, and their possible bankruptcy.
Renters: Down at the bar enjoying a nice cocktail, with no worries in the world
"Renters: Down at the bar enjoying a nice cocktail, with no worries in the world"
Dude, that's what life's suppose to be!
I sold In oct 05, now renting.
For the first time in twenty years I have no worries and I sleep like a baby at night. I'm going to buy a house again someday, but right now I'm enjoying this life style that I havent had since highschool.
http://www.huntsvillealabamausa.com/new_exp/community_data/econ_performance/homesales.html
Even job rich Huntsville has climbing inventory. The land around town is getting converted from farmland to sh*tbox developments.
Oh the humanity
"Actually more like 400%. I had a realtor e-mail an announcement of a house that was available for $430,000. Built in 1926, the 1100 sq ft house had 3 bedrooms and 2 baths."
In the REIC jargon, this one is touted as "Won't last long!"
Is there a bubble? In some areas, most defnitely YES. In others? Nuetral to a little bubbly. In a lot of areas? Depressed!
It is a big market and lots of variables.
During the depression there were people eating caviar and drinking champagne while other's picked through the garbage can. There has always been two markets.
Our biggest problem is buying cheap imports, especially from China. Our second is gas guzzling cars and our dependance on oil. So much for learning from the 70s.
Then our government is more interested in profits for the rich than paying enough to the workers so they can buy anything.
A recession will be good for us. It will direct people and money away from non-productive assets. We also need a world war to mop up excess capacity.
I've always calculated value and inflation into everything I buy and if I think the numbers are out of wack, I don't buy. Does that mean I don't think homes in non-bubble areas won't be affected by bubble markets? Of course they will, but as my parent's in California said, "We bought our home in 1962. It's paid for. It is a roof over our head. We don't care if the house drops $400,000, its paid for!"
Of course I care,there goes a portion of my inheritance! My parent's, like most Americans, aren't the smartest cookies in the world. They could have converted that fiat, bubble induced, paper asset into real wealth if they weren't so stubborn and stuck in California and sold, invested that money into other, less bubbly areas.
Like the frog in the pot of hot water, it doesn't look like a bubble from the inside.
I live in a bubble market - bought 10 years ago (pre-bubble) and the house is paid for now. Count me in as one of your 1% of readers. I'm more concerned about the overall economic effect of a bubble collapse rather than the effect on the price of my house.
Look at the pic of that tard. What a loser.
People ask "Is there a bubble?"
I live in San Diego, parents in Phoenix, sister in Miami! Nuf said!
what a total turd.
FYI - I am "the monkey" with a home on the east coat that has been paid off for years, zero debt and a large sum of cash that I will use to buy your home when you can't afford the pymt. Oh and I just turned 30.
I considered selling at the peak but decided to stay put. I got a nice 2 story pad built in the 90s for 215k back in 2003 (pre-bubble?). 15 minutes from work. Low 5.375, 30 yr mortgage on 100% financing. If I sold and bubblesat I truly dont think I will get in with such a great deal again anytime soon. Even if the market dropped 30% in the next year. The same house, if I tried to buy back, would be higher anyway you slice it. So for some it makes sense to stay put and ride it out. Now...if I was single w/no kids....different story ;-)
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