Here's a local video report from N. Cali on the housing crash underway - where they try their hardest to get people from thinking what's happening is not a crash. It also feels the homedebtor reporter is trying to demonize Moody's for ruining the party.
Bottom line - anyone watching reports like these is no longer stupid enough to go look at model homes that afternoon. No way no how.
"Honey, let's go put an offer on a house - it'll only drop in value for the next two to three years"
On not using the crash term if it's only going to fall 10% - well, that to the folks who bought at the peak in 2004 and 2005. They're on their way to financial devastation. Same with flippers who couldn't get out in time. $800,000 less $80,000 drop less $50,000 selling costs = a nice $130,000 loss already. Ouch.
And don't for a moment think this thing is going to stop at 10% off. We're going back to the mean, back to where rental income is equal to or greater than ownership cost. It's called the fundamentals.
Thanks for forsakencraft for the lead. Here's some quotes:
* "But before you panic, you need to know their definition of the word crash"
* "Near the top of the list is Stockton, where Moody's expects a price drop of 15.7% by the end of 2008"
* (Reporter, dubiously or sarcastically): "The author actually uses the word crash"
* "...not those crazy days of the last few years that kinda got us in this mess to begin with"
October 09, 2006
Local TV report on the housing crash underway (while poo-pooing the word crash)
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5 comments:
I have an idea for a new TV reality show (yeah I hate them too).
We'll call it "Save the F**ked Borrower"
A team will go out in search for really REALLY desperate home owners who need to sell their houses.
The producers will say sure, we'll buy your house - BUT, we get to humiliate you on TV.
So, for example, the desperate seller has to sit in a chair in his/her driveway and get tormented by ________ (fill in the blank).
I, personally, think they would have to sit there for at least 60 minutes while people with bull-horns chant (think Cartman from South Park) "ni-ni-ni-ni-na-na"
AND if the seller freaks out during this 'time period' they lose, and the show doesn't buy the house!
I’m thinking Arizona, Florida, or California would be a good place to look for ‘contestants’
Yeah I had to correct that reporter. Stupid asses run around reporting false crap pisses me off.
John
the whole she bang aint worth 130,000,
guess they dont make dollars the way they use to, and its not income, im talking about,3000 dollar hair cut, must be the cigarete designer, pot, fag, style
when cash only deals come around, none of them will be worth 1 tenth todays asking prices, guess the depression proofers are asking ten times to much, and some places, paying ten times to much tax, will get only prorated return of 2 years tax, with complaint filed, and saLE OF THE PROPERTY, TO DETERMINE FAIR VALUE,"FAIR TAX'
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