February 27, 2007

HousingPANIC Stupid Question of the Day

Without all the subprime loan buyers, without the no-down, no-doc, liars-loan crowd, without all the cash-back-at-closing scamsters, without all the flippers, without all the investors, and without all the people betting on future price appreciation, my question is:

Who the heck is gonna buy any of those millions and millions and millions and millions of homes for sale?

35 comments:

Anonymous said...

Ilegals and nitwits.

Anonymous said...

No one will buy until housing prices lower significantly.

It's simple supply and demand.

E said...

mcmillions of mcmansions!

Anonymous said...

Removing sub-prime & investor demand will result in a significant drop in demand which kept the bubble going the last 2+ years. Hence if demand goes back to 2003 levels (a frothy time & the acceleration to full blown bubble with some variation depending upon the regional market) then pricing must also return to 2003 pricing. However, because of the stickiness of RE prices there will be a lag in the deflation of price. BTW the trite term "stickiness" has been used by Greenspan & company for years. If fact they've been banking (pardon the pun) on stickiness in the RE bubble to draw out the pain of doc com/bomb bubble burst to "for the greater good" avert economic disater back in 2000-02. But stickiness means tens of thousand sof personal financial disaters. The stickiness will be coming from owners who just cannot afford the financial hit of selling at a loss or if they do then having to accept the fact that they will likely never be a homeowner again and /or never recover finaicially depending upon the severity of the financial pain. It will also come from mentally entrenched pre-bubble RE owners, but they will sober up and sell when they realize they just will not get the fat profit they expected, but they will still be getting a handsome return for shear luck of the draw, so I have no sympathy for them.

I find it very insulting that Greenspan & Co have been saying all along everything will be fine take the toxic loan as long as there is no recession. Now, voila they are predicting recession and they are conciously not bring up prior comments about how recession is what will deala death blow to all the toxic loans that kept the bubble going while they were in power.

JP said...

Cash flush bubblesitters and renters could be riding bankers and FB's like rented mules.

Flagg707 said...

Who'll buy them? In the few communities that manage to maintain some economic stability, there'll be a few investor groups who swoop in.

Everywhere else, it'll be a theme park for squatters and the angry masses who will be homeless. There'll be some attempts by banks to work out agreements for those few home "owners" who still have a job, but in most other cases, the bankrupt former savvy home investors will way outnumber the cops. There'll be some rewrite of the laws eventually to recognize soem sort of share-cropper type agreement for people to squat on land the banks own, but the transition period will be ugly.

I'll just chill in my rental, saving up cash, taking notes.

The Thinker said...

Yes Keith, that is exactly why we haven't seen the end of loose lending.

Anonymous said...

Duh, 12 million newly amnestied illegal immigrants.

Mud Shark said...

Me....after their prices fall from 30% to 50%.

RayNLA said...

.






Keith,

I have said it before and I will say it again! Us HP's will buy...

In 2020 at 65% off! Without the aid of a Realty Clerk.

Most will still be in jail anyway.

Frank said...

Answer:

Nobody!!

I'll be buying one in a year or so when Orange County gets really bad, but then again I said that last year because I though it would have hit bottom by now, but it's still going down, down, down...

Anonymous said...

me

with money I find in my clothes dryer

az_mtb said...

Dow Jones is crashing this morning. Down 130 points already. What gives?

Anonymous said...

Soon, one ounce of gold will get you your home.

Anonymous said...

This confirms what I have been saying all along. In Illinois there is no crash. Median price is the same as it was a year ago and sales are about 6% lower than a year ago. Not a booming market by any means, but not the end of the world either.

It seems like everyone here lives in Phoenix or Los Angeles and assumes that the rest of the country is as fucked as you. Stop doing so.

http://www.earthtimes.org/articles/show/news_press_release,66369.shtml

tmaioli said...

Home price slump continues

Realtors report that year-over-year slide hit its sixth straight month in January despite pickup in sales pace.
By Chris Isidore, CNNMoney.com senior writer
February 27 2007: 10:50 AM EST

NEW YORK (CNNMoney.com) -- Housing prices continued to fall in the latest reading on the battered real estate market released Tuesday from an industry trade group.

The median price of an existing home sold in January was down 3.1 percent from a year earlier, according to the National Association of Realtors.

It marked the sixth straight month that prices have shown that year-over-year drop, a relatively rare condition for home prices before the current slide. Before the Realtor's price readings showed a year-over-year drop for August sales, it had gone more than 11 years without that kind of drop.

The median price, the price at which half the homes sell for more and half sell for less, is now down 8.5 percent from the record high reached in July 2006. And the three biggest year-over-year declines on record have now been recorded in the last four months, with January's decline just behind the 4.4 percent drop in October and a 3.4 percent fall in November.

The lower prices apparently are helping to draw more buyers to the market. The pace of home sales rose 3 percent from December, coming in at an annual rate of 6.46 million homes. But that was also down 4.3 percent from year-earlier levels.

"It's just like any market, when there's price depreciation, buyers are more likely to come into the market place," said Wachovia economist Phillip Neuhart. "I think prices will be flat to slightly negative this year. I don't think we're going to see any imminent recovery."

The prices have been hurt by a glut of both new and existing homes on the market available for sale. The inventory of homes in the latest report rose 2.9 percent from December to 3.55 million. That's up 23 percent from the supply of existing homes on the market a year ago, although its down 8 percent from the record high seen in July.

The glut of homes for sale was greatly fed by the building boom of 2004 and 2005, rather than the more typical cause of a glut of homes that comes from an downturn in the economy or employment.

Pat Vredevoogd Combs, a Realtor from Grand Rapids, Mich. and president of the national trade group, said the pickup in sales activity is important in restoring confidence to buyers and sellers in the market.

"The market is trending up from its low last fall, and that is important in restoring confidence to buyers who've been on the sidelines," she said in the group's statement.

Home builders' have been particularly hard hit by the downturn in home sales and home prices. Hovnanian Enterprises (Charts) said Tuesday it expects to report a net loss in the most recent quarter.

Toll Brothers (Charts) reported a sharp drop in earnings last week, while KB Home (Charts) reported a net loss in the most recent quarter earlier this month.

Other leading builders reporting weakness in prices and reduced sales include Lennar (Charts), Pulte Home (Charts), D.R. Horton (Charts).

A government report on new home sales and prices is due out Wednesday. While new homes are only a fraction of the overall real estate market, that is a more closely watched report because it is more of a leading indicator. New home sales are recorded at the time a sales contract is signed, while existing home sales readings are taken at the time of the closing, typically a month or two after a sales contract is agreed upon.

Record home price slump

Anonymous said...

Bendra Todd

trashwacker said...

The American stupids and assorted semi-literate scum populating cities like Phoenix and Las Vegas will jump right in, once the "word" gets out that real estate in the form of a cookie-cutter shitbox will make your rich...again.

Quote: ''Any frontal attack on ignorance is bound to fail because the masses are always ready to defend their most precious possession -- their ignorance.'' -- Hendrik Willem van Loon, Dutch-American journalist and lecturer (1882-1944).

Anonymous said...

I'm told, by many experts, real estate never goes down. I will. No brainer.

Anonymous said...

Those that are fortunate enough to get $$$ from mommy and daddy, that's who.

Anonymous said...

Hp'ers in about 5 years and for a song.

tmaioli said...
This comment has been removed by a blog administrator.
Anonymous said...

No change in Illinois real estate!

There's a reason.....it's Illinois!

GowdTeef$ said...

No change in Illinois real estate!

Patience my friend, patience.



http://chicagohousingbubble.blogspot.com/

GowdTeef$ said...

No change in Illinois real estate!

Patience my friend, patience.



http://chicagohousingbubble.blogspot.com/

Anonymous said...

when the dollar recovers from the issuance of 10 dollars of debt, for every dollar of deposits,or prices fall 90%, so the average, average is not bought and sold in slavery, at the harm to society of the free

Anonymous said...

Now we know why Bush/Cheney and the big business republicans keep promoting illegal aliens.

They need one last sucker to buy all the homes. Just one more group of fools before the Ponzi scheme implodes.

Anonymous said...

Hey, I'm gonna wait for 90% off!

Anonymous said...

Dead people.

Anonymous said...

I have McMillions of dollars!

Just you wait! With the dollar crashing to its intrinsic value, in ten years or less anyone in the United States is going to be a McMillionaire!

F D Govt said...

There are millions of solutions to this "problem".

The illegal aliens will be given a can't-refuse deal to buy these unwanted chicken shacks...because banks will be so desparate to continue their greedy ways. There is no level so low that the banksters will not stoop to.

jt said...

hardworking illegals and internationals - the japanese and chinese and russians. It's already happening. It's a global economy afterall if you haven't noticed.

Your sorry ass is just not a part of it since you spend all your time on world of warcraft and trolling these doom and gloom blogs.

jt said...

Face it people, the only real estate you all are ever going to buy is the virtual kind on Second Life.

http://www.secondlife.com/

Anonymous said...

but the mcmillion mcmansion will have to be bought with antimcdollars

Anonymous said...

To paraphrase jt, hardworking people,
whether illegal immigrants, legal
immigrants, or natives. NOT people
who sit around and whine, like most
on HP.