Another HousingPANIC quote of the year candidate:
"Everybody now recognizes that the elimination of creative finance in housing leaves us with a problem for new homebuyers"
- Robert Barbera, the chief economist of ITG
July 27, 2007
What happens when incomes are too low and interest rates and home prices are too high for new buyers to come into the Great Housing Ponzi Scheme?
- Robert Barbera, the chief economist of ITG
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17 comments:
"Everybody now recognizes that the elimination of creative finance in housing leaves us with a problem for new homebuyers"
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TRANSLATION: Nobody could really afford to buy homes at the insane prices these last 4 years.
Hey Keith!
Please file this under S-H-O-C-K-I-N-G and utterly unexpected!
Wow, I didn’t see this one coming! Are you telling me that the stock market is full of thieves, liars and shills?? Noooooooo…
But, but, but TOL and CFC and KBH are all great picks! Cramer said so! Maria said so! Bear Sterns said so! Suzanne researched it!!!!
http://www.huffingtonpost.com/business/
Wall Street Analysts Gave Favorable Stock Ratings In Exchange For Favors
The NAR believes consumer psychology is to blame.
"What happens when incomes are too low and interest rates and home prices are too high for new buyers to come into the Great Housing Ponzi Scheme?"
More and more houses will sit empty on the market - prices will
drop further and further.
What happens? The market crashes of course!
Serious request for info.
Can anyone suggest places for unbiased data for Real Estate data?
For example, in Mass. there is:
http://marealtor.com/content/
But its obvious propaganda.
What are the best sources for ACCCURATE sales volume and prices on various types of real estate like single family, condos, commercial, etc.?
Can actual sales be tracked by on line Court house records on Deeds, etc?
As individual markets deteriorate or improve, it would be nice to have that trusted info at your finger tips.
Thanks,
Noob
Everybody? Umm...still got some short buss riders on this and other blogs who think there is no problem.
Las Vegas, we have a problem
No it is not a problem for home buyer it is a problem for home sellers! I will just wait till the price drops to the point I can get a loan under the new (old) lending standards.
Problem? Yea I'd say so... I'm losing my life savings faster than a falling rock, help!
The broader problem just doesn't rest with sellers or buyers, it's a
problem that will hit the general
population in the form of higher banking fees, utility costs, taxation, etc...
The market is now correcting the speculated price of housing ever downward, but it will be a slow painful correction of the next few years.
burn baby burn said...
No it is not a problem for home buyer it is a problem for home sellers! I will just wait till the price drops to the point I can get a loan under the new (old) lending standards.
The stock market can do whatever it wants to, I just want to see a real estate crash. I want to see flippers, brokers and other fraudsters jumping off buildings. That would delight me.
BTW - I'm buying a book on Amazon, so that means the economy is great.
Stuck in FL said...
Just sell at any cost
That is fine with me. I like the place I am renting; making good money in a gubmant job. If I lose my job we all will have much bigger problems to worry about. I have plenty of water, food, guns and ammo if this thing go bad think Katrina everywhere.
Prices on things are all ready starting to drop I have lots of cash to buy stuff when the prices drop to where I deem they are fair. CASH in going to be king soon. The key things to remember is finance assets that appreciate in value, lease those assets the deprecate in value, do not spend more than you earn, buy low, sell high, don’t get too greedy, debt is slavery, and do not believe everything you read/hear.
K.W. - Southern Ca. said...
The broader problem just doesn't rest with sellers or buyers, it's a
problem that will hit the general
population in the form of higher banking fees, utility costs, taxation, etc...
The market is now correcting the speculated price of housing ever downward, but it will be a slow painful correction of the next few years.
It's over, finis, done, cooked, baked, burned and kaput.
Mortgages, if you can even get one, won't be without documentation. No one will be able to lie. No, a janitor does not make 20,000 a month.
With that said, a loan around 200k will be the ceiling for most people. Oh shoot. If your need to sell your 400k house, you're screwed because 250k is the most anyone can pay.
Only a few will panic, because only a few are even aware what's going on. When they finally go to sell a year from now and their house is worth 30% what they thought it was worth. Oh damn, who are they going to blame? Certainly not themselves.
I feel a depression coming on.
Rordogma said...
The NAR believes consumer psychology is to blame.
July 27, 2007 7:24 PM
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NAR is correct, consumers awe mass have been able to break out of the psychological spell placed upon them by NARs propoganda and realize that a cr@pbox is not worth destroying one's financial health over just so realtwhores, apprasers, mortgage brokers, banks and wall street investors can drive beemers and benzs.
I don't have a problem. I'll just be the happy renter that I am, living for pennies on the dollar. The ones with the problems are the "owners" who can't sell (i.e., get out of their crushing monthly debt)
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