October 16, 2008

HousingPANIC Quote of the Day

"Until houses drop from retarded prices people won't feel like buying"

- HP'er "CrisisGuy", pretty much summing the whole thing up, October 16, 2008

38 comments:

Anonymous said...

Amen, brother.

Anonymous said...

Does anyone who where I can get buy to rent price ratio datas?
I think it's the most telling price 'retardesness' indicator out there, as you don't have to adjust it for flawed inflation data, since it's a ratio.
And last time I saw it, the curve was still climbing. So it's been a while.

Anonymous said...

In this last televised "Mass-Debate", John McCain states that he wants to put a "floor" under house prices.

Is this guy American? What doe that actally mean. Now the goverment will set the prices for things?

I though houses already had floors?

Next thing he'll be wanting to put granite countertops in kitches!

sheesh!

Anonymous said...

Even if home prices did come way down, how could I buy a house without a frik'n job??

What a bunch of idiots!

Anonymous said...

Santa Maria CA .... still selling absolute sh*t holes for over $200k, and a real fixer upper? over $150K ... and the realtors here think its a bargain!! Anyone else coming from any other state would be in disbelief... there is NOTHING here that could justify these prices, oh and they're holding, thats the kicker!! The weather? Cold and damp, NOT warm California weather.... I'd leave here if I could...

Anonymous said...

AMEN!

Hopefully with:

1) the Economy tanking
2) no one hardly able to get loans
3) no first timers in the Marketplace
4) summers "busy" RE season a bust
5) more foreclosures added daily

Prices should drop like a rock thru the winter!!

Our day will come!

Anonymous said...

When you can buy a house for .1% of its peak price, then you might get people to take the housing market seriously. You could get that $500K suburban house you always wanted for 500.00, or buy the Playboy mansion for the same price you paid for a Plasma TV.

For what it's worth, it makes no sense for housing to appreciate in value if you ask me. Cars and other stuff don't usually gain value over time; why a house? Are homeowners special or something?

Anonymous said...

only a fool 'buys' houses. smart people get neg option i/o loans and live in a 4500 sq ft home for $1200 a month then walk away when the rate resets

Anonymous said...

Question for America:

Why are you against affordable housing?

Better: Why are you for Socialist manipulation using taxpayer debt?

Best laugh: Golly; we are so against this, but we have to do it for the good of the Cuntry.

Who are you kidding, Rube?

Anonymous said...

everyone has felt that for three years.

gutless and lazy said...

Open question for the board. (Prompted by Keith's net worth survey.) Does anyone else have STRONG feelings of guilt? I haven't lost a dime yet. In fact, my net worth has increased 5% in the last 12 months. (I moved from CA back to MA just over 3 years ago, and didnt buy a house). I went almost all cash July 07 and slightly shorted the markets.) I have nearly zero debt - I owe 5K on my 06 Prius. I'm sitting on a huge pile of cash. And I have complete mobility, all my options are open. BUT my friends and family are getting killed financially. Destroyed 401(k)s. Home values HAMMERED. Some even have CC debt. And even tho I warned them for years, and they completely mocked me, I still feel extreme guilt for being so much better off. WHY DO I HAVE SO MUCH GUILT???

brokersleaveyoubroke said...

In 2000, median income was 50,000. Median home price was 160,000. A median income American could afford a median priced house. In 2008, median income is still 50,000 but the median price house is 225,000. Now, only people making 75,000 can afford a median priced house. This is not rocket science. House prices need to drop or wages heve to go up. In a recession, median income usually drops so it looks like house prices are headed down some more.

gutless and lazy said...

Two words about today's market activity :

Successful Retest.

Anonymous said...

Whatever happened to the FHA235 Starter home? You know the 3 BR One and half bath, carport, FORMICA countertops (mine was Shasta Daisy) and NO fireplace? These were easy to get and a breeze to pay for. About 1100-1200 square feet. I still live in mine after Thirty Four years and numerous renevations and additions. I bought it for 25K and now if the market were clear, it would sell for around 250K. Some great investment I think! What happened to these fine deals? I raised my family in it, and now enjoy its paid for taste. I would not trade it for any McMansion I have ever seen. Even though it had a treasonous THIRTY YEAR Front Loaded Interest Mortgage, I still think it was a great deal for me. I am now retired, debt (totally) free, and as happy as if I had good sense!!!!! Bring back the FHA 235's!!!!!

Anonymous said...

Fu*king retreads

Anonymous said...

Fox attacks Cramer

Anonymous said...

My area of FL had 95% increase in med price from ‘02 to ‘05. Recent SS and REO lists indicate only 50% to 65% off peak, so we have a way to go there, especially with 800 foreclosures a month.

Still it takes sellers THAT LONG in denial that their POS salt box is going to sell for near their purchase price.

Some sellers still list at a profit or break-even point from peak! Ludicrous!

The banks have been hiding the commercial defaults waiting to see what gifts Hanky Poo has for them.

Here we are bound to see 1,000’s of sq.ft of vacant condos, office and retail space, and 1000’s of acres of residential land go into foreclosure. The expected holding period and risk in buying these properties will drive prices below sea level.

We have a long way to go down. Can’t stop the train – or as the old crazy guy said last night - put a floor on property values. The bailout does nothing for the housing market.

Anonymous said...

But a nice fellow on CNN said now is the best time to buy and price will never be this low again.

Anonymous said...

GM likely to file BK by Friday!
Yikes!


http://tinyurl.com/3hoj7f

Anonymous said...

@ 2nd poster looking for buy-to-rent ratios, www.housingtracker.net

Chris said...

From the Idiot in charge: (hat tip bigpicture.com)

"One other thing I've done, is I've called on private sector mortgage banks and banks to be more aggressive about lending money to first-time home buyers. And the response has been really good. There's a lot of people in this -- our communities around the country that deeply care about the issue of homeownership, and they've been responsive."

- George W. Bush, U.S. President, March 26, 2004.

f*cked saver said...

McStain is pandering for votes with his "put a floor under home prices" bullsh!t. But we all know Osama is just keeping his mouth shut about his plans to bail out the failed flippers and liar loan liars.
The 3174 people in the USA who didn't join the debt binge are f*cked. We will pay for this.

Anonymous said...

Why is no one talking about the call
to rewrite Bretton Woods? Seems like
the most important news.

Anonymous said...

Obama said to refinance the mortgages to their real value..ie, 'they don't have that much value anyway', he said (about the houses)or something to that effect last night. Bush was talking today about buying up the loans therefore keeping the prices on houses the same and out of reach for most everyone. If I understood it correctly.
Pre-fabs are selling like hot cakes here. I mean, that are made like trailers(?), but look like nice enough houses.
Of course Bush's plan comes stright from the pit of hell..as per usual.

OCPETE said...

gutless and lazy said...
Open question for the board. (Prompted by Keith's net worth survey.) Does anyone else have STRONG feelings of guilt? I haven't lost a dime yet. In fact, my net worth has increased 5% in the last 12 months. (I moved from CA back to MA just over 3 years ago, and didnt buy a house). I went almost all cash July 07 and slightly shorted the markets.) I have nearly zero debt - I owe 5K on my 06 Prius. I'm sitting on a huge pile of cash. And I have complete mobility, all my options are open. BUT my friends and family are getting killed financially. Destroyed 401(k)s. Home values HAMMERED. Some even have CC debt. And even tho I warned them for years, and they completely mocked me, I still feel extreme guilt for being so much better off. WHY DO I HAVE SO MUCH GUILT???

October 16, 2008 5:05 PM

Dude, I had the same exact conversation with my wife last weekend. We sold our Orange County House in 2006 and have been renting at the beach for the last couple years. I went 85% cash/CD's back in Nov 07' with my portfolio and have basically sat out all the carnage on Wall Street. Everyone I know has been getting killed and sharing their stories of pain. I don't want to constantly say "I told you so" so I just shut up and nod. But man, I feel guilty. It's not rational but that's just how I feel. I guess its compassion.

The fact is, I was warning all the same people for the last 3 years that this day was coming.

Cow_tipping said...

Yes now that people are suddenly aware that real estate can fall, and that Real estate agents can be liars ... yea ...
Cool.
Cow_tipping.

Anonymous said...

"...WHY DO I HAVE SO MUCH GUILT???..."

Because most people's capacity for self-deception if infinite: bedrock conservatives all for Socialism if there's a nickel in it for them.

People are so fucking dishonest there is no point pretending to discuss anything with them.

Do what you like cuntry, and do what you like government. You both have a real good ass-kicking coming.

edd said...

At some point there is likely
to be a negative bubble in
home prices.
It's important to keep that small and brief.

Deadheads can prattle on about their desire
to see a large negative bubble, but many
innocent people will be hurt badly if that happens.

Anonymous said...

WHY DO I HAVE SO MUCH GUILT???

---

I dont know, you're a soft mumma boy?

Harden the F%&k up and tell them "haha, I told you so"

whine whine I feel guilty whine whine ... sheesh

Lost Cause said...

Somebody had better tell John McCain.

les said...

Re: GM bankruptcy

GMAC should have never went in to the home mortgage business. Too much greed kills.

But, I'm sure the govt. will bail them out for $20 billion.

Anonymous said...

Maybe you feel guilty because you sold at an over-inflated price, and, let's face it, over-inflated housing prices are the crux of the problem (that and credit swaps).

In my case, I knew RE was a Ponzi scheme, but was forced to sell the house, so I don't feel in any way responsible for the bubble. And I am still transfixed by the tsunami.

Anonymous said...

ocpete:

I was at dinner with some friends and friends of friends. Got to talking to this one guy, said he lost $250K in stocks the past month. I felt bad for him, but I was really tempted to say, too fucking bad dude, you should have seen it coming.

Do I feel guilty for having the sense to understand what was going on around me? Hell no. I lost millions of dollars worth of stock options in the .com bust. I could have sold at any point on the way down. But I didn't. I was stupid and listened to people who kept saying don't worry, it will all come back, this is a temporary dip. So instead of getting out with 7 figures I got out with about $50K.

I sold my house in 2005, before the peak, because I didn't want to get crushed a second time in a decade. I even told my wife, this house could easily appreciate another $100K, but I don't care. I am getting out now and with something, and not riding it all down to nothing on a hope and prayer that the market magically bounces back.

So hell no I don't feel guilty. I was burned once and learned my lesson.

Anonymous said...

McStain is pandering for votes with his "put a floor under home prices" bullsh!t.
--------------------------------

and obama panders to the 30% of the voters who pay no taxes when he says he is going to raise taxes on the rich and give it to the poor. i bet obama will get 90% or more of the votes from the non-tax paying population.

Anonymous said...

still do not want to pay all the compounding brokerage fees on flipped housings, due to the fact im buying housings not royalities...........

blueski said...

BTW, when did the 30 year mortgage become the prevailing fashion? As a child I always recall people talking about their 20 year mortgages. And in other more sensible parts of the world, the 20 yr mortgage is still the norm.

Anonymous said...

.








DUH!









.

Anonymous said...

Open question for the board. (Prompted by Keith's net worth survey.) Does anyone else have STRONG feelings of guilt? I haven't lost a dime yet. In fact, my net worth has increased 5% in the last 12 months. (I moved from CA back to MA just over 3 years ago, and didnt buy a house). I went almost all cash July 07 and slightly shorted the markets.) I have nearly zero debt - I owe 5K on my 06 Prius. I'm sitting on a huge pile of cash. And I have complete mobility, all my options are open. BUT my friends and family are getting killed financially. Destroyed 401(k)s. Home values HAMMERED. Some even have CC debt. And even tho I warned them for years, and they completely mocked me, I still feel extreme guilt for being so much better off. WHY DO I HAVE SO MUCH GUILT???
---------------

It's perfectly fine to feel massive guilt when your fam & friends, whom you tried to guide, ignored you and are now flat busted. But whatever you do - DONT GIVE OR LEND THEM ANY MONEY! You should NEVER help people who wont help themselves. Never. They end up resenting you for it.

They also resent you if you don't help, too.

So what have you lost? Nothin.

Works for me. :)

To paraphrase Clinton - I feel your guilt.