tag:blogger.com,1999:blog-18675105.post2280959984730587952..comments2023-12-30T10:06:37.450+00:00Comments on HousingPANIC - The Housing Bubble Blog with an Attitude Problem, 2005 - 2008: A HousingPANIC Message to Congress, the Fed, realtors, Bankers, the MSM, the Bush Administration and anyone concerned about the US housing market:bloggerhttp://www.blogger.com/profile/06585266242070350399noreply@blogger.comBlogger53125tag:blogger.com,1999:blog-18675105.post-63767904665437100702008-03-11T02:13:00.000+00:002008-03-11T02:13:00.000+00:00"given the inflationary pressures we will see in t..."given the inflationary pressures we will see in the near term, rents could easily go up 10-20% a year"<BR/><BR/>---My rent dropped 28% from last year. Vacancies are increasing as rents continue to fall.---<BR/><BR/>There's a huge supply of newly formed condos which are being converted to apartments due to the lack of sales, in addition to the homes which are being subdivided into rental spaces. All and all, there'll be a huge supply deluge of places to live in, in the years ahead, to maintain a deflationary force on housing.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-19701163382950790122008-03-10T21:08:00.000+00:002008-03-10T21:08:00.000+00:00I say it's as much tied to the wages as it is to t...I say it's as much tied to the wages as it is to the rents. If people cannot afford the 30 year fixed mortgages without tricks and scams, then it is overpriced. The London prices can be supported because that is the only major city in the entire country. With the USA, you have dozens of metro areas. Where will all the money come from to support the bubble prices for millions of empty McMansions? The Fed can inflate all it wants, but if the inflation doesn't find its way to salaries, then prices will dropAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-81320540696591883472008-03-10T18:50:00.000+00:002008-03-10T18:50:00.000+00:00The problem many of you are missing is that, we do...The problem many of you are missing is that, we don't produce anything in this country anymore, at all, period. As such, with a deflating currency, everything becomes more expensive - food, clothes, energy, maintenance, etc. Thus everything - including rents - will continue to skyrocket...except *your* pay.<BR/><BR/>Just because you suck and don't know how to get ahead in a Republican-administration doesn't mean the rest of us have those issues. <BR/><BR/>Thank you, come again.<BR/><BR/>-HHdAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-39566627779806023892008-03-10T05:41:00.000+00:002008-03-10T05:41:00.000+00:00Right now in the financial markets we have a multi...Right now in the financial markets we have a multi-way Mexican standoff. In one corner is the Fed, in others there are hedge funds, lenders, FBers, pension funds, the gummint, insurers- all wondering what the next move will be, who will make it, and figuring out all the options they have available how they and how their counterparts, will react. <BR/><BR/>All in <A HREF="http://imdb.com/name/nm0001603/" REL="nofollow">Peckinpah</A> slow-motion. Brilliant.<BR/><BR/>We got anything besides popcorn here?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-18091920710805098722008-03-10T03:24:00.000+00:002008-03-10T03:24:00.000+00:00"""Once people realize they can get a deal on a ni..."""<BR/>Once people realize they can get a deal on a nice house in a good area and a massively reduced price<BR/>"""<BR/><BR/>The problem with that is that it's no longer a good area, once half the vacant houses have been converted into meth factories, and city revenues have fallen so much that there's only one police officer who rides a push bike to crime scenes...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-89969063123068443062008-03-10T02:57:00.000+00:002008-03-10T02:57:00.000+00:00In Bellevue WA, I just rented a house for $1450/mo...In Bellevue WA, I just rented a house for $1450/month, it was renovated 2 years ago. I looked it up on Redfin to see the sale price (Landlords bought it last year as an investment property)... they paid $850k for it... so tell me, how is it this is anywhere close to a rational market? My one concern is, if i'm only paying $1450 and that is not covering their mortgage payment... how long before the bank Forcloses on them and kicks me out...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-42424818331963648902008-03-10T00:49:00.000+00:002008-03-10T00:49:00.000+00:00Guys,Every day I'm driving through "Bubble-proof S...Guys,<BR/>Every day I'm driving through "Bubble-proof Seattle" and see more and more "For Sale", "Open House", etc... signs. Also I see a lot of new developments. <BR/>Seattle is NOT BUBBLE PROOF. <BR/>Can I buy now? Yes. Will I buy now? Hell no.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-16531875735880872712008-03-10T00:40:00.000+00:002008-03-10T00:40:00.000+00:00given the inflationary pressures we will see in th...<B>given the inflationary pressures we will see in the near term, rents could easily go up 10-20% a year meaning by 2010 the ratio will have fallen back to 2000 levels without any further price drops</B><BR/><BR/>Only if average salary goes up 10-20% a year.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-11171894204675549752008-03-09T20:56:00.000+00:002008-03-09T20:56:00.000+00:00The banks and homebuilders will be the ones that f...<I>The banks and homebuilders will be the ones that force FBs to realize their homes aren't worth what they think they are.</I><BR/><BR/>You hit the nail on the head.<BR/><BR/>The catalyst for a more sweeping downturn will be the banks selling at firesale prices to get the properties off of their books.<BR/><BR/>As this becomes more prevalent, I foresee people beginning to change their focus to seriously looking at REOs. Unlike previous typical foreclosures in history, this will be one of the first times that well to do and more desirable areas will be seeing massive defaults. Once people realize they can get a deal on a nice house in a good area and a massively reduced price (and without having to pay closing costs), you will see a paradigm shift in the way they think.<BR/><BR/>That in turn will eventually lead to a panic amongst stubborn sellers. Once they realize things are spiraling down, they will start slashing as fast as they can to try to offload their properties. This will be exacerbated by the retiring baby boomers who will need money to fund their retirement and will likely need to sell property to get those funds. (I don't think you will see much of a reverse mortgage business by that time)<BR/><BR/>The above scenario will likely take quite some time to eventually play out. Like most bubbles, the largest drops are always towards the end. So despite the decreases you have seen thus far, it is nothing compared to the carnage that is coming.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-34389571954202023352008-03-09T18:48:00.000+00:002008-03-09T18:48:00.000+00:00Anyone who doesn't vote for Osama is a rabid racis...Anyone who doesn't vote for Osama is a rabid racist. So all you white folks get out there and prove that you are not a racist. Vote OsamaAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-32741559471197073322008-03-09T18:23:00.000+00:002008-03-09T18:23:00.000+00:00"given the inflationary pressures we will see in t...<I>"given the inflationary pressures we will see in the near term, rents could easily go up 10-20% a year meaning by 2010 the ratio will have fallen back to 2000 levels without any further price drops"</I><BR/><BR/>My rent dropped 28% from last year. Vacancies are increasing as rents continue to fall. <BR/><BR/>Please read an economics 101 book.Frank Rhttps://www.blogger.com/profile/07625929422222490759noreply@blogger.comtag:blogger.com,1999:blog-18675105.post-46342840848358931512008-03-09T18:17:00.000+00:002008-03-09T18:17:00.000+00:00The government has announced a new plan to get the...The government has announced a new plan to get the home price/rent ratio back in historical norm. Today a minimum rent, 40% higher than todays average, will be established. Problem solved, case closed. :*)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-83920837365386148422008-03-09T17:27:00.000+00:002008-03-09T17:27:00.000+00:00Don't be naive, this housing bubble was deliberate...Don't be naive, this housing bubble was deliberately set by our governement and the banking frims it slleps with. The purpose - devalue the dollar and keep inflation high so they can usher in the AMERO without riots in the street. The NAU is coming sooner thatn you think - it will happen in our lifetime.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-90445988982413096232008-03-09T17:12:00.000+00:002008-03-09T17:12:00.000+00:00Anyone have a guess as to what formula they are us...Anyone have a guess as to what formula they are using to calculate the P/E?<BR/><BR/>Is it Price/Annual Rent? Is the formula that simple?<BR/><BR/>Peace BrothersAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-28992793918589152032008-03-09T16:35:00.000+00:002008-03-09T16:35:00.000+00:00"...Unless the sellers bring this sh*t way down......"...Unless the sellers bring this sh*t way down.<BR/><BR/>...Which they won't."<BR/><BR/>The banks and homebuilders will be the ones that force FBs to realize their homes aren't worth what they think they are.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-79785872306259318372008-03-09T15:00:00.000+00:002008-03-09T15:00:00.000+00:00"Get housing prices, and the home price to income ..."Get housing prices, and the home price to income and home price to rent ratios, back to their historical means." Amen Brother Keith! Too bad the feds, the realtors, and all the buyers who wanted to make a killing are going to spin this simple fact until the whole thing crashes. This is what happens when people try to make a fortune off of a basis NECESSITY. Thanks for your blog.<BR/><BR/> BTAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-65801678464236660732008-03-09T14:12:00.000+00:002008-03-09T14:12:00.000+00:00"The problem that we face today was unanticipated"..."The problem that we face today was unanticipated" My badAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-56436191951109947572008-03-09T14:09:00.000+00:002008-03-09T14:09:00.000+00:00The common perception among economists is that the...The common perception among economists is that the current housing bubble will be a relatively short-term affair.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-58043934557136669782008-03-09T12:16:00.000+00:002008-03-09T12:16:00.000+00:00Assuming we're at 137 now and need to return to 10...Assuming we're at 137 now and need to return to 100, that's a 27% drop. We'll drop at least that much. It's just not clear how long it will take. 10% price decline and 5% inflation will get us there in 2 years.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-85273172251796950902008-03-09T06:15:00.000+00:002008-03-09T06:15:00.000+00:00logic that will fall on deaf ears....logic that will fall on deaf ears....Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-63749755013261454462008-03-09T06:12:00.000+00:002008-03-09T06:12:00.000+00:00A M E NA M E NAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-1855040298628378942008-03-09T04:04:00.000+00:002008-03-09T04:04:00.000+00:00I just rented a house in North Seattle for 1800. T...I just rented a house in North Seattle for 1800. Two doors down a house was listed for sale for 730K. The houses are nearly identical; in fact I would wager they were built by the same builder back in the Twenties. No doubt the sale house is tricked out, but still, it's difficult to justify that kind of disparity.Lionelhttps://www.blogger.com/profile/12624026990027498835noreply@blogger.comtag:blogger.com,1999:blog-18675105.post-64924161271638739222008-03-09T03:50:00.000+00:002008-03-09T03:50:00.000+00:00You are on the 10th floor of a tall building and n...You are on the 10th floor of a tall building and need to get to the 1st floor in ONE BIG HURRY... efficiency expert keefer is brought in to give advice - keefer does careful computations of the timing of all the possible routes and then advises you to jump out the window, and after you hit ground, walk up to the first floor...<BR/><BR/> this is a brilliant solution and I can't for the life of me see what is wrong with it... but I do notice Keefer ALWAYS wants his fee in advance...Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-74733801335939958482008-03-09T03:03:00.000+00:002008-03-09T03:03:00.000+00:00This kind of shiz only happens to Courtney Love!Th...This kind of shiz only happens to Courtney Love!<BR/><BR/>The rock 'n' roll widow claims that she's been DEFRAUDED out of millions….by Kurt Cobain.<BR/><BR/>That's ride, according to Courtney, someone used the dead rocker's social security number to buy a $3.2 million.<BR/><BR/>How is that even possible????<BR/><BR/>“I would like to know how," says Love. "He should probably get his ass back home if that is the case.”<BR/><BR/>Courtney also claims that thieves set up 188 credit cards in her name!<BR/><BR/>"I knew it had been going on since when I went cuckoo — bananas — in 2003," explains Love. "It was fraud after fraud. But nobody believed me until now. I did a check on my deceased husband’s social security number and he has a house in New Brunswick, New Jersey. He bought it last year."<BR/><BR/>Courtney met with police this week to investigate her claims.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-18675105.post-89387585537101548472008-03-09T01:37:00.000+00:002008-03-09T01:37:00.000+00:00In other words, "the price is wrong, Bob."In other words, "the price is wrong, Bob."Anonymousnoreply@blogger.com