[the invisib1e hand]

just don't see the market as flooded. maybe there's not enough people who can get the credit to buy something, but the population isn't decreasing.

[Dutchboy88]

Insofar as the banks are sitting on a lot of REO, the incentive is to keep the interest rates down for the short term. After all, the cost of keeping a $ 250,000 foreclosed mortgage on the books is only about $ 625 per year (250K x 1/4% interest paid on savings). When the owned inventory is gone, the rental rate on interest will rise as will savings account interest. Supply/demand.

[mamelukesabre]

They didn’t even mention skyrocketing property taxes and utilities...and ever more strict codes to comply with...with each mandatory upgrade requiring permits and licensed contractors who themselves are over-burdened with strangling regulations.

[GrouchoTex]

Ain’t this news about 3 years after the fact?

[dfwgator]

What will that do to rents? I own several rental properties and looking for more.

[himno hero]

THe answer is in employment/ unemployment.

Which is growing?

Remember.... small business did not build that...

[himno hero]

THe answer is in employment/ unemployment.

Which is growing?

Remember.... small business did not build that...

[Buddy Sorrell]

The market needs to be left alone and not propped up by the Barney Franks and Zeroes of this world. If the market forces prices down, so be it.

[silverleaf]

If only 50% of college grads can find jobs and even then, many take low paying jobs, then that is our next generation of home buyers and family builders.

In some cities 50% of the mortgages are underwater and people cant sell their houses to move out up or down. So they aren't looking to relocate or trade up.

Add tax increases (and loss of tax deductions for mortgage interest) on anyone making middle income and above, and student loan debt to the mix and where will you find buyers for all those homes the boomers need to dump over the next 10 years, and that the builders want to build?

It just seems that demographics favors a shrinking home buyer market

[pieceofthepuzzle]

Makes me want to buy land. I’d much rather own fertile acreage than gold or any other investment. First, I love the idea of being ‘away from it all’ as much as possible (the more crazy the world becomes - as I see it - the more this is true). Second, if you have land, you can grow food etc. You can’t eat gold.

[mrsmith]

The government with the most powerful military in the world by far....

...won’t let the interest on it’s huge debt go up easily.

So I think it will be a while before rates go up much.

[MileHi]

ping

[blam]

"During his recent appearance on the Aftershock Survival Summit, Wiedemer provided startling evidence to support his claim that real estate prices could fall another 32 percent. "

Wow. That's hard to believe.