Posted on 03/24/2006 7:11:18 AM PST by Lunatic Fringe
I used to forecast economic data for a living. My opinion on new home sales was that the data are random.
The reason is there are only existing homes to buy. Local governments nad envirowackos have stopped most new home development so, there are no NEW homes to buy.
Sounds like a buyer's market....great news, since I'll be buying my first home in about three months.
--Why? There is a show on cable called "Flip this house" with Richard Davis, it is amazing to watch the transformation they perform. The show gave me ideas I will use to remodel our home
Well maybe "house flipper" isn't the right term, what do you call the guys who buy brand new homes, pay as little as possible and resell?
ping
Smart? Rich? ;)
The simple truth is about the interest generated by "bubble" stories. The media pump out these stories because home ownership is of interest to home owners and potential homeowners. That interest sells newspapers, magazines and viewership on TV. Sometimes these stories become self fulfilling, creating panic in those who want to sell, false hope to those who want to buy and general confusion. If the employment rate is high in a given area, homes will sell. Conversely, don't look for much in Gary, Indiana.
Good oberservation. I bet there are many old "goldbugs" on FR.
There are probably many folk in CDs and savings accounts who hope high interest rates. I've always found it strange that "savers" think they should be rewarded more than "investors" and "risk-takers."
It's just sour grapes because they screwed up and didn't get in on the boom themselves.
That would be "observation." (Oberservation...German, maybe?)
What do you call real estate agents?????
The sky is always falling, but only for Chicken Little.
I have a modest home and a nice little place at the lake. I've remodeled both myself, paid for out of my pocket (Home Depot loves me). My place at the lake has double in value. My home has increased about 20%. I refianced both at 5.5% and have nice equity in both. I didn't do any second mortgages, equity loans, etc.
I'm happy. No gloom. No doom. If my home value goes down 10%, so what?
I find that show to be rather telling of our mindsets... they take a house that may need some work, do a little cosmetic repair (rarely do they show serious structural work), and sell the house for up to 100% profit on their investment in some cases. It amazes me that people decide not to buy a house because of the way it was furnished or painted by the previous owner... Now the times they repair termite damage, etc, I'll give them more credit....
Now if there's a fool out there willing to pay a $40k premium for a coat of paint, then that's their own fault... but flippers who do little work and expect huge profits for little to no investment of their own labor I find annoying... but that's just me. :)
I remember that prediction. Nice job.
As an old man intent on dieing in my present home (no mortgage), I enjoy the sound of popping corn while I read these "bubble" threads.
};^)
:)We see it all the time down the shore.It's like being in Vegas.Big Money-Big Money-Big Money.
Never quite figured it out, but it's there.
Well, of course if you plan to hang onto your house, it doesn't matter what the market does, except to your heirs.
I will be hunting for a second home, keep the news coming
It's moved its way into condos and now single family housing.
Used to be the old folks moved in with the kids, but now antibiotics, joint prosthetics and modern appliances keep them in their homes longer. Given the immense size of the Baby Boomers compared to other cohorts, this results in a massive deficit in older homes for sale.
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