I know a lot of people that must work two jobs each to maintain their lifestyle. You just can't do that forever.
I can only hope this is true.
Getting adjustable-rate mortgages two or three years ago when rates obviously were bottoming was a huge, classic mistake.
I'm seeing more and more 'for sale' signs each day on my drive home from work.
The first wave is already bailing...
Real estate markets climb gradually.
But they come down with a "bump."
This is interesting for the Denver market, as I thought it was just starting to really recover from the dot com bust. I would have expected this statistic three years ago, when I saw homes for sale for 6-9 months, and then taken back off the market.
That's not a good sign. Rising mortgage rates, aggressive refinancing in which owners pulled out all or most of their equity, and homes bought with no down payments are driving foreclosures,
More BAD signs. Too much debt.
He said many buyers of homes priced under $300,000 who locked in adjustable rate mortgages within the past few years are finding their monthly payments rising by $100 or $200.
That's why people are refinacing, drowning in debt. They can't pay the bills.
"When they go to sell the home, they're finding that their home is worth less than their mortgage," he said.
That's the killer. If this trend spreads, look out! The bubble is going to bust. Once interest shoots up, it's all over.
Then we will see how good for America all these illegals are when people look for that second job to keep the mortgage paid.
BS. They aren't rising across America. Go sell your Chicken Little routine somewhere else.
I really look forward to your posts, ex-Texan. You get hammered pretty bad, but I think you're right on with all the reports.
I sold and bought almost two years ago. I have about 6 buying and selling forums in my bookmarks that I visit everyday still...they're so addicting. People are hurting with selling. It's doom and gloom. I've chatted with people all across the US that have homes on the market and nothing is moving.
I have no stakes in the selling and buying game. I just wanted to let you know that I enjoy your posts and I believe you're reporting exactly what I'm seeing.
r-e-g-i-o-n-a-l
mayhaps.
MOOB!
Ex Tex, I want to commend you for your fine efforts in sounding the bubble alarm. You have endured a tremendous amount of abuse, yet you continued to march forward. It’s difficult to tell people what they don’t want to hear, most especially those with a vested interest in the housing market. I am sure that many here have benefited in one way or another from your advice.
The chickens are coming home to roost.
Can't happen soon enough for me.
Whole buncha people been living in fairy land for the past few years. And they're about to learn there ain't no free lunch!
Give it a rest. You've been predicting this for over three years. You are the willie green of housing.
It is a market by market trend. We have been looking for a home in the SLC area for about six months. The homes in our target range last little more than two days before selling.
True we are probably looking "above median" but about twice what I'd have to pay in southern Alabama.
I'm of the belief that, like politics, real estate is local.
P.S. If you know of any good deals in SLC area ping me!
Yes, this could be predicted because we just closed on our new home today and aren't putting our old one on the market for a couple more weeks. Perfect timing for a bubble burst!
You mean, the Fed raised interest rates 15 times in 2 years, and less people are buying homes!?
That is amazing. Maybe we need a multi-million dollar commission to "study" this phenomenon?
It's a good thing they did this and stopped the Economy from "overheating."
I live in the suburban NYC area. The local paper had a front page article this morning about the local real estate market. Although prices are up year over year, that is only because there were a handful of sales in the $2 million to $4 million range that drove up the averages. The most significant bit of information in the article is that inventories are way up as is the average time on the market. Also, I recently returned from a trip to South Florida, where I go several times a year. For the first time in a long long time I saw ads that read "make me an offer," "motivated seller," and "seller will hold paper," all of which suggest a sluggish market. And in both locations I saw lots of evidence that the actual selling price of houses was significantly less than the list price.