Posted on 08/06/2006 8:59:22 AM PDT by ex-Texan
Nice try for using that misleading graph showing how dismal things are as "proof" of your point. That takes cajones!
You didn't hit the trough. Our mortgage is 4.5 % fixed for 10 years incepting May 2004.
That doesn't make sense. What do you gain by renting as opposed to owning?
Buy gold. Wait for gold and interest rates to peak. Sell gold and buy 15% treasuries.
Fortunes were made in 1980 and they will be made again. 2009 ? 2014 ?.
The Fed perpetrates this cycle on the backs of the middle class.
This time could be the mother of all busts (MOAB) due to unprecedented debt levels.
Many are projecting hyperinflation instead of deflation this time around.
BUMP
Sorry to catch you last night just before bedtime, maybe now we've all had a good night's sleep and our morning coffee it'll be easier.
Please bear with me; I'm obviously missing something.
What I'm seeing is that over the past one and a half decades the average US household has gone from owing $30k on their $85k house, to now owing $65k on their $150k house. I'm seeing how our bottom lines have improved by $30k (btw that's real dollars we're talking about here), but you're seeing something else that you're saying is "dismal".
Off hand, my take matches with the fact that mortgage foreclosures have been leveling down for years now.
Only other possibility that makes sense is that you hate all lending and borrowing. A lot of people oppose any loaning with interest. Muslims do. Catholics did for centuries. A lot of good Americans still take that position. That's fine; it's just not my belief.
Scooping up my dogs crap is a more rewarding experience than reading ex-tex's fecal matter. At least the crap was useful dog food at one point.
Yeah ... 10 year notes are typically .6% - .7% lower than a 30 year note ... I just couldn't gag down the extra $800/month in the short term. Then again, I'll be paying on mine while you're taking vacations in the Bahamas.
Still, all in all, we were happy we took the plunge when we did.
LOL!
This morning I woke up to find that he'd dropped some on my desktop in post 41, I was just glad I'd spotted it in time and I hadn't tracked across the living room carpet...
You said,
"RE has already gone down 20% in many parts of CA."
I gather that you are not aware that there is an important difference between "sales rate" and "sales price".
I hope this report, published by the C.A.R. will help clear that up for you:
"Tuesday, July 25, 2006
C.A.R. reports median price of a home in California at $575,800 in June, up 6.2 percent from year ago; sales decrease 26.3 percent..."
In other words, although the NUMBER of home sales in CA has declined, median home PRICES continue to rise.
IMHO, a person does not help his credibility by consistently getting his "facts" wrong.
"Few people remember the late 1970s. At that time, I got a 10% mortgage loan only because it was a VA loan. I had friends with conventional mortgage loans that were as high as 14%."
I was a pre-teen then and Dad had just finished his apprenticeships and got his first Really Important Job, so we moved from inner-city Milwaukee where we rented to a home in the suburbs around Madison, WI. (Man, were we moving UP in life, LOL!)
I remember my folks very clearly sweating over interest rates at that time, and the price of gasoline if you could get it. My Grandpa saved the day and financed the home for them at a much more manageable rate of return. Dad did the same thing for me when I bought my first home at 25, and I'll do the same for our son when the time comes.
I've owned six homes so far, and have always made money on real estate, either rental units or single-family homes. If you want to make money in real estate, the trick is to buy no more than you can afford to lose. :)
And stay OUT of the coastal markets; there is plenty of affordable real estate in The Heartland. It ain't Rocket Science. ;)
There's nothing like opening one's eyes when it comes to getting a better handle on reality Not only does it give life a happier outlook, it's also a heck of a lot easier on the old 'gastro-intestinal' (if you get my drift).
We are blessed to live in good times with low interest rates. Doomers who point out this uptick that we've been having for the past few years, were also crying during the upticks in '88, '95, and '00. Previous upticks eventually led to new lows, but I say that all this tells us nothing about future interest trends. On the other hand, it's possible that all those tears might shed some light on why sea levels have been rising...
Repossessions, mortgage arrears and bankruptcies have all rocketed over the last year.
The number who risk losing their home has returned to levels not seen since the dark days of the early 1990s. * * * In the first six months (of 2006), one person was made insolvent every minute by the courts in England and Wales.
Yesterday's alarming official figures show how the culture of 'easy credit' and 'spend, not save' has begun to take its toll.
The number forced out of their homes soared by 76 per cent over the last year * * *
Take Your Head Out of the Sand
How could anybody who professes to live in Panama know what is really happening in America? How long have you lived outside the U.S.? Your original graphic is from 2000. It is over six years old! Why should people believe a guy who posts outdated news reports and outdated statistics to 'prove' his points? Moreover, your most recent graphic clearly shows foreclosures in 2005 rising above levels in the 1990's. Back then, thousands of people found themselves upside down in real estate. Especially hard hits were owners of commercial properties in downtown Los Angeles. You are the one who is cherry picking news reports. Not me. Yadda Yadda
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.