Posted on 09/25/2006 8:41:42 AM PDT by GodGunsGuts
Sep 20, 2006
4 Major California Home Markets See Drop In Prices
(AP) LOS ANGELES A real estate research firm says the median price of a California home increased last month at the slowest annual rate in nine years.
Four counties actually saw price declines. Among the largest real estate markets, according to DataQuick Information Systems, the steepest drop was 6.7 percent in San Mateo County. Other decreases were seen in Marin County (2.3 percent), San Diego County (2.2 percent) and Alameda County (1.5 percent).
Appreciation in Sonoma, Santa Clara, San Francisco and Contra Costa counties was essentially flat.
The statewide median price was $472,000 in August, a 3.5 percent hike over the year-ago period. It was the slowest increase since June 1997, when statewide home prices rose just 2.8 percent.
(© 2006 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
I held on to my last one from 1983 until 2001. The value appreciated from $105,000 to $242,000. A year after I sold it, it topped out at $500,000. No big deal. My current house is 3900 sq ft on 1/3 acre. Acquired for $180,000 in October 2000. I own it free and clear. Even better, it's not in California.
Maybe you should post the speech? Then we can discuss whether he encouraged the use of ARMs.
I don't have time to go dig up his original speech, but the following article points out the relevant quotes:
LOL! There were no relevant quotes in that article.
From the article:
"An extended period of low interest rates and extra cash from mortgage refinancing has given borrowers flexibility (again, my emphasis) to better manage their debt.” So you see, this cash-out-mortgage-facilitated debt assumption is termed "flexibility" on his part, not an increase in leverage. Rather than fun with numbers, he has fun with definitions.
Calif. median home price - July 06: $567,360 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region July 06: Santa Barbara So. Coast $1,075,000 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region July 06: High Desert $333,330 (Source: C.A.R.)
Calif. First-time Buyer Affordability Index - Second Quarter 06:
23 percent (Source: C.A.R.) Mortgage rates - week ending 9/14:
30-yr. fixed: 6.43%; Fees/points: 0.5%
15-yr. fixed: 6.11%; Fees/points: 0.4%
1-yr. adjustable: 5.60%; Fees/points: 0.7%
(Source: Freddie Mac)
CAR= Cal Assoc of Realtors
Twisted logician makes short shrift of bankruptcy
Maybe you should read the article a little closer?
Post 186.
You may be interested in the numbers in post 186.
Didn't this same exact argument happen yesterday?
We might as well just give in and say Greenspan never literally, precisely, specifically, exclusively, concisely, enthusiastically, unambiguously, unashamedly, and without reservation endorsed ARMS.
I wonder why, then, if an illegal immigrant with a criminal background walked into a bank with an expired library card he could walk out with a $300,000 equity loan?
;-)
PS: according to some industry study out of Chicago, they're now saying Seattle markets are 38% overvalued. And this is the industry talkin, not us J6P's.
Maybe you could post the part of his speech where he hinted that everyone or anyone should run out and get an ARM?
I wonder why, then, if an illegal immigrant with a criminal background walked into a bank with an expired library card he could walk out with a $300,000 equity loan?
Now Greenspan said illegals should get loans? That's funny!
LOL! I don't recall the argument. Could you post it so I can see what happened last time. Thanks--GGG
Damn you're dense.
As the quote clearly demonstrates, Greenspan encouraged people to take out ARMs to finance our (temporary) economic recovery.
Huh?
"An extended period of low interest rates and extra cash from mortgage refinancing has given borrowers flexibility (again, my emphasis) to better manage their debt.” So you see, this cash-out-mortgage-facilitated debt assumption is termed "flexibility" on his part, not an increase in leverage. Rather than fun with numbers, he has fun with definitions.
If you could read, you'd see the quote (above) did not mention ARMs.
Are you defending Greenspan's comments?
The comment where he told everyone to get an ARM? Which you can't find yet?
Do you think Greenspan was unaware that his comments would be interpreted as giving a green light to push/apply for risky ARM loans?
Still waiting for you to provide the correct comment.
Here's the beginning.
http://www.freerepublic.com/focus/f-news/1706761/posts?q=1&&page=301#394
Same old played out tired stuff.
i see...build a straw man and use it against who(whom?) ever.
so, which are you ...lambchop or sheri lewis ?
From Greenspan's speech. He's clearly encouraging ARMs:
One way homeowners attempt to manage their payment risk is to use fixed-rate mortgages, which typically allow homeowners to prepay their debt when interest rates fall but do not involve an increase in payments when interest rates rise. Homeowners pay a lot of money for the right to refinance and for the insurance against increasing mortgage payments. Calculations by market analysts of the "option adjusted spread" on mortgages suggest that the cost of these benefits conferred by fixed-rate mortgages can range from 0.5 percent to 1.2 percent, raising homeowners' annual after-tax mortgage payments by several thousand dollars. Indeed, recent research within the Federal Reserve suggests that many homeowners might have saved tens of thousands of dollars had they held adjustable-rate mortgages rather than fixed-rate mortgages during the past decade, though this would not have been the case, of course, had interest rates trended sharply upward.
American homeowners clearly like the certainty of fixed mortgage payments. This preference is in striking contrast to the situation in some other countries, where adjustable-rate mortgages are far more common and where efforts to introduce American-type fixed-rate mortgages generally have not been successful. Fixed-rate mortgages seem unduly expensive to households in other countries. One possible reason is that these mortgages effectively charge homeowners high fees for protection against rising interest rates and for the right to refinance.
American consumers might benefit if lenders provided greater mortgage product alternatives to the traditional fixed-rate mortgage. To the degree that households are driven by fears of payment shocks but are willing to manage their own interest rate risks, the traditional fixed-rate mortgage may be an expensive method of financing a home.
http://www.federalreserve.gov/boardDocs/speeches/2004/20040223/default.htm
In Feb 2004 Greeny said the following: "American consumers might benefit if lenders provided greater mortgage product alternatives to the traditional fixed-rate mortgage"
A quick search of Google for GREENSPAN ARMS yields 683,000 hits. A quick perusal of the first hundred or so will show that his comments were interpreted as a ringing endorsement of ARMS (as well as other types of terms like interest only).
Unless you can absolutely contradict the facts I show here, give it up dude. Yur punked.
Great minds think alike!!
LOL! Actually, you pointed me to the quote when you provided the link to the last debate. But what the heck, I'll take the complement, but only if you allow me to say RIGHT BACK AT YA!
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