Housing bust is a bust

Waterbury Republican-American ^ | October 2, 2006 | Nicolas Restinas (A.P.)

[Brilliant]

Housing doesn't crash like the stock market does. It's an illiquid asset. It takes years to adjust, while the stock market can readjust in one day.

[Izzy Dunne]

So the Chicken Littles around FR will now announce that the sky is NOT falling, right?

[Graybeard58]

So the Chicken Littles around FR will now announce that the sky is NOT falling, right?

Don't hold your breath waiting for that to happen.

[100-Fold_Return]

Rush's "Seminar Callers," folks who are paid to promote the liberal agenda, will still have to come up with the economy tanking on this forum and elsewhere--for that's their job....

[D-Chivas]

I think most of the problem with the "bubble" relates to housing values in parts of the country that force middle class income earners to resort to interest-only mortgages that keep people upside down.

It's not a housing demand problem, it's a housing GREED problem on the part of sellers, agents, and mortgage lenders. Everybody wants to make money without doing anything, but buyers are the ones who will get screwed by going in over their heads.

[DCPatriot]

Prices in the Washington, DC/Maryland/Northern Virginia region will be down at least 10% to 15% by next Spring.

The law of supply and demand will dictate that happens. There is an increase of almost 300% more inventory right now than twelve months ago. With mortgage rates STILL hovering around 6% for a 30 year fixed...that spells trouble.

The 1st time buyer can rent the same square footage in the same neighborhood much cheaper than owning it right now. And without the 1st time buyers coming into the market...and why should they with prices falling....you have gridlock.

Just my two cents...as a realtor in this area for almost thirty years.

[Petronski]

Contradicting another gloomy seer, Chicken Little, the sky is not falling.

LOL

[DCPatriot]

Just how are agents displaying GREED today?

There are a truckload of inexperienced agents willing to work for almost nothing. Hire one of those if you think you will save money.

[ikka]

I don't see a lot of facts to back up all the assertions made in the article.

[ground_fog]

"STOCKS CAN READHJUST IN ONE DAY"

Took 5 years for the Dow to bounce back

[DCPatriot]

And in the Washington DC region, it took ten years for real estate prices to come back from the slide of 1990.

[Moonman62]

It's not a housing demand problem, it's a housing GREED problem on the part of sellers, agents, and mortgage lenders. Everybody wants to make money without doing anything, but buyers are the ones who will get screwed by going in over their heads.

How do you figure they aren't doing anything? Risking capital, maintenance, paying taxes, and paying insurance isn't doing anything?

[misterrob]

Uh, that trend started downward in 2000 and didn't settle for a few years with the 2001 recession and the events and aftermath of 9-11.

[misterrob]

They have already declined...

[gogeo]

But...but...but...WE'RE ALL GONNA DIE!!!!!!

[Toddsterpatriot]

We're talking about readjusting lower.

[billhilly]

"It's not a housing demand problem, it's a housing GREED problem on the part of sellers, agents, and mortgage lenders. Everybody wants to make money without doing anything, but buyers are the ones who will get screwed by going in over their heads."

I've been in my house for 32 years and paid every payment. Is that doing nothing?

[DCPatriot]

Just ratified a contract on a gorgeous end-unit townhome for $424,900 with the sellers paying $10K toward buyers closing costs.

Six months ago, we sold an interior unit (same model)on the same street for $444,000 in just 4 days.

[TET1968]

You will always have young couples who thinks a 900 sf space in a new condo located in Brooklyn for $700,000 "is such a deal".Never mind that the door swings alone wipe out half the square footage,you get two closets and you can't stand upright in the "loft" area. Never mind that just south east of the apartment,mysterious fires are taking place weekly while developers watch, gas cans in hand.
My point is, you have to factor in ignorance and stupidity whenever you discuss the housing market.