Posted on 05/25/2007 1:01:40 PM PDT by GodGunsGuts
I love the "Home sales up 16%" headlines, as if that is great news when prices dropped 11%, which is only mentioned in small print in the body. I expect existing home prices to follow new home prices down. I'm also sure that someone will write a "well not in my neighborhood" response to this article. Anecdotes are meaningless when discussing nationwide prices.
bttt
You're funny. Buy any foreclosures yet? LOL!
I have traveled the entire west coast in the past two months, interviewing people who sold their homes.
How many people?
In my personal opinion, the feds ought to be prosecuting them under RICO for ponzi scheme games.
You don't know what a Ponzi scheme is, do you?
Secluded = five miles from nearest paved road
Natural setting = Hope your DR trimmer has plenty of gasoline
Of course, there are those of us who like ‘seculded’ and do own things like chainsaws, dr trimmers, etc.
Excerpt:
Housing prices will suffer from a "significant increase in defaults and foreclosures," he said, with affordability still a major issue. Wyss worried how hard the slump will hit already highly inflated housing markets. * * *
"The run up," Yun said, "was an investor-demand driven boom, and it was followed by an investor-driven collapse." * * *
New Home Price Crashed at Least 11% Already . . . plus another 8% says CNN quoting the NAR. The true figure is out there, somewhere (18% - 35%).
There are 3 houses on my block. My house is paid for and not for sale. The house next door is on the market and has been for 3 months. I believe one person looked at it. The other has been repossessed by the bank and will be auctioned off on June 20. $37000 is owed on the house and the people couldn’t make the payments. I’m thinking of making a bid (starting bid $10,000!) and renting it out. Of course this is Montana..........
Importantly, “a ‘Ponzi’ finance unit must increase its outstanding debt in order to meet its financial obligations.” Such a structure is patently unsustainable. And with the U.S. now running a current account deficit of more than $1 billion daily, there is “no room for error.
How many times have you heard local radio commercials advise home buyers to refinance ? These stupid ads are running nonstop 24/7 out here. They constantly tell people to go further into debt.
'Consolidate all your credit cards payments' and 'buy a new house and get an SUV' are classic examples of Ponzi finance principles.
Just like saying: "Dig and little deeper. You almost have a grave" . . .
Excellent graph.
Your prediction in 2003 was that housing was "at it's tip-top peak". Have prices dropped to the 2003 level anywhere in the country?
Now thats funny. It takes gonads to be wrong for four years then claim you ‘nailed it’ five months ago. But what would I know, I’m just some young geezer who is way ahead of some loser who cashed out in 2003.
Sales of imaginary homes fell by 8% during the same period.
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