Posted on 11/05/2007 6:17:03 AM PST by Diana in Wisconsin
Insurance is under $1,000; much of the value is in the land and I carry HIGH deductibles.
Taxes have gone from $1,000 per year when I bought it to $6,000 per year today.
Your right...............SELL NOW!
LOL.
TOO LATE! MER is down 50%, BSC down 40%, C is down 40%, ANK down 75%, CFC down 75% - shall I go on?
And just wait until consumer spending slows as the house ATM is now closed.
No LOL
Dang. Looks like a buying opportunity. I might just buy some financials stocks today........
What is the valuation of a piece of real estate (home and land) going to be now if 60% of the wage earners can never even think of the purchasing of such?
I'm just curious at the amount of 'shrink-back' coming in real estate prices (values), the delay period for the 'next recovery / growth period', and will the local gov's and insurance companies scale back their valuations accordingly (I know that's a pipe dream in reality)?
Just a concern now.....
The US dollar will continue its slide through the Nov. '08 election, meaning, imports will cost more, especially crude oil, gasoline, natural gas, which, in turns, increases the costs of domestically made goods / food, etc.
The dollar weakness now is a result of too much consumer debt and the Fed's refusing to stop printing up so much cash when we have serious trade deficits w/ respect to OPEC and China....
I ain't gonna be pretty.
In a good rel estate market here in NC, I noticed a new subdivision going in and the sign originally said "Starting in the $270's". That was on Friday. This morning it read: "Starting in the $240's"
I would WAIT until at least 15 Nov - and if you don't know what is going to happen on 15 Nov to the balance sheets of financial stocks - you have not done your homework.
Mike
Nope. The S&L crisis lost real money. In contrast, the sub-prime crisis is predominantly paper write-downs of debt on the one hand and of housing prices on the other.
Real money losses vs paper losses. The S&L crisis was bigger in every way except in impact on the Secondary Market's liquidity.
...and our economy was half the size then as it is today.
Home prices haven't been going up in over a year, and new sub-prime loans haven't been made on a regular basis for the past 6 months, so the "use your house as an ATM by refinancing" angle has been squashed for months or longer.
...yet our GDP has grown considerably in spite of said ATM theory not being in play.
Salaries are up. Employment is up. Productivity is up. Thus, so too is our overall economy.
Take $200 Billion out of our $12 Trillion GDP and that's where we'll be mid-2008.
With stocks on a downturn, you can never pay too much, just buy too soon ;)
18 months from the first credit injection by the Fed is a good rule of thumb for the turnaround to begin...so, end of next year.
The selling has started a downward spiral and nobody knows when it will end. The Fed can't stop people from selling a failing investment. All they can do is hyperinflate to try to save the banks.
BUMP
“Then the housing bubble burst. The illegal renters started losing work and were evicted. The landlords couldn’t service the mortgage and/or with lowering values the mortgages went upside down so it was easy to walk away and foreclose.”
In AZ the unemployment is less than 4% but the foreclosure rate is at a 8 year high. The home builders are still building houses!
The million’s of “New workers” that have come to the state will soon be out of work and will just pick up and leave.
We are seeing just the start of the housing price fall.
The house across the street is listed for $390,000 and is in worse shape than mine, which I paid $155,000 5 years ago. I suspect it will sell in a year or so for $165 or less!
Everyone in AZ is frozen in their houses because of the number of homes for sale compared to buyers.
I blame the banks for all of the housing bubble. They deserve what they get.
Unfortunately, what they (the banks) are gonna get is your tax dollars to bail ‘em out.
That “Congressional Committee Report” was ginned up by the Democrats on the Joint Economic Committee and is not credible. It mostly used “data” fed to it by leftwing consumer groups and trial lawyer fronts. It is Chuck Schumer’s partisan mouthpiece. The nonpartisan GAO issued a less biased report a few weeks ago with much smaller projections of foreclosures and lender losses.
Dang. Looks like a buying opportunity. I might just buy some financials stocks today........
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.......you like catching falling knives?
Real money losses vs paper losses.
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I have a $100.00 bill in my pocket ,,, I think I’ll wad it up and throw it away ... after all it’s just a piece of paper, it’s not real goods.....
Where are you going to throw it? I might swing by that way.
Seriously, Southback is right about it being paper losses.
“paper losses” is a figure of speech for a value being lowered in the print of an accounting table.
It does *not* mean that you are throwing fiat paper currency out of your window as you drive by a crowd of starving teens.
It just means that $10 Million in appraised value is now $5 million in estimated value on a piece of paper that you have to show IRS agents and private investors, hypothetically.
Have you heard the new slang term for these "asset backed securities?"
Ass-paper.
I kid you not.
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