Obama and Bernake should just print up a fresh 120 Trillion and be done with it.
Housing prices aren’t the problem. It’s how much people owe on the inflated products they bought that is the problem. Now we have this huge oversupply that’s hurting everyone.
I’m in Real Estate. We are hoping it only goes down 20% more. There are so many bank owned out there that one has a hard time seeing an end to this in the next couple years. We also have the added benefit of interest rate going up dramatically any minute.
Karl Denninger (Market-Ticker.org) agrees.
Has Schiff ever been wrong? I remember when he was ridiculed about five years ago for predicting that real estate prices were going to crash and burn.
The house I'm in now I rent from a friend of mine, is a little bit smaller, but he paid 190k cash for it 11 years ago.
The problem is also the lending.
Banks have raised the bar so high that no one except cash buyers can qualify for the credit requirements.
A realtor friend said she couldn’t complete a sale for a couple with something like 30% down and a high 700s credit score.
How much did housing prices drop across the whole nation during 2010? Does anyone know? There were expectations at the beginning of the year that the drop would be 12%.
May just be time to walk from my house (100k upside down), save money for a year while being foreclosed on and rent / buy another house at a deep discount. Sounds moraly questionable but the banks dont exactly apply morals to what they do now do they?
And of course the AP and Fox News (who are infiltrated by a number of liberals) reported this morning on the their radio how the housing market had upward signs with sales and increased interest rates...and never mentioned any of this.
Schiff is an optimist!
Based on the experience of other countries who have undergone similar economic circumstances, housing prices will fall 90 percent or more in real terms when we begin to experience more of the effects of serious inflation / hyperinflation. Here are some of the reasons why:
Fannie, Freddie, FHA and other government programs and guarantees will become worthless and thus ineffective. The Feds simply cannot afford to pay off in the event of default.
I agree with his partial analysis, but there’s more to be considered. It appears that commodities—especially fuel—will be going up over the next year and a half. Imagine retirees with mortgages, after heating fuel (propane, coal-fired electricity, natural gas, etc.), vehicle fuel and food go up another 25% or so. Many unforeseen foreclosures result—not just the ARMs coming home to roost next year.
does that include residential apartment buildings?
His analysis is too simple. It would be more appropriate to see regional numbers. Plus, houses now are not the same as houses 100 years ago or even twenty years ago.
“I agree with Schiff 10000000%”
Ditto. Its not going to get better for a long time.
Average median home price historically adjusted for inflation is 100k...we are still about 170-180k average...has to drop below 100k before rising to equalize at the historical average...watching this metric is key it will be the best indicator on when to buy!
There will be huge opportunities for those that are patient and watch the market closely.
Bump for when I need a dose of reality