Case Shiller Feb ’08 numbers out

[Trojan4Life]

Finally…some sanity

Please don’t take this as ill-will toward those who bought at the peak, as I very nearly was one who did and just couldn’t stomach the burden or crazy terms, but this is the best news for our economy that we could have gotten this week, in my opinion.

Now, bad news about the market certainly isn’t going to get people out there buying homes, nor is it going to stop the hemmorage in sales and pricing, but it is evidence that the free-market is doing what is should do, regardless of our government’s attempts to counter it.

I told my wife 3 years ago we were going to have to leave California if we ever wanted to buy a home in a “decent” neighborhood with good schools. That has now changed, and I can now afford what someone with my salary should be able to afford. I will not buy until next summer at the earliest because I still think the market is inflated 15-20%, but we’re definitely heading in the right direction.

Trojan4life

[Fearful]

I am a little surprised that knowledge of the changed conforming loan limits did not affect the February slide.

Regarding your 15-20%, assuming the real (deflated by CPI) bottom is reached in 2012, and prices reach the 1997 nadir, the prices have now got about 40% yet to go on a nominal basis.

[Fearful]

I am a little surprised that knowledge of the changed conforming loan limits did not affect the February slide.

Regarding your 15-20%, assuming the real (deflated by CPI) bottom is reached in 2012, and prices reach the 1997 nadir, the prices have now got about 40% yet to go on a nominal basis.

[Fearful]

I am a little surprised that knowledge of the changed conforming loan limits did not affect the February slide.

Regarding your 15-20%, assuming the real (deflated by CPI) bottom is reached in 2012, and prices reach the 1997 nadir, the prices have now got about 40% yet to go on a nominal basis.

[Fearful]

I am a little surprised that knowledge of the changed conforming loan limits did not affect the February slide.

Regarding your 15-20%, assuming the real (deflated by CPI) bottom is reached in 2012, and prices reach the 1997 nadir, the prices have now got about 40% yet to go on a nominal basis.

[Fearful]

I am a little surprised that knowledge of the changed conforming loan limits did not affect the February slide.

Regarding your 15-20%, assuming the real (deflated by CPI) bottom is reached in 2012, and prices reach the 1997 nadir, the prices have now got about 40% yet to go on a nominal basis.

[Anonymous]

I am not surprised that the change in conforming limits did not change the slide. Two things, although they are backed by the gov’t they are still marketed as higher risk bonds, therefore a higher rate than the less than $417K loans. In order to qualify as conforming you need to have: a FICO greater than 700, documented income, and a down payment. Mortgage brokers and realtors are quick to point out that these requirements are “onerous” and help out no one.

Which tells a bigger story of “pent-up” supply. How long until most of the over encumbered “owners” succumb and prices really start to fall?

[Anonymous]

I am not surprised that the change in conforming limits did not change the slide. Two things, although they are backed by the gov’t they are still marketed as higher risk bonds, therefore a higher rate than the less than $417K loans. In order to qualify as conforming you need to have: a FICO greater than 700, documented income, and a down payment. Mortgage brokers and realtors are quick to point out that these requirements are “onerous” and help out no one.

Which tells a bigger story of “pent-up” supply. How long until most of the over encumbered “owners” succumb and prices really start to fall?

[Anonymous]

I am not surprised that the change in conforming limits did not change the slide. Two things, although they are backed by the gov’t they are still marketed as higher risk bonds, therefore a higher rate than the less than $417K loans. In order to qualify as conforming you need to have: a FICO greater than 700, documented income, and a down payment. Mortgage brokers and realtors are quick to point out that these requirements are “onerous” and help out no one.

Which tells a bigger story of “pent-up” supply. How long until most of the over encumbered “owners” succumb and prices really start to fall?

[Anonymous]

I am not surprised that the change in conforming limits did not change the slide. Two things, although they are backed by the gov’t they are still marketed as higher risk bonds, therefore a higher rate than the less than $417K loans. In order to qualify as conforming you need to have: a FICO greater than 700, documented income, and a down payment. Mortgage brokers and realtors are quick to point out that these requirements are “onerous” and help out no one.

Which tells a bigger story of “pent-up” supply. How long until most of the over encumbered “owners” succumb and prices really start to fall?

[Anonymous]

I am not surprised that the change in conforming limits did not change the slide. Two things, although they are backed by the gov’t they are still marketed as higher risk bonds, therefore a higher rate than the less than $417K loans. In order to qualify as conforming you need to have: a FICO greater than 700, documented income, and a down payment. Mortgage brokers and realtors are quick to point out that these requirements are “onerous” and help out no one.

Which tells a bigger story of “pent-up” supply. How long until most of the over encumbered “owners” succumb and prices really start to fall?

[beanmaestro]

Fearful,

I’d expect that the increase in down payment requirements takes a lot of the less educated buyers out of the game. If you have $50-100k in savings, you’ve probably put more thought into where the market is going, and whether it makes sense to wait a year. Cash in hand probably correlates reasonably well with the ability to delay gratification while prices are plummeting.

[beanmaestro]

Fearful,

I’d expect that the increase in down payment requirements takes a lot of the less educated buyers out of the game. If you have $50-100k in savings, you’ve probably put more thought into where the market is going, and whether it makes sense to wait a year. Cash in hand probably correlates reasonably well with the ability to delay gratification while prices are plummeting.

[beanmaestro]

Fearful,

I’d expect that the increase in down payment requirements takes a lot of the less educated buyers out of the game. If you have $50-100k in savings, you’ve probably put more thought into where the market is going, and whether it makes sense to wait a year. Cash in hand probably correlates reasonably well with the ability to delay gratification while prices are plummeting.

[beanmaestro]

Fearful,

I’d expect that the increase in down payment requirements takes a lot of the less educated buyers out of the game. If you have $50-100k in savings, you’ve probably put more thought into where the market is going, and whether it makes sense to wait a year. Cash in hand probably correlates reasonably well with the ability to delay gratification while prices are plummeting.

[Author]

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