Check you craigslist real estate for sale section to see…. how many short sales and bank owned homes there are on there. I am new to craigslist.com, but I couldn’t believe how many properties are listed up here in the inland empire edition, specifically, Temecula and Murrieta.
I think that the S*** is gonna hit the fan up here soon. Theres soo many homes for sale, and this spring, everyone who waited is supposedly gonna go back on the market…. the inventory is gonna be high, at least thats what I think, .. and hope!
The only thing keeping any strength here is the fact that home loan rates remain low, and new ridiculous loans continue to be rolled out and used(40 year loans).
Another interesting fact is that there seems to be many rentals available as well… for reasonable prices. You can rent a nice 4/2.5 home in Temecula for about 1600-1900 still, and there is a lot advertised. I fear a lot of these rentals are homes that didn’t sell, or the seller is in denial or postponing the inevitable… that they owe more than their home is worth?
What’s sad is that the spineless fed reserve is now talking about lowering rates in the near future. Just what America needs, more freakin debt, more easy money, and an even more of a negative savings rate. They say that inflation is contained(no way, not even close), but really they should slowly keep increasing rates, unless they want a complete financial disaster when everyone files bankruptcy at the same time, and nobody wants to be responsible for their reckless spending. OK, my rambilng is done, at least you’ll listen to me, unlike most of this lousy bedroom community. Have a great week!
As was mentioned before, the Federal Reserve works for the financial system — not you and me. By the way, they also have the dual role of regulating the financial industry. Their main role is to ensure the integrity of the banking system. They will not let lenders colapse left and right.
Then they shouldn’t have allowed interest only loans, they shouldn’t have allowed 100% financing either, because banks will collapse left and right. Also, if rates were higher, people would be more likely to save their money, and earn a higher interest rate, and they would be less likely to borrow money at a higher interest rate.
Housing prices would then be much more consistent, and less volatile(they wouldn’t be so inflated, so yes, they would be much lower) and anyone with some common sense and patience, would be able to save up for a reasonable down payment, buy a home at a reasonable price, and have a reasonable mortgage in which the PRINCIPLE debt actually gets paid off.
… But that wouldn’t help the lenders book record profits from originating, repackaging, selling and servicing loans; and the excutives wouldn’t get hundred-million dollar salaries. I’m afraid that the taxpayers will end-up bailing out the banks like we bailed out the S&Ls in the 1990s.
.
