Housing & economy doing great…shut down this site!

[stansd]

Please do not feed the trolls.

Stan

[stansd]

Please do not feed the trolls.

Stan

[hipmatt]

Sorry pal, but you won’t see the market stay flat. We have rising inventories, foreclosures, tougher lending standards, rising rates(albeit slowly), and many current loans reseting. The worst is yet to come as far as the resets go.

There are so many people that are hanging onto their current home by a thread, the threads are slowly breaking, and many people have no choice.

Prices are coming down, nearly all the new home builders in the Temecula Valley have reduced prices from $50k-$110k. This is factual and doesn’t represent flat to me.

As far as the economy, it is slowing too. I know times are getting tough, I see a few friends getting laid off. There will be many more in construction and RE related industries, like we are seeing in the lending industry.

The cost of living is also going up faster than incomes. Food, energy , gas, even beer is rising fast. If you think this won’t affect households, think again. Yes, Americans are spending, but more and more of it is with money they don’t have. They are racking up monster debt. It is slowing and will come to end as soon as rates go even higher, as they will. The fed can’t lower rates, most every other foreign central bank is raising rates, and our dollar keeps loosing its power. Soon, investors will find better earnings investing elsewhere, and we will be forced to raise rates. We had a hint at this the last few weeks.

BTW, most here have made money in the housing boom, we have sold at or near the peak. I can assure you that those of us that rent, are not bitter. I can vouch for this as my best friends are panicking as their equity dwindles and they don’t think they can sell. Then you have those who have negative equity. I know a few, and I bet I’m sleeping better than they are.

[hipmatt]

Sorry pal, but you won’t see the market stay flat. We have rising inventories, foreclosures, tougher lending standards, rising rates(albeit slowly), and many current loans reseting. The worst is yet to come as far as the resets go.

There are so many people that are hanging onto their current home by a thread, the threads are slowly breaking, and many people have no choice.

Prices are coming down, nearly all the new home builders in the Temecula Valley have reduced prices from $50k-$110k. This is factual and doesn’t represent flat to me.

As far as the economy, it is slowing too. I know times are getting tough, I see a few friends getting laid off. There will be many more in construction and RE related industries, like we are seeing in the lending industry.

The cost of living is also going up faster than incomes. Food, energy , gas, even beer is rising fast. If you think this won’t affect households, think again. Yes, Americans are spending, but more and more of it is with money they don’t have. They are racking up monster debt. It is slowing and will come to end as soon as rates go even higher, as they will. The fed can’t lower rates, most every other foreign central bank is raising rates, and our dollar keeps loosing its power. Soon, investors will find better earnings investing elsewhere, and we will be forced to raise rates. We had a hint at this the last few weeks.

BTW, most here have made money in the housing boom, we have sold at or near the peak. I can assure you that those of us that rent, are not bitter. I can vouch for this as my best friends are panicking as their equity dwindles and they don’t think they can sell. Then you have those who have negative equity. I know a few, and I bet I’m sleeping better than they are.

[NeetaT]

I concur with “scruffydog” about his comment on how people are spending money like crazy. I too have trouble finding parking space at malls and I can’t seem to get in restaurants either. As for his comments on housing, well, all I can say is that I just don’t see prices dropping like you would think. It seems as though people are getting wealthier and wealthier thus pushing prices up. I too hope for falling prices, but I feel that I am hoping against hope. “hipmatt,” your observations are astute. I concur with you on what should happen as a result of your conclusions, but I just don’t see it. Maybe I’m oblivious.

[NeetaT]

I concur with “scruffydog” about his comment on how people are spending money like crazy. I too have trouble finding parking space at malls and I can’t seem to get in restaurants either. As for his comments on housing, well, all I can say is that I just don’t see prices dropping like you would think. It seems as though people are getting wealthier and wealthier thus pushing prices up. I too hope for falling prices, but I feel that I am hoping against hope. “hipmatt,” your observations are astute. I concur with you on what should happen as a result of your conclusions, but I just don’t see it. Maybe I’m oblivious.

[donaldduckmoore]

Scruffydog, lots of piggingtonians here have houses. We, including me, are waiting to buy in the lower market because we all think that the housing market is crazy. Don’t worry, it will come. Housing market in the US (especially in SD) has similar symptoms (extremely inflated house price and stock price) as in those markets in Japan and Hong Kong before the bubble burst. We will all wait and see.

[donaldduckmoore]

Scruffydog, lots of piggingtonians here have houses. We, including me, are waiting to buy in the lower market because we all think that the housing market is crazy. Don’t worry, it will come. Housing market in the US (especially in SD) has similar symptoms (extremely inflated house price and stock price) as in those markets in Japan and Hong Kong before the bubble burst. We will all wait and see.

[Anonymous]

I sure don’t read that people spending like crazy. Terrible auto sales numbers for June, today. Circuit City pulling its guidance. Anecdotes that YOY same-store sales are way down (Home Depot down 7%; wow!).

It will be a ‘fun’ Q2 earnings season, beginning next week.

[Anonymous]

I sure don’t read that people spending like crazy. Terrible auto sales numbers for June, today. Circuit City pulling its guidance. Anecdotes that YOY same-store sales are way down (Home Depot down 7%; wow!).

It will be a ‘fun’ Q2 earnings season, beginning next week.

[lonestar2000]

It is quite amusing to see how much traffic is generated every time a post is made that ignors the obvious facts presented so clearly on so many occassions. I won’t take time and effort to debate something that has been so obvious for so many months now.

To scruffy I only have this to say…less drugs and more research will go a long way to make you look much less a fool.

[lonestar2000]

It is quite amusing to see how much traffic is generated every time a post is made that ignors the obvious facts presented so clearly on so many occassions. I won’t take time and effort to debate something that has been so obvious for so many months now.

To scruffy I only have this to say…less drugs and more research will go a long way to make you look much less a fool.

[barnaby33]

Success has a hundred fathers, failure is an orphan. Scruffydog, who’s your daddy?

Josh

[barnaby33]

Success has a hundred fathers, failure is an orphan. Scruffydog, who’s your daddy?

Josh

[NeetaT]

There seems to be just as much corroborating information to support Scruffydog’s comments as there is for ours. I’m just trying to be unbiased, but to be honest I must say that I am a little biased on the side of the Piggington’s as far as house prices. I would say 60% Piggington and 40% Scruffydog. As far as people having money, there is no doubt that people have money and a lot of it. Maybe I should say buying power which is probably more accurate. Buying power is what counts seeing that it sets the tone for upward movement in prices. Credit / Dept contraction theory has been around for a long time and nothing in the way of a crises has happened. Don’t get me wrong I am set up financially in such a way that I would benefit immensely in a depression scenario, but when is the big question.

[Author]

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