HOW LOW WILL IT GO % and TIME FRAME

[Raybyrnes]

JWM

Way to articulate you intelligence. With respect to changes in payments when it comes to 30 year vs 40 years I think the point being missed is that finance people have the ability to change with the markets. Interest only, option ARMS, Neg Am Loans. What will the next product be? Your guess is as good as mine. The reality is that these people do not profit when people can pay them back.

Others strings have talked about the sub prime market. Tightening credit will eliminate marginal buyers keeping them in renter status and will take prime borrowers and potentially move them into the sub prime market.

As for laughing about a downturn. You’re a joke. That is like the idiot owner who gets upset when someone is rooting for the market to go down. I don’t control the market and I rent at the moment. I hope to find what I like at a price I can afford. Right now it is a needle in a haystack and I am too busy to look. Hopefully opportunities will become more abundant in the not so distant future. Good luck with the negativeity JWM. I am sure it is getting you ahead in this world.

[4plexowner]

Raybyrnes – how about spit-balling what some of these options might be?

I agree that finance people can come up with new products that will allow uninformed, unintelligent, unqualified buyers to continue buying houses

But what does that accomplish?

It just takes us further down the road and postpones the inevitable reckoning with reality to a later day (and sucks some more people into the ultimate come-uppance)

Let’s have the financial reckoning today and get it over with

To quote “The Decider”, “Bring it on!”

[JWM in SD]

I see that you’re another one who needs to sharpen their reading comprehension a bit. I said that I’ll be laughing at YOU.

There are no other options Raybyrnes. That is why the subprimes are being blown out of the water by being forced to buy back the crap loans they’ve been selling. I don’t need to guess, the CDO an ABX market tells me what I need to know about subprime and not so subprime for that matter.

[latesummer2008]

“Perfect Storm” is brewing out there with the credit market crumbling, inventory spiking, world stock markets stumbling, ARMs exploding, and the mortgage meltdown. Just wait till all the friggin REOs hit the market! Oh by the way, don’t forget about the federal deficit smacking the dollar. So as I said before : HOW LOW CAN IT GO ? La Jolla ? Santa Monica ? Santa Barbara ? Pick your poision and tell us your guestimate in % drop from TODAY(already 10 – 15% off in SM) and possible striking date for future buyers.

I’ll stick to Late Summer – Early Fall of 08′ for santa Monica and Santa Barbara ther should be some real pain after 2 more selling seasons for banks and alot of FBs. La Jolla anyone ?

Lets here yours…..

[Nancy_s soothsayer]

Cut to the chase ->> County of San Diego, 50% off from Aug’05 high, after Oct.2009.

[latesummer2008]

50% off sounds right ! We are just at the beginning of this real estate cycle bust. Could be quicker, once panic sets in and the MSM gets ahold of it. It wouldn’t suprise me if to see the market almost STOP, DEAD IN ITS TRACKS after this summer, once the real story becomes clear to the public. Still curious about LA JOLLA price history per sq ft, going back to say, 2001 – 2002 Prices?
My feeling is, the higher end prices will GET WHACKED the most to the downside, just like they did to the upside. Next month I believe is when the party really gets started……

[34f3f3f]

I think quicksavedave has got the right balance. Predicting what may happen is fun, but a little like placing a bet on a horse.

I also think 100 year mortgages is more media hearsay. There probably were instances in Japan, but I doubt it was the rule. It is generally known that an ageing polulation brings it’s own problems. You are just going to compound the problem by quick fixes.

My view is let the market play out. There will be winners and loosers, a lesson learnt and if needs be, tighter control and regulation on lending for the future.

[farbet]

Just keep on dreaming you guys. You Wish

[latesummer2008]

Fast and Furious Market Meltdown could start any day now. Sellers are finally getting a clue. Better price aggresively if they are even thinking about dumping overpriced POS before summer. LAST GASP. MSM is starting to sniff blood.

[Bugs]

I subscribe to the hundred monkey theory. The first few monkeys are considered idiots because they’re going against the trend. As the indicators stack up showing that maybe they’re not so dumb after all a few more monkeys change direction and join them. This keeps building – with the two factions remaining in opposition – as the one side grows from the minority towards being the majority and the other side losing their membership accordingly.

All semblance of parity between the two groups changes when the hundreth monkey joins in. At that point all the remaining monkeys change course and follow the new majority.

We Piggington’s were among the first monkeys, and we suffered no small amount of rotten bananas and whatever else monkeys tend to throw. But now our ranks are growing and we only occasionally get the straggler who waffles back and forth between the two groups. We have yet to get to our 100th monkey, but we’re also not on the recieving end of the rotten bananas anymore.

[latesummer2008]

Yes the Tide is Turning. Anyone with half a brain can read between the lines of economists, realtors, and govt figures. It is easy to see these people are getting hard pressed to massage the remaining numbers. Everyone is selling something. They are trying to keep their livelihoods alive, while sending John Q. Public down the river. Old saying “If it sounds to good to be true, then….” Time to pay the piper folks. This is gonna get uglier quick. Not many cards left to play as I see it. In fact, the entire deck is gone. This week should be quite interesting in the financial markets since the credit crunch has officially started and the mortgage meltdown has investors worried. Wall Street knows their MBS are all screwed. “Oh, my $800,000 home is really only worth $400,000? Here you can have the keys since I was really just renting it for a year or so until my ARM exploded. No big deal, lots people will be foreclosed and the govt will bail out the banks eventually, right ?”
Get ready for screaming ride down. No need to go to Magic Mountain anymore, just watch the R.E. market.

[PD]

I caught a lot of flak from a relative for selling. She has lately been talking about how smart we are. 🙂 The sad thing is that if she had sold when I advised her sell, they would have some cash. As it is now, she is underwater and has since lost her job. 🙁 Things are about to get very ugly for her.

[Happy renter]

New dropped 90% since 2005!!!!

Yes! Latesummer, I agree with you.
New Century, the second-largest player in the subprime industry sahers fell $8.65, or almost 60% to $6 in early Monday trade today. It was over $60 in 2005. It has already dropped 90% since all time high. The housing market will follow the footstep of subprime lender and will drop at least 50%.

[Happy renter]

New dropped 90% since 2005!!!!

Yes! Latesummer, I agree with you.
New Century, the second-largest player in the subprime industry sahers fell $8.65, or almost 60% to $6 in early Monday trade today. It was over $60 in 2005. It has already dropped 90% since all time high. The housing market will follow the footstep of subprime lender and will drop at least 50%.

[Happy renter]

New dropped 90% since 2005!!!!

Yes! Latesummer, I agree with you.
New Century, the second-largest player in the subprime industry sahers fell $8.65, or almost 60% to $6 in early Monday trade today. It was over $60 in 2005. It has already dropped 90% since all time high. The housing market will follow the footstep of subprime lender and will drop at least 50%.

[Author]

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