The perfect storm?

[Coronita]

[quote=briansd1][quote=flu]
well, we might be driving $50k hyundais, but probably $30-40k BMW’s….At least, that’s what it looks like when you look at the Euro…..[/quote]

Don’t know about that. I remember the Euro = $0.85 USD in 2000. Now 1 Euro = $1.4 USD, notwithstanding the debt crisis in Europe.

Americans who cashed out of Internet stocks to buy real estate in Southern France are sitting pretty right now.[/quote]

Not as well as if you took my advice in 2007 and bought real estate in Vancouver, BC….

The overseas asians that wanted a lax immigration to a relatively benign country with a large asian population drove up the prices there to points where in some cases it’s more expense than new york city. Not to mention that also 1 USD is worth less than 1 CAN….

Sucks to hold on to greenbacks, doesn’t it?

Back to cars….Car companies will just open factories here in the US or increase their production capacity here if their currency is stronger than the USD…

BMW SUV/CUV productions into the S.C. plant,
http://www.bmwusfactory.com/

and VW is opening a factory in tenesee (which UAW is desperately trying to unionize…Oh god no, please).

And Hyundai and Kia have been increasing capacity in their respective capacities in their factories in the southern states in the u.s. Pretty soon, it will be cheaper to produce here than abroad 🙂

[briansd1]

[quote=flu]
All you doomsdaysayers, don’t worry really. The government will figure something out to bailout all those people that count on 401k’s…..I’m pretty confident in that 🙂

[/quote]

And I thought the markets were efficient and priced everything in.

[briansd1]

[quote=flu]
All you doomsdaysayers, don’t worry really. The government will figure something out to bailout all those people that count on 401k’s…..I’m pretty confident in that 🙂

[/quote]

And I thought the markets were efficient and priced everything in.

[briansd1]

[quote=flu]
All you doomsdaysayers, don’t worry really. The government will figure something out to bailout all those people that count on 401k’s…..I’m pretty confident in that 🙂

[/quote]

And I thought the markets were efficient and priced everything in.

[briansd1]

[quote=flu]
All you doomsdaysayers, don’t worry really. The government will figure something out to bailout all those people that count on 401k’s…..I’m pretty confident in that 🙂

[/quote]

And I thought the markets were efficient and priced everything in.

[briansd1]

[quote=flu]
All you doomsdaysayers, don’t worry really. The government will figure something out to bailout all those people that count on 401k’s…..I’m pretty confident in that 🙂

[/quote]

And I thought the markets were efficient and priced everything in.

[briansd1]

[quote=flu]
Not as well as if you took my advice in 2007 and bought real estate in Vancouver, BC….

The overseas asians that wanted a lax immigration to a relatively benign country with a large asian population drove up the prices there to points where in some cases it’s more expense than new york city. Not to mention that also 1 USD is worth less than 1 CAN….

Sucks to hold on to greenbacks, doesn’t it?
[/quote]

Vancouver was a great call.

I have a Chinese American friend from Hong Kong whose parents are selling their house in Vancouver to move down to Orange County.

I tell you, that family did everything right timing wise. From selling in HK, buying in Shanghai, buying in Vancouver, and now retiring in OC.

I believe the coastal housing markets near good universities would do great if our government would staple a Green Card to any $1 million house purchase.

[briansd1]

[quote=flu]
Not as well as if you took my advice in 2007 and bought real estate in Vancouver, BC….

The overseas asians that wanted a lax immigration to a relatively benign country with a large asian population drove up the prices there to points where in some cases it’s more expense than new york city. Not to mention that also 1 USD is worth less than 1 CAN….

Sucks to hold on to greenbacks, doesn’t it?
[/quote]

Vancouver was a great call.

I have a Chinese American friend from Hong Kong whose parents are selling their house in Vancouver to move down to Orange County.

I tell you, that family did everything right timing wise. From selling in HK, buying in Shanghai, buying in Vancouver, and now retiring in OC.

I believe the coastal housing markets near good universities would do great if our government would staple a Green Card to any $1 million house purchase.

[briansd1]

[quote=flu]
Not as well as if you took my advice in 2007 and bought real estate in Vancouver, BC….

The overseas asians that wanted a lax immigration to a relatively benign country with a large asian population drove up the prices there to points where in some cases it’s more expense than new york city. Not to mention that also 1 USD is worth less than 1 CAN….

Sucks to hold on to greenbacks, doesn’t it?
[/quote]

Vancouver was a great call.

I have a Chinese American friend from Hong Kong whose parents are selling their house in Vancouver to move down to Orange County.

I tell you, that family did everything right timing wise. From selling in HK, buying in Shanghai, buying in Vancouver, and now retiring in OC.

I believe the coastal housing markets near good universities would do great if our government would staple a Green Card to any $1 million house purchase.

[briansd1]

[quote=flu]
Not as well as if you took my advice in 2007 and bought real estate in Vancouver, BC….

The overseas asians that wanted a lax immigration to a relatively benign country with a large asian population drove up the prices there to points where in some cases it’s more expense than new york city. Not to mention that also 1 USD is worth less than 1 CAN….

Sucks to hold on to greenbacks, doesn’t it?
[/quote]

Vancouver was a great call.

I have a Chinese American friend from Hong Kong whose parents are selling their house in Vancouver to move down to Orange County.

I tell you, that family did everything right timing wise. From selling in HK, buying in Shanghai, buying in Vancouver, and now retiring in OC.

I believe the coastal housing markets near good universities would do great if our government would staple a Green Card to any $1 million house purchase.

[briansd1]

[quote=flu]
Not as well as if you took my advice in 2007 and bought real estate in Vancouver, BC….

The overseas asians that wanted a lax immigration to a relatively benign country with a large asian population drove up the prices there to points where in some cases it’s more expense than new york city. Not to mention that also 1 USD is worth less than 1 CAN….

Sucks to hold on to greenbacks, doesn’t it?
[/quote]

Vancouver was a great call.

I have a Chinese American friend from Hong Kong whose parents are selling their house in Vancouver to move down to Orange County.

I tell you, that family did everything right timing wise. From selling in HK, buying in Shanghai, buying in Vancouver, and now retiring in OC.

I believe the coastal housing markets near good universities would do great if our government would staple a Green Card to any $1 million house purchase.

[CA renter]

[quote=DomoArigato][quote=AN]You make a very good point. Do you think TPTB actually will let it happen?[/quote]

I think the odds are greater than 60%. At this point, I suspect the banks have been mostly bailed out of their mortgage-market mistakes. However, NAR and other real estate lobbying interests will be pushing hard to keep GSE limits where they are at currently. NAR will be up against the Tea Party. I think the Tea Party has a decent shot at winning this particular battle.

The threat of upcoming conforming limit decreases is also pulling demand forward:

Homeowners whose mortgages are too big to qualify for a government-backed mortgage must seek a so-called jumbo loan, which often carry higher interest rates as well as larger down-payment requirements, sometimes more than 20%.

“Sellers are going to have to reduce their prices if borrowing costs rise,” said Scott Sheldon, a loan officer with First Cal Mortgage in Petaluma, Calif.

One of Mr. Sheldon’s clients, Ed Barr, has been pre-approved for a $662,000 loan backed by the FHA, the largest mortgage the agency can insure in Sonoma County, Calif. He is racing to close a sale before the limit drops to $520,950.

Mr. Barr, who owns a wine-making machinery company, said he has excellent credit but a recent divorce left him with little cash for such a purchase. “I don’t have any other alternative,” the 48-year-old said. Without the loan backed by the FHA, which allows for down payments as low as 3.5%, “the sale won’t happen.”

Scaling back loan limits underscores a broader challenge facing the government: It wants more private players to hold mortgage risk, but it doesn’t want to destabilize fragile housing markets.

Craig Van Sant is looking to pay $500,000 for a home with a $20,000 down payment in Rancho Cucamonga, Calif. Once the FHA limit drops to $335,000, he would need to more than double his down payment. The only upside, he said, is that “home values slide even more, allowing us to buy more house, if we can pull together all the cash.”

http://online.wsj.com/article/SB10001424052702303763404576420101788878440.html

My sense is the public is sick of all the government bailouts to homeowners and this makes it more than likely that the conforming limits will go down in October as scheduled.[/quote]

Agreed. The banks have been as bailed-out as they can be. Now, they will allow things to implode, IMHO. They have to, if we hope to find a sustainable foundation from which we can rebuild. Otherwise, it’s like running on a hamster wheel, as the Fed keeps printing money that continues to go into assets/commodities, which makes things worse for the very people they need to get the economy going again.

[CA renter]

[quote=DomoArigato][quote=AN]You make a very good point. Do you think TPTB actually will let it happen?[/quote]

I think the odds are greater than 60%. At this point, I suspect the banks have been mostly bailed out of their mortgage-market mistakes. However, NAR and other real estate lobbying interests will be pushing hard to keep GSE limits where they are at currently. NAR will be up against the Tea Party. I think the Tea Party has a decent shot at winning this particular battle.

The threat of upcoming conforming limit decreases is also pulling demand forward:

Homeowners whose mortgages are too big to qualify for a government-backed mortgage must seek a so-called jumbo loan, which often carry higher interest rates as well as larger down-payment requirements, sometimes more than 20%.

“Sellers are going to have to reduce their prices if borrowing costs rise,” said Scott Sheldon, a loan officer with First Cal Mortgage in Petaluma, Calif.

One of Mr. Sheldon’s clients, Ed Barr, has been pre-approved for a $662,000 loan backed by the FHA, the largest mortgage the agency can insure in Sonoma County, Calif. He is racing to close a sale before the limit drops to $520,950.

Mr. Barr, who owns a wine-making machinery company, said he has excellent credit but a recent divorce left him with little cash for such a purchase. “I don’t have any other alternative,” the 48-year-old said. Without the loan backed by the FHA, which allows for down payments as low as 3.5%, “the sale won’t happen.”

Scaling back loan limits underscores a broader challenge facing the government: It wants more private players to hold mortgage risk, but it doesn’t want to destabilize fragile housing markets.

Craig Van Sant is looking to pay $500,000 for a home with a $20,000 down payment in Rancho Cucamonga, Calif. Once the FHA limit drops to $335,000, he would need to more than double his down payment. The only upside, he said, is that “home values slide even more, allowing us to buy more house, if we can pull together all the cash.”

http://online.wsj.com/article/SB10001424052702303763404576420101788878440.html

My sense is the public is sick of all the government bailouts to homeowners and this makes it more than likely that the conforming limits will go down in October as scheduled.[/quote]

Agreed. The banks have been as bailed-out as they can be. Now, they will allow things to implode, IMHO. They have to, if we hope to find a sustainable foundation from which we can rebuild. Otherwise, it’s like running on a hamster wheel, as the Fed keeps printing money that continues to go into assets/commodities, which makes things worse for the very people they need to get the economy going again.

[CA renter]

[quote=DomoArigato][quote=AN]You make a very good point. Do you think TPTB actually will let it happen?[/quote]

I think the odds are greater than 60%. At this point, I suspect the banks have been mostly bailed out of their mortgage-market mistakes. However, NAR and other real estate lobbying interests will be pushing hard to keep GSE limits where they are at currently. NAR will be up against the Tea Party. I think the Tea Party has a decent shot at winning this particular battle.

The threat of upcoming conforming limit decreases is also pulling demand forward:

Homeowners whose mortgages are too big to qualify for a government-backed mortgage must seek a so-called jumbo loan, which often carry higher interest rates as well as larger down-payment requirements, sometimes more than 20%.

“Sellers are going to have to reduce their prices if borrowing costs rise,” said Scott Sheldon, a loan officer with First Cal Mortgage in Petaluma, Calif.

One of Mr. Sheldon’s clients, Ed Barr, has been pre-approved for a $662,000 loan backed by the FHA, the largest mortgage the agency can insure in Sonoma County, Calif. He is racing to close a sale before the limit drops to $520,950.

Mr. Barr, who owns a wine-making machinery company, said he has excellent credit but a recent divorce left him with little cash for such a purchase. “I don’t have any other alternative,” the 48-year-old said. Without the loan backed by the FHA, which allows for down payments as low as 3.5%, “the sale won’t happen.”

Scaling back loan limits underscores a broader challenge facing the government: It wants more private players to hold mortgage risk, but it doesn’t want to destabilize fragile housing markets.

Craig Van Sant is looking to pay $500,000 for a home with a $20,000 down payment in Rancho Cucamonga, Calif. Once the FHA limit drops to $335,000, he would need to more than double his down payment. The only upside, he said, is that “home values slide even more, allowing us to buy more house, if we can pull together all the cash.”

http://online.wsj.com/article/SB10001424052702303763404576420101788878440.html

My sense is the public is sick of all the government bailouts to homeowners and this makes it more than likely that the conforming limits will go down in October as scheduled.[/quote]

Agreed. The banks have been as bailed-out as they can be. Now, they will allow things to implode, IMHO. They have to, if we hope to find a sustainable foundation from which we can rebuild. Otherwise, it’s like running on a hamster wheel, as the Fed keeps printing money that continues to go into assets/commodities, which makes things worse for the very people they need to get the economy going again.

[CA renter]

[quote=DomoArigato][quote=AN]You make a very good point. Do you think TPTB actually will let it happen?[/quote]

I think the odds are greater than 60%. At this point, I suspect the banks have been mostly bailed out of their mortgage-market mistakes. However, NAR and other real estate lobbying interests will be pushing hard to keep GSE limits where they are at currently. NAR will be up against the Tea Party. I think the Tea Party has a decent shot at winning this particular battle.

The threat of upcoming conforming limit decreases is also pulling demand forward:

Homeowners whose mortgages are too big to qualify for a government-backed mortgage must seek a so-called jumbo loan, which often carry higher interest rates as well as larger down-payment requirements, sometimes more than 20%.

“Sellers are going to have to reduce their prices if borrowing costs rise,” said Scott Sheldon, a loan officer with First Cal Mortgage in Petaluma, Calif.

One of Mr. Sheldon’s clients, Ed Barr, has been pre-approved for a $662,000 loan backed by the FHA, the largest mortgage the agency can insure in Sonoma County, Calif. He is racing to close a sale before the limit drops to $520,950.

Mr. Barr, who owns a wine-making machinery company, said he has excellent credit but a recent divorce left him with little cash for such a purchase. “I don’t have any other alternative,” the 48-year-old said. Without the loan backed by the FHA, which allows for down payments as low as 3.5%, “the sale won’t happen.”

Scaling back loan limits underscores a broader challenge facing the government: It wants more private players to hold mortgage risk, but it doesn’t want to destabilize fragile housing markets.

Craig Van Sant is looking to pay $500,000 for a home with a $20,000 down payment in Rancho Cucamonga, Calif. Once the FHA limit drops to $335,000, he would need to more than double his down payment. The only upside, he said, is that “home values slide even more, allowing us to buy more house, if we can pull together all the cash.”

http://online.wsj.com/article/SB10001424052702303763404576420101788878440.html

My sense is the public is sick of all the government bailouts to homeowners and this makes it more than likely that the conforming limits will go down in October as scheduled.[/quote]

Agreed. The banks have been as bailed-out as they can be. Now, they will allow things to implode, IMHO. They have to, if we hope to find a sustainable foundation from which we can rebuild. Otherwise, it’s like running on a hamster wheel, as the Fed keeps printing money that continues to go into assets/commodities, which makes things worse for the very people they need to get the economy going again.

[Author]

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