There are still a lot of suckers willing to overpay for a home

[mixxalot]

I still see sky high prices for modest 3-4 bedroom homes in San Diego selling for like obscene prices 700-1million for a 2-3,000 square foot home!!! Ridiculous and why are people foolish to pay these prices? How long will it take for sellers and builders to come back to earth? San Diego is ok place to live but with record cold weather not for long compared to other cities with much lower home prices.

[bob007]

some ppl can afford to be suckers

[Cow_tipping]

Last throes my friend … and
IO option suicide loans are still around … not rampant … but not dead either … You can look around and look hard and find some …
Cool.
Cow_tipping.

[poorgradstudent]

I think we’ve all been taken in buying something that was “on sale” for 10-20% off the “regular price” without stopping to think about how overpriced the product was originally.

To me, that’s this housing market. It’s walking into a store where everything was overpriced, but now is “on sale” with modest discounts. Still not great values, but enough to trick some people into thinking they’re getting a deal.

[calidesigner]

There will always be homes selling, and buyers buying, and that is ultimately a good thing! Because it is this liquidity in a sinking market which propels the market to sink even further, until it reaches it’s bottom. Yes, people buying have there reasons, whatever they may be. They may simply be able to afford it, or they may, as pointed out above, be buying into the suicide loans, whatever the case may be, such buyers play an important part in this story. After all, they will buy a home priced lower than what the neighbor down the street is selling for, even though that home is still severely overpriced. Then, if the neighbor is motivated to sell, they will have to lower there price too…and so the dominos continue to fall. The point is, if you want to buy for sane reasons and not just because “I want to own my castle, etc. etc.”, than you will sit on the sidelines, pop the popcorn, and enjoy the show, all the while renting for waaay less than it would cost to buy with a sensible loan.

calidesigner

[ibjames]

Gas used to be be 1.92, then it raised past 2.15 and everyone yelled. It then raised higher.. maybe 2.50. and everyone yelled. It goes down to 2.15 and everyone yelled, except this time they yelled about how cheap it is..

I think that might be the same thing going on now, but the $2.15 is still hyperinflated, once more foreclosures and more media prints about how bad the market is, the average buyer will start backing away from buying more

Just today on msn
http://articles.moneycentral.msn.com/Investing/ContrarianChronicles/HomeLoanHouseOfCardsReadyToFall.aspx

[Author]

Posts