We are richer when house prices go down

[patientlywaiting]

JWM, I love your terse comments. Others many not get it, but I do. 🙂

Felix, yeah, overnight, all the inventory of foreclosures, short-sales, distress sales will be all gone. Poof!! Don’t wait another day! Buy now before you miss out!!

I believe that Shiller said that we are richer, as a society, when housing prices drop. He’s looking at it from a macro perspective. The wealth of nations is based on the standard of living of the citizens. If you own and live in an old decrepit apartment in New York or Moscow with bad heat, you might have paper wealth, but your standard of living is low. That’s the context in which “rich” needs to be understood.

[Anonymous]

Submitted by felix on February 27, 2008 – 2:05pm.

Yes, Temecula Guy may be able to buy another of the same model down the street. It may even sell for less. However, at some point, and it’s not that far away despite what you read here, he will not be able to buy any of those homes. They will be gone.

I just don’t believe this. In some areas, maybe. However, in Temecula and Murrieta with the number of foreclosures in the pipeline and already on the market, I don’t see this happening. And you’re assuming that there are all these buyers waiting to snap up deals. Well, yeah, there are prudent people waiting on the sidelines and investors. However, a LOT of people bought during the height of the bubble when anyone and their mother could get financed. These same people are being foreclosed and won’t be in the position to buy even a toilet right now.

yes, some home debtors will be out of their homes. It will be those who overextended themselves. The vast majority who have not overextended themselves or used their home as a bank will not be dragged down regardless of whether the Fed monetizes the mortgages or not.

What are you talking about?? The vast amount of people HAVE overextended themselves. That’s why there are so many foreclosures hitting the market. If they could afford the payments (and most couldn’t) they cooked their won goose by taking money out of phony equity. Also, let’s not forget that psychologically no one wants to be vastly upside down whether they can afford the payments or not.

Your argument sounds like that of a snake-oil salesman turned realtor who’s in denial and trying to sell houses.

[Anonymous]

Submitted by felix on February 27, 2008 – 2:05pm.

Yes, Temecula Guy may be able to buy another of the same model down the street. It may even sell for less. However, at some point, and it’s not that far away despite what you read here, he will not be able to buy any of those homes. They will be gone.

I just don’t believe this. In some areas, maybe. However, in Temecula and Murrieta with the number of foreclosures in the pipeline and already on the market, I don’t see this happening. And you’re assuming that there are all these buyers waiting to snap up deals. Well, yeah, there are prudent people waiting on the sidelines and investors. However, a LOT of people bought during the height of the bubble when anyone and their mother could get financed. These same people are being foreclosed and won’t be in the position to buy even a toilet right now.

yes, some home debtors will be out of their homes. It will be those who overextended themselves. The vast majority who have not overextended themselves or used their home as a bank will not be dragged down regardless of whether the Fed monetizes the mortgages or not.

What are you talking about?? The vast amount of people HAVE overextended themselves. That’s why there are so many foreclosures hitting the market. If they could afford the payments (and most couldn’t) they cooked their won goose by taking money out of phony equity. Also, let’s not forget that psychologically no one wants to be vastly upside down whether they can afford the payments or not.

Your argument sounds like that of a snake-oil salesman turned realtor who’s in denial and trying to sell houses.

[Anonymous]

Submitted by felix on February 27, 2008 – 2:05pm.

Yes, Temecula Guy may be able to buy another of the same model down the street. It may even sell for less. However, at some point, and it’s not that far away despite what you read here, he will not be able to buy any of those homes. They will be gone.

I just don’t believe this. In some areas, maybe. However, in Temecula and Murrieta with the number of foreclosures in the pipeline and already on the market, I don’t see this happening. And you’re assuming that there are all these buyers waiting to snap up deals. Well, yeah, there are prudent people waiting on the sidelines and investors. However, a LOT of people bought during the height of the bubble when anyone and their mother could get financed. These same people are being foreclosed and won’t be in the position to buy even a toilet right now.

yes, some home debtors will be out of their homes. It will be those who overextended themselves. The vast majority who have not overextended themselves or used their home as a bank will not be dragged down regardless of whether the Fed monetizes the mortgages or not.

What are you talking about?? The vast amount of people HAVE overextended themselves. That’s why there are so many foreclosures hitting the market. If they could afford the payments (and most couldn’t) they cooked their won goose by taking money out of phony equity. Also, let’s not forget that psychologically no one wants to be vastly upside down whether they can afford the payments or not.

Your argument sounds like that of a snake-oil salesman turned realtor who’s in denial and trying to sell houses.

[Anonymous]

Submitted by felix on February 27, 2008 – 2:05pm.

Yes, Temecula Guy may be able to buy another of the same model down the street. It may even sell for less. However, at some point, and it’s not that far away despite what you read here, he will not be able to buy any of those homes. They will be gone.

I just don’t believe this. In some areas, maybe. However, in Temecula and Murrieta with the number of foreclosures in the pipeline and already on the market, I don’t see this happening. And you’re assuming that there are all these buyers waiting to snap up deals. Well, yeah, there are prudent people waiting on the sidelines and investors. However, a LOT of people bought during the height of the bubble when anyone and their mother could get financed. These same people are being foreclosed and won’t be in the position to buy even a toilet right now.

yes, some home debtors will be out of their homes. It will be those who overextended themselves. The vast majority who have not overextended themselves or used their home as a bank will not be dragged down regardless of whether the Fed monetizes the mortgages or not.

What are you talking about?? The vast amount of people HAVE overextended themselves. That’s why there are so many foreclosures hitting the market. If they could afford the payments (and most couldn’t) they cooked their won goose by taking money out of phony equity. Also, let’s not forget that psychologically no one wants to be vastly upside down whether they can afford the payments or not.

Your argument sounds like that of a snake-oil salesman turned realtor who’s in denial and trying to sell houses.

[Anonymous]

Submitted by felix on February 27, 2008 – 2:05pm.

Yes, Temecula Guy may be able to buy another of the same model down the street. It may even sell for less. However, at some point, and it’s not that far away despite what you read here, he will not be able to buy any of those homes. They will be gone.

I just don’t believe this. In some areas, maybe. However, in Temecula and Murrieta with the number of foreclosures in the pipeline and already on the market, I don’t see this happening. And you’re assuming that there are all these buyers waiting to snap up deals. Well, yeah, there are prudent people waiting on the sidelines and investors. However, a LOT of people bought during the height of the bubble when anyone and their mother could get financed. These same people are being foreclosed and won’t be in the position to buy even a toilet right now.

yes, some home debtors will be out of their homes. It will be those who overextended themselves. The vast majority who have not overextended themselves or used their home as a bank will not be dragged down regardless of whether the Fed monetizes the mortgages or not.

What are you talking about?? The vast amount of people HAVE overextended themselves. That’s why there are so many foreclosures hitting the market. If they could afford the payments (and most couldn’t) they cooked their won goose by taking money out of phony equity. Also, let’s not forget that psychologically no one wants to be vastly upside down whether they can afford the payments or not.

Your argument sounds like that of a snake-oil salesman turned realtor who’s in denial and trying to sell houses.

[JWM in SD]

JWM in SD

Sduuude,

No, I just meant that you touched on a major reason why most are still in denial about losing HPA soon.

[JWM in SD]

JWM in SD

Sduuude,

No, I just meant that you touched on a major reason why most are still in denial about losing HPA soon.

[JWM in SD]

JWM in SD

Sduuude,

No, I just meant that you touched on a major reason why most are still in denial about losing HPA soon.

[JWM in SD]

JWM in SD

Sduuude,

No, I just meant that you touched on a major reason why most are still in denial about losing HPA soon.

[JWM in SD]

JWM in SD

Sduuude,

No, I just meant that you touched on a major reason why most are still in denial about losing HPA soon.

[JWM in SD]

JWM in SD

I’m sorry Felix but my patience with you is growing thin at this point. You are either a shill or a complete MORON.

The timing of the bottom has been discussed here many times by those who are a lot more knowledgeable than you are I’m afraid (bugs for one). Timing the bottom is most certainly possible…not perfectly but it is real estate so it doesn’t have to be timed perfectly.

The inventory moves much too slowly to not be able time it correctly.

The bigger challenge will be the ability to be remain solvent of the next several years in order take advantage of the bottom

Sorry, you are just flat out WRONG…..

[JWM in SD]

JWM in SD

I’m sorry Felix but my patience with you is growing thin at this point. You are either a shill or a complete MORON.

The timing of the bottom has been discussed here many times by those who are a lot more knowledgeable than you are I’m afraid (bugs for one). Timing the bottom is most certainly possible…not perfectly but it is real estate so it doesn’t have to be timed perfectly.

The inventory moves much too slowly to not be able time it correctly.

The bigger challenge will be the ability to be remain solvent of the next several years in order take advantage of the bottom

Sorry, you are just flat out WRONG…..

[JWM in SD]

JWM in SD

I’m sorry Felix but my patience with you is growing thin at this point. You are either a shill or a complete MORON.

The timing of the bottom has been discussed here many times by those who are a lot more knowledgeable than you are I’m afraid (bugs for one). Timing the bottom is most certainly possible…not perfectly but it is real estate so it doesn’t have to be timed perfectly.

The inventory moves much too slowly to not be able time it correctly.

The bigger challenge will be the ability to be remain solvent of the next several years in order take advantage of the bottom

Sorry, you are just flat out WRONG…..

[JWM in SD]

JWM in SD

I’m sorry Felix but my patience with you is growing thin at this point. You are either a shill or a complete MORON.

The timing of the bottom has been discussed here many times by those who are a lot more knowledgeable than you are I’m afraid (bugs for one). Timing the bottom is most certainly possible…not perfectly but it is real estate so it doesn’t have to be timed perfectly.

The inventory moves much too slowly to not be able time it correctly.

The bigger challenge will be the ability to be remain solvent of the next several years in order take advantage of the bottom

Sorry, you are just flat out WRONG…..

[Author]

Posts