Zillow valuations soaring!

[greekfire]

I couldn’t agree more with DWCAP. Zillow’s Zestimate is a complete sham IMO. When it first came out I was pumped and thought it would be a great way to get a free-market valuation of a property. Experience has taught me, however, that the non-sensically gross over/undervaluations from Zillow’s Zestimate make it less credible than even the plain-vanilla median valuation.

Supply and demand (read: a free-market) in housing is non-existent and hasn’t been in existence for a while. Government intervention, banker/broker/realtor/appraiser shenanigans, and media compliance, among other things, have created the real estate conflagration that we are in today.

This is not a recovery in real estate or the even the greater economy for that matter. This is Piggington circa 2005 all over again.

[pemeliza]

“This is Piggington circa 2005 all over again.”

Except prices are down 30-60% across the board and interest rates are lower for those with strong credit. These facts are working in favor of the market … the facts opposed to the market are high unemployment, distressed loans, stock market selloff from 14k, etc.

Right now it is a tug of war between these factors. This is not really in anyway that I can think of like 2005. Not near as much funny money out there for one thing. Also the high end is pretty much dead except for the absolute best properties and deals. Again unlike 2005 when they flew off the shelf at ridiculous valuations.

Some people think we are in a bubble just because they are not the only ones interested in buying a house in SD at these price levels.

I have to say that the markets I’m looking at regularly have definitely cooled down for the winter. Probably will see some very good deals close over the next few months.

[pemeliza]

“This is Piggington circa 2005 all over again.”

Except prices are down 30-60% across the board and interest rates are lower for those with strong credit. These facts are working in favor of the market … the facts opposed to the market are high unemployment, distressed loans, stock market selloff from 14k, etc.

Right now it is a tug of war between these factors. This is not really in anyway that I can think of like 2005. Not near as much funny money out there for one thing. Also the high end is pretty much dead except for the absolute best properties and deals. Again unlike 2005 when they flew off the shelf at ridiculous valuations.

Some people think we are in a bubble just because they are not the only ones interested in buying a house in SD at these price levels.

I have to say that the markets I’m looking at regularly have definitely cooled down for the winter. Probably will see some very good deals close over the next few months.

[pemeliza]

“This is Piggington circa 2005 all over again.”

Except prices are down 30-60% across the board and interest rates are lower for those with strong credit. These facts are working in favor of the market … the facts opposed to the market are high unemployment, distressed loans, stock market selloff from 14k, etc.

Right now it is a tug of war between these factors. This is not really in anyway that I can think of like 2005. Not near as much funny money out there for one thing. Also the high end is pretty much dead except for the absolute best properties and deals. Again unlike 2005 when they flew off the shelf at ridiculous valuations.

Some people think we are in a bubble just because they are not the only ones interested in buying a house in SD at these price levels.

I have to say that the markets I’m looking at regularly have definitely cooled down for the winter. Probably will see some very good deals close over the next few months.

[pemeliza]

“This is Piggington circa 2005 all over again.”

Except prices are down 30-60% across the board and interest rates are lower for those with strong credit. These facts are working in favor of the market … the facts opposed to the market are high unemployment, distressed loans, stock market selloff from 14k, etc.

Right now it is a tug of war between these factors. This is not really in anyway that I can think of like 2005. Not near as much funny money out there for one thing. Also the high end is pretty much dead except for the absolute best properties and deals. Again unlike 2005 when they flew off the shelf at ridiculous valuations.

Some people think we are in a bubble just because they are not the only ones interested in buying a house in SD at these price levels.

I have to say that the markets I’m looking at regularly have definitely cooled down for the winter. Probably will see some very good deals close over the next few months.

[pemeliza]

“This is Piggington circa 2005 all over again.”

Except prices are down 30-60% across the board and interest rates are lower for those with strong credit. These facts are working in favor of the market … the facts opposed to the market are high unemployment, distressed loans, stock market selloff from 14k, etc.

Right now it is a tug of war between these factors. This is not really in anyway that I can think of like 2005. Not near as much funny money out there for one thing. Also the high end is pretty much dead except for the absolute best properties and deals. Again unlike 2005 when they flew off the shelf at ridiculous valuations.

Some people think we are in a bubble just because they are not the only ones interested in buying a house in SD at these price levels.

I have to say that the markets I’m looking at regularly have definitely cooled down for the winter. Probably will see some very good deals close over the next few months.

[DWCAP]

It isnt 2005, but I seem some simalarities. The BS loans have shifted from Private subprime lenders to Federal Subprime lenders. FHA and Dept of Ag (yah, look it up) loans have replaced the old subprime lenders. 125% LTV, yep. No down payment, Yep. Pressuring appraisers to ‘meet the number’, yep. Artifically low interest rates created by government intervention without regard to the wider costs to the economy, yep. They do a better job avoiding liar loans, but that is prob just a matter of time. Prices are lower now, so the loans prob wont be as bad as the 2006 variety, but that doesnt mean this is a healthy market based on sound lending practices.
It is those unsound lending practices, including the tax credit costing 5-10X the 8k per added house sold, that is keeping housing prices elevated above current fundamentals.

Bad lending / economics keeping housing prices higher than fundamental prices dictate, sounds similar to the bubble years to me.

[DWCAP]

It isnt 2005, but I seem some simalarities. The BS loans have shifted from Private subprime lenders to Federal Subprime lenders. FHA and Dept of Ag (yah, look it up) loans have replaced the old subprime lenders. 125% LTV, yep. No down payment, Yep. Pressuring appraisers to ‘meet the number’, yep. Artifically low interest rates created by government intervention without regard to the wider costs to the economy, yep. They do a better job avoiding liar loans, but that is prob just a matter of time. Prices are lower now, so the loans prob wont be as bad as the 2006 variety, but that doesnt mean this is a healthy market based on sound lending practices.
It is those unsound lending practices, including the tax credit costing 5-10X the 8k per added house sold, that is keeping housing prices elevated above current fundamentals.

Bad lending / economics keeping housing prices higher than fundamental prices dictate, sounds similar to the bubble years to me.

[DWCAP]

It isnt 2005, but I seem some simalarities. The BS loans have shifted from Private subprime lenders to Federal Subprime lenders. FHA and Dept of Ag (yah, look it up) loans have replaced the old subprime lenders. 125% LTV, yep. No down payment, Yep. Pressuring appraisers to ‘meet the number’, yep. Artifically low interest rates created by government intervention without regard to the wider costs to the economy, yep. They do a better job avoiding liar loans, but that is prob just a matter of time. Prices are lower now, so the loans prob wont be as bad as the 2006 variety, but that doesnt mean this is a healthy market based on sound lending practices.
It is those unsound lending practices, including the tax credit costing 5-10X the 8k per added house sold, that is keeping housing prices elevated above current fundamentals.

Bad lending / economics keeping housing prices higher than fundamental prices dictate, sounds similar to the bubble years to me.

[DWCAP]

It isnt 2005, but I seem some simalarities. The BS loans have shifted from Private subprime lenders to Federal Subprime lenders. FHA and Dept of Ag (yah, look it up) loans have replaced the old subprime lenders. 125% LTV, yep. No down payment, Yep. Pressuring appraisers to ‘meet the number’, yep. Artifically low interest rates created by government intervention without regard to the wider costs to the economy, yep. They do a better job avoiding liar loans, but that is prob just a matter of time. Prices are lower now, so the loans prob wont be as bad as the 2006 variety, but that doesnt mean this is a healthy market based on sound lending practices.
It is those unsound lending practices, including the tax credit costing 5-10X the 8k per added house sold, that is keeping housing prices elevated above current fundamentals.

Bad lending / economics keeping housing prices higher than fundamental prices dictate, sounds similar to the bubble years to me.

[DWCAP]

It isnt 2005, but I seem some simalarities. The BS loans have shifted from Private subprime lenders to Federal Subprime lenders. FHA and Dept of Ag (yah, look it up) loans have replaced the old subprime lenders. 125% LTV, yep. No down payment, Yep. Pressuring appraisers to ‘meet the number’, yep. Artifically low interest rates created by government intervention without regard to the wider costs to the economy, yep. They do a better job avoiding liar loans, but that is prob just a matter of time. Prices are lower now, so the loans prob wont be as bad as the 2006 variety, but that doesnt mean this is a healthy market based on sound lending practices.
It is those unsound lending practices, including the tax credit costing 5-10X the 8k per added house sold, that is keeping housing prices elevated above current fundamentals.

Bad lending / economics keeping housing prices higher than fundamental prices dictate, sounds similar to the bubble years to me.

[greekfire]

It isn’t exactly like 2005, of course. But it feels like it with the way the market and economy are still being manipulated and we are being told that things are recovering and now’s the time to buy.

[greekfire]

It isn’t exactly like 2005, of course. But it feels like it with the way the market and economy are still being manipulated and we are being told that things are recovering and now’s the time to buy.

[greekfire]

It isn’t exactly like 2005, of course. But it feels like it with the way the market and economy are still being manipulated and we are being told that things are recovering and now’s the time to buy.

[greekfire]

It isn’t exactly like 2005, of course. But it feels like it with the way the market and economy are still being manipulated and we are being told that things are recovering and now’s the time to buy.

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