- This topic has 45 replies, 8 voices, and was last updated 14 years, 6 months ago by
greekfire.
-
AuthorPosts
-
October 29, 2009 at 10:20 PM #476423October 30, 2009 at 12:59 AM #475635
pemeliza
Participant“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.
October 30, 2009 at 12:59 AM #475810Participant“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.
October 30, 2009 at 12:59 AM #476173Participant“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.
October 30, 2009 at 12:59 AM #476249Participant“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.
October 30, 2009 at 12:59 AM #476473Participant“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.
October 30, 2009 at 9:29 AM #475679DWCAP
ParticipantIt 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.
October 30, 2009 at 9:29 AM #475856ParticipantIt 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.
October 30, 2009 at 9:29 AM #476218ParticipantIt 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.
October 30, 2009 at 9:29 AM #476293ParticipantIt 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.
October 30, 2009 at 9:29 AM #476518ParticipantIt 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.
October 30, 2009 at 9:50 AM #475694greekfire
ParticipantIt 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.
October 30, 2009 at 9:50 AM #475869ParticipantIt 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.
October 30, 2009 at 9:50 AM #476233ParticipantIt 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.
October 30, 2009 at 9:50 AM #476308ParticipantIt 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.
-
AuthorPosts
- You must be logged in to reply to this topic.