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August 29, 2007 at 12:06 PM in reply to: Why is Texas dirt cheap compared to California for real estate? #82421August 29, 2007 at 11:47 AM in reply to: Why is Texas dirt cheap compared to California for real estate? #82413
bsrsharma
ParticipantCA: Water on one side, mountains/deserts on other, border on third.
NY/FL/NJ: Water on some side.
Colorado: Lots of mountains
AZ/NV: Completely irrational. Housing here is worth nothing once water/energy shortage hits.
Tx: Lots of flat land -> land is worth little.
Considering the amount of land in US, this country should have plenty of affordable housing for everyone. It is sheer mismanagement that caused this crisis. It is going to cost the nation very dearly in international competition. Higher housing costs drive up labor cost that in turn encourages outsourcing. US citizens have been served badly by their leaders at all level of governments. We have become a nation of drug addicts – the name of that drug is Debt. This is the withdrawal time.
Participantthe effect of the 417K threshold
Is not just interest rate & availability. The post-crunch era needs the buyer to come with $100K. What do you think is the number of people who can come with a clear $100K check in hand? My guess is somewhere in the 2%-5% of potential house buyer pool. Make it 10%. That means 90% market shrink. Why is it an exaggeration to call that a crisis?
see http://biz.yahoo.com/ap/070829/expensive_homes.html?.v=2
ParticipantOr may be the owner pulled out some equity? But it is hard to believe someone would took out so much money.
Yes, that is the tragedy in too many instances. Ordinary people wanted to live very good lives. Borrowed senselessly on their homes. Now they are going to lose it all and become poor. A lot of downward mobilty.
ParticipantWhen Manhattan Beach is hitting a brick wall, we are all hitting a brick wall
How about run on a major bank – Countrywide. Not a sign of good times.
ParticipantThat is a good $50K band. They probably need another re-tune to $415K-$465K for sparks to fly.
August 29, 2007 at 12:14 AM in reply to: Nasty day at the stock market today. Dow lost nearly 300 pts…. #82359Participanthow lowering the fed funds rate again could strengthen the dollar?
If I have to make a guess, it will be like this:
No rate cut -> severe recession -> Less demand for $ -> weaker $
Rate cut -> recession avoided -> demand for $ -> stronger $
I think the market might have figured in a recession into $ demand, and hence its value. By avoiding a recession, $ may get a boost.
Participantsogon: Good example. One problem: there is no inflation yet!
Let me extend the story some. After you buy your DVD player, your neighbor wants one too. But there aren’t enough DVD players around. So he offers to pay you $200 to get it. (He gets the $200 by borrowing from FED). You sell it to him for $200. (if you want, you then payback your $100 to FED).
Now that is inflation! $200 is chasing a DVD player that was $100 before due to excess demand over supply.
Participantmajority of them are located somewhat east of I-5
Sandi – that was a good one! Even the White House is east of I-5. Some might argue it has been a dump for some time.
ParticipantSorry but if you only make a small salary
mgub: Would you tell me what is your idea of a salary good enough to qualify a household to buy a house? Obviously 65K is small. Would 130K be good enough? BTW, If you exclude 65K and below, you remove about half of US households. What do you think of a country where half the population can't even aspire to own their shelter? Would you like to live there? Would you be proud of it?
ParticipantJC with 65k a year you will have a hard time buying a house anywhere in the USA. You have to earn more money!
Very good reason why bubble should pop (and it will). FED should take note. If I am correct, 65K is a fine middle class income isn't it? If a middle class household can't buy a shelter, obviously it is a market distortion.
As for the "more money" comment – 65K puts a person in probably top 2% of income in the world. And the other 98% are not all stupid. Flat world will ensure that "more money" is harder to come by.
ParticipantI'm a legal squatter
I am lost right there. What do you mean by that? Are you living there beyond lease period without paying rent? Do you have a valid lease and just stopped paying rent because the house was foreclosed? If you just walked in after the house was foreclosed because you found the door unlocked, that won't be legal, right?
ParticipantI'm a legal squatter
I am lost right there. What do you mean by that? Are you living there beyond lease period without paying rent? Do you have a valid lease and just stopped paying rent because the house was foreclosed? If you just walked in after the house was foreclosed because you found the door unlocked, that won't be legal, right?
ParticipantI'm a legal squatter
I am lost right there. What do you mean by that? Are you living there beyond lease period without paying rent? Do you have a valid lease and just stopped paying rent because the house was foreclosed? If you just walked in after the house was foreclosed because you found the door unlocked, that won't be legal, right?
August 28, 2007 at 10:19 AM in reply to: San Diego year over year inventories down for third month in a row #82011Participantlenders do not like to sell properties directly because of liability issues.
Even after clearly marking it "As Is"?
Many were on the MLS and didn't get sold then they were pulled off.
When will they become "Motivated Sellers" and sell at whatever the market price is? Is there a general timeline of is it specific to each lender?
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