[cr]

I was thinking about the interest rates, and it seems like most people have started accepting the idea that the FED will not lower them again, but still some hold on to hope that they will.

A good analogy I think would be to say, “I’m too drunk to drive now, I better drink some more to sober up.”

Lower rates are a huge part of the problem, either direct or indirect. Applying the root of the problem as a potential solution to it is 100% bass-ackwards.

[cr]

I think the equity thing is certainly true in my area (LA-SFV) but in all honesty I think more people spent more of it, than reinvested all of it into a house.

A lot put back it into their house with upgrades, remodels, and ever complete rebuilds, but I really think more people bought new cars, second homes, went on vacations, bought motorhomes, jet skis, or yellow H2s.

You have to understand the mindset most people had, and were brainwashed to believe by every now defunct subprime lender of the past 5 years. In general they truly believed their 300% appreciation was normal. As if they deserved it. Not only that, many believed it would continue.

It sounds so asinine to think now, but people actually thought that. A lof of people probably could have afforded their homes had they used all their equity, because homes were still higher than they could have otherwise afforded.

Enter exotic mortgages.

Now people can buy that house, and take out $150,000 to start a business, buy a car, remodel, eat a very very very expensive dinner, and STILL have a lower payment.

If you look at the mindset that is only just starting to change, the equity bubble made people feel rich, so they lived like it. Only problem was they have to pay that money back.

[cr]

I think the equity thing is certainly true in my area (LA-SFV) but in all honesty I think more people spent more of it, than reinvested all of it into a house.

A lot put back it into their house with upgrades, remodels, and ever complete rebuilds, but I really think more people bought new cars, second homes, went on vacations, bought motorhomes, jet skis, or yellow H2s.

You have to understand the mindset most people had, and were brainwashed to believe by every now defunct subprime lender of the past 5 years. In general they truly believed their 300% appreciation was normal. As if they deserved it. Not only that, many believed it would continue.

It sounds so asinine to think now, but people actually thought that. A lof of people probably could have afforded their homes had they used all their equity, because homes were still higher than they could have otherwise afforded.

Enter exotic mortgages.

Now people can buy that house, and take out $150,000 to start a business, buy a car, remodel, eat a very very very expensive dinner, and STILL have a lower payment.

If you look at the mindset that is only just starting to change, the equity bubble made people feel rich, so they lived like it. Only problem was they have to pay that money back.

[cr]

16.67%, but I’m younger than most here probably, and 16.67% of $00.00 isn’t much anyway.

[cr]

16.67%, but I’m younger than most here probably, and 16.67% of $00.00 isn’t much anyway.

[cr]

…because the apparition of the American Dream (buy now, pay the rest of your life) wasn’t enough to put the John Q Citizen so far into debt with a lifestyle he can’t afford that we need to advertise the unattainable lifestyle, and tell the shrinking middle class how happy the rich are all because they buy real estate when it seems to be a crashing market.

I’d have less of aproblem with this propaganda if they presented the other side of this argument.

[cr]

…because the apparition of the American Dream (buy now, pay the rest of your life) wasn’t enough to put the John Q Citizen so far into debt with a lifestyle he can’t afford that we need to advertise the unattainable lifestyle, and tell the shrinking middle class how happy the rich are all because they buy real estate when it seems to be a crashing market.

I’d have less of aproblem with this propaganda if they presented the other side of this argument.

[cr]

I’ll ignore the subtle implication that all housing bears are doomsdayers and point out one element that I think alone answers the question:

Foreclosures – they take roughly 6 months to reach the market. May was up 90% YOY nationally, CA has 1 in 300 foreclosing, mostly in the cooling markets. People here know this.

The word “stabilized” means nothing. Supply/demand are far more relevant. If inventories (currently in excess) stabilize in the excess, meaning the number of months supply available remains constant, prices will still fall.

Ask this question again in November.

[cr]

I’ll ignore the subtle implication that all housing bears are doomsdayers and point out one element that I think alone answers the question:

Foreclosures – they take roughly 6 months to reach the market. May was up 90% YOY nationally, CA has 1 in 300 foreclosing, mostly in the cooling markets. People here know this.

The word “stabilized” means nothing. Supply/demand are far more relevant. If inventories (currently in excess) stabilize in the excess, meaning the number of months supply available remains constant, prices will still fall.

Ask this question again in November.

[cr]

I don’t care what that guys says, I can’t handle him.

[cr]

I don’t care what that guys says, I can’t handle him.

[cr]

Thanks for the advice SD R.

I’d like to look into the agent thing more. I’ll ask around in my area.

I noticed you work all the way up to Wildomar. I grew up there and still have family so I’ll recommend them to your site if and when they end up buying or selling.

Porter Ranch is a good example of an area up here in the valley that depsite claims of there being no room to grow in LA, they still find ways to sock in a thousand new homes.

Maybe one day I’ll be able to afford one.

Thanks again.

[cr]

Thanks for the advice SD R.

I’d like to look into the agent thing more. I’ll ask around in my area.

I noticed you work all the way up to Wildomar. I grew up there and still have family so I’ll recommend them to your site if and when they end up buying or selling.

Porter Ranch is a good example of an area up here in the valley that depsite claims of there being no room to grow in LA, they still find ways to sock in a thousand new homes.

Maybe one day I’ll be able to afford one.

Thanks again.

[cr]

YOU ARE ALL WRONG!!!

AND HERE IS WHY-
1. HOUSING IS AS STRONG AS EVER!
2. NOW IS A GREAT TIME TO BUY OR SELL (or foreclose)
3. SALES ARE UP (in one small neighborhood in AL outside the new Toyota plant)
4. INVETORIES ARE DOWN (in the same small town)
5. RATES ARE LOW! (but going up)
6. I’M TYPING IN CAPS WHICH MEANS I’M YELLING, THEREFORE I’M RIGHT

Just kidding guys, (except for the parts in parantheses) I just wanted to see what it felt like to live in bliss ignorance of what is happening in housing, with my head in the sand, but thinking people will jump back in because I say so.

I feel dirty.

[cr]

YOU ARE ALL WRONG!!!

AND HERE IS WHY-
1. HOUSING IS AS STRONG AS EVER!
2. NOW IS A GREAT TIME TO BUY OR SELL (or foreclose)
3. SALES ARE UP (in one small neighborhood in AL outside the new Toyota plant)
4. INVETORIES ARE DOWN (in the same small town)
5. RATES ARE LOW! (but going up)
6. I’M TYPING IN CAPS WHICH MEANS I’M YELLING, THEREFORE I’M RIGHT

Just kidding guys, (except for the parts in parantheses) I just wanted to see what it felt like to live in bliss ignorance of what is happening in housing, with my head in the sand, but thinking people will jump back in because I say so.

I feel dirty.

[Author]

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