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dontfollowtheherd
Participantguitar,
Drive around close to the airport and you’ll see more commercial construction going on. Much of this and hundreds of top-dollar homes are under a flight path expected to practically double in the next 5 years. No wonder the smart money in N.B. has been trying to get out of Dodge before their quality of life drops dramatically. What good is coastal living if you can’t enjoy it because of the 757’s etc. that are on top of you day and night? No thanks. My quiet moutain home with a meandering stream in front suits me just fine. Now if I can just retire soon and get up their for good I’m set.
ParticipantDownsizing even more is a given and these companies, especially Countrywide can do it in a heartbeat. Many companies have been training their staff on handling foreclosures for some time. It’s finally at that point. They don’t want it but most lenders are going to end up being the largest homeowners by default unless they can give away these loans at 50-60 cents on the dollar. Better to recoup some money now than carry them for years and tie up their own interest-earning capital.
Participanthipmatt,
That’s where the “at least” comes in – after hearing David Lereah on KNX 1070 yesterday finally admit THE OC has another 15-20% drop still in it I’m going with 70-80% lol. All kidding aside the motnhly sales are so meager – I’m talking twos and threes in some cities that it is going to get real ugly real soon. With today’s market take on no interest rate decline it will only hasten the demise of many speculators and those who over stepped their finance abilities. A guy I know told me a few days ago that he lost his A$$ trying to flip some houses. He’s dumping and so are others right behind him.
Participant…and they are going to pay for this how exactly? With our trillion dollar deficit? fuggetaboutit
Participantnot many after Uncle Sam takes his 30% off the top… that 240k difference to most people would mean paying off the loan within a reasonable time frame…the interest for 30 years at 6.5% on that extra 240k would cost an extra 300k…
Participantzk,
Market psychology absolutely has been the primary factor in the latest overexuberant runup. People were panicking thinking they’d never be able to buy a house again. Bill Gross from Pimco pegged this a while back. He said Japan had a 0-1% rate for ten years I believe and you know what? The price of housing still dropped. People who have taken out a large portion of their equity and bought second homes, Hummers etc. are stuck for life (or a very long time) unless they earn incredible sums of money.
Flat earnings anywhere cannot keep up with an overpriced market. Flippers are sweating big-time, realtors are being laid off or finding other jobs (I’ve hired a couple and some mortgage brokers)and we’re still at least 25% away from “reasonable” prices. You’re going to find a lot of “pissed off” buyers who had they waited 6 months to a year would have saved 40% off the house they bought.
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