[EconProf]

BobS
Interesting development.
What should those of us do who were planning to tap into our HELOCs…take the money out in advance? Assuming the bank would be less likely or less able to reduce the HELOC once the money was borrowed, perhaps we should preempt them…stick the money into t-bills or something while waiting.
I have a big chunk of unused HELOC I was hoping to borrow once the market bottomed. Anyone else in this situation?

[EconProf]

BobS
Interesting development.
What should those of us do who were planning to tap into our HELOCs…take the money out in advance? Assuming the bank would be less likely or less able to reduce the HELOC once the money was borrowed, perhaps we should preempt them…stick the money into t-bills or something while waiting.
I have a big chunk of unused HELOC I was hoping to borrow once the market bottomed. Anyone else in this situation?

[EconProf]

BobS
Interesting development.
What should those of us do who were planning to tap into our HELOCs…take the money out in advance? Assuming the bank would be less likely or less able to reduce the HELOC once the money was borrowed, perhaps we should preempt them…stick the money into t-bills or something while waiting.
I have a big chunk of unused HELOC I was hoping to borrow once the market bottomed. Anyone else in this situation?

[EconProf]

BobS
Interesting development.
What should those of us do who were planning to tap into our HELOCs…take the money out in advance? Assuming the bank would be less likely or less able to reduce the HELOC once the money was borrowed, perhaps we should preempt them…stick the money into t-bills or something while waiting.
I have a big chunk of unused HELOC I was hoping to borrow once the market bottomed. Anyone else in this situation?

[EconProf]

BobS
Interesting development.
What should those of us do who were planning to tap into our HELOCs…take the money out in advance? Assuming the bank would be less likely or less able to reduce the HELOC once the money was borrowed, perhaps we should preempt them…stick the money into t-bills or something while waiting.
I have a big chunk of unused HELOC I was hoping to borrow once the market bottomed. Anyone else in this situation?

[EconProf]

BobS

[EconProf]

BobS

[EconProf]

BobS

[EconProf]

BobS

[EconProf]

BobS

[EconProf]

BobS
Something should be said here about momentum when discussing economic or real estate cycles. We can study historical trends and, with the benefit of hindsight, graph long swings up and then down, generally lasting many years peak to peak, or trough to trough.
The latest figures confirm that the current downswing in housing prices is accelerating. We also know prices peaked in about mid to late 2005. Is it not logical that before anyone tries to call a bottom, we should at least see prices going down less fast?
There are so many factors that will contribute to the decline in 2008–factors that will actually reinforce one another and worsen the drop.
Anyone weighing the economics of buying now should add up the usual PITI, HOA & Mello Roos if applicable, the opportunity cost of the down payment (forgone interest income), the fixed transaction cost of buying spread out over the likely time of ownership, and maybe the moving costs if applicable. Translate that into a monthly figure. Then add in as a monthly cost 1% of the price, since that would be the likely drop in value of any house or condo you can expect in 2008.

[EconProf]

BobS
Something should be said here about momentum when discussing economic or real estate cycles. We can study historical trends and, with the benefit of hindsight, graph long swings up and then down, generally lasting many years peak to peak, or trough to trough.
The latest figures confirm that the current downswing in housing prices is accelerating. We also know prices peaked in about mid to late 2005. Is it not logical that before anyone tries to call a bottom, we should at least see prices going down less fast?
There are so many factors that will contribute to the decline in 2008–factors that will actually reinforce one another and worsen the drop.
Anyone weighing the economics of buying now should add up the usual PITI, HOA & Mello Roos if applicable, the opportunity cost of the down payment (forgone interest income), the fixed transaction cost of buying spread out over the likely time of ownership, and maybe the moving costs if applicable. Translate that into a monthly figure. Then add in as a monthly cost 1% of the price, since that would be the likely drop in value of any house or condo you can expect in 2008.

[EconProf]

BobS
Something should be said here about momentum when discussing economic or real estate cycles. We can study historical trends and, with the benefit of hindsight, graph long swings up and then down, generally lasting many years peak to peak, or trough to trough.
The latest figures confirm that the current downswing in housing prices is accelerating. We also know prices peaked in about mid to late 2005. Is it not logical that before anyone tries to call a bottom, we should at least see prices going down less fast?
There are so many factors that will contribute to the decline in 2008–factors that will actually reinforce one another and worsen the drop.
Anyone weighing the economics of buying now should add up the usual PITI, HOA & Mello Roos if applicable, the opportunity cost of the down payment (forgone interest income), the fixed transaction cost of buying spread out over the likely time of ownership, and maybe the moving costs if applicable. Translate that into a monthly figure. Then add in as a monthly cost 1% of the price, since that would be the likely drop in value of any house or condo you can expect in 2008.

[EconProf]

BobS
Something should be said here about momentum when discussing economic or real estate cycles. We can study historical trends and, with the benefit of hindsight, graph long swings up and then down, generally lasting many years peak to peak, or trough to trough.
The latest figures confirm that the current downswing in housing prices is accelerating. We also know prices peaked in about mid to late 2005. Is it not logical that before anyone tries to call a bottom, we should at least see prices going down less fast?
There are so many factors that will contribute to the decline in 2008–factors that will actually reinforce one another and worsen the drop.
Anyone weighing the economics of buying now should add up the usual PITI, HOA & Mello Roos if applicable, the opportunity cost of the down payment (forgone interest income), the fixed transaction cost of buying spread out over the likely time of ownership, and maybe the moving costs if applicable. Translate that into a monthly figure. Then add in as a monthly cost 1% of the price, since that would be the likely drop in value of any house or condo you can expect in 2008.

[EconProf]

BobS
Something should be said here about momentum when discussing economic or real estate cycles. We can study historical trends and, with the benefit of hindsight, graph long swings up and then down, generally lasting many years peak to peak, or trough to trough.
The latest figures confirm that the current downswing in housing prices is accelerating. We also know prices peaked in about mid to late 2005. Is it not logical that before anyone tries to call a bottom, we should at least see prices going down less fast?
There are so many factors that will contribute to the decline in 2008–factors that will actually reinforce one another and worsen the drop.
Anyone weighing the economics of buying now should add up the usual PITI, HOA & Mello Roos if applicable, the opportunity cost of the down payment (forgone interest income), the fixed transaction cost of buying spread out over the likely time of ownership, and maybe the moving costs if applicable. Translate that into a monthly figure. Then add in as a monthly cost 1% of the price, since that would be the likely drop in value of any house or condo you can expect in 2008.

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