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kev374
ParticipantIt’s a fraudulent scheme by the government under the guise of helping homeowners it just bails out the investors and shifts the risk to the taxpayers, simple as that.
ParticipantAre you of the belief this market will never recover?
Yes, in my opinion it’s highly unlikely that the market will ever recover within the next 25 years to the levels we have seen. This has been a great aberration that took the home price/income ratio to astronomical levels never seen in the history of the United States.
Facts:
– Income growth is negative due to global wage arbitrage– Liquidity is gone, Fed just cannot keep inflating money
– Loose lending is no more and is not coming back!
– Cost of living is going up putting even more pressure on home affordability, contrary to what many think, inflation negatively impacts home prices not positively. If your groceries, oil, transporation, utilities, insurance etc. cost more then you have to live in a cheaper house! It is *income inflation* that positively affects home prices, not headline inflation which has a negative effect.
This bodes much worse for housing. Since housing affordability is closely tied to income, so this will impact the long term trend negatively.
And the argument that rich businessmen (local or foreign) with suitcases of cash are buying up all the houses in OC is just absolutely ridiculous!
ParticipantAre you of the belief this market will never recover?
Yes, in my opinion it’s highly unlikely that the market will ever recover within the next 25 years to the levels we have seen. This has been a great aberration that took the home price/income ratio to astronomical levels never seen in the history of the United States.
Facts:
– Income growth is negative due to global wage arbitrage– Liquidity is gone, Fed just cannot keep inflating money
– Loose lending is no more and is not coming back!
– Cost of living is going up putting even more pressure on home affordability, contrary to what many think, inflation negatively impacts home prices not positively. If your groceries, oil, transporation, utilities, insurance etc. cost more then you have to live in a cheaper house! It is *income inflation* that positively affects home prices, not headline inflation which has a negative effect.
This bodes much worse for housing. Since housing affordability is closely tied to income, so this will impact the long term trend negatively.
And the argument that rich businessmen (local or foreign) with suitcases of cash are buying up all the houses in OC is just absolutely ridiculous!
ParticipantAre you of the belief this market will never recover?
Yes, in my opinion it’s highly unlikely that the market will ever recover within the next 25 years to the levels we have seen. This has been a great aberration that took the home price/income ratio to astronomical levels never seen in the history of the United States.
Facts:
– Income growth is negative due to global wage arbitrage– Liquidity is gone, Fed just cannot keep inflating money
– Loose lending is no more and is not coming back!
– Cost of living is going up putting even more pressure on home affordability, contrary to what many think, inflation negatively impacts home prices not positively. If your groceries, oil, transporation, utilities, insurance etc. cost more then you have to live in a cheaper house! It is *income inflation* that positively affects home prices, not headline inflation which has a negative effect.
This bodes much worse for housing. Since housing affordability is closely tied to income, so this will impact the long term trend negatively.
And the argument that rich businessmen (local or foreign) with suitcases of cash are buying up all the houses in OC is just absolutely ridiculous!
ParticipantAre you of the belief this market will never recover?
Yes, in my opinion it’s highly unlikely that the market will ever recover within the next 25 years to the levels we have seen. This has been a great aberration that took the home price/income ratio to astronomical levels never seen in the history of the United States.
Facts:
– Income growth is negative due to global wage arbitrage– Liquidity is gone, Fed just cannot keep inflating money
– Loose lending is no more and is not coming back!
– Cost of living is going up putting even more pressure on home affordability, contrary to what many think, inflation negatively impacts home prices not positively. If your groceries, oil, transporation, utilities, insurance etc. cost more then you have to live in a cheaper house! It is *income inflation* that positively affects home prices, not headline inflation which has a negative effect.
This bodes much worse for housing. Since housing affordability is closely tied to income, so this will impact the long term trend negatively.
And the argument that rich businessmen (local or foreign) with suitcases of cash are buying up all the houses in OC is just absolutely ridiculous!
ParticipantAre you of the belief this market will never recover?
Yes, in my opinion it’s highly unlikely that the market will ever recover within the next 25 years to the levels we have seen. This has been a great aberration that took the home price/income ratio to astronomical levels never seen in the history of the United States.
Facts:
– Income growth is negative due to global wage arbitrage– Liquidity is gone, Fed just cannot keep inflating money
– Loose lending is no more and is not coming back!
– Cost of living is going up putting even more pressure on home affordability, contrary to what many think, inflation negatively impacts home prices not positively. If your groceries, oil, transporation, utilities, insurance etc. cost more then you have to live in a cheaper house! It is *income inflation* that positively affects home prices, not headline inflation which has a negative effect.
This bodes much worse for housing. Since housing affordability is closely tied to income, so this will impact the long term trend negatively.
And the argument that rich businessmen (local or foreign) with suitcases of cash are buying up all the houses in OC is just absolutely ridiculous!
ParticipantRents have been falling here in South OC because inventory is rising and there is tremendous competition. I am on a lease paying $1350/mo. and the same unit now is renting for $1250 under specials because there is so much choice now.
When supply increases, the prices fall. We have had staggering job losses recently because of the RE implosion (OC Register has a layoff list that is a few pages long) and a recession is looming with more job losses ahead. All this means is that the capacity to pay will be diminished which in turn directly affects rents, especially in a market where supply is increasing at the same time.
ParticipantRents have been falling here in South OC because inventory is rising and there is tremendous competition. I am on a lease paying $1350/mo. and the same unit now is renting for $1250 under specials because there is so much choice now.
When supply increases, the prices fall. We have had staggering job losses recently because of the RE implosion (OC Register has a layoff list that is a few pages long) and a recession is looming with more job losses ahead. All this means is that the capacity to pay will be diminished which in turn directly affects rents, especially in a market where supply is increasing at the same time.
ParticipantRents have been falling here in South OC because inventory is rising and there is tremendous competition. I am on a lease paying $1350/mo. and the same unit now is renting for $1250 under specials because there is so much choice now.
When supply increases, the prices fall. We have had staggering job losses recently because of the RE implosion (OC Register has a layoff list that is a few pages long) and a recession is looming with more job losses ahead. All this means is that the capacity to pay will be diminished which in turn directly affects rents, especially in a market where supply is increasing at the same time.
ParticipantRents have been falling here in South OC because inventory is rising and there is tremendous competition. I am on a lease paying $1350/mo. and the same unit now is renting for $1250 under specials because there is so much choice now.
When supply increases, the prices fall. We have had staggering job losses recently because of the RE implosion (OC Register has a layoff list that is a few pages long) and a recession is looming with more job losses ahead. All this means is that the capacity to pay will be diminished which in turn directly affects rents, especially in a market where supply is increasing at the same time.
ParticipantRents have been falling here in South OC because inventory is rising and there is tremendous competition. I am on a lease paying $1350/mo. and the same unit now is renting for $1250 under specials because there is so much choice now.
When supply increases, the prices fall. We have had staggering job losses recently because of the RE implosion (OC Register has a layoff list that is a few pages long) and a recession is looming with more job losses ahead. All this means is that the capacity to pay will be diminished which in turn directly affects rents, especially in a market where supply is increasing at the same time.
ParticipantYou must understand that people are in denial because the reality is too painful to accept. These people have either already spent their appreciation or have made grand plans – for instance cash in their equity and retire, take a few cruises, travel the world etc. For some the equity represents their entire retirement plans. For these people their home reprents the jackpot that they have won.
ParticipantYou must understand that people are in denial because the reality is too painful to accept. These people have either already spent their appreciation or have made grand plans – for instance cash in their equity and retire, take a few cruises, travel the world etc. For some the equity represents their entire retirement plans. For these people their home reprents the jackpot that they have won.
ParticipantYou must understand that people are in denial because the reality is too painful to accept. These people have either already spent their appreciation or have made grand plans – for instance cash in their equity and retire, take a few cruises, travel the world etc. For some the equity represents their entire retirement plans. For these people their home reprents the jackpot that they have won.
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