[lonestar2000]

Many of those who are losing their homes due to foreclosure today are going to want to purchase again, havnig learned from their mistakes.

I see a majority of them saving, rather then spending the extra money freed up after the foreclosure, so they can do it right the next time.

There are going to be those who will spend the extra money, there always are, but I think many of them will use the experience to re-evaluate their habits.

A significant portion of the population still would prefer owning over renting.

[lonestar2000]

Many of those who are losing their homes due to foreclosure today are going to want to purchase again, havnig learned from their mistakes.

I see a majority of them saving, rather then spending the extra money freed up after the foreclosure, so they can do it right the next time.

There are going to be those who will spend the extra money, there always are, but I think many of them will use the experience to re-evaluate their habits.

A significant portion of the population still would prefer owning over renting.

[lonestar2000]

temeculaguy,

Regarding TVs, wait for another year for Laser TVs to arrive. They will blow you away with how much better they look than even Plasmas, and they will drive LCD/Plasma TVs down to even more ridiculous prices. This time next year you’ll be picking up 40 inch LCDs in Wal-Mart for $200.

Regarding the type of house you like (single story, small yard, association lawn, 3 car garage, etc.), I look for nearly the same thing, except for I’d rather put in my own low maintenance front lawn, and enough of a yard in the back to put a nice play yard for our son (no pool, just a slide and aswing set with cool climing surfaces).

Unlike you though, our finances are much more humble, so I’ll have to wait for homes in the IE to drop to the $200,000 range. Already there are some that are close, but not quite what we’re looking for. I live in the San Bernardino area which is a bit too far from Murrieta, but hopefully those huge discounts will start trickling up our way in the next six to twelve months. As soon as a new 2100 square foot house with 3 car garage drops to $200,000 I’m hitting the big red Deal button. 🙂

[lonestar2000]

temeculaguy,

Regarding TVs, wait for another year for Laser TVs to arrive. They will blow you away with how much better they look than even Plasmas, and they will drive LCD/Plasma TVs down to even more ridiculous prices. This time next year you’ll be picking up 40 inch LCDs in Wal-Mart for $200.

Regarding the type of house you like (single story, small yard, association lawn, 3 car garage, etc.), I look for nearly the same thing, except for I’d rather put in my own low maintenance front lawn, and enough of a yard in the back to put a nice play yard for our son (no pool, just a slide and aswing set with cool climing surfaces).

Unlike you though, our finances are much more humble, so I’ll have to wait for homes in the IE to drop to the $200,000 range. Already there are some that are close, but not quite what we’re looking for. I live in the San Bernardino area which is a bit too far from Murrieta, but hopefully those huge discounts will start trickling up our way in the next six to twelve months. As soon as a new 2100 square foot house with 3 car garage drops to $200,000 I’m hitting the big red Deal button. 🙂

[lonestar2000]

I must admit, I too was surprised to see the copyright notice after reading the article. The interesting thing is, my feeling regarding the article changed after seeing the notice, and that has me questioning the reason.

Most of us would probably agree that the article had some interesting points, and we all were going along with it. Heck, if one of the normal Piggingtonians pasted it, and tried to pass it off as their own, we’d all be raving now.

Are we justified on changing our viewpoint based on who wrote an article? Should we not judge an article based solely on its contents (and credible sited sources)?

Anyhoo, the article was quite good, although I do think it is a bit over the top in it’s doom&gloom prediction.

I do agree that America needs to stop relying on foreign money and should put its financial house in order, but to think that all foreign investments here are coming/have come to an end is purely fantasy.

Monetary systems from day one were based on trust, heck nothing is for certain for crying out loud. You ‘trust’ that when you take your next breath, air will actually exist! Because if not…well…you won’t be able to make your mortgage payment and some poor Scandanavian investor will lose their nest egg, LOL!

[lonestar2000]

Yet another thing this site needs is an IP ban on every arrogant dweeb that decides to blast the site.

Since when does the site require a purpose other than just to be? Tell me, what purpose does MySpace have? Or CNN? Or the Universe, for that matter?

Furthermore, a bubble is not defined by a burst. If it did then you would not know you had a bubble until it burst. Do you not know a brick wall until you hit it? Maybe you don’t, or perhaps you didn’t, which would explain a few things.

The bubble most definitely exists, we are simply experiencing a slow leak, which will eventually spread to a giant sucking sound.

sdsundevil, thanks for the amuzing post, it is a most welcome hiatus from all the charts, data, reports, and intellectual arguments from CIOs, Realtors, appraisals, economists, and other fine folk that regularily post to the site. /sarcasm off

[lonestar2000]

There is another fundamental difference between the stock market and the real estate market.

The real estate market is generally driven by must have purchases, by that I mean that everyone must have a place to live. Money spent, for the most part, is counted as part of your living expenses and therefore comes out of your non-disposable income pool.

The stock market is driven by investments, this is money that is extra, beyond your normal living expenses, and is considered not must have purchases.

The former is tied to income, the latter is not.

The real estate bubble happened because the housing market became the playground of Wall Street and was treated as yet another market to invest in. This, of course, drove up prices beyond logic. The trouble is, that Wall Street pulls out as soon as the market turns, caring nothing for the devastation that it causes. Normally this is of limited concern, because the devastation is limited to what ever company/mutual fund/etc. was being invested in, but when that market is the real estate market, that everyone depends on, it has drastic results, as we’re seeing.

I wish Wall Street kept out of places that it does not belong in, but such are those who want to make a buck without caring who’s lives they’re ruining.

[lonestar2000]

One must also consider married households with sole bread winners. Our is one such household (I’m the breadwinner), we simply do not trust anyone else with our 17 month old son.

We are making do with a single income, and if that means that we’ll remain renters (we actually own a mobile home, we rent the space) then that is a small price to pay in exchange to having my wife at home, teaching and raising our son.

There are actually more stay-at-home momes (and dads) than many people realize, and people are making due. You simply re-prioritize your life around that. You CAN make it work with one income!

Now, a single person with one income, compared to a married couple with one income is not the same, and that is something our tax code needs to address. But for the most part it is all a mater of budgeting and living within your means.

Homes in California are definitely geared towards the dual-income families, and this needs to be (and will be) corrected before we can say that we’re back to fundamentals.

[lonestar2000]

“We *have* to trust the government numbers”

“Wonderful! I’ll be sure to remember that when gas and milk are $6 a gallon.”

And $50,000 for a toilet seat! – (shameless Independence Day quote)

[lonestar2000]

The news just keeps getting uglier. It continues to amaze me how some people can STILL come on this board and make statements to the contrary.

The writing is on the wall, we have seen nothing yet and it’s all down hill from here.

[lonestar2000]

Nowhere else in the world do you have such waste as we do here. It is going to be our undoing and Americans used to such waste are going to have a very hard time adjusting to
the new paradigms.

Take a look at Ikea sometime, their showroom models of 350aq and 650sq homes show how much one can do with a little imagination and ingenuity.

[lonestar2000]

Lowballing is like landscape painting, it is an art form that takes time, patience, and a whole lot of wasted canvases until you get it right.

The payoff may be worth while, but you will not get it after making just a few offers.

[lonestar2000]

Oh, I forgot to add, only new homes are recorded at the time of contract signing. Existing homes are recorded at the time of escro close, which can take 3 months.
And new home sales are a fraction of the entire RE market.
You’re basically looking at three month old data. Today’s sales will not really bourne out until late November.

So…take a deep breath and relax.
Go play some World of Warcraft on a customized emulator server for a few months. 🙂

[lonestar2000]

It is yet early, many properties, even distressed ones, held out over the summer in hopes of a sale. It also takes several months for a NOD to turn NOT and then a bit of time for a REO. Mortgage tightening is only starting to make it’s impression now, as those who now MUST refinance or sell are finding out. Also, a new wave of resets is just hitting, which will take it’s toll in the months to come.
And people are finally going back to school which takes attention off the RE market.

Relax guys and gals, it is still very early in the game. Save your pennies, a house at a decent price is yet in our future.

[lonestar2000]

There was a news item last night about an email that was circulated to CW employees yesterday. Apparently it named over 900 employes being canned, disciplined, on notice, etc.

Maybe that was it.

In any case, I do agree that those who rode the stock wave upwards and bought into it in their 401(k)s don’t really have much solid surface to stand on when trying to sue now. But it does go to show how blindly the entire RE industry believed that prices will keep going up forever.

I can understand betting your house, you can always start over if you lose it, but your retirement?!? How stupid do you have to be to bet something like that?

Lose your car, lose your house, lose your job, but don’t jepordise your retirement!

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