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Okay, it’s like the whopper commercial.

Today, the house is worth 700,000 whoppers.

tomorrow, the house is worth 350,000 whoppers.

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Where are the morals and ethics, and what about the fiduciary duty to your clients?

Time is money.

Family situations don’t wait for a bottom. Nor do interest rates.

Hypothetically, let’s say I bought a home a few years ago for $400,000, and today, after some discounting, can get it sold for $600,000. I want a $800,000 house that the family has been eyeing and can make it happen. I have the 20% down and can still afford the $4500/month PITI.

Instead I wait for the bottom or at least, the 20% drop you mention, if interest rates go up 1% from 6% to 7%, I pay more per month for the same house.

[no_such_reality]

sdrealtor has it right, the median is really useless lately. The OCregistor is hubbubing the flat appreciation in median, but has been too stupid to look at the fact that the only reason the number is and hasn’t been negative was because new home sales price tags continued to increase even when others stalled and started to pull back.

As for waiting in the wings, I’ll enter when it’s cheaper than renting. I won’t wait for bottom, the deals are long before bottom. Before the house can be worn, before “bottom” which is an inflation adjusted measure takes a few years of flat nominal into the bottom of the bowl.

I don’t want a median house, the median house is POS. It’s a vapor number that drops in somewhere between a nice condo and a crappy SFR.

[no_such_reality]

If the product is made entirely in the US, with entirely US sourced commodities, then the price would be $18.99.

The manufacturer cost might still be in line with $9.99, but 90% of the products it competes against will double in price. That being said, very few products are made in the USA anymore. TVs, VCRs anything with a silicon chip in it, overseas. Textiles, largely long gone. There’s some sweatshops in LA and other large cities, but they’re just stitching.

However, on the bright side, US services will become very affordable on the global scale and cost benefit off paying an Indian software engineer $8000 will get wiped out since the additional overhead costs nets about a 25% savings for companies at current exchange rates.

[no_such_reality]

Argh, I’m surprised PS that you’re getting suckered by the fairtax pabalum. This stuff is junk.

Let’s look at the basic impact of only paying tax on new items. Yep, used items don’t pay tax. Since this is a housing forum. Care to think through what hapens to

A) San Diego home prices when the Fair Tax goes into effect.
B) New housing development when the tax goes into effect.

Joe Middle class, with his mortgage, two kids and child tax credit thinks he’s over taxed, gobbles this stuff up being sold it’s fair and has no clue, he’s going to pay more.

[no_such_reality]

Q: What happens to the value of hard assets (Gold, real estate) when the currency used to buy them is devalued ?

It’s not just hard assets, it’s all assets.

Let’s do it for simpler scenario. Say the Dollar continues it’s slide to half it’s current value. Say next Christmas, the Dollar trades at 0.25 Sterling, 0.37 Euro and the Chinese float the yuan and it trades at 3.9 Yuan.

How much does the $19.99 Shirt manufactured in China and shipped on EU owned ships from Target cost?

A. $9.99
B. $19.99
C. $39.99

Gas will do the same thing.

As will the chips in the computers we’re all using.

[no_such_reality]

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Lindi, it’s easy, most people stop listening after they hear your minimum payment will be —-

Both the index and the margin is spelled out in the loan.

Since most people don’t understand what paying the minimum on a credit card does, I wouldn’t expect them to understand an option ARM. All an option ARM is bascially a giant house secured credit card.

[no_such_reality]

Unfortunately, the sooner people like the one profiled get busted out and sent to a crappy little apartment in a cruddy part of town because they’ve been foreclosed on and filed BK, the better off all of us will be.

Sadly, I suspect we’re going to see ‘relief’ efforts from the government on this because just like Mr. H, the broker deceived him. Apparently, so did his investment brokerage on dot-com stocks, the commodity traders and the travel agent which he once was on that around the world trip shoting photos…

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SDR, I’ve sent an email asking for more detail on the compliation.

The one time I had a detailed interview with the Census back in 2000, they got pretty nitty gritty. They asked first, then proceeded to ask for additional “proof” copies of pay stubs, tax return, etc. It’s not a simple, ‘how much do you make’

Here’s a link to there quality page link

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Because they were mislead or even worse deceived.

I really doubt it. I think most of them know exactly what they were doing. They were putting it on easy credit just like everything else.

I believe they were told and blissfully chose to ignore the negative side of the equation thinking like many, that in two or three years they’d just refi into a new loan and continue.

It’s the perfect little consumer fantasy. They get the big house, they get the free spending cash, they get a nice low payment and they just keep churning the wheel.

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The income figures are gross income, salary, wages, tips, etc. basically the same description as AGI.

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Any way to see if the names show up for other transactions in the last six months? I couldn’t get search to work right since I’m not a subscriber.

If any of them have multiple transactions other than a sell – buy, the potential for mortgage fraud exists.

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Minor correction, it’s 137,000 households with mortgage costs exceeding 40% of their income. It’s 178,000 with mortgage costs exceeding 35% of their income.

( is there a way to edit a Topic posting after submission?)

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Nla, they don’t. The numbers where for the 2005 Census followup statiscal sampling of the San Diego – Carlsbad – San Marcus Metro Area. Basically, they are 2005 income data collected by the Bereau.

I’m working on a followup posting today since I’m relaxing with a day off and supposedly getting my Christmas shopping done. It’ll have a drill down from the data showing rent and housing expense. It surprised me. And kind of scares me.

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