Skip to content
Notify of
Inline Feedbacks
View all comments
15 years ago

Very nice work! Everyone that
Very nice work! Everyone that comes to this site should be made to read this before they do anything else here!
I see far too many people using all kinds of rationalizations for calling a “bottom” or coming up with some calculations that could justify a purchase.
If one wants to purchase now, fine, but realize it will be headed down for a while yet.

15 years ago

Foreclosures are good. Stop
Foreclosures are good. Stop trying to prevent it. Give the free market a chance.

Amen. There’s plenty of rental units available, no one is going homeless due to foreclosure.

15 years ago
Reply to  HereWeGo

HereWeGo wrote:


Amen. There’s plenty of rental units available, no one is going homeless due to foreclosure. [/quote]

Yeah, I hate when I hear something like this from the media, or some politician, or some talking head. The people who are most at risk of being homeless are evicted renters, but you never hear about those people.

Foreclosed “homeowners” get at least 9 months of cost-free living and may be getting much more than that these days. If they can’t afford a rental after living cost-free for at least 9 months, they’ll never be able to afford anything.

It also pisses me off when I hear that “Fannie and Freddie help make homes more affordable”. Wrong! Fannie and Freddie make getting a loan easier, but they actually push the price of a home up because more people can hack the monthly payment, which means there is more demand.

15 years ago

It’s Saturday morning and my
It’s Saturday morning and my head just can’t be forced to read and absorb every detail of this great report, so if I can just stick with some basics, relating to the quote below.

These homes were selling from the high $500k to low $600k range. Under normal financing conditions, household income required to qualify would be in the $200,000 range …Prices may not fall much more…

Is it safe to assume that ‘normal conditions’ are unlikely to return given the large income needed to buy a house in this price range, that as you say may not fall much more?

15 years ago

That was a spectacular piece
That was a spectacular piece and the model is very well thought out. If Ramsey updates this report quarterly or better yet monthly this info is going to help a lot of people. Very nice!

SD Realtor
15 years ago
Reply to  capeman

Hi Rich –
I love reading

Hi Rich –

I love reading Ramseys stuff. His is amongst the most well informed. I have sent him email as I only disagree with him that he has not properly detailed the true status of the active short sale offers. As I have said more then once, there are many short sale listings that indeed do have offers on them and thus cannot become pendings until they get the release of lien letter from the lender.

By no means should this take away from the analysis he has made. Indeed I do agree with him on the end result which is all that really matters. I do believe that in my mind, there is not any certain zip code that is representative of San Diego as a whole. In fact active pending ratios for places like Scripps Ranch are so far opposite of the south San Diego zip code he used that it is staggering.

So I do agree fundamentally with his premise and in fact if anything his data, to me backs up the thought that the variance with which the bottom will hit various zip codes will be wider (temporally) then I initially thought.

Was does indeed scare me the most, and I think it WILL BE A REALITY, is that in the next year or two, we may very well see the federally mandated solution that Ramsey pointed out as the greatest unknown. Following the link provided by Ramsey to the WSJ article about the details of a federal solution to me was much more informative then the Ramsey article itself.

I would say that the odds are very much 50/50 (and as you know I am a betting man) that within a year we will be posting about something much more insidious then the bailout of the two GSEs.

15 years ago

Thanks for the


Thanks for the information.