Man do not scare me like this. Sellers could just raise the prices to 600K and bankrupt all the buyers scary shit :eek:
You forget we had a up cycle in real estate starting from 1997-2005. Some people came in the up cycle and now they down and they cannot believe it will never end. It may seems forever but its not. US Consumers can only hold back their needs for housing few years and rent and live out paying exorbitant taxes. After few years, so much pressure builds up, they give up and go get whatever they can. Its a way they behave and act. Lowering Feds fund rates will stimulate real estate this year 2008. You can see Home Builder stocks CTX, RYL, TOL etc bottoming out and getting bullish. Its the first sign of real estate getting some life, the market is already pricing it.
the pain in the real estate market will seem endless... ie no light of course it will recover ...but in many bubles asset prices never ever again seem to reach their highs yhoo has still not hit its .com high as many other stocks have not real estate is not special its simply another asset class...and 98 percent of the country has not been built upon ...ie their is plenty of cheep land out their...real cheep ...110 dollars an acre cheep the money was made in real estate by the people who sold their homes over the past 3 ....4....years ...... it will be as if we enter a seemingly endeless tunnel at the end of wich their seems to be no light ...a dark place with no clock ... and with people and shadows screaming....scratching for an exit that does not exist ...as we drag ourselves over the bones of the dead..................did i explain myself a little better this time....g
Why don't you go and find out the hard way? Try getting some financing. You will learn. In Riverside, Los Angeles, San Bernadino counties they are taking 5% and applying for declining markets. Countrywide has a list out on all the US counties where this formula is applied. Your purchase appraisal will be reduced 5% for the declining markets and hence you will have to come up with 10% down+ closing costs. You are not realistic and you dont know the market and how financing actually works and whats going on, only a knowledgeable mortgage broker can fill in for you.
1.You are too negative and hopeless. Your emotional state of mind is full of doom and gloom and no light at the end of the tunnel ! 2.Never compare REAL ESTATE PRICES as equivalent to STOCK PRICES. The analogy is wrong. 3.There is no similarity in both. Real estate can only be sold with a buyer and seller in escrow while a stock can be sold at a mouse click at the whim of the seller. Real estate is a tangible asset, hence its has different price behavior, while stocks are blips on your screen and can trade up and down. 4.It takes years before real estate prices go down. In this down turn the prices have barely gone down 5-8% in this country.
ah haaaaaaaa but you can trade real estate with the click of a mouse 1 radarlogic.com 2 housing stocks 3 etcetcetc real estate goes lower and lower and lower
Have you ever owned a house? Answer me. Try clicking away with a mouse. You won't be able to get rid of it even after lots of efforts. Looks like you are used to clicking on stocks and those are stocks not real estate.
A house, assuming it is habitable, ALWAYS has a value..... Enron, Worldcom, etc etc have NO value.... Anyone who compares the two simply does not understand.... A guy buys a house for $100,000 in 1990....goes up in value to $500,000 by 2007.....he sells in early 2008 and only gets $475,000..... Press and ET loudly shout...."Man loses $25,000 on house sale" Peabrains, LOL SteveD
A guy buys a house in 1977 for $500,000. It goes down to $300,000 in 1981. Meanwhile inflation rages at about 10% per year, unemployment hits double digits. Guy loses his job, forced to sell his house to relocate, gets clipped in a big way. SteveD shouts "WTF happened?"