Interesting Article on Housing Market Crisis 2.0

[fredberry]

I found the following recent article on Seeking Alpha's website that documents the strong possibility that we are in a new housing market crisis very interesting. Glad we sold last year and am in no hurry to buy near-term especially if market continues to degrade.

https://seekingalpha.com/article/424...2018minus-2019

Fred

[ExFlyBoy5]

Quote:

Originally Posted by fredberry I found the following recent article on Seeking Alpha's website that documents the strong possibility that we are in a new housing market crisis very interesting. Glad we sold last year and am in no hurry to buy near-term especially if market continues to degrade. https://seekingalpha.com/article/424...2018minus-2019 Fred

Yeah...take this with a grain of salt. About the article's author:

Quote:

I have minced no words in the many years that I have now been writing on macro economics. I bring as much disrespect to bankers, economists, commentators, and politicians as their cerebral stem rot and corruption deserve.

https://seekingalpha.com/author/davi...gular_articles

[MichaelB]

TBH, I found linked article to be more boastful than insightful. It did end with a reference to “premium posts”.

[Aerides]

It's an article from a newbie writer with 2 posts on SA...promoting his blog... yawn....

I'm strongly in favor of a new sub-forum called "here's an article I found..." so we can put them all in one spot.

[ExFlyBoy5]

Quote:

Originally Posted by Aerides I'm strongly in favor of a new sub-forum called "here's an article I found..." so we can put them all in one spot.

That's a good idea! But in the OP's defense, the title did indicate that it was an article. I personally would love a flag the "news" comes from Seeking Alpha or Market Watch, then I would know to skip it.

[Doribe]

Seeking Alpha is a site full of wanna be financial experts. I think the authors get paid per click.

[Dtail]

Depends where one lives. Just bought a house which was on the market for 2 days, with 18 shows, 7 offers including 4 over the list price.

[brett]

Exactly. Market driven. We sold near the top of a market, traveled for seven months and then rented for four years after returning.

Real estate in our area was going down. Renting during that time was financially very beneficial for us In other areas of the country RE was booming.

[imoldernu]

Lots of stuff piling up in the news these days... housing, auto defaults, credit card debt going into payday loans, percent of families with in deep debt, and younger people living paycheck to paycheck.

Statistics are showing up on most news sources... more every day.

[BeachOrCity]

Quote:

Originally Posted by Dtail Depends where one lives. Just bought a house which was on the market for 2 days, with 18 shows, 7 offers including 4 over the list price.

So you overpaid? Sorry I couldn't resist, please don't hate me!

[ckelly78z]

I was hoping for a buyer's market to get a nice vacation home....oh well !

[Dtail]

Quote:

Originally Posted by BeachOrCity So you overpaid? Sorry I couldn't resist, please don't hate me!

I was waiting for that comment.... haha cool.
Actually it was clear that the sellers were using the concept of purposely setting the sale price at below market to draw in the buyers, then let them fight it out vs. starting at the proper level and possibly getting many less buyers to even look at the property.

[Maenad]

I think calling a bust in housing prices a "crisis" is being melodramatic. 2008 was a legitimate crisis because there was an unusually high number of subprime borrowers in the pool.

Boom and bust cycles aren't crises, they're just the predictable consequence of irrational exuberance and irrational doom.

[braumeister]

Quote:

Originally Posted by Dtail the sellers were using the concept of purposely setting the sale price at below market to draw in the buyers, then let them fight it out vs. starting at the proper level and possibly getting many less buyers to even look at the property.

You never know. We sold our house in 2004 and set the price at a slightly higher point than we thought proper, because our agent assured us it was reasonable. It sold for nearly 25% over asking price to a guy 3,000 miles away who bought it sight unseen based on the photos he saw online.

If the right buyer sees the right house, it's simple.

[Dtail]

Quote:

Originally Posted by braumeister You never know. We sold our house in 2004 and set the price at a slightly higher point than we thought proper, because our agent assured us it was reasonable. It sold for nearly 25% over asking price to a guy 3,000 miles away who bought it sight unseen based on the photos he saw online. If the right buyer sees the right house, it's simple.

Understand your point. With 4 offers within 2 days at over the listing price, plus we have close friends as real estate agents where it was clear the comps were calculating at a clearly higher price than "list", we were glad our offer was over list not to mention buying all cash.
We were fairly sure we were the the second highest offer, but the highest needed a mortgage.