Sizing the Housing Bubble

[wabmester]

you only lose money on an investment/asset if you sell it.

Sometimes, the only way to keep the money you made on an investment/asset is to sell it.

 

[brewer12345]

I dont see them cutting rates if inflation continues at its present rate. I dont see how they can without it getting out of control.

Well, if housing bashes the economy, it will take consumer spending with it. That would take a lot of inflationary pressure off the economy. Time will tell. I think a lot of chickens will be coming home to roost in the spring selling season for housing.

 

[lazygood4nothinbum]

I know that this is a topic resurrection, but I found a great link for those who are watching the real estate market: find the current housing inventory in many local markets, total, single family, condo by price bracket. I found it very interesting.

http://www.paperdinero.com/Inventory.aspx

my historic high is the same as my historic low. i guess i'm not getting anywhere.

Current Count: 1069
Historical Low: 1069
Historical High: 1069
Average Range: $450,001.00 - $500,000.00
Median Range: $350,001.00 - $400,000.00
Listed Market Cap: $531,625,000.00

and here's the inherited house area:

Current Count: 2535
Historical Low: 2159
Historical High: 2547
Average Range: $850,001.00 - $900,000.00
Median Range: $500,001.00 - $550,000.00
Listed Market Cap: $2,167,975,000.00

i have no idea what these figures mean, but they sure are pretty.

 

[jazz4cash]

Interesting to see lenders stepping-up mortgage modifications in the hope of heading off the hemorage .... I imagine this works if the loans are still in-house. If the secondary market already has your loan ... tough luck.

http://www.msnbc.msn.com/id/17949352/

yeah........that artical contains the info I've been waiting to hear. Foreclosure only adds cost and reduces value. What I fear is overkill via some one-size fits all solution like a 6 month moratorium.

This cracked me up...............
"The Mod Squad is planning a six-city tour; it hopes to attract struggling homeowners to information and counseling sessions with offers of $100 gift cards to Home Depot Inc. The number is (877) 362-6631."
...........I could sure use one of those gift cards!

 

[wabmester]

Well, if housing bashes the economy, it will take consumer spending with it.

It'll impact both consumer spending and employment. This just in:

link

But job cuts in housing-related industries (real estate, construction and mortgage lending) surged 346 percent to 21,245 from 4,764 in the first quarter a year ago. The first-quarter total for these three sectors nearly matches the 2006 total of 22,814.


“While many have predicted that the housing market has hit bottom, the situation seems only to worsen as home builders continue to report slumping orders,” says said John Challenger, chief executive officer of Challenger, Gray & Christmas.


“Now we are seeing the impact hit traditional as well as sub-prime mortgage lenders as demand for loans declines and the number of foreclosures skyrockets,” he says.

 

[dumpster56]

I moved to the crazy building area and people moving to Wake county North Carolina area last summer. The building and selling has slowed even here to a crawl!

Stuff is sitting not sold even in the prime areas Cary and North Raleigh. New home starts in these areas are also down by almost 50%.

 

[al_bundy]

Interesting to see lenders stepping-up mortgage modifications in the hope of heading off the hemorage .... I imagine this works if the loans are still in-house. If the secondary market already has your loan ... tough luck.

http://www.msnbc.msn.com/id/17949352/

i wonder how they work it out with the MBS and all.

 

[brewer12345]

i wonder how they work it out with the MBS and all.

As I understand it, the servicers in these deals have absolute discretion on whether or not to forclose, modify, etc.

 

[BarbaraAnne]

Today's Dallas Morning News:

http://www.dallasnews.com/sharedcontent/dws/bus/stories/040607dnbusforeclose.378dc47.html

 

[Fireup2020]

Anyone else hoping for this?
I will not be able to afford a bazillion dollar home on my own (but a 250K home in the next 24 mos or so will be just fine...praying for a house on market for long time to wheedle down)...plus am in the middle of a few foreclosure "flips" - we'll see how those go by the end of the year.