Housing doom and gloom - ENOUGH already !!

Quote from August:

Check any house on zillow.com or follow sales chains (or talk to valley real estate agents) - that's simply not true.

I do see them back at 2006 Jan prices, but not even close to 2005 prices and you are talking about a market that for sherman oaks (for example) when from an average price in 1999 of about 320k to an average price of nearly 850k.... that's in EIGHT years.... Most of the people in that area would have made more off their homes than their jobs.

So - Why would it be so shocking even if it were at 2005 prices..... Frankly - I think it needs to roll back to at least 2003 prices in order to feel like a bargain.

In CA we have the Prop 13 where your tax is high but never raises... but your stuck with your high tax another thing which is killing home owners who bought at the peak.

So - when those Sherman Oaks homes are sitting around 500k, then I'll be impressed. But right now I feel like people are being shocked over the wrong thing. They should be shocked that prices ever reached where they went.
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Thank you for the education. But why do I need to use zillow or speak to a real estate agent?

go to realtor.com

this is house in tarzana listed for 489K

http://www.realtor.com/search/listi...a&pg=4&lid=1093853203&lsn=38&srcnt=255#Detail

this is details on the same house from zillow
estimated value 623K. Is this home owner is out of his mind offering his house for 134K below zillow estimate?

http://www.zillow.com/HomeDetails.htm?zprop=19933701

Edit:
info from zillow

last sold 9/02/2005 for 699K this is exactly 30% drop.

let me know and I will find you more withing minutes.

looks like home owner got tired doing laundry all alone and went back to renting. :)
 
the ceo of toll brothers agrees with me....about their bieng no light at the end of the tunnel

he said he is NOT SEEING ANY LIGHT AT THE END OF THE TUNNEL

and he said that today ......i said it on this blog yesterday

so do you all still think im negative ........if so ok.......g


real estate will drop 30 percent from here....
 
Quote from day7793:

Real estate is always a hedge against inflation and currencies because its value appreciates and does not remains static, or goes down. Your assumption is wrong. Own real estate and enough of it, and you will be a wealthy man.

A real estate investor by choice, an option strategist by the love of it. Lately I have been trading a lot. Yes I trade options even when I am doing real estate.

Real estate is true wealth in America, and most millionaires made it in real estate. Those who say otherwise, have no wisdom on their side.
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we all know by now you cannot be serious. also i must set the record straight to those (therefore, not directed to the option trader) who are contemplating real estate investments that have no experience. i will not and most likely cannot prove that i hold a good deal of properties, both residential and commercial. but nonetheless, i do, as i believe kiwi will understand.

this is no sure thing by any stretch. i have posted many times, it can take 20 years before you are profitable. it is unethical to state anything else. i receive much in rental and lease income (and lot's of headaches to collect it), but real "trading" can rival the best of real estate. yes, property is good, but not a sure thing.
 
Why all this gloom and doom? Had read the following:

The US mortgage crisis has created a new industry for developers buying foreclosed or auctioned homes at cheap prices, then reselling them for a profit.
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What do you all say?
 
Opportunity is there. If buying forclosure at the right price (below market value) and selling at a proft (BUT STILL BELOW MARKET VALUE) then yes, its possible to make money right now in a bad real estate market.
 
We're closer to the 3rd inning than the 9th in the unfolding real estate correction, and the lowering of interest rates will do nothing to alter that basic fact when twice bitten banks and lenders tighten credit standards to such a severe level, all because they can't know where the bottom is, and are rightfully reluctant to lend more money on an asset base that is in depreciation mode.

Why lend money on depreciating assets, no matter what the spread, when the borrower depends inherently on APPRECIATION (or at least stability) to service the loan?

Go loan the next panhandler you see a thousand dollars and have him sign a promissory note (with a business purpose affidavit) agreeing to repay you that money along with 40% interest.
 
Banks will and are now making fixed rate loans to owner occuppied home buyers....

Anyone who thinks lowering interest rates doesn't help real estate is simply economically challenged....

The market will go back to the traditional fixed rate "conforming loan".....

The owner occuppied home loan does not depend on appreciation....silly assumption....fixed rate self-amortizing loan, duh....

Where I live, it is only recently that a borrower could re-finance or put a second lien on an owner occuppied home....

It will take some time, more in some locations, less in others...

But, rest assured, banks will make the loans....much more due dilligence...more documentation....

A lot more "local" loans.....not securitized....

A lot more speculators/investors/flippers in the market than anyone realized.....that is where bulk of foreclosure coming from..


SteveD
 
Quote from trendlover:

Opportunity is there. If buying forclosure at the right price (below market value) and selling at a proft (BUT STILL BELOW MARKET VALUE) then yes, its possible to make money right now in a bad real estate market.
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thereby driving the home values down even further...
 
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