Look at the chart. It speaks a thousand words. New home sales are still declining but at a slower pace compared to the previous slide. It's time to buy. Any dip below that second support line would represent an even better investment opportunity. Buy a house that needs a bit of work and if prices go lower do the work but don't wait too long because inflation is ramping up. Oh! And what happens to the prices of real assets during an inflationary time? Rising interest rates is not bearish for the housing market -- it's bullish.
New home sales slowest in at least 50 years
- Thread starter misterno
- Start date
18% of homes in Florida sit vacant.
Prices are down and will continue to drop.
New homes @ $150 / sq ft can't compete with the 2005 $250 sq ft extravagant builds being liquidated at $150/ft or less.
Real Estate will retrace to 1990 values.
Las Vegas, Detroit, Miami, Dallas all have surplus inventory.
Property Taxes are another ticking time bomb. Government budgets are never projected or built for depreciating property values.
During the boom property taxes went up 10x. A 1200ft condo in Chicago bought in 1990 for $85k had $850 in taxes sold in 2000 for 265k and $4500 taxes. In 2005 sol at peak for $448k and $8500 in taxes. Most recent sale was in 2010 for $319k... 31 units listed at 2000 prices but nothing is selling.
Prices are down and will continue to drop.
New homes @ $150 / sq ft can't compete with the 2005 $250 sq ft extravagant builds being liquidated at $150/ft or less.
Real Estate will retrace to 1990 values.
Las Vegas, Detroit, Miami, Dallas all have surplus inventory.
Property Taxes are another ticking time bomb. Government budgets are never projected or built for depreciating property values.
During the boom property taxes went up 10x. A 1200ft condo in Chicago bought in 1990 for $85k had $850 in taxes sold in 2000 for 265k and $4500 taxes. In 2005 sol at peak for $448k and $8500 in taxes. Most recent sale was in 2010 for $319k... 31 units listed at 2000 prices but nothing is selling.
IMO, by the time its over, this ramifications of the massive, unpayable debt, and confetti for money, backed by confetti for debt, and the Ponzi schemers running the nation will make the Great Depression look like a picnic.
I still need a place to live in a place that won't tax me out of existence, but I'm going to have to squeeze the sellers as badly or worse than I get squeezed trying to unload the house I have. There will not be a drop of blood left in the stone, and people will be crying over what they had to accept for terms to escape the debt they foolishly took on. Every dollar will scream in anguish, regardless of its worthlessness, because there is no job for myself or my wife to replace them, and never will be.
Feel free to show me how this country will escape the doom now easily seen on all sides...
It really depends on the area. Here around jersey waterfront across from nyc things are doing pretty well, prices actually went up a bit. The last new construction highrise ( http://www.crystalpointcondos.com ) that finished in 2010 is already 80% sold to mostly asians. I am looking to get a few more rental investments, good deals can be had close to 17 yr return if you churn through the inventory. Pointless to lump the whole real estate market together and say it went up/down 10-20%, need to look at individual areas.
And even then we won't be able to pay our bills. Sorry, this logic is backwards assed to say the least. By further devaluing, we create more personal (and business) bankruptcies, more strain on local budgets, etc...There isn't enough devaluation to make all of the pensions solvent and/or continue to rollover debt. We are trapped.
Don't think that the gov't weasels are going to do what they ought to do as fiscally responsible leaders. They are going to do whatever keeps them elected for as long as possible, our future be damned.
Its funny, every time I hear news about the housing sector and how there is suppose to be a turn around it should already have happened about 1000 times over!!!
Every fool thinks that housing by now should have started to turn, but in reality its headed for another drop. Millions of houses are still in foreclosure while those who want to buy because of the 4% interest rates cant because they have no job and banks for some ODD fucking reason wont lend them any money like they were in 2007, what gives??? All those easy no income verification loans handed out to everyone and anyone are just not being pushed through the system, you mean I actually have to make money, show that I have been working and also put down at least 20%....hahahahaha
Every fool thinks that housing by now should have started to turn, but in reality its headed for another drop. Millions of houses are still in foreclosure while those who want to buy because of the 4% interest rates cant because they have no job and banks for some ODD fucking reason wont lend them any money like they were in 2007, what gives??? All those easy no income verification loans handed out to everyone and anyone are just not being pushed through the system, you mean I actually have to make money, show that I have been working and also put down at least 20%....hahahahaha
When it gets to where the banks will lend 100% on homes that aren't owned by them, with no other collateral, that would be a sign that they don't think prices will go much lower.
i have my share of rental properties and i can tell you there is no secret and it's not easy. i think a lot of people discount the the repair costs, vacancy in between tenants and many other incidentals. even the high end has problems. i had this one guy renting a condo i own for $4600 a month who missed payments and after a lengthy legal thing i finally got rid of him. now i am getting the place painted (by the builder who i had to save by buying the condo in the first place) , and of course still making the hefty mortgage payments.
anyway, buys will be out there for a least the next 5 years and once you make that investment, don't think you will be making a killing. nonetheless i still believe in real estate, but like stocks ; it is hard to buy when there is blood in the streets.