Stop gloating over declining home prices - it hurts

Quote from runningman:

The housing bubble is a great illustration of the "Gotta have it RIGHT NOW" generation. Young people used to rent for several years and then save up for a "starter home" live in it for several years and then move up to their "dream home" after again saving up funds for a down payment of 20%. Now people want some crazy creative mortgage product and no down payment so they don't have to save up, don't have to be patient, they can get their McMansion at 25 and impress their friends. They want it all and for a few months or years, might have it. The weight of the debt will crush them in the end and they'll be worse off for not being patient and saving. Screw 'em. I for one don't shed one tear for these people, and fully believe they deserve foreclosure for being financial idiots.
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Oh shit, so true. They peaked early... their stays at Bellagio and dinner at Le Cirque will soon be fond memories. When you grow up sleeping in a Cox camper with 6 people with McDonald's takeout, that shit doesn't matter -- you can always be happy in a free country. :cool:
 
Quote from OldTrader:

Does anyone in this thread own a house?:p Just wondering.

OldTrader
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That's what the bears don't realize OT.

The onus is not on homeowners but rather on renters and those who're living in homes too small. They are de facto shorts. Other than Donald Trump I'd say most EVERYONE is short and hoping for a dip so they can establish longs.

Yes there's 5-10% of owners who are overleveraged along with some weak specs. They'll be driven out just like like participants who get squeezed in any other sharp reaction in a bull market. It isn't new nor newsworthy.

However most people aren't looking to exit the housing market. In fact much of the supply is from people who're looking to trade up.

The housing market is like the Dow rally in the 90's. Will there be a break from the highs? Obviously. It's occurring now. Will it be deep? Only if you consider "filling in" 03 and 04 as significant. Those who are waiting for 1994 prices had might as well also wait for Dow 3000.............
 
Pabst, I know you're a fellow Chicagoan...are you paying any attention to what's going on in the local real estate market?

Right now, the smart real estate money is on the sidelines and enjoying their cash-flowing rentals piling up cash for future opportunities.

Chicago isn't even that bubbly! What is blowing people away is the 2nd mortgage, association fees, and TAXES. Even Elgin is 3% property tax...why anyone in Elgin tolerates that is beyond me. Any schmoe that wants to enter the real estate market in Elgin has to pony up $225,000 for a town house and then tack on association and $7k for taxes each year...this obvisouly isn't exclusive to Elgin, just one ridiculous example of what's going on in the trenches.

Downtown has a glut of existing inventory and a boatload more to come online over the next 18 months.

FYI...I live in the loop and am enjoying the action as the number of units going up for sale and sitting just keeps growing.

Look up invsco and see what they're doing with ALL of their properties downtown.

Quote from Pa(b)st Prime:
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Quote from JamesVU2000:

Has anyone noticed that the same friends buying the nasdaq peak are also the same ones long real estate and in trouble?
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I got rid of my home at the very peak, but I advised my father not to purchase a home. Now, he's the victim of a lay-off and has his house. They want to sell, but I told them this was all very bad timing.

Funny thing is, ... he was a victim of the NASDAQ slaughter several years ago. I guess some people never learn.
 
Were I live (Northeast) Im seeing existing homes sitting on the market for the last year and they have slashed the prices roughly 4 times (ex. start 340k, 310k, 280k, now at 250 ) and still no bidders. There are so many new homes on the market that they're scared to list them all because it will scare buyers even more and there are many more that just have the frame up.
 
Quote from MadBulgarian:

Were I live (Northeast) Im seeing existing homes sitting on the market for the last year and they have slashed the prices roughly 4 times (ex. start 340k, 310k, 280k, now at 250 ) and still no bidders. There are so many new homes on the market that they're scared to list them all because it will scare buyers even more and there are many more that just have the frame up.
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from the northeast as well and many houses up for sale have been on the markets for months, where my friend lives there has been a house for sale for about 6 months, was put on the market at $675,000 someone offered her $610,000, she refused it now its back on the market for $589,000...

was watching FOX this weekend, think it was bulls and bears and they mentioned buying TOL that the worse was over, the bottom isnt even here yet, if anyone thinks prices have bottomed and were going up from here has to be a FOOL. Housing should fall another 10-15% by the end of 2006.
 
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