Watch as the "it's a great time to buy" propaganda spitting realtor stumbles over her analysis of the housing market as Peter Schiff lays down the cold hard facts about the real estate crash!
Where do you think the market will go based on reality not the fact you personally overpaid or over-borrowed?
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It wouldn't be surprising to see the prices of homes in Wicomico go back to where they were before the "feeding frenzy" started five or six years ago. It WOULD be surprising to see them go below that, because that was the last point at which the market was stable. In Wicomico there are still buyers who must buy, so the housing crisis is really only a minor one here. It shouldn't get to the same point of devastation as the more urban areas' markets, because we have not had so many buyers use the risky programs, i.e. no down payment, stated income, etc. Prices may go lower, but I wouldn't count on it.
ReplyDeleteI'm far from being a financial analyst, I don't have big investments, however for years on Saturday's I watch "Money Market" on Fox with Ben Stein and a couple other guru's. Before that I used to listen to I believe his name was Julius Westheimer from Baltimore, even when I was very young. A year ago when the tax hike was announced, I said in front of the city council on PAC-14 that financially the tax hike may be a further burden to a market that was begging for foreclosures at an alarming rate. So this is no surprise to me, and I expect it to get worse before it gets better. The full impact of these current foreclosures at a record rate won't be truly felt for some time to come, like many things, it trickles down. I have felt for a long time that we were in a recession even though I have personally done a lot better, that is not the case for the majority.
ReplyDeleteWas the tax hike the sole demon in this mess? Of course not, foreclosures are going up everywhere, but the tax hike didn't help. At no time in our history has there been so many people owning two homes, some of those were good investments and some were bought by greed and now they are left holding the bag. I don't think I've ever seen so many houses for sale and won't sell for some time, yet they keep building more. The supply is far greater than the demand, therefore homes will not sell for what they are assessed at and someone will be on the short end of that stick either way. In my opinion I think many homes are flat out over priced, and in the end the greedy may have to eat it. For one thing it takes a very long time to go thru the foreclosure process, the home next to me went though foreclosure about 8 years ago and it sat empty for close to a year before it could be put up for sale.
Foreclosures sell cheap, and before people with investment money rush out and buy up the homes that are being built or now for sale, they will wait to get a better deal on a foreclosure, a good deal for landlords, like we don't have enough rentals here as it is. The prices of homes may fall like a bag of dirt for all I know. My nieces mother-in law is a real estate broker and my niece is a realtor, even on the eastern shore of Virginia where there are still a lot of waterfront and open space, nothing is selling. She made $14,000 in commission on her first home sold and was doing well for her first three years, however I really can't tell you when she sold her last house, it's been a long time. Depending on how long it takes to sell a house, people that over invested may very well lose money after a long period of sitting empty, considering they are paying for insurance, utility rights and taxes, even if they own the house outright, they may lose money in the end. See ya around the bend. That's about all I got to say about that!
As I made reference to on another post,the "ugly sisters" of the housing crisis are still lurking.Mounting credit card debt and declining tax revenue.60 percent of our economy is based on consumer spending,and everyone can see it slowing.the next three years will be very interesting
ReplyDeleteVery good point.
ReplyDeleteIt seems plausible that the Federal Reserve created the housing BOOM by making money cheap and easily available and then therefore created the BUST by tightening the money supply. This is the accusation of Ron Paul and many others who believe the Federal Reserve is the architects of our econonmy's recessions and depressions. The FED is a group of private "for profit" international bankers. That is simply a fact which most Americans do not understand. Americans would do well to at least learn that much about our economy. The FED is a group of private international bankers who illegally gained the authority to print and regulate money in America with the passage of the Federal Reserve Act of 1913. Then President Woodrow Wilson admitted later in life that he had sold the Country into slavery by allowing the Fed to exist.
ReplyDeleteSo the low interest rates, the unusually easy money (sub-prime loan qualifications were ridiculously easy to meet without income verification), and the complete lack of oversight led to the housing BOOM. Isn't this easy to understand? Likewise, once the criminals sold the mortgages into our stock market and poisoned certain corporations with bad debt, they sold their stock in those companies. Easy money. The rest of us who had bought into those banking and mortgage corporations (which tempted us by paying big dividends)were left "holding the bag". Our stocks are worth a fraction of the price we paid just 6 months ago. How would we have known?
Now the wicked government and the bankers are telling us they can make sure this never happens again. The FED will supervise the mortgage companies. The FED will provide oversight. THAT IS THE JOB OF CONGRESS! PRINTING AND REGULATING MONEY IS THE JOB OF CONGRESS! Wake up Americans. The government is being controlled by the corporations. We are living in a facist dictatorship and both parties are being controlled by the elite international bankers.
So,2:52,the unwise and uninformed borrowers or those who gambled on rising values do not share the bulk of the blame? WRONG. Personal responsibility.
ReplyDeleteAnon 6:17 You are right. The borrowers were wrong of course. They had the responsibility to choose wisely how they would spend their money. It certainly is not the taxpayers responsibility to make them whole. They made bad investments. Cowman was pointing out that the thing got started by the Fed. He is right also. The borrowers were not sophistocated enough to know how to avoid risk. They lose obviously. So I agree with you.
ReplyDeleteDid you see the stories popping up all over the country where the lenders B.S'ed the buyers and provided fales info about loans and rates and now these people are losing their homes? Its all about money for the corporations and realtors. They are now claiming now is the time to buy housing is cheap. I even had one realtor trying to get me to buy with no money down. Sorry, I will wait till I have 30% for down payment so I don't get spanked. I will pick my terms and payments and not be dictated by wants. I want a house, but will wait till I can truely afford it.
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