i noticed last year that when the Fed started raising overnite rates? everybody (mistakenly) assumed this automatically means higher MORTGAGE interest rates and the money started leaving the market as people ran to buy housing.. the mortage rates haven't gone up much at all and home prices did....
now? everybody is just beginning to realise what happened...
-------------------- Don't envy the happiness of those who live in a fool's paradise.
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quote:Originally posted by glassman: i think it'll be good for the market...
i noticed last year that when the Fed started raising overnite rates? everybody (mistakenly) assumed this automatically means higher MORTGAGE interest rates and the money started leaving the market as people ran to buy housing.. the mortage rates haven't gone up much at all and home prices did....
now? everybody is just beginning to realise what happened...
Some of the decline, however, may be attributable to builders turning a little more cautious. One concern among builders, Seiders said, is that speculators are buying in new housing developments, which drives demand in the short term but could show up as excess supply down the road. "If the investor community should get worried, we could have a wholesale tumbling."
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<Not good for long term>
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posted
This is a bad news for me. I just start my mortgage 6 months ago.
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"There are 437,000 agents in California, enough to form the state's eighth-largest city. With only 680,000 home sales a year, competition for listings can be savage."
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posted
I am in the Wholesale realestate market and our business is on fire right now, but I am on the coast of FL too. Good thing is either way you can benefit from all this either way.
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In Vietnam, our government fought a war of attrition, most stupidly and with significant sad results, still suffered today.
Iraq, verification of the stupidity of all.
A war of attrition is to reduce the number of enemy combatants to a point of being ineffective. Stupidly, our government never bothered to exam the national birthrate in Vietnam. Replacement troops were being born faster than our government could kill them.
People are applying attrition as a base for this forecast of a housing bubble burst. That will never happen. Prices will level off, stay level for six months, maybe a year, then begin that gradual upward climb in price which never stops.
Demand always grows, supply always diminishes.
Our American birth rate, along with immigration, both are such demand will always be greater than supply of homes. New buyers are born by the very minute. New renters cross the borders, by the very minute.
A good example is over the past couple of decades, we have never needed to run rental advertisements. In most cases, we don't even need a "for rent" sign out in front.
Last rental, people driving by looking for rentals spied us working on our house. I kept track of this one out of curiosity. Over five days, we had fifty-three people walk up and ask if we would be renting the house, and had eighteen realtors walk up and ask if they could list the house for sale.
Previous house, we popped up a "for rent" sign out front. We rented the house within two hours.
Spam mail. Within days of your name showing up on county property tax rolls, snail mail starts rushing in, "We buy houses for cash instantly." Others graciously offer, "I just listed and sold the house at 123 Main Street, only three blocks from your home, for a handsome price! Let me list your home so you can enjoy lots of money."
If we have a housing bubble burst, we will also have another Great Depression.
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"Blah blah blah home prices blah blah hit another record. . . . Other than the numbers, this story never seems to change. The median price of single-family houses sold in the nine Bay Area counties soared to a record $622,000 in April, up nearly 20 percent from a year earlier.
Santa Clara County prices also hit a new peak of $681,500. That's up almost 19 percent from the median price in April 2004, according to DataQuick Information Systems."
Source: Jon Ann Steinmetz, mercury news
"Rates on 30-year and 15-year mortgages this week dropped to their lowest levels since late February, offering a bit of good news for people wanting to buy a home."
Source: Herald Net, May 22, 2005
"EAGLE COUNTY - April's sales of entry-level housing - priced $500,000 to $1.5 million - drove real estate sales to a one-month record. A total of 375 transactions totaling $226 million were tracked by Land Title for the month."
Source: Vail Daily, May 21, 2005
"Existing home sales jumped more than expected last month, while the median price soared 11.4% from March 2004 — the biggest year-over-year leap since 1980, a trade group said Monday in a report that belied predictions of a slowing market."
Home building stocks moved mostly lower Friday after Federal Reserve Chairman Alan Greenspan said the booming U.S. housing sector is not headed toward a bubble nationally, but he does see it in some areas of the country.
"The American housing market is an incredibly heterogeneous market," the Fed chief said in a speech to the Economic Club of New York. "We don't perceive that there is a national bubble, but it's hard not to see that ... there are a lot of local bubbles."
Greenspan said he saw "very significant acceleration" in the turnover of U.S. homes, due in part to purchases of second homes. He also believes that people are reaching to pay high prices for homes.
"This is clearly beginning to stretch the general pressures in the marketplace, which leads me to conclude that this big price surge is going to soon simmer down," he said....
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