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Ignore Cheeseus Sonofdog
Aliases
In United States
Registered Jun 27, 2011

Cheeseus Sonofdog's most recent comments:

• On 24 May 2013 in Karl Case: There IS A Recovery. Shadow Inventory Does NOT exist., Cheeseus Sonofdog said:

  The shadow inventory is not just homes the banks have already foreclosed on. It is homes the banks started to foreclose on but chose to stall the final act. I live in Palm Beach County Florida and we have about 5,000 homes in the MLS. The clerk of court has almost 40,000 foreclosure cases that have been stalled for years. It is not uncommon down here for somebody to have had foreclosure brought against them five years ago and they are still in the home....

  I have also been seeing some homes coming on the market that got foreclosed on years ago. Sitting empty all of that time. Many seem to be Fannie Mae properties. Fannie lists them for 50% more than comps. Sadly, some desperate homebuyers are actually paying the prices. I guess when you give easy credit, 3.5% down and in FL you can get $7,500 in free money towards your down payment, people don't care what the prices are.

  There is a big cartel and manipulation going on and much of it seems to be among government entities like Fannie, Freddie and HUD. The Federal Reserve buys up the bad paper from the "private" banks. They don't need to foreclose when $85b a month of risk taking is magically healed. Instead they flip it over to Fannie and the tax payers. Fannie gets to set the prices, control the flow and do subprime 2.0

• On 22 May 2013 in Future investor sales will limit appreciation, Cheeseus Sonofdog said:

  A big problem is who do these investors think they will sell to? Five or ten years from now, will there still be such a great demand for rentals? Will investors be buying them with cash? They might be selling into a market where the latest investors are having a difficult time getting easy money and are forced to take out a mortgage at much higher rates. The $250k condo today at 3% will have to sell for much less if rates rise to 6%. Not to mention the crunch on renters ability to pay the rent. Investors are also assuming rent prices will keep going up. Yet the majority of new construction is housing projects. The majority of homes being bought are going to be rented out. The rental bubble will crash. Ten years from now today's investor may have wished they never bought and won't be able to get out as they think....

• On 26 Mar 2013 in case shiller up 8.1%, Cheeseus Sonofdog said:

  Roberto, please present your fundamentals to justify a 23% increase in prices in just one year. Is that the normal rate of return for residential real estate? Did incomes rise 23%, or even 8.1% year over year? Did property taxes and insurance decrease? What was GDP last time prices were this high in Phoenix. Why is GDP 50% less today? Are consumers being met with lower costs for daily essentials like food and gas, or have most doubled in just a few years?

  A quick search shows the median home price in Phoenix in the year 2000 was $112,000. Using the governments official inflation calculator that comes out to $151,000 in today's money. Yet, currently, the median is $242,000. Prices are way out of line, especially considering the proclaimed fear is deflation, deleveraging has yet to fully happen and bubbles usually don't go back to their highs so quickly. And per captia income in Phoenix is $24k. Yep, I am sure that $250k home is affordable and should keep rising 23% every year.

  You talk like one of the internet stock traders of the late 1990's. Certain that Etoys was worth $200 and buying it at $100 meant you would double your money. At least then we didn't know how big the internet is. With real estate we have traditional values and very long charts. Just because prices fell 50% from a bubble doesn't make it a great deal if they are still 100% higher than historical values.