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The definition of insanity is doing the same thing over and over again while expecting different results - welcome to the riverboat gamble ;)
How can anyone be allowed to leverage housing credit a second time after having a foreclosure on their credit history? That's insane.
Maybe the motto of commissioned land sales people,banks,govt.,etc. should be "We'll do anything to pump up housing".
You should be happy for these individuals. I know I am.
No. This comes at the expense of the rest of us. They shouldn't be allowed free credit. This is wrong.
New Renter
2012 Oct 14, 6:13pm
You should be happy for these individuals. I know I am.
No. This comes at the expense of the rest of us. They shouldn't be allowed free credit. This is wrong.
Write your congressman and senator, better yet bribe them!
New Renter
2012 Oct 18, 5:20pm
, it totally makes sense why these people are buying again.
Housing Demand (sales) are at 1997 levels and falling.
Nobody is "buying" again.
I beg to differ. There ARE sales happening in my area. Even as a housing bear I have to acknowledge this fact.
Why compare anything to peak rates. The peak was an aberration. 1996 is probably more normal. So if sales are at 1996 levels then they are back to a more normal rate. At the peak everyone and their dogs were buying homes, that was not a normal rate. One of the factors keeping sales down is the lack of inventory. In my area any decent home gets 10 offers in the first week due to the lack of inventory. If there were more homes available there would be more sales. The house across the street from mine listed last Friday, and went pending Wed. There must have been 50 groups look at the home last weekend.
bubblesitter
2012 Oct 19, 12:42am
There ARE sales happening in my area. Even as a housing bear I have to acknowledge this fact.
Does not change the fact that there will be more homes for sale as some are sold. Buy and sell will always be there. The concern here is lots of underwater owners who have not defaulted - tug of war between them and buyers/speculators in waiting.
bubblesitter
2012 Oct 19, 12:51am
How much longer do the underwater owners keep paying until they say screw it and default and just save their money??
Good question. Personally a know a quite a few people who have bought at the peak and still hold that mortgage - not defaulted yet. Interest rate uptick can solve most of this problem,but I have feeling Obama or Romney will not have guts to do that,hence the stand off continues.
bubblesitter
2012 Oct 19, 1:16am
If housing prices have to come down in relation to higher rates to keep payments equal, won't that hurt the underwater folks??
Yes. It will hurt underwater folks more,but the reality is that rates are still low enough as of now. I have to see that rate at 7% during my lifetime and I want to see how the housing market looks at the time.
1996 demand=1996 prices.
In other words, prices have a long way to fall.
In the Inland Empire prices are back to 1992 levels. (they were higher in the early 90s than they were in the mid 90s). the difference is that in the early 90's interest rates were around 9% and now they are 3.5%. So the costs of owning are far less today than they were then. Maybe you just need to move to a cheaper area!
If housing prices have to come down in relation to higher rates to keep payments equal, won't that hurt the underwater folks??
Yes. It will hurt underwater folks more,but the reality is that rates are still low enough as of now. I have to see that rate at 7% during my lifetime and I want to see how the housing market looks at the time.
This is an argument I hear often and honestly it makes sense to me too. However. I have looked into rates vs prices and I cannot find any relation between the two. Even in the mid 70's when rate shot up to 15% prices did not crash. Hell they didn't even come down in most areas. People just buy smaller cheaper homes. And when rates come down, they buy bigger more expensive homes. Anything can happen but based on past prices and rates I wouldn't bet on prices falling if rates rise.
Yeah, but then you would have to live in the IE, aka Smog Central.
Well yea, there is plenty of smog in the summer. But in the winter it's clear as a bell most days and our smog blows towards LA. It doesn't seem to bother most of the 15 million people that live out here. The smog was here in the 70's 80's and 90s too.
B.A.C.A.H.
2012 Oct 20, 8:49am
How can anyone be allowed to leverage housing credit a second time after having a foreclosure on their credit history?
Because of the deflation, chasing yield. There is no one else for the 1% to lend to.
JodyChunder
2012 Oct 20, 2:09pm
I hope he an get back to his feet soon so he can buy another house.
Yes -- another David Bach fan!
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