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turtles

By thankshousingbubble   2012 Nov 15, 11:24am   ↑ like   ↓ dislike   1,313 views   5 comments   watch (2)   share   quote  


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1   everything   2012 Nov 15, 11:41am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

Yep.. from the comments section at DHB. Free money, come and get it, compliments of fed 40 billion MBS monthly. I notice CA moves real quick/smart when it comes to free money.

http://www.latimes.com/business/la-fi-rebound-buyers-20121114,0,2826111.story

2   bmwman91   2012 Nov 15, 11:56am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

robertoaribas says

I think California operates on its own level of insanity

I am glad that it is so obvious to other folks, especially ones that are economic academics. I better keep hording cash and stay pre-approved at all times. The housing market might dip 40% in a day and then surge 5000% the next, at least at the rate things here have been going. This damn place makes my head spin. If I hadn't been bord and raised here, and didn't have 80% of my family here, I would be LONG gone.

3   ELC   2012 Nov 15, 8:15pm  ↑ like   ↓ dislike   quote   top   bottom   home   share  

robertoaribas says

I think California operates on its own level of insanity, so by no means am I calling a permanent bottom there, but the fast run up in prices, often disputed by the completely blind on here, is strong enough to get attention from one of California's pre-eminent bubble bloggers.

What are you talking about? He's commenting on California. Your point is pointless.

4   chajl123az   2012 Nov 16, 2:54am  ↑ like (1)   ↓ dislike   quote   top   bottom   home   share  

It makes you wonder how long it can last. From the article it seems that foreign money combined with investors looking for higher yields are forcing buyers to use low interest mortgages to enter the market. I'm still cautious since I really don't see the underlying fundamentals improving with incomes or more robust job growth. The reality that flippers are back in the market when only in 2007 we were deep in a crash tells you that people certainly have a short memory.

5   turtledove   2012 Nov 16, 4:17am  ↑ like (2)   ↓ dislike   quote   top   bottom   home   share  

Seems like dumb money to me. Let the investors come in and snag all these overpriced properties. That doesn't change the facts of the underlying fundamentals. Perhaps investors will just sell back and forth to each other.

If it was such a great deal for the investors then why aren't the banks making money hand-over-fist for all their houses with the supposed underwater mortgages we keep hearing about? Why are the banks requiring so much more of a downpayment if these houses were such good investments?

I think it's fishy. I think that the banks are just trying to get as much dumb money into the market that they can so they can get some of their losing inventory off their books for the most money possible.

At the end of the day, if the market were healthy and truly growing then the banks wouldn't be so concerned about people assuming the risks of a downpayment. The very fact that they want YOU to assume that risk screams that they aren't expecting housing to go up in value. JMHO.

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