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yes! these idiotic buyers are nuts.. just freaking nuts! it certainly was alot worse when many many.. freaking everyone was denying a housing bubble. You certainly have a vested interest in seeing that home prices inflate well above the norm, and certainly dispute any rational prices (reverting to the norm).
I often joke, that the Y2K BUG wasnt a computer bug but the beginning of the HOUSING VIRUS. Public thinking over RE completely changed to stupidity.
How could anyone been so been naive over home prices is a complete mystery. Seems everyone should have know from 10 years prior inflating home prices are not sustainable nor is it desirable neither for individuals, business or government. We all knew this to be true some 10 years prior to the latest bubble.
TMAC54
2012 Aug 21, 12:04am
BUYERS MAKE VALUE, and buyers are led to believe the supply (of land) is short. Uneducated, over anxious buyers are once again being caught up in the "BUY NOW OR BE LEFT OUT" mentality. We are forced to compete with those buyers. This will ultimately just slow the return to normal pricing. Everyone should buy a motorcycle (or not) and go for a little ride , to the top of Mt Diablo to check the availability of BARE LAND. Might you agree there lies 90% as bare land.
JUST NORTH OF DUBLIN Ca. you see millions of acres of open land.
From the top of Mt. Diablo you must zoom in to even find dense developments.
Strategic Renter
2012 Aug 21, 12:21am
All that the Bull trap of 2012 has done is use up the pool of uninformed buyers. We are now at the stage that buyers will not pay the prices so prices will resume their fall. Time is the buyers friend.
In the past 6 mos. I've looked at +50 houses & have made many lowball offers that weren't accepted. Of the houses in that group that have sold, most sold for the listing price or higher & few for less but much higher than my offers.
1.- Are the buyers foolish? Of course I don't know their personal situation. I'm looking at the big picture.
2.- Did I miss out on all the tremendous deals? LMAO
In the past 6 mos. I've looked at +50 houses
Tide looks like it *might* turn as the summer ebbs. Or else its a lull before the storm.
We have seen at least 5-10 offers on anything making >10% all summer, but just this week have seen demand falling off a bit. Had a short sale accepted this week (offered $3k under on a $76k 3br townhome built in 2004). While there were multiple offers, they were all lower than ours I guess. Another property we are targeting has no offers on it yet (Fannie property that has the owner occupied restriction expiring yesterday).
Personally I don't see how the fundamentals support the growth in housing that analysts are talking about (5% next year). While there is some pent up demand, there are way more who are worried about where their next meal will come from.
I often joke, that the Y2K BUG wasnt a computer bug but the beginning of the HOUSING VIRUS. Public thinking over RE completely changed to stupidity.
You are not alone in this assessment. I agree it went from dot.com brainwashing and scams including Y2K bullshite straight on to RE KoolRaid.
Uneducated, over anxious buyers are once again being caught up in the "BUY NOW OR BE LEFT OUT" mentality.
Of course, don't they always? And then they try to justify their neighborhoods and prices to themselves then to others. It is all so obvious.
Mama, she keeps them unprepared
To meet the enemy
That's comin' unto us
Teach them that evil dwells across the sea
Lives in a mountain
Like they see on TV
Down in the heart of town
The Devil dresses up
He keeps his nails clean
Did you think he'd be a boogeyman?
Buffy St. Marie
"Was there ever a people whose leaders were as truly their enemies as this one?"
-Ernest Hemingway, For Whom the Bell Tolls
Mama, she keeps them unprepared
To meet the enemy
That's comin' unto us
Teach them that evil dwells across the sea
Lives in a mountain
Like they see on TV
Down in the heart of town
The Devil dresses up
He keeps his nails clean
Did you think he'd be a boogeyman?
Buffy St. Marie
WTF? Dude, you put a mask on before spray painting.
freak80
2012 Sep 17, 11:44pm
WTF? Dude, you put a mask on before spray painting.
Ba zing!
ArtimusMaxtor should probably take your advice too!
taxee
2012 Sep 18, 1:31am
Benny is buying the equivalent of 40,000 one million dollar homes every month for as long as it takes to make sure the people who bought all those securities backed by mortgages don't fire/kill him and his friends. A slight market distortion don't you think?
"How did you go bankrupt?"
"Two ways. Gradually, then suddenly."
– Ernest Hemingway, The Sun Also Rises
"Somehow it seemed as though the farm had grown richer without making the animals themselves any richer- except, of course, for the pigs and the dogs."
-George Orwell, The Animal Farm
Whats insane is that Obama is supposed to help the poor, those without jobs.
But when he is helping out the banks, to prop up bonds, to hold housing prices at a distorted high, when housing went up ~30% a year from 1997 - 2005, when governments grew like weeds in response to more tax revenues, - it make you wonder.
But Wonder Boy himself bought a house in 2005 - do you think this is a potential conflict.
If the intrinsic value of the home has not changed, then why not let the housing market reset without a dozen HAMPs and QEs?
Multiple Choice Answer:
A. Housing is worth 6-8X times the median salaries, in 1998 prices were too low by 2X
B. Liquidfying bonds will free up private label, AKA > $625K loans.
C. Obama wants to get relected and money sloshing around in the Stock Market will raise DOW and Obama too. (Trickle down only works within 3 months of an election)
D. If housing prices fall too much local municipalities cash flows drop further, and more people walk away.
E. Obama bought a home in ~2005, its price has declined. If our President buys in a bubble, does his crew have the means to get housing prices back to their "intrinsic" value so that ordinary people can afford them, with normal down payments like pre CRA?
Does anyone else feel like we are walking on thin ice, through a house of cards? Like it all might come crashing down.
For far too many people, day to day life is a struggle. We have to work so hard for what seems like so little. And on top of everything, the government wants and encourages us to pay MORE for housing, not LESS. Why should we want our most expensive monthly bill to increase! If housing reverted back to somewhat affordability, wouldn't there be a little more excess income to stimulate the economy? Somethings gotta give......
#housing