Hey! Stop that! I'm confused enough as it is. ;)
Posted on 10/31/2005 11:28:13 AM PST by ex-Texan
I see houses of cards ready to collapse. It will affect everyone, in some way or another.
I'm so glad I'm in my last house. It's all paid for, now, with the proceeds of the sale of a vastly overvalued home in California used to buy this one.
I'm here. I'm staying. I'm not going to sell. I suppose I'll die in this house.
I'm out of the housing market forever.
Time cures all real estate investment mistakes, Although as you noted you have to be able to hold on long enough to make it work
How dare capitalists make money!!
We should take their money and give it to those that need it!!.
...Proud_USA_Repblican...
You might want to change your name.
Steel is still a problem.
We should take their money and give it to those that need it!!.
I never said that. /smackdown time
"I see houses of cards ready to collapse."
There are vast swathes of the country that haven't seen anything near 10% appreciation. Most of these areas have fairly decent economic conditions, too, such as where I am, Greensboro, NC. We've been muddling along with 3% or so a year since the late 90s, with only a slight jump to a projected 7% for the year for 2005. There's no bubble to burst here, because appreciation has been below average for the duration of all this cheap money. We were doing fairly well during the mid-late 90s with rates around 8%, so I just don't see the end of the real estate world due to that. This is true for just about all of so-called "Red State" America, other than Florida, and some coastal areas fueled by cash out refi money flowing into beachfront vacation homes.
Hey! Stop that! I'm confused enough as it is. ;)
Oh no! People in Washington DC metro area will have to live with 5% appreciation on their $650,000 colonials instead of 20% appreciation on their $250,000 colonials!
"People in Washington DC metro area will have to live with 5% appreciation on their $650,000 colonials instead of 20% appreciation on their $250,000 colonials!"
Head for the hills!!! What's funny is, they actually are heading for the hills. Areas of MD and WV that would have been sneered at as redneck backwaters even five years ago are really taking off.
Is this the same dude who said we will see a slow down last quarter when there was actually a 12% increase in new home sales?
When you live in an area with fairly anemic real estate inflation, while the rest of the country is percolating along at double digit raises, then it speaks to the wages being paid in that economy. Rising interest rates will mean that these lower income people will be even LESS able to afford the prices you have already. I agree, the amplitude of the shock is greatest at the center, but the ripples spread out eventually.
Let's not forget the "paper wealth" factor. Whether we're talking about values of tech stock portfolios, or home values, when people perceive themselves as suffering a loss, they spend less on everything. That affects essentially every segment of the economy. I just hope we can snap out of it by late 2007, or be prepared for President Rodham.
Somehow I doubt that commuting from Hagerstown and Gettysburg to Washington DC will appeal to many future job holders....! Idiots maybe.
Colonials in the DC area (esp Loudoun county) have been dropping since June. That was the peak. That said, there could always be a double top but not until 2007 at the earliest.
"Well, then, why should someone move to Greensboro, NC, when a lender overburdened with foreclosed homes (in other areas) is letting people walk into them with zero down, no closing costs, and even moving expenses?"
Oh, I don't know, job growth maybe? There are other factors at work, as to why some areas have not skyrocketed. There is very little to prevent new residential construction here, with readily available tracts of land. This tends to limit appreciation of existing housing to the rate of inflation, with new construction pulling existing up as costs increase. New will always trump existing, with the exception of the very close in, older "charming" neighborhoods built in the teens, 20s, 30s and 40s. Or, at least that's true here, and in Dallas and Atlanta and Memphis and Indianapolis and, and and.
"Somehow I doubt that commuting from Hagerstown and Gettysburg to Washington DC will appeal to many future job holders....! Idiots maybe."
You'll be right if a physical commute is an ongoing, daily requirement. I can envision that not being the case for all, at least not every single day.
Ok, maybe your part of the country is immune to the coming economic effects of the housing bubble slow leak. It could be, if those jobs don't depend on newly-poorer-feeling-people having to buy a product or service produced there. Maybe those jobs are all in government?
Most speculators aren't true capitalists, they are quite often just gamblers. Especially the people who get in late, and are hoping for one more round of fools to bail them out.
Capitalists take chances, of course, but they do so with a business plan that doesn't end with, "sell out at a profit before the market tanks."
BTTT
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