House Broke

MSNBC.COM ^ | 8-8-06 | Jennifer Barrett

[steve8714]

I read an article which said income and creditworthiness are less important in making loans than the property's value to loan ratio. This sounds like a prescription for mass foreclosure.

[sportutegrl]

I remember Greenspan saying people should be getting more ARMs. It seemed like a lot more people took out ARMs after he said that. At the time we were refinancing from one fixed rate to a lower fixed rate, and the fact that Greenspan, a supposedly trusted and knowledgable financial expert would say that made me wonder if maybe we should be looking into ARMs.

[Always Right]

Blame Greenspan. He acted to hyper-inflated the bubble in February, 2004 by urging people to use ARM loans. I saw what was happening early and spoke out in March, 2003.

Yes I understood your lame attempt to try to blame Greenspan for your wildly incorrect doom and gloom predictions.

[ex-Texan]

Real estate listings are at an all time high. Inventories keep growing each month. Over 4 million houses are for sale. For sale signs are growing like weeds all across America. Without a sale there are no gains. I only say that because you were bragging about "50% gains" earlier. Otherwise, do nothing. Keep your head in the sand.

[AD from SpringBay]

I agree; it's hard to teach good decision-making skills in school.

I know this is off topic so I'll apologize right now. BUT - what skills do public high school graduates have that they can trade for money? Is it the ability to stand behind a counter and take orders for fast food? No wait, that takes training. Do they know anything about plumbing or, say, how to change the oil in a car? What do high school students know how to do when they graduate that was taught to them by the high school?

[Always Right]

Here's another Great prediction by ex-Texan:

1 posted on 10/06/2005 7:35:24 AM EDT by ex-Texan:

Real estate prices declined in New York City 13% last quarter. Where are all the Freepers who were posting comments saying that NY housing has been rising without stopping? It looks like prices took a sudden dip last quarter. By the end of the year, prices in NYC will probably be down another 15%. In my opinion, a 25% fall in NYC in the past six months is just the start. The bubble will not 'deflate' slowly. The rate of deflation will increase every quarter. Read More? Next year, you may reasonably expect NYC properties to lose another 15% in the first quarter. There is a light at the end of the tunnel. It is a racing freight train heading your way.
 

So here you are projecting a 40% drop in Real Estate prices in NYC by first quarter 2006.  Let's see what is REALLY happened sense then according to today's New York Daily:

Townhouse sales go thru roof

 

Prices surge from Coney to Bed-Stuy

 

BY ALISON FOX and JOTHAM SEDERSTROM
DAILY NEWS WRITERS

 

Prices for townhouses in Brooklyn Heights, such as this one at 50 Remsen St., have shot up 17%, to an average of $3.2 million.

Homebuyers are forking over a Kings County ransom.

Brooklyn's real estate market continued to surge as the average price of townhouses skyrocketed in all but one neighborhood, according to a report by Halstead Property.

Williamsburg and Fort Greene saw the biggest price hikes, but less trendy areas such as Brownsville and East New York also saw huge increases.

"The supply in Brooklyn has been very tight for at least three years, and I think this goes a long way in demonstrating the huge demand here," said William Ross, Halstead Property's executive director. "A lot of people found a neighborhood they love and just don't want to leave."

In development-crazy Williamsburg, the average townhouse price jumped from $693,813 last year to a whopping $1.1 million - a 59% increase.

-------------

So instead of the 40% decline you so 'reasonably expected', prices are going through the roof.  Was that Greenspan's fault too?  That evil Greenspan out there foiling your doom and gloom predictions even after he retires....

 

 

Here's another Great prediction by ex-Texan:

1 posted on 10/06/2005 7:35:24 AM EDT by ex-Texan:

Real estate prices declined in New York City 13% last quarter. Where are all the Freepers who were posting comments saying that NY housing has been rising without stopping? It looks like prices took a sudden dip last quarter. By the end of the year, prices in NYC will probably be down another 15%. In my opinion, a 25% fall in NYC in the past six months is just the start. The bubble will not 'deflate' slowly. The rate of deflation will increase every quarter. Read More? Next year, you may reasonably expect NYC properties to lose another 15% in the first quarter. There is a light at the end of the tunnel. It is a racing freight train heading your way.
 

[ex-Texan]

Keep shouting. In your rude bold red fonts You are not convincing me to shut up. Last month, another freeper thanked me for saving them over $ 250,000. I get emails all the time from people thanking me for saving them lots of money.

In my book, you are just a naysayer. Live with it. Put your head back into the sand . . .

[Always Right]

Otherwise, do nothing. Keep your head in the sand.

It is a much cleaner place then where your head is. Your over the top doom and gloom is getting real old. How many times do you have to be wrong? Out of the hundreds of predictions you have made over the last 4 years, I haven't seen one that has come even close to being accurate.

[DCPatriot]

Facts are that anyone that had chosen adjustable rate mortgages (ARMS) vs. fixed rates over the past 10 years has made out like a bandit.

[Always Right]

Keep shouting. In your rude bold red fonts

LOL, shouting? The red was to simply hightlight your prediction.

[DonnDe]

Facts are that anyone that had chosen adjustable rate mortgages (ARMS) vs. fixed rates over the past 10 years has made out like a bandit.

True, but only if you did something smart with the money you saved from the lower mortgage payment. Since I refinanced when rates went down, I'll be very satisfied with my 4.375 fixed for the next 10 years

[Young Scholar]

I know this is off topic so I'll apologize right now. BUT - what skills do public high school graduates have that they can trade for money?

That's not the point of high school. School is supposed to teach basic skills like reading and math that will be important in any job, and allow one to learn whatever skills might be required for that job. Jobs always provide some amount of training, and a high school graduate should be at a level where he is ready to learn the skills necessary for the more basic jobs.

[AD from SpringBay]

That's not the point of high school.

Not sure I agree with that. But if high school is to teach basic skills like reading and math then it shouldn't take four years.

[Centurion2000]

what kind of an idiot buys an ARM in a 40 year interest low ?

[Centurion2000]

Here's another example of stupidity

Fannie Mae, the country's largest source for home mortgage funding, estimates that nearly one-third of the total outstanding mortgage debt is set at an adjustable rate

IIRC Fannie Mae is the one that is backing most of these loans.

[ex-Texan]

You are cheering because some very gullible New York residents paid too much for hyper-inflated real estate? Do people send you emails thanking you for saving them a fortune? I think not. You cheer when people spend too much money.

Those that bought those condos earlier are probably regretting it today. Here is a recent article about homes being in price for a quick sale in NY. They have not sold. The featured house was reduced by $ 600,000. No offers. Despite being on the market for over a year.

WESTHAMPTON, N.Y. — The brand new 6,000-square-foot vacation home, backing on a boat dock on Moriches Bay, has been on the market for more than a year. After plenty of showings, but no offers, the investor who built the house recently cut the price twice, by a total of $600,000, to $4 million. Hot Second Home Market Hits Slump

So it appears I was correct after all.

How much will that seller have to reduce his price to make the sale? $ 800,000? Already he has come down about 20%. Will 25% be enough of a reduction?

[Pukin Dog]

Read back where I talked about Greed.

[Young Scholar]

There's no one method that is right, and for college-bound people it certainly makes sense to spend years to develop language and math skills to a higher level.

Trade skills have never been a part of a high school curriculum, but I suppose you could reasonably argue that for non-college-bound people, it would make more sense to replace high school with some sort of apprenticeship that teaches practical skills. Still, that assumes that these people even learn basic math and language skills before high school, something that is often untrue today.

[Pukin Dog]

You are cheering because some very gullible New York residents paid too much for hyper-inflated real estate?

If he doesn't cheer, I will, because that is the kind of reasoning that makes me money. Go back and consider that it is the same greed that is responsible for the hyperinflation you worry about.

This is a market-driven phenomenon, and I for one and happy to have it, because the greedy will pay and pay and pay some more to keep up with their neighbor. Who gives a rats ass what that seller will have to come down to get out of problem of his own making?

[Always Right]

You are cheering because some very gullible New York residents paid too much for hyper-inflated real estate?

I am not cheering about anything. I am pointing out how outrageously wrong your predictions have been time after time after time....