Posted on 07/27/2009 9:01:54 AM PDT by SonOfDarkSkies
However, we own four homes and are investors. I'd like to see the drag on the economy go away and see a little appreciation kick in. But I think we're 2 years away, at best.
I just went thru this scenario with my own home. I wanted to put on a room but my appraisal came in really low and since we (The United States) is practically bankrupt my locked in rate that expired shot right back up. As far as the appraisal it is BS for the neighborhood and the work that I had already done on my home (All with permits). So because of that, my contractor doesn't get the job, the lumber yard doesn't sell the materials, the subcontractors don't get employed, etc...Multiply times thousands across the country and you can see the drag this puts on the national economy.
Are we talking percentages or numbers? And what is the baseline? We have sunk so low that any increase will seem large compared to a previous month.
There is no recovery and there will not be one until the dems are out of office.
The unemployment rate is a lot higher than 9%. Officially, it’s 9.5%. However, that excludes the 3+ million folks who are getting unemployment benefits from the stimulus bill...and not recorded in the official unemployment number.
I suspect the actual number is much closer to 15%.
And that doesn’t include the under-employed who are working for less money, and for fewer hours.
We are no way near the bottom of this recession.
Just wait until the $2 trillion default in commercial mortgage backed securities.
I hear you. It is just that the real estate market has real problems in this area, and the losses coming down the road in real estate are going to be at least as big as they have been to date. So the lenders are getting extreme in their call for appraisal and other fraud detection and prosecution, borrower qualification, etc. The lenders are not only hurting, they know there’s more pain coming with their names on it.
The real fix needs to be implemented at the state level(s), where real estate regulation really happens. And who wants appraisals to reflect honest valuations? Not the real estate agents. Not the mortgage brokers. Not builders. Just the people who have lost huge sums in the secondary RMBS market. And right now, the lender for most of the market is the Feds, so they get to call the tune.
Many of the home builders in the Indianapolis area where I live have gone bankrupt. There will be a significant amount of work to recover to even a fraction of the previous activity.
its amazing how many houses you can sell when you pay someone 8 thousand dollars. the market is going to plunge after this is over in dec. im a realtor, and all my buyers are first time homebuyers normally first time buyers are about 25 percent of the market now its close to 70% which is unsustainable
A lib moron puts his house on the market in 2008 and can’t sell it. He keeps
dropping the price, dropping the price until his equity is gone,...but he has to move. Finally he sells at a paper loss and buys his NEW house. Has the economy improved? No. The builder who sold him his NEW house has dropped the price, dropped the price until his profit is gone. Get it?
Yes, home sales and new home starts/permits are higher in the summer. However, that is why they are SEASONALLY ADJUSTED month over month, year over year.
Housing, like always leads into a recession and also leads the way out. It has for the last 18 months been a drag on GDP. It will now start being as positive influence on GDP(think of all the differnt things that housing effects).
They could have as accurately headlined this article “Home Prices Drop Another 6% In June”.
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If the Republicans still controlled anything that is the headline the media would use.
There is no recovery and there will not be one until the dems are out of office.
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I do believe that is the crux of the situation.
A house on a three quarter acre lot adjoining my property recently sold... to a twenty two year old single man who is, yes, a first time buyer claiming the eight thousand dollar credit. It is the only house sold close to me within the past year and there are many on the market.
Well, I guess it depends on where you live. California, all year around probably. Alaska, summertime; the east, spring, summer, fall. Anyplace where there’s a lot of snow, probably not much building but lots of renovating inside.
That’s true. Lots of houses on sale now. A few years ago the prices were way too high. I bought a small house for $83,500. It was in decent condition. It’s worth more but I won’t go broke since I didn’t pay $200,000 for it like some folks have for similar places across the country. Too many folks buy houses they cannot afford.
Year over year figures are all that matter. This article seems to say this is month over month, which is a virtually useless statistic. It also talks of levels not reached since fall of last year. Also not “impressive” considering what was going on then.
This is one of those “asks more questions than it answers” stories. Maybe because those other answers don’t fit with the tone the story is trying to create.
Like I always say to Fox hating liberals. I don’t watch Fox because they are too liberal.
>>Things are starting to look up. <<
Yes, it always looks that way in the eye of the storm. And that is where we are. Give it about three months.
Thank you for naming the area in which you are talking about. When mentioning what is happening either in the economy, politics or something else, it really helps us to see what is really going on.
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