Posted on 07/15/2002 9:25:42 AM PDT by AdamSelene235
Negative.
Physics.
LOL!
I totally disagree with you. I do Fannie/Freddie loans all day long with front end ratio's between 40 and 50%. Granted, the borrowers who get those approvals are usually 680+ FICO's but it is very common. Those loans are about 30% of our business. Then when you add in the subprime which is the other 70%, those loans almost never have a front end below 45%. I believe that lending practices have been based on the expectation of appreciation. If, and when, that comes to an end, the bubble WILL burst.
Much of this real-estate trend is due in fact that a lot of folks have just bailed out of the stock market as we did. Better to go to Vegas if you want to gamble.
Here in So. Cal it is a varity of factors that's driving prices up. One is lack of available land, and very few are selling. Supply and demand!
I hope so! I want to buy a house, but getting k$30 together for a down payment is a significant challenge...
Yes. The WSJ reported it as 60 to 1. God knows what it really is, they are exempt from SEC regulations, you know.
Yahoo currently shows it as 37 to 1.
Can you show me your calculations, I'm feeling a bit dense today. Which two statistics are you dividing to get 40 to 1?
Any Floridian responds: LOL.
Every point in the state of Florida is both warmer, and wetter, than any point at all in the state of California.
That means that, yes, even northernmost Florida is warmer in January, and throughout the year, than San Diego. Rainfall in Florida rages between 48 and 64 inches, which exceeds everything in Calif. except some mountain slopes in the far northwest inhabited only by spotted owls and Bigfoot.
How thoughtful of you. About 100 million homeowners should lose their shirts just so you can get a house without some sacrifice.
And Californians say enjoy it. Unless you are standing in the water on the coast of Florida, the weather is hellish. Humidity so high it was choking. I have been there. Couldn't wait to leave. :o
But the actual building, at least in New England, is much superior in strength to the buildings of 100 years ago.
For example, the framing method used 100 years ago is called a balloon frame in which the exterior wall studs were run full length from the sill to the eave and the floor joists (much undersized by todays standards) were hung off a 3/4" ribbon let into the studs. A fire started in the basement would rush up the exterior walls and fully involve the house faster than you could run up the stairs.
Todays houses are built using what is known as a platform frame, in which each section is framed independently and bears its load directly on the framing below. This system has its own built in fire-stops.
It would be too long winded to go into an total explanation of why today's framing methods are superior, but there is one example.
When people tell me, "They don't build 'em like they used to" my stock reply is, "They don't let them."
In my view, having been in the game for over thirty years, the two main causes in the rise of home prices is the governments inflation of the dollar and the rise of the regulatory state.
One has to read that sentence carefully to see that the author is pointing out only that high-priced homes are "for sale" in greater proportion than their percentage of the market in sum.
Yes, there are a scattered enclaves of high dollar Real-Estate througout urban locations in the country but these areas make up only a tiny fraction of all private housing. It is ridiculous for the author to claim that 1 in 10 homes for sale in the United States are priced at $1,000,000 or more.
Total debt Fannie&Freddie :
$ 2,600,000,000,000
Total cash Fannie & Freddie:
$ 59,000,000,000
Debt to cash :
$ 2,600,000,000,000 / $ 59,000,000,000 = 44
I'm sure you will be happy pay what ever it takes in taxes to bail them out.
That is 1/2 of 1% of the total market and I'm in the 3rd largest market of my state.
Can anyone else check their markets?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.