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Home price drops exceed Great Depression: Zillow

Individually, who cares. My home price has stayed roughly even. New homes in my area have dropped some, making it easier for me to purchase one if I desire, which could be a good investment. What's all the fuss.

Averaged national statistics are interesting to investors, economists, and maybe for forming strategies, but in the day to day it's not really all that relevant. Home prices bubbled for a long time, and I know some areas that dropped by 100%. Market resetting is healthy. It's painful for those caught in it, but it's ultimately good overall.

If you just lost 20% on a home, OK, that sucks. You may still lose a little more. Then again, as an investor, you should expect this, and be prepared for it, so while it's blah news, it shouldn't be "the sky is falling" type of a reaction.
 
keep in mind, before the collapse, for 60 years the US government was doing everything it could to convince the majority of its populace to invest in a single market, and to do so heavily leveraged. this picked up even quicker in the 70's with the community reinvestment act, then again with an update of that act in the 90's, then again with cheap money during greenspan's and bernanke's tenure at helm.

none of these policies have changed, we've committed huge amounts of fraud to keep them going. this is why fannie and freddie still exist. doesn't mean that everyone believes in the hugely inflated prices, which now results in a huge drop in prices.

i'm sure, even those that still fervently believe in the two party dynamic, can see the ills caused by being highly leveraged and all in one market at the same time.

also keep in mind that the buying power of all americans, with the glaring exception of the top quintile, has decreased every year since we left the gold standard in the early 70's. (imagine how pissed you'd be if you found out all this was planned at a meeting of global bankers on jekyll island in 1910.)
 
Individually, who cares. My home price has stayed roughly even. New homes in my area have dropped some, making it easier for me to purchase one if I desire, which could be a good investment. What's all the fuss.

Averaged national statistics are interesting to investors, economists, and maybe for forming strategies, but in the day to day it's not really all that relevant. Home prices bubbled for a long time, and I know some areas that dropped by 100%. Market resetting is healthy. It's painful for those caught in it, but it's ultimately good overall.

If you just lost 20% on a home, OK, that sucks. You may still lose a little more. Then again, as an investor, you should expect this, and be prepared for it, so while it's blah news, it shouldn't be "the sky is falling" type of a reaction.

It's only a big deal if you lose your job and have to sell. Or, if you couldn't afford it in the first place.

But, yes, if you can make the payment, just chill out and wait for the worm to turn. A house is worth nothing unless you sell it anyway.
 
keep in mind, before the collapse, for 60 years the US government was doing everything it could to convince the majority of its populace to invest in a single market, and to do so heavily leveraged. this picked up even quicker in the 70's with the community reinvestment act, then again with an update of that act in the 90's, then again with cheap money during greenspan's and bernanke's tenure at helm.

none of these policies have changed, we've committed huge amounts of fraud to keep them going. this is why fannie and freddie still exist. doesn't mean that everyone believes in the hugely inflated prices, which now results in a huge drop in prices.

i'm sure, even those that still fervently believe in the two party dynamic, can see the ills caused by being highly leveraged and all in one market at the same time.

also keep in mind that the buying power of all americans, with the glaring exception of the top quintile, has decreased every year since we left the gold standard in the early 70's. (imagine how pissed you'd be if you found out all this was planned at a meeting of global bankers on jekyll island in 1910.)

Why is it the government encourages us to manage our money like them?
 
Individually, who cares. My home price has stayed roughly even. New homes in my area have dropped some, making it easier for me to purchase one if I desire, which could be a good investment. What's all the fuss.

Averaged national statistics are interesting to investors, economists, and maybe for forming strategies, but in the day to day it's not really all that relevant. Home prices bubbled for a long time, and I know some areas that dropped by 100%. Market resetting is healthy. It's painful for those caught in it, but it's ultimately good overall.

If you just lost 20% on a home, OK, that sucks. You may still lose a little more. Then again, as an investor, you should expect this, and be prepared for it, so while it's blah news, it shouldn't be "the sky is falling" type of a reaction.

this guy's got some serious issues. at the beginning of the housing collapse, most credit was related to home ownership. same with most construction, all the furniture and other garbage we fill our houses with. a substantial amount of our economy was based on this idea of the never ending housing bubble. so, anyone participating in the economy at all cares in one way or another about the housing bubble.

i doubt you know of any area that dropped 100% in house values, since that means the houses are worth $0. even houses flooded in katrina didn't lose 100% of their value since they still sat on land with value.

this by itself doesn't mean the sky is falling, but if you look at it as one piece in a complete puzzle, yes the sky is figuratively falling. but you'd never get that idea watching american idle and monday night football.
 
Obama's mortgage modification schemes have only prolonged the agony of delinquent borrowers and the real estate market.

Spot on. Just want to add that the additional period of housing price depression will add to the length of the recession.
 
Why is it the government encourages us to manage our money like them?

why does anyone encourage others to make a bad investment, i'm sure you can figure this one out.
 
Obama's mortgage modification schemes have only prolonged the agony of delinquent borrowers and the real estate market.

Bullseye, actually splitting the arrow in the center of the bullseye.

In a normal market, people who cannot afford to buy... rent. And when the market starts tanking is the time to start buying and renting out these properties. With Obama screwing with the market, investors have a more difficult time estimating ROI... so prices tank further because those with the ability to buy aren't interested in a game where the rules are always changing and the future renters are being propped up by Obama.

Usually this would be the time to start snapping up properties... getting steals, renting them for fair market value, making negligible ROI in the short term, and increasing rent as the market heats up. That combo is a hot one for making money, as the house prices will increase, someone will pay your bargain mortgage, and having bought the house for a bargain you'll have cash in hand monthly after all payments are made. Put some aside for repairs or the month or two when the house could be awaiting renters.. and you're laughing... usually.

I'll wait a while longer... but if anyone is interested in investment properties... PM me.

.
 
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i doubt you know of any area that dropped 100% in house values, since that means the houses are worth $0. even houses flooded in katrina didn't lose 100% of their value since they still sat on land with value.
True, that's misleading, I'm mixing what I'm talking about. $180K homes before bubble. Buys a second house when it's climbing, at $240K. Peaks at $360K but before he sells it's back down to $180K. He only lost 25%, and the drop was 50% from pre-bubble, and the potential net profit was 100% of the original value...which I in no way communicated properly!

As to the sky falling, is every correction in a market a falling sky? Markets are cyclical. Our issue is exactly as you described. Government assisted the creation of this bubble through incentives and guidance that were bad. It was huge when the market collapsed. But we know that now, and it's been years of correcting. The fact that home prices are still dropping some...doesn't really make me think a second shoe is going to drop or that the market is not already adjusted to this.

If people are out their making responsible lending, borrowing, career, education, spending, and savings decisions, I don't think it's all that important for most people. They should decompress and watch football or play WoW :) (oddly, I don't do either).
 
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Not really a concern. The recession did end in 2009, but recession and house prices dont have much to do with each other.

Like it or not the housing market in the US went nuts for 10 years with massive price rises and that takes time to get back to what it should be. Some places will go faster, others slower, but with the exception of the uber rich areas most likely, then house prices are still going decline for a while yet.

And it of course does not help that US banks are so screwed up that they dont loan people money any more, and of course the fact that the average US consumer debt is huge.. people cant get money to buy houses, and that will push prices down too.

Haha. An expert in the American residential real estate market? I bet you don't know very much. Haha.
 
Haha. An expert in the American residential real estate market? I bet you don't know very much. Haha.

thus far he has demonstrated an astute reading of our real estate and national economic conditions

you on the other hand, not so much
 
not for the 700,000 families who are able to stay in - and pay off - their homes but for the availability of HAMP

You don't know about real estate do you? Are you familiar with the HAMP program? It has a fifty percent failure rate. It has a trial modification period that half of the borrowers fail. That only prolongs their agony and the dysfunction of the real estate market. It would have been better for the country as a whole if the real estate market had been left to experience a short period of dramatic pain rather than a prolonged period of sclerosis and agony.

Your 700,000 figure is wrong. You are like a fish out of water when you discuss subjects of which you are ignorant. Check it out pal: Home Affordable Modifications Program Fails to Hit President
 
You know what - this is my general view on the housing market:

Home production increased.
Ergo - the cost of homes should have dropped - but it didn't it steadily increased. Sometimes faster than other times - but it increased for many years.
Why did it increase?

Why is it not like all other products in which an increased SUPPLY and an increased DEMAND lowers the cost?
 
You don't know about real estate do you? Are you familiar with the HAMP program? It has a fifty percent failure rate. It has a trial modification period that half of the borrowers fail. That only prolongs their agony and the dysfunction of the real estate market. It would have been better for the country as a whole if the real estate market had been left to experience a short period of dramatic pain rather than a prolonged period of sclerosis and agony.

Your 700,000 figure is wrong. You are like a fish out of water when you discuss subjects of which you are ignorant. Check it out pal: Home Affordable Modifications Program Fails to Hit President
1. as a licensed real estate appraiser who also writes (as a contractor) federally guaranteed loans for real property acquisitions, and as one who also consults with major and local banks in their administration of acquired properties, i think i understand something about real estate markets
2. you are not my pal
 
1. as a licensed real estate appraiser who also writes (as a contractor) federally guaranteed loans for real property acquisitions, and as one who also consults with major and local banks in their administration of acquired properties, i think i understand something about real estate markets
2. you are not my pal

Hahahahaha. If you are in fact a licensed real estate appraiser who works for banks, then this whole problem in the housing market is your fault. Bank appraisals aren't worth spit. The incompetence of bank appraisers is legendary. You don't know squat because you are on a low non-professional level.

I am you pal. I am the only real friend you have in the whole world. No one likes you except me. Big Kiss.
 
Haha. An expert in the American residential real estate market? I bet you don't know very much. Haha.

Never claimed I was. But any idiot can see what went wrong in the US, Ireland, UK, Spain and many other places.

People were warning about the housing bubble for years and years but no one did anything about it because the banks and financial institutions were earning trillions on selling and reselling financial products that had the US mortgage market at its core. And as long as the housing market was going up up and up then there was no reason to pull the brake because people were greedy and getting rich.

When reality finally settled back into the US housing market and prices started to fall and banks realized that more and more of the financial assets they had been peddling to people around the world and making a killing off.. were in fact worthless, then you had the start of the financial crisis.

It does not take any "expertise" to understand when a large number of home owners for a decade plus re-mortgaged and re-mortgaged because their homes value went up and up and up, and then used that extra income to consume and driving the US economy.. that when the value of the homes suddenly goes down (a lot even), then you have a lot of people sitting in homes that are worth less than the mortgage they have taken out in it.

This intern means the banks have to start taking losses and when the snowball effects starts, then welcome to the financial crisis. This in tern again drives prices even more down since the market has become a buyers market not a sellers.. and if buyers cant get loans or are insecure about the future, then sellers are forced to lower prices even more and so on and so on. Add to the fact many loose their homes because of the crisis, and suddenly the market is flooded with homes for sale... which again drives prices down.. that is of course unless banks sit on homes and waiting for better times, which banks do. This of course is also dangerous as hell because when prices finally do stabilize and even go up, then if the banks start selling off the homes they have been sitting on, then suddenly the supply on the market is flooded yet again (if they are not careful), and that in tern yet again will drive down prices if you are not careful.

At some point the markets will get into a sort of equilibrium yet again, but that can take a considerable amount of time considering the time it took to get the peak in the first place.

And as long as the banks are sitting on hundreds of billions if not trillions of debt that they have no idea what the value is, and there is no incentive by regulators or even the markets to deal with it, then nothing will happen. Home prices can fall another 15% but if the banks wont loan people money to buy, then prices can easily fall even more.

So no amount of tax breaks, special programs from the government or wishful thinking can do anything about the problem since the core of the problem is yet again.... the banks and the last decade plus of excess of greed. Hell unemployment can go to 6% and growth to 5%, but as long as the banks refuse to loan money.. then well.

No there is more hurt on the way, but I believe we are at the start of the end of the tunnel (at least), both in the US and around the world when it comes to housing prices.
 
Hahahahaha. If you are in fact a licensed real estate appraiser who works for banks, then this whole problem in the housing market is your fault. Bank appraisals aren't worth spit. The incompetence of bank appraisers is legendary. You don't know squat because you are on a low non-professional level.

I am you pal. I am the only real friend you have in the whole world. No one likes you except me. Big Kiss.

He seems to know more than you do.
 
"not really a concern"

"who cares"

"what's all the fuss"

"in the day to day it's not really that revelvant"

"i don't think it's all that important to most people"

"decompress and watch football..."

wow, just how outta touch can a group of people be?

meanwhile:

Over 1 million Americans seen losing homes in 2011 - Yahoo! News

ONE MILLION american homes foreclosed upon in 2010

that's fourteen percent MORE than in awful 09

twenty percent MORE expected in 2011 than in terrible '10

the market GLUTTED

U.S. Foreclosure Filings May Jump 20% in 2011 as Crisis Peaks - Bloomberg

america and therefore much of the world economy cannot recover until housing stabilizes, til the foundation is found

what's all the fuss---wow
 
Never claimed I was. But any idiot can see what went wrong in the US, Ireland, UK, Spain and many other places.

People were warning about the housing bubble for years and years but no one did anything about it because the banks and financial institutions were earning trillions on selling and reselling financial products that had the US mortgage market at its core. And as long as the housing market was going up up and up then there was no reason to pull the brake because people were greedy and getting rich.

When reality finally settled back into the US housing market and prices started to fall and banks realized that more and more of the financial assets they had been peddling to people around the world and making a killing off.. were in fact worthless, then you had the start of the financial crisis.

It does not take any "expertise" to understand when a large number of home owners for a decade plus re-mortgaged and re-mortgaged because their homes value went up and up and up, and then used that extra income to consume and driving the US economy.. that when the value of the homes suddenly goes down (a lot even), then you have a lot of people sitting in homes that are worth less than the mortgage they have taken out in it.

This intern means the banks have to start taking losses and when the snowball effects starts, then welcome to the financial crisis. This in tern again drives prices even more down since the market has become a buyers market not a sellers.. and if buyers cant get loans or are insecure about the future, then sellers are forced to lower prices even more and so on and so on. Add to the fact many loose their homes because of the crisis, and suddenly the market is flooded with homes for sale... which again drives prices down.. that is of course unless banks sit on homes and waiting for better times, which banks do. This of course is also dangerous as hell because when prices finally do stabilize and even go up, then if the banks start selling off the homes they have been sitting on, then suddenly the supply on the market is flooded yet again (if they are not careful), and that in tern yet again will drive down prices if you are not careful.

At some point the markets will get into a sort of equilibrium yet again, but that can take a considerable amount of time considering the time it took to get the peak in the first place.

And as long as the banks are sitting on hundreds of billions if not trillions of debt that they have no idea what the value is, and there is no incentive by regulators or even the markets to deal with it, then nothing will happen. Home prices can fall another 15% but if the banks wont loan people money to buy, then prices can easily fall even more.

So no amount of tax breaks, special programs from the government or wishful thinking can do anything about the problem since the core of the problem is yet again.... the banks and the last decade plus of excess of greed. Hell unemployment can go to 6% and growth to 5%, but as long as the banks refuse to loan money.. then well.

No there is more hurt on the way, but I believe we are at the start of the end of the tunnel (at least), both in the US and around the world when it comes to housing prices.

Thanks for a description of the patient's symptoms. But I would like to hear your diagnosis. Do you have one? If so, now would be a good time to address it. Then we can turn to the prognosis.
 
what's all the fuss---wow
Out of touch? I just told you my home value is about the same as when I bought it. Kind of bleh, but hardly a crisis. Were national statistics supposed to make me go out and vote for my government to "save their homes"? THAT would be a crisis IMO.

People in homes they can't afford, are correctly getting out of them. They should. Some asked for it, some were caught up in a recession and it's tragic. But it's still necessary. If I can't afford a home, I want to get out and go back to an apartment, or get a room mate or something. I mean, wouldn't you?
 
Out of touch? I just told you my home value is about the same as when I bought it. Kind of bleh, but hardly a crisis. Were national statistics supposed to make me go out and vote for my government to "save their homes"? THAT would be a crisis IMO.

People in homes they can't afford, are correctly getting out of them. They should. Some asked for it, some were caught up in a recession and it's tragic. But it's still necessary. If I can't afford a home, I want to get out and go back to an apartment, or get a room mate or something. I mean, wouldn't you?

with your nonchalant, devil-may-care attitude over the whole thing; one may get the impression that you don't even care how all that bad debt got transfered from the banks to the public sector. we have a parallel thread about congress raising debt ceiling and it's just turned into a flame war over obama. trillions in bad housing debt got bought off at 100 cents on the dollar and put on yours and my back. this is why the crisis is just starting, we didn't handle anything, nothing got settled. the debt just shifted, from the bankers to us. how does this not rate as important as the latest palin video?
 
Obama's mortgage modification schemes have only prolonged the agony of delinquent borrowers and the real estate market.

The way this debacle is being handled shows why BUSINESSmen need to have a voice in Congress and in the White House. Mortgage Modification my lily white ass.

A home was purchased 4 years ago for $200,000. The lender let the buyer get into the house with 0-3% down. Now that house's worth $150,000. Let the current owner default on the $200K and re-mortgage $150K at today's interest rates!!!!

Nah. That makes too much sense. Sooooo, they foreclose on the property...the current owners live rent/mortgage free for 12-18 months; bank gets nothing; then they strip the house and half-destroy it when they move. THEN the bank puts $5-$10K into the house getting it ready for sale and it still only gets $150K for the house. Stooooopid!!!
 
Individually, who cares. My home price has stayed roughly even. New homes in my area have dropped some, making it easier for me to purchase one if I desire, which could be a good investment. What's all the fuss.

Averaged national statistics are interesting to investors, economists, and maybe for forming strategies, but in the day to day it's not really all that relevant. Home prices bubbled for a long time, and I know some areas that dropped by 100%. Market resetting is healthy. It's painful for those caught in it, but it's ultimately good overall.

If you just lost 20% on a home, OK, that sucks. You may still lose a little more. Then again, as an investor, you should expect this, and be prepared for it, so while it's blah news, it shouldn't be "the sky is falling" type of a reaction.

If your home is worth the same as it was four years ago, you're the ONLY person in the United States who hasn't lost equity in this market. The only one!! I'd say you're living a pipedream. But if it makes you happy...
 
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