Ralphie

95,364 last month. disappointed.gif

http://www.bloomberg.com/news/2010-09-16/b...ive-months.html

What needs to be done to get people buying again? Many are afraid to buy right now because they feel the market is still going down due to the constant increase in foreclosures. How do we turn this around? Tax credits didn't work, bailouts didn't work, modifications didn't work, what will work?

Stocker

Time will work. Make that, time during an ongoing economic depression.

We are in a depression right now, in case you missed it. We had a huge housing boom built on mortgage credit. There was a phenomenon known as "Peak Credit" which has now passed. Currently we have several months to several years (depending who you ask) of excess inventory of housing, and credit to buy a house has tightened somewhat.

High supply with low demand equals low prices. Prices will not bottom overnight. It will likely be at least two more years until prices bottom in residential real estate. Until then, it is a vicious cycle. When people begin to notice on in large numbers that housing is affordable (in their own opinions) then they will start buying again.

For those who are mystified about why the economy is the way it is, you should spend some quality time reading Michael Shedlock's Global Economic Analysis blog. He is one of the very, very few (<100) economic analysts out there who is not caught by surprise when the news reports say "unexpectedly."

UrS0NvS

i'm not afraid to buy but i refuse to pay over 100k for a house that is 50 to 60 years old in my area that needs or will down the line need foundation repair. that is the norm in my area.

alot of those foreclosures are the actually fault of the people that signed on the dotted line.

everyone knows what they can afford if you put some thought into it. don't buy just because someone else says you can afford it and later on you find out you are stuck with a house payment that doesnt allow you to do anyting but pay for that damn house for the next thirty years.

weld supervisor at work told me when he built his new house back in 2007 the bankers were willing to lend him up to 60% of his GROSS wages to build his house.

that is plain fvckin' stupid.

here is a example of what is happeneing in my area.

http://www.realtor.com/realestateandhomes-...6547_1121111627

this house is roughly 300 yards from where i work. i could basically walk from the backyard to work every morning which i think would be way cool. it is right on Hwy 24 and basically 1 mile from downtown, killer setup. 4 acres of land but here is the kicker...

your neighbor to the west of you is a junkyard. the neighbor to the east of you is a concrete castings company so your house is smack dab in the middle of a industrial area. now for me the highway traffic doesnt bother me cause you barely here it and i live just up this road a mile or so west and maybe 5 yards more off the road.

HyundaiKitCoupe

i think it'll be about 20 years before things start looking up again.

majik

I wish I could easily find one nearby for ubercheap. I'm interested in moving, but wouldn't get too much out of my equity. Only been in my home for 4 years.

JonGTR

That's not why people are afraid to buy. People aren't buying because they don't have jobs or are afraid to lose the one they have. Also, some can't buy a new house until they sell their current one. And since the value is down, it would be stupid to take a loss and sell it right now.

My job was gauranteed to be there for the past 2 years and will be available for the next 2 years due to my company securing a gov't construction contract. Therefore, I bought a new house at 4.5% without hessitation. This will save me over $100k in interest compared to the next guy that bought a house when the market peaked.


Anyone with money sense would know that NOW is the time to buy. The worst time is when everyone else is. People who aren't taking advantage of this situation are just dumb.

majik

^ agreed. I wish I could get enough out of my home to put a down pmt on another house. With the wife getting a new job further from home, I need to move closer so I'm not cycling through vehicles every 4 years.

I've been looking, but unfortunately and fortunately, the housing market hasn't been affected too much in Nashville. New construction is slow, but the home values are largely unchanged.