WP: Home sales plunge 27 pct. to lowest in 15 years

[Commander PK]

As a potential buyer, I can tell you now no way I'm over-paying for a house right now. Sorry, a 70 year old rambler with no basement is not worth 200,000 dollars. Those days are over.

We are essentially at an impasse. Buyers won't buy because they don't want to over-pay. Sellers won't sell for less than they think the homes are worth. Plus, a cultural shift is helping the problem, in that many people just don't buy into the ideal of the "American Dream" as it was anymore. Many people would be content to rent for the rest of their lives then over-pay for a home, and then have to worry about fixing whatever goes wrong, which is usually several thousand dollars.

[HSW]

So sales are down, but prices are up.

I think we're still about 2 years away. And I think the "12.5 months" number doesn't tell the entire story. We all know people out there looking at foreclosed homes and coming away saying "no ****ing chance in hell I'm buying that piece of ****"

Housing inventories are at their lowest level in 42 years, iirc. We have several friends looking to buy right now and there is not a whole lot out there outside of foreclosures.

Prices are up? Not sure if I read that correctly. I have seen

a lot of foreclosed homes that look move-in ready. There has

definitely been a huge change from that aspect. I do agree

that most of the nice houses on the MLS seem to be short sales

and foreclosures. There are still tons of new constructions

to choose from and they are offering every incentive you could

want right now and the prices are fantastic.

[McD5]

You mean like a tax credit for home buyers?

Screw a small tax credit to homebuyers buying overvalued assets.

No, I mean like real money directly to the source of the problem.

This below would have taken care of everything overnight. People may argue the numbers or size, but the overall premise was exactly correct.

Unfortunately, our ignorant scumbag politicians put the banks above the people. But intelligence is not a requirement to be a politician.

http://www.extremeskins.com/showthread.php?t=291021

[Destino]

Obama has to be sweating. Had he given money to the people--directly to the group that needed it instead of to the banks, we wouldn't be having these problems.

You mean bail out the banks by giving the people owing the mortgage the cash to pay them? Who would you control what they spent it on? Like for example say you send me a 150k and I decide to walk away from my house and tour europe for 3 years.

[McD5]

You mean bail out the banks by giving the people owing the mortgage the cash to pay them? Who would you control what they spent it on? Like for example say you send me a 150k and I decide to walk away from my house and tour europe for 3 years.

Read that link above, it's all there in the opening post.

Debt would have been required to be paid off first.

We would already be out of this mess, and would be in a financial boom right now.

Unfortuanately, we have morons running this country, who put banks above people.

When people become intelligent and realize this, the political structure of this county will change drastically. Within 2 years from today.

[Hubbs]

Screw a small tax credit to homebuyers buying overvalued assets.

No, I mean like real money directly to the source of the problem.

This below would have taken care of everything overnight. People may argue the numbers or size, but the overall premise was exactly correct.

Unfortunately, our ignorant scumbag politicians put the banks above the people. But intelligence is not a requirement to be a politician.

http://www.extremeskins.com/showthread.php?t=291021

Read that link above, it's all there in the opening post.

Debt would have been required to be paid off first.

We would already be out of this mess, and would be in a financial boom right now.

Unfortuanately, we have morons running this country, who put banks above people.

When people become intelligent and realize this, the political structure of this county will change drastically. Within 2 years from today.

Oh God, not again. :doh:

Yes, please read that link. All of it. All the way through. Make sure you cover the parts where this theory is absolutely obliterated.

[McD5]

Oh God, not again. :doh:

Yes, please read that link. All of it. All the way through. Make sure you cover the parts where this theory is absolutely obliterated.

Far from it. The answer was right there.

Instead we chose banks, the American is screwed, and here we are.

We won't have any recovery until money gets into the hands of Americans. Not banks, but people.

[KingGibbs]

The problem with the market is the previous boom caused the value of homes to skyrocket and those that bought are in the red if they want to sell because their homes are appraised far below what they owe. This is a big reason why home owners are saying **** it and walking away from the mortgage and filing bankruptcy.

BTW. I know this isn't the only reason, but it plays a big role.

[pjfootballer]

So sales are down, but prices are up.

I think we're still about 2 years away. And I think the "12.5 months" number doesn't tell the entire story. We all know people out there looking at foreclosed homes and coming away saying "no ****ing chance in hell I'm buying that piece of ****"

Housing inventories are at their lowest level in 42 years, iirc. We have several friends looking to buy right now and there is not a whole lot out there outside of foreclosures.

Wrong. Alot of houses are for sale (as mine was), but everyone wants a home that is not in foreclosure (as mine was not) at foreclosure prices.

There are a ton of houses for sale in our area. Some streets have a for sale sign posted on every third lawn. These are both town homes and single family home areas.

Agreed. But they want something for nothing.

[Hubbs]

Agreed. But they want something for nothing.

...they, of course, would say that you want something for nothing.

[Heisenberg]

Yeah, I should have probably just waited even longer and bought a place after the tax credit expired.

Since I remodeled my kitchen I probably would have saved a lot of money just waiting for a completely updated place.

Oh well.

[Hubbs]

We won't have any recovery until money gets into the hands of Americans. Not banks, but people.

You're right about the "why." It's the "how" that's causing you to swing and miss. "Print up $13 trillion - when the current monetary base is $2 trillion - and drop it from helicopters" is not a valid plan. The very fact that you think there needs to be a dollar-for-dollar replacement of household "wealth" when that exact number was such a high multiple of the monetary base in the first place makes me wonder where you learned what you've learned.

[pjfootballer]

...they, of course, would say that you want something for nothing.

I'm not going through this again with you. I've said my peace in the other thread. I'm entitled to my opinion right or wrong.

[Tulane Skins Fan]

Screw a small tax credit to homebuyers buying overvalued assets.

No, I mean like real money directly to the source of the problem.

This below would have taken care of everything overnight. People may argue the numbers or size, but the overall premise was exactly correct.

Unfortunately, our ignorant scumbag politicians put the banks above the people. But intelligence is not a requirement to be a politician.

http://www.extremeskins.com/showthread.php?t=291021

Is this the hyperinflation thing again?

[Hubbs]

Is this the hyperinflation thing again?

What do you think? :pfft:

[Tulane Skins Fan]

What do you think? :pfft:

Damn you! You made me click on it!

[Lombardi's_kid_brother]

When people become intelligent and realize this, the political structure of this county will change drastically. Within 2 years from today.

Jesus Christ. Is your new schtick going to be Che Guevera?

[Ned Flanders]

Is this a nationwide average? I could maybe believe that with the terrible markets in Florida and Nevada. My house in Maryland has been appreciating pretty much since I bought it last July (I bought at the VERY bottom at the time). Every house in the neighborhood that's sold, has sold for higher prices then I bought in. My Realtor is actually a friend of mine, and he claims housing has risen in Montgomery County at least in the $100k-$400k bracket.

[zoony]

I get your point, but I disagree with the conclusion. You think that down payments and qualifications are somehow "wrong" right now. .

I don't think that. I just think saying that housing is down despite "all time low interest rates" is intellectually dishonest.

[Art Monk Fan]

Is this a nationwide average? I could maybe believe that with the terrible markets in Florida and Nevada. My house in Maryland has been appreciating pretty much since I bought it last July (I bought at the VERY bottom at the time). Every house in the neighborhood that's sold, has sold for higher prices then I bought in. My Realtor is actually a friend of mine, and he claims housing has risen in Montgomery County at least in the $100k-$400k bracket.

I've noticed the same here in Frederick County, MD -- prices are inching back up again.

[Hubbs]

I don't think that. I just think saying that housing is down despite "all time low interest rates" is intellectually dishonest.

Oh, I see what you were getting at now, and it actually is pretty much what I was trying to say. We just crossed our streams a bit. When I said "despite all-time low interest rates," I was specifically trying to imply that Americans aren't capable of buying a home right now specifically because of policies designed to engineer "more homeownership" with simultaneous price inflation in real terms, and thus the efforts to get us out of this mess by doubling down on those same policies are at best woefully stupid, and at worst borderline criminal for the same reasons that "predatory lending," when it did occur, is borderline criminal. They are also guaranteed not to work in the long term, and we may be seeing that they are now also impotent in the short term - hence the lack of sales at all-time low interest rates. Goosing housing with low interest rates only works so long as enough people are qualified to borrow large sums of money at any interest rate.

[Stillers6SB]

As a potential buyer, I can tell you now no way I'm over-paying for a house right now. Sorry, a 70 year old rambler with no basement is not worth 200,000 dollars. Those days are over.

We are essentially at an impasse. Buyers won't buy because they don't want to over-pay. Sellers won't sell for less than they think the homes are worth. Plus, a cultural shift is helping the problem, in that many people just don't buy into the ideal of the "American Dream" as it was anymore. Many people would be content to rent for the rest of their lives then over-pay for a home, and then have to worry about fixing whatever goes wrong, which is usually several thousand dollars.

If you're patient, you'll be able to get a good price on a house. There will be hundreds of thousands of motivated sellers in the next few years. So many people bought bigger houses than they could afford and will be forced to sell at a loss. Millions of other homes will go into foreclosure and the banks that assume them will be forced to sell at a loss.

Just bide your time and make sure you know you can afford the payments. Owning a home still has many advantages compared to renting (depending upon your situation of course).

Mortgage rates are likely to stay low because of the lousy economy expected for the next few years or more. There's no rush to lock in these historically low rates.

[TheDoyler23]

I bought my home this month. I guess I'm against the grain on this one.

[twa]

I bought my home this month. I guess I'm against the grain on this one.

Hope ya got a good deal,I look for a price adjustment before long.

Really I don't see where it matters if ya got what ya wanted.

[Beans]

Hope ya got a good deal,I look for a price adjustment before long.

Really I don't see where it matters if ya got what ya wanted.

Exactly. I don't see why so many people are freaking out about being underwater. If you're not moving anytime soon, relax. As long as the domicile is providing the requisite amount of utility, let the good times roll.