Housing correction of 50%-=chickenlittle.
These numbers are being taken WAY WAY out of context.
Sure, for condo's in Miami, and even track homes in San Diego- yes, 50% corrections in prices- as there should be.
BECAUSE they went up 25% to 40% per year for the last couple of years into the bubble.
What is out of context- is that for 95% of the ENTIRE US Real Estate market there will be a 5-10% decline while the glut of homes for sale thins out. For much of America there was never a housing bubble and accordingly- there will be no bust.
And even in hot markets- New York City for example, the markets are still very strong.
The other thing way out of context- is that with a huge portion of Baby Boomers with all this wealth- they don't have a mortgage. The kids are raised, out of school, have left the nest and they are like me- own one, two, even three houses- ALL PAID FOR.
I could give a rats ass about 50% declines in condo's in Miami, new subdivisions in Phoenix, or 30 year old track homes in San Diego that went nuts. And I bet 98% of America is just like me.
I didn't spend MORE money because of a housing bubble in hot markets- AND I sure as hell won't spend LESS money now- because of a bust- in those same bubble markets.
It didnt effect me then and it doesn't effect me now.
For 98% of America- thats the entire housing story in a nutshell.
This is so overblown. You guys are sounding like chiken little again. The stock market doesn't reflect it, the parking lots at every shopping center, or restaurant don't reflect it, the crowds at sporting events don't reflect it- the only place it's reflected is in that small minority of people who got in at the top- in bubble markets and who now can't get out.
Tough Luck.
End of subject.
90% of people who bought homes in the last two years are not interested in reselling them.
Only a teeny-tiny portion of professionals who are in careers where they transfer every couple of years- and thats so small it doesn't even show up on the radar screen, or house flipping speculators.
This is way over blown in an effort to force the Fed to cut rates- which they should not in my opinion.
Don't ask me to bail out some yahoo who bought at the top in those markets on a negative amortization ARM loan, or with no money down.
F'k 'em- period.
The government never went to homeowners in California who bought in Orange County in the 1960's and turned $25,000 track homes into $1.3 million dollar windfalls to give back part of their profits to the taxpayers- so don't ask me to subsidize some asshole who bought a slapped up shack in Vegas' for $485,000 and it's now only worth $280,000.
My 2 cents.
Ron |
