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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (24284)	10/5/2004 8:31:22 PM
From: yard_man	Respond to of 306849

>>Furthermore, all of those owners who recently closed are immediately underwater as exact comps close at discounts of 20% or more than their close.<< and the average "buyer" puts how much down -- what a nightmare -- I just wonder how for spillover of fear to other markets in California.

To: orkrious who wrote (24284)	10/6/2004 12:26:38 AM
From: Jim McMannis	Read Replies (1) \| Respond to of 306849

RE:"This is all happening without rates rising" Just like Elroy Jetson suggested.

To: orkrious who wrote (24284)	10/6/2004 12:34:47 AM
From: Proud Deplorable	Read Replies (2) \| Respond to of 306849

"Popping of the Las Vegas real estate bubble much worse than reported Homebuilders paired up with spec buyers made the problem much worse Plaintiff attorneys should skip Vioxx and head for LV Pulte Homes announcement came as a shock to all but the local real estate community. Today I caught up with a friend who is a Las Vegas real estate professional. He described a picture that is even worse than what I have read. As the market grew hot, more and more homes were going into contract with "investors". The builders supposedly restrained these spec buyers from doing this but in fact looked the other way as the deposit checks cleared. As the company cited yesterday, cancellation rates have hit 75% recently. My source says that is only the half of it. Although the company has reduced sales prices for houses in contract, that has only exacerbated the mess. Those who have been funded but not closed can't re-work the lending and are immediately in violateion of the loan-to-value ratios. Furthermore, all of those owners who recently closed are immediately underwater as exact comps close at discounts of 20% or more than their close. In addition to the contract cancellations, there is even more inventory in the hands of the spec buyers. Many own multiple houses on minimal down payments and now face double digit price declines. He described the streets as a sea of sale signs. In addition to the pain expereinced by the new homeowners and speculators, the entire real estate infrastructure is bracing for the lawyers. Brokers, lenders, appraisers and buyers. Can't even sort out who sues whom - first. This is all happening without rates rising. Clearly a market like Las Vegas with a lot of new built housing is not representative of the general real estate market. Or is it?" YEEEEHAWWWWWWW. I am so happy tonight. I sincerely hope that these investors in this useless rattlesnake infested desert end up losing their shirts, cars, homes and marriages and whatever else they have due to their greediness. Remember in May of this year home prices in Sydney crashed 12.9% in one month. The beauty of this boondoggle is it is worse than a crash and will impact on California real estate because those investors who are getting burned are mostly Californians not content with the windfalls they realized in the hot California market where they continually deprive the average citizen of a chance to own a home. SO, I SAY TO THESE "INVESTORS" : GO FIND A SHOPPING CART AND CARRY WHATS LEFT OF YOUR BELONGINGS AND SLEEP UNDER A FREEWAY BRIDGE.