Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: UncleBigs who wrote (46056)	11/23/2005 2:40:05 PM
From: John Vosilla	Respond to of 110194

"We are in an unprecedented real estate bubble. A company with $115 billion worth of mortgage loans backed by Florida and California real estate is at risk" Easily the two most risky areas of the country even before taking into account the natural disaster factor.. This also might be the first time since ARM's went mainstream that rates are actually poised to trend up for a considerable period of time.

To: UncleBigs who wrote (46056)	11/23/2005 3:43:24 PM
From: russwinter	Respond to of 110194

Speaking of GDW's Florida exposure. 5% price concessions is bit of a farce IMHO, whoppie. (): RE Brokers Move To Capitalize On 'Flood' thehousingbubble2.blogspot.com This Investor.com press release shows business are responding to the declining market. "Boca Raton, Fla., Jordyn Taylor Properties, Inc. confirms that a remarkable 10% of the housing units in JTPI’s market are currently for sale.* As in any other industry is creating pricing pressure, seller concessions and higher sales commissions." "Many speculators find themselves with properties that they cannot afford to hold as interest rates continue to increase and unplanned, lump sum mortgage payments become due. This compelling need to dispose of properties throughout the market, coupled with the desire by many owners to realize the equity locked up in retirement and second homes, is resulting in a flood of new homes on the market." "According to William Luckman, CEO, 'The key factors in this oversupply environment are the seller concessions. If a renter is prepared to spend as little as $1200 on monthly rent and he has reasonable credit, we can qualify him to buy with 100% financing on a significant piece of housing. With buyers well outnumbered by sellers, we are witnessing significant concessions in the market, in some cases, 5% reductions in the purchase price." (*) Comment from the blog: RudeKarl said... "...in some cases, 5% reductions in the purchase price." 5% reduction, big deal. This overpriced trash is going to need to drop a heck of a lot more to get any "real" buyers interested. These builders have fed off of the speculator buying frenzy so long that they actually may believe some of the nonsense they spew.