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

To: orkrious who wrote (54198)	2/18/2006 2:42:49 PM
From: UncleBigs	Read Replies (3) \| Respond to of 110194

As ARMs reset, they are going to be dialing 1-800-refi-30yrs with another $30k of cash out spending money. Detroit is probably the worst real estate market in the country. I wouldn't let your local experience pollute your thought processes. GM and Ford are dying and this is creating a population loss. Plus Detroit is frankly a very undesireable place to live in my opinion. I think homebuilder p/e's will be rising as the the stock prices rise and earnings forecasts are trimmed. Look for big buyback announcements, dividend increases and M&A activity very soon amongst the homebuilders. I think I'm buying dhi and phm on Monday.

To: orkrious who wrote (54198)	2/18/2006 3:52:12 PM
From: ild	Read Replies (2) \| Respond to of 110194

<<<As people's ARMs reset they are going to be dialing 1-800-GET-ME-OUT.>>> Why can't they be refied into Option ARMs? From accumulated equity mortgage brokers will give them a cash out gift in addition to taking $10K in fees. <<<Detroit>>> When did Detroit matter? Inventory is still low in California. Just about 2 months of sales. We still have multiple bids in Orange County. Inventory needs to double by May in order for the prices to start going lower. Affordability is very low but I see everyone using use Option ARMs unless they are outlawed. Your subprime and builders went down because of some margin compression, not because of RE bust. EDIT: How many months of inventory in Detroit?