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

To: koan who wrote (265427)	7/31/2010 9:01:46 PM
From: Valuepro	Read Replies (2) \| Respond to of 306849

"Millions of middle class people with jobs and good credit could have been saved by simply letting them refinance the first and second at 120% of appraisal. Just give them a steamlined refinancing." Yeah, right! 120 percent of already faulty appraisals. Again, making anything easier to acquire and/or easier to keep, drives up demand and artificially increases prices, but only for as long someone or something can throw more fuel on the fire. At some point, you run out of coal, or dollars, or whatever. In the words of P.T. Barnum, "The only reason why every family in America doesn't own an elephant is that they haven't been afforded the opportunity to buy one for a nickel down and a nickel a week." Well, Congress saw to it that every family in America had at least the opportunity to buy a home without qualification for, figuratively, a nickel down and a nickel a week. What happens to the value of elephants once everyone has one? Then a lot of people keep buying because they've seen the prices rising, but that kind of demand is always unsustainable. It's the bigger fool theory in which most everyone knew what was happening but they were all thinking they can get out with their fortunes intact before everything fell apart. And, in this case, real estate brokers/agents are naturally complicit, selling elephants, as it were. [Not singling you out, of course.] All your plan would do is hold the line on falling prices for a period of time only, as overhanging market forces (the absence of hysterical investor-buyers) have to be satisfied before a healthy demand can be reintroduced, and that will not happen until the market finds it's bottom. ...........Uh, sorry. Lecture over.

To: koan who wrote (265427)	8/1/2010 1:01:13 PM
From: techlover1	Read Replies (5) \| Respond to of 306849

There are some places that are booming. My wife took a job in North Carolina near Camp LeJune on the East Coast of NC. They are expecting an influx of 70,000 people in the next two years in surrounding counties from the military buildup and retirees. The real boom seems to be in building rental property. We rented a house in New Bern NC and the rental market is tight, but there are a lot of houses for sale. People can't get financing because they want high credit scores and a large down payment. I am still in northern New Jersey and trying to sell our house. The market of for sale properties is glutted. There are so many it is scary. Nothing seems to be moving. My neighborhood in Wayne, NJ looks like Las Vegas there are so many For Sale signs. A lot of people look but obtaining financing freezes the process. Saw another 2 % drop in house prices after the 8,000 dollar tax credit ended. Credit for the average person who is earning a decent salary has to loosen up to solve this. I think it is really that simple.