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84 Comments
- inactive, on 12/14/2007, -8/+61HI MY NAME IS PATTY AND I'M YOUR AGENT!
I'm going to speak really loudly and excited about whatever over-priced piece of cr@p house I try to shove down your throat! Did you notice my makeup and perfume? I put WAY too much on. It's my way of trying to cover up the 45 pounds I gained after I have birth to my kid. My husband then lost interest in me and now has sex with Thai hookers when he goes on business trips for his WIlly Lomanesque sales trips! Can I interest you in this split-level Colonial which has gone 500% in the past six months? The markets fueled by low interest, interest only loans which will entrap you like an 18th century negro south of the Mason Dixon Line- hi, I'm Patty! - Y0tsuya, on 12/14/2007, -1/+44People have been duped into paying more for homes than they needed to (multiple bids? wtf?). Others took money out of their homes (and thereby owe more to banks) to buy crap they don't need. These people have destroyed their financial wellbeing to help create the illusion of prosperity. It's time to pay the piper.
- aliengoods, on 12/14/2007, -0/+23Don't you mean "assets"?
- V1be, on 12/14/2007, -2/+22I assume that the house would be the largest asset in a household, considering that anything larger than the house wouldn't fit in the house.
- scabbers, on 12/14/2007, -1/+21Give it 20 years and people will do it all over again.
- inactive, on 12/14/2007, -7/+26The roller coater is about to go down a very steep slope...This is going to be an amazing ride. Hold on to your asses.
- Tserk, on 12/14/2007, -5/+21If I took all of my real estate advice from Digg and it's FUD army I'd be living in my mom's basement.
- kalikkalik, on 12/14/2007, -2/+17For MOST people, their house is their biggest DEBT, not their biggest ASSET.
If you COULD sell your house today...and immediately, without playing high-pricing games, what could you really get for it?
Would it cover what you owe on your house?
Think about it... - inactive, on 12/14/2007, -1/+15Yup I have friends who did this, then they come to coffee and brag "we made 60,000 on our house in the first year", yeah but thats only if you sell it, and they are couching up 20,000 a year to interest payments! (just interest, no principal)
Not hard to see how banks are the only ones making money on that deal. - Bronowyn, on 12/14/2007, -1/+13And my husband and I are looking forward to buying the houses that these people can no longer afford. People laughed at us when we bought our first house, a very reasonable (even now) home about the size of an apartment. Our mortgage was low and we took the ARM that had a ceiling, so they couldn't blow it up past our reach. We knew this was temporary, we just wanted some equity. After we bought it... we saw houses (townhouses mind you, tiny ones) going for 200K. We were flabbergasted. We bought ours for 90K, so what the heck was so different. Nothing, apparently, just over blown prices. Even if we get only slightly above what we paid (we are figuring 150K - remodeling, etc) and get some nice old house for the prices they are dropping to, we will still be in good shape. Why must people live above their means?
- lazyfisherman, on 12/14/2007, -0/+11The people with real money, assets and buying power are sharpening their knives right now..
- derforseti, on 12/14/2007, -0/+11Make that *educated* contrarian investing.
- Buelldozer, on 12/14/2007, -1/+11I think he meant "coaster".
- ferndave, on 12/14/2007, -0/+10Moved up to the attic, eh? Nice.
- krnldmp, on 12/14/2007, -1/+11Look, if your house doubled in value in a few years, something criminal is going on. I don't care what you thought you learned in economics class.
- dondara, on 12/14/2007, -1/+9Thats what she told you?
- hansk, on 12/14/2007, -0/+8its not the size of the asset that matters, its how you use it! >:-()
- bentman78, on 12/14/2007, -2/+9This isn't the case everywhere. There is some markets with appreciating values such as DC where I live. Similar models in my area are either stabilizing or going up in value. I recently looked at the comps in my area and found I pad 15,000 less than people are now after a year and a half (the previous owners where older and desperate to sell, so we low-balled them). That actually makes me feel somewhat relieved. I wasn't predicted a 20000 dollar gain, but I at least was hoping I'd break even. I was tired of renting and wanted my own place to do what I wanted with. The mortgage is kind of high, but I get a nice tax break....
I have a friend in Austin who has also experienced similar gains... - inactive, on 12/14/2007, -0/+6I realize you were trying to be optimistic but if digg is the future of the e-economy... man thats depressing...
- inactive, on 12/14/2007, -0/+6AT LEAST GAYS CAN'T MARRY!
During the elections, I talked with one of my elderly neighbors and tried to persuade her not to vote for Bush. She said, "I don't care, I am just so disgusted at the thought of those gays getting married, there's nothing that would make me not vote for Bush."
A couple of days ago, she was complaining about the rise of her insurance costs, prescription costs, gas pricess and that her son's job was outsourced and his home was in foreclosure. I looked at her and said, "Well, I'm sure the fact that gays can't marry makes it all worth it."
She just looked at me, went into the house and slammed the door!
I'm glad the old bitch got what was coming to her as will a lot of other fvckers that thought stopping queers from getting married was more important than getting that stupid prick out of the White House! - pandlcg, on 12/14/2007, -1/+7And to be honest i hope that the government doesn't bail people out. I'm just starting to look at houses and you can see people getting worried. I want to buy a house i like for a reasonable price, and the only way i'll be able to do it is if people have to deal with the consequences of their actions. Plus i'll get a good house for a good price.
- ncc74656m, on 12/14/2007, -1/+6Well, see, this is the interesting thing about this. People didn't bother to do ANY research on something as huge and important as a HOME LOAN! That, or they did, and they thought they could get away with it, which, interestingly, some of them will, because Bush has decided to bail out his buddies in the financial industry instead of locking their asses in prison for the tricks they pulled to sell this crap.
- jbmcb, on 12/14/2007, -2/+7As it's been said on other threads, more eloquently too, the inherent value of your house only matters if you're taking out a home equity loan, or planning on selling it relatively soon. Unless the US population starts decreasing, there will always be increasing demand for real estate.
- fac3less, on 12/14/2007, -0/+5Telecommute.
- mafiax, on 12/14/2007, -1/+5Prices never went up where I live. You can get a 2500 sq foot home around here for less than a 100 k. Mind you I live in a small town in Mid-America.
- StupidLiberal, on 12/14/2007, -0/+4IT'S DIFFERENT HERE!!!!!!111111111
I live in Austin and they are overbuilding like crazy. Stupid builders are trying to cram homes on every square inch of land around town. They forget though, this is TEXAS! If there is one thing we have a lot of, it's LAND. Austin will drop just like everywhere else. - Dush, on 12/14/2007, -0/+4The thing is all this "buying crap they don't need" is exactly what has driven the economy and corporate profits and made things look so rosey. Unfortunately we have a "prosperity" almost entirely based on indebtedness rather than actual productivity.
- inactive, on 12/14/2007, -0/+4for 90% of people, the answer is yes. The real question is: did they make any money off of it, after paying half-principle, half-interest every month.
- doktorrocket, on 12/14/2007, -0/+4I'm not sure that's true. On a 30 year loan, you've paid off the 8% sales commission + moving expenses in 4-5 years. On a 15 year loan, you're there in 3 years. Which means over the life of the loan, MOST people have equity, even assuming 0% appreciation.
It's a bad spell now, but sub prime ARMs on depreciating McMansions are but a small section of the housing market. They're high profile, but by no means widespread. So I still think MOST people would correctly list their house as an asset. - 5xSTUN, on 12/14/2007, -0/+4Eyes... glazing over... must... go... to... youtube... watch... videos... of... cats...
- hokie47, on 12/14/2007, -2/+6It goes with ***** factor of the region. I live in Florida where the ***** factor is one of the highest in the nation and we are getting totally ***** here.
- sanman, on 12/14/2007, -2/+5The DotCom bubble and its bursting eventually gave way to Web2.0, but much, much later. Look at Digg as a genuine proof that there was a recovery after the crash.
But in the housing mortgage bubble, the only silver lining I can see is that it will lead to newer and better tools for tracking and tagging debt quality. Eventually, such reforms will make it possible for future generations to get better mortgage financing, as debt trading becomes more robust and reliable.
Oh, but that benefit will be for future generations. For those of you who're already caught in the bubble, you're out of luck. Maybe you should've waited a little longer before getting into the market, like Kevin Rose did. - merper, on 12/14/2007, -1/+4I think the 1000 mile daily commute to your job in Cali might offset any benefits.
- sinurgy, on 12/14/2007, -0/+3lol....you think these immigrants are going to go buy houses?!?! They'd have a hard time affording a house before the boom much less after it and they sure as hell can't afford the rent most home "owners" need to be able to cover their mortgage.
I'm not sure who you're trying to convince here but the housing market is screwed for a good long time and the last group of people capable of fixing it are the immigrants! - jspayne, on 12/14/2007, -0/+3"you put a bid in on a house, it is accepted,"
You missed a part there. You put a bid in on a house, and someone else puts a bid on the same house before the first bid is accepted. Seller's agent shows both bids to the seller, and tells the lower bidder that their bid was lower than another offer. Bidding war ensues.
Just because it didn't work this way for you, doesn't mean it doesn't happen. - fokov, on 12/14/2007, -0/+3So true, you would think that more parents might actually teach their children about these things. But then again, I would bet 20-30% of the children I grew up with left their house at 18 and had been [falsely] hating their parents for years. I was not in that category and as a direct result of commuting am in a decent position financially.
- darkstar949, on 12/14/2007, -0/+3The market is actually a bit of a mixed bag like that - some areas are already going back up in value or never even had much of a problem while others are still going down. I would actually be interested to see some map of current housing market in terms of gains and loses by region.
- degaz, on 12/14/2007, -1/+4Well we certainly learned a lesson through all of this now, haven't we.
- inactive, on 12/14/2007, -0/+2Record high immigration (legal and illegal) unlike anything this nation has ever seen. Further, no political will to slow the wave.
http://www.migrationinformation.org/datahub/charts ...
That kinda says it all. I think the whole fear of a housing collapse is WAY overblown. We'll see the housing market tread water for a while as some of the froth blows off but these new arrivals still need a place to live. - CTK14A, on 12/14/2007, -0/+2You'd better not be white and on the street for 'cracker day' or for Memorial Day weekend in Miami, especially around N. Miami and Lemon City. I know from experience.
- CiXeL, on 12/14/2007, -0/+2maybe to naples but i wouldnt do the same for miami. crime is at insane levels here. walgreens are getting robbed almost on a schedule and dead bodies are showing up everywhere. we are massively MASSIVELY overbuilt here and it seems like everyone has an investment property theyre upsidedown on but the crime levels here are so bad everyone is leaving miami. tourists are getting killed.
- inactive, on 12/17/2007, -0/+2"Housing" is one of those basic things that people will sacrifice nearly everything else to obtain. Ya know, it is part of the "food, clothing, shelter" thing that form the base of Maslow's triangle. So yeah, they WILL find places to live and they WILL tend to drive up the demand for housing. Will they be buying homes? Perhaps not but they will be renting homes and that has essentially the same impact from a supply standpoint.
- inactive, on 12/14/2007, -0/+2I did a similar thing, and should I sell my house, I won't make a dime off the current market... On my street there are 7 houses for sale and 4 of them have been on the market over a year. So I am in the situation that if I wanted to move into a bigger nicer house... I can't because I have to be able to sell my existing house... Maybe I can convert it to rental?
- Corvidae, on 12/14/2007, -0/+2http://www.realtytrac.com/blog/photos/foreclosurep ...
- fugazied, on 12/14/2007, -0/+2You will be soon...
- nontaxpayer, on 12/16/2007, -0/+2"There is no way these homes will ever go for cheaper then what they were bought for initially."
Until all the true believers are washed out we can expect continued declines in real estate. - Y0tsuya, on 12/14/2007, -0/+2@elevenwatt
I own the house I lived in for 10+ yrs. It's clear you don't live in the SF Bay Area and tried to buy a house the past few years. Count yourself lucky. We had real estate agents telling clients to overbid by 100K on a property because of multiple offers. Sometimes they just made it up to get a higher commission. Stuff like this drove prices up to insane levels. They can go rot in hell. - macman2k, on 12/17/2007, -0/+2But should prices have gone down? Many towns lost jobs, but prices stayed propped up due to cheaper financing.
- inactive, on 12/17/2007, -0/+2yes, you are
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