Cheaper Housing coming to the US!

[Steve_A]

Hi Everybody,

Don't get too excited. There's always a negative side to a positive headline.
It has been revealed that 23% of US homeowners owe more on their mortgage than the value of their home. This could just be the begining. What the numbers don't show are all the people who are close to this happning to them, who in a couple of months down the road, with the depression that will come for house prices, they will find themselves in the same position.

The tendency is for these people to walk away, thus creating a huge glut of second hand homes on the market and consequently depressing the house prices even more. As to how far this will go, I'm not too sure, but I reckon there will be some basement bargains coming on to the market soon.

Best regards,

Steve

[pyrangello]

Steve, it's already here bud, the house next door to me sold for 75% less than the origianl mortgage was for. Thats why the housing sales were up 10% last month for the month of october. They just announced 2 things, 1- Michigan last 260,000 jobs in the first 6 months of this year. 2- In the next 2 years in the U.S. they are predicting 7 million additional foreclosures, most are in the pipeline now. I personally think that # is way low.

I'm seeing many articles commercial real eatate is very close to a swan dive off the cliff as well.

On the local news this morning here in the north many small businesses are hurting as this years hunting season is 2 weeks going and people are just not traveling north from the city, some areas are down 60-70% in sales.

There are some pockets of work out there but not many.

[TheObserver]

Perhaps one should think of it as housing returning to it's actual value after being over-priced all this time.

[Fredkc]

Perhaps one should think of it as housing returning to it's actual value after being over-priced all this time.

yeah... closer to the point, methinks.

We dallied and didn't buy our 158,000 house until it was 230,000, sadly. then after a re-fi we owed 280,000.

In June of 2006 we saw it hit 531,000 ... wheeeee!!

Right now it's sitting at 250,000

btw, the best way to see where your house is at (in the US) is to go to http://zillow.com and plug in your address.

Fred

[THE eXchanger]

a big part of this mortgage mess
was, companies,
giving people 125% mortgages
on the value of the house !!!

here in canada,
very few people,
can buy a house,
with nothing down

1st time, home buyers, can buy with 5% down
and, high income ratios~and, good credit

but most, need to have - 25% down

what ever happened,
to the old attitude,
keep life simple, and,
if you can NOT afford something, wait til you can ???

most things, people put on time,
and, they break down, before the time it took to pay for it,
and/or the warranty expires

(we noticed, that almost exactly 23 days,
from the expiry of a computer warranty, it broke down)
anyone else, experience that ???

and, on the topic of 'real' value

in some places in the world,
there is only so much land,
and, thus, you can only have so many houses,
here in toronto, i think, the average price of a home,
is well over 400,000.00 :(

[Gnosis5]

To get around the problem of "there is only so much land" is to build in the sky and that does not have to mean packed in like sardines either. We could be more imaginative.

Gnosis





a big part of this mortgage mess
was, companies,
giving people 125% mortgages
on the value of the house !!!

here in canada,
very few people,
can buy a house,
with nothing down

1st time, home buyers, can buy with 5% down
and, high income ratios~and, good credit

but most, need to have - 25% down

what ever happened,
to the old attitude,
keep life simple, and,
if you can NOT afford something, wait til you can ???

most things, people put on time,
and, they break down, before the time it took to pay for it,
and/or the warranty expires

(we noticed, that almost exactly 23 days,
from the expiry of a computer warranty, it broke down)
anyone else, experience that ???

and, on the topic of 'real' value

in some places in the world,
there is only so much land,
and, thus, you can only have so many houses,
here in toronto, i think, the average price of a home,
is well over 400,000.00 :(

[mntruthseeker]

wow ours is valued at 164,000.00 how sad is that ?

LOL I better start packing now. They do have a way of working those figures. We have lost so many neighbors, had 8 vacant homes and a few have sold pretty damn cheap