| Slice | Price | Vs. ‘07 | Sales | Vs. ‘07 |
|---|---|---|---|---|
| House | $480,000 | -27.3% | 1,733 | +86.5% |
| Condo | $290,000 | -30.1% | 778 | +72.9% |
| New | $479,500 | -8.1% | 182 | -47.1% |
| All | $417,500 | -26.6% | 2,693 | +56.3% |
DataQuick’s freshest homebuying stats from the 22 business days ended Oct. 21 shows:
- Shoppers bought 2,693 O.C. homes — that’s 56.3% above the year ago period that was ravaged by a credit crunch that just was hitting home loans.
- 29 of 83 O.C. ZIP codes — roughly 1-in-3 — saw sales volume double or more in this period vs. a year ago. Best? Santa Ana’s 92703, up 575%! Oh, by the way it took pricing 53.3% below a year ago to get that sales pop.
- O.C. median selling price of $417,500. That is down 26.6% vs. a year ago and 35% below June 2007’s peak of $645,000. Ouch, a loss of $227,500!
- The last time the median was lower? June 2003 — when the Fed stopped its 1% money policy of the early part of this decade. (By the way: Fed’s back at 1% now!)
(To see how your neighborhood did, check our sortable ZIP code chart HERE!)
Other real estate news …
- O.C. brokers bet $2 million on luxury-home office
- Stable for 12 horses? Seller seeks $8 million for Coto estate
- Wall St. woes could smack Newport Beach
- O.C. home values ranked 7th in nation
- Dana Point beach project may take in $680 million
- Obama win tied to states with 4-of-5 of U.S. foreclosures
- 1-in-4 Calif. homeowners lost their equity
- Mid-Oct. O.C. home price at July ‘03 level
- O.C. property broker cuts 100 sellers, hiring 100 new ones
- Tell us ‘Who’s to blame for housing’s mess?’
- Higher-priced O.C. homesellers continue to discount
Per DataQuick, Single-Family Median Home Price:
2006
$690,000 = Feb ~ Watts 15% “In The Bag” for SFH
$695,000 = Mar
$705,000 = Apr
$705,000 = May
$700,000 = Jun
$699,000 = Jul ~ Watts revises forecast to “11%” for SFH
$685,000 = Aug
$680,000 = Sep
$665,000 = Oct
$660,000 = Nov
$665,000 = Dec
2007
$675,000 = Jan ~ Watts forecast “7%” SFH
$675,000 = Feb
$695,000 = Mar
$720,000 = Apr
$695,000 = May
$734,000 = Jun ~ Peak of O.C. Housing Bubble
$718,000 = Jul
$710,000 = Aug
$655,000 = Sep
$650,000 = Oct
$655,000 = Nov ~ Roger Rabbit “decline is DECELERATING”
$600,000 = Dec
2008
$583,250 = Jan ~ Watts declares “Pent up Demand”
$575.000 = Feb
$570,000 = Mar ~ Thoughtful declares “bottom”
$555,000 = Apr
$537,000 = May
$550,000 = Jun ~ Watts apologizes “I Got it Wrong”
$515,000 = Jul
$500,000 = Aug
$480,000 = Sep
$470,000 = Oct 6
$475,000 = Oct 13
$480,000 = Oct 21
Per DataQuick, this loss represents a $254,000 decline in single-family home prices from the June 2007 high. And the beat goes on … and on … and on!
An agent told me that not all selling prices are entered into the data base on the MLS. If this is true then are the numbers above accurate?
Well, with the economy losing 240,000 jobs in October and unemployment rate at 6.5%, things are going to get much worse for the housing market.
“lee in irvine”, where is your 2.2M beach property? If you are a great forecaster of the future, you would have picked up one of those for 500K with no money down in the late 1990’s. Many people did just that in their 20s. Did you?
Dina …
DataQuick results are taken from county public records, not the MLS!
Jon (aka YOUR BLOGGER)
Dina, agents should enter the “real” prices but quite often they do not. I have watched many houses in my area, and I have seen some where they fudge the original listing price (e.g., 1.399 down to 1.299) even many months after the original listing (and this was no a re-listing - -same listing). Also, don’t forget that most, if not all, agents do not list the concessions given to the buyer, which I know for a fact can be, and have been lately, huge in some cases (exceeding 100K). The agents go ahead and list the “sale price” when they know full well that the “real” selling price is lower (i.e., they do not reveal or factor in concessions given to buyer at closing). All in an effort to hide the free fall we are seeing and to prop up comps. I call it fraudulent, but all it means is that no, you cannot trust the numbers entered into the MLS by agents.
Jimmy,
You have been out of line a bit lately…owning in the beach communities is not the end all be all. And $500k no money down was not realistic for most in the mid 90’s. Have some humility…if you actually own in CDM. Since you are the ONLY cdm resident I know of that constantly quips about where he lives. Of course, Bubbs wants to move in with Gavin Newsom, but that is a story for another day.
“you would have picked up one of those for 500K with no money down in the late 1990″
Actually, I was way too young to buy a home at that time. You see, people like me, we’re put on the deferral program … mainly because people like you, removed the American Dream at a time when we were finishing school, or just starting our adult lives.
Now we wait patiently, as this ponzi scheme blows up (right in your faces), and the American Dream is replaced by to its rightful position.
Dina, agents should enter the “real” prices but quite often they do not. I have watched many houses in my area, and I have seen some where they fudge the original listing price (e.g., 1.399 down to 1.299) even many months after the original listing (and this was no a re-listing - -same listing). Also, don’t forget that most, if not all, agents do not list the concessions given to the buyer, which I know for a fact can be, and have been lately, huge in some cases (exceeding 100K). The agents go ahead and list the “sale price” when they know full well that the “real” selling price is lower (i.e., they do not reveal or factor in concessions given to buyer at closing). All in an effort to hide the free fall we are seeing and to prop up comps. I call it fraudulent, but all it means is that no, you cannot trust the numbers entered into the MLS by agents…
I can’t believe how consistent activity has been all through 2008. Heck, even a stock market crash isn’t stopping it.
Jon, the clock is wrong on the posts…still on daylight savings.
Sorry to be redundant; but you MUST watch this if you haven’t already:
It is so well done - practically makes me cry:
“The housing bubble bursts on a speculator” :
http://ca.youtube.com/watch?v=bNmcf4Y3lGM
These homebuyers will go down in history as the dumbest buyers, even topping the 2005-06 buyers.
At least the 2005-6 buyers weren’t forewarned of the mortgage meltdown, high unemployment and a depression headed our way.
The current buyers won’t even be able to partake in any of the governments’ bailouts yet they’re still buying at near bubble prices.
When the bottom comes you will all know it and believe me, this isn’t it.
Are you thoughtfull/provider reinvented?
I will agree almost 2,700 buyers still buying in this market is crazy, although historically the sales are still way below normal. That said I would think the numbers would be far less then they are.
The sales numbers have been slowly dropping off. Lets see what this winter brings.
As provider/thoughtfull would say, todays numbers are based on Dataslow sales from 1/2 months ago. Lets see what the sales numbers are after the stock market tanked and all the data saying that the economy is taking came out.
“Actually, I was way too young to buy a home at that time. You see, people like me, we’re put on the deferral program … mainly because people like you, removed the American Dream at a time when we were finishing school, or just starting our adult lives.
”
Lee, didn’t you own before? Get your story straight.
hey Mulli,
Funny that you mention Gavin Newsom. Actually, I like a lot of things about San Francisco but definitely not Newsom.
This video has nothing to do with real estate but I just HAD to post it on my blog. Newsom talks too much.
I meant to say.
Brad,
Are you thoughtfull/provider reinvented?
Well said Bill. I would hope that for current buyers, their mortgage is at most 38% of their monthly income. Else, why should the gov’t re-structure mortgages to 38% income (Indymac?) with tax payer’s money, but continue to allow people to buy above 38% monthly income?
Whew…..now that is good to hear Bubbs.
Jimmy-
Are you able to rebuy your own home right now with 20% down and actually qualify at 28% DTI for the 80% remainder loan?
I grew up <1mi from the sand in Huntington. All the people who bought on my street in the 90s, all who make good money - cannot rebuy their own home. All but one still have the same job they had when they bought, so I’m not talking about people going ‘downhill’.
Don’t those people have more than 20% to put down now? It does not compute!
NO Brad…it does not work that way…My next door neighbor bought his home in 1992 for $230,000. At today’s prices, he could not buy it. Much less those of 2004-2007. So Brad, if you follow this blog, you know I am a housing bull. But your statement of having the 20% down now has nothing to do with being able to absorb the mortgage amount.
The Orange County Median is going to drop into the low $300Ks or lower……. The Orange County median will stll be in the $300Ks in 2012.
Brad, not to worry though, your home is still worth what you paid for it in 2006.
Brad, I commend you for making a brilliant investment. The banks will reward you with more HELOC money soon.
That’s a cap on property taxes, no? How does that keep prices high? By restricting supply? But haven’t neighborhoods gone up at the same pace as newer neighborhoods?
That’s a cap on property taxes, no? How does that keep prices high? By restricting supply? But haven’t older neighborhoods gone up at the same pace as newer neighborhoods?
That’s a cap on property taxes, no? How does that keep prices high? By restricting supply? But haven’t older neighborhoods gone up at the same pace as newer ones?
Mulliganville, that’s nonsense. If the house bought for $230,000 is now going for $500,000 your friend has another $270,000 on top of his original downpayment, plus any principal paid in. In your example his new loan would be no bigger than his original loan. Please explain.
That’s a cap on property taxes, no? How does that keep prices high? Haven’t new and old neighborhoods gone up at the same pace?
How does it do that? Didn’t old and new neighborhoods increase at the same pace?
Let’s poll seniors nationwide and ask how many could buy their home again. The number would be few. That’s the whole reason for buying real estate: to lock in housing costs. It sounds like everyone wants all neighborhoods to be priced for entry level homebuyers. That’s pretty funny.
This software is freaky!
The thing is, here at least, if you sell and buy something else, you lock in higher prop taxes. Prop 13 actually is a preventative measure for those selling and contributes to housing prices remaining high in areas where they possibly should not.
Neighbor has 2000 s.f. Pays $2400 in taxes. Were he to buy again today, he would pay $6800 in taxes for the same home. And it would cost him $650,000. In a nutshell, that is why people around here stay put longer than other areas in the country.
Since our market often tracks your market and my roots are in Orange County (Mission Viejo), its great to check in from time to time. It’s good to hear that sales volume is up but terrible to hear prices have fallen so significantly. A side note, my parents bought their home in Mission Viejo for $70,000 (just a few years ago - LOL). What could you get for $70,000 now???
Orange County has a lot of great attributes and regardless of all of this fallout the prospects for housing are still good, but it will take a few years to work out all the problems in play today.
Lee in Irvine is “Joe the Plumber” of this blog! He’s emotional and misguided, and will end up losing just like “Joe the Plumber”.
Mulli,
Don’t forget to mention that in OC and some surrounding counties, you can transfer your current taxes to a home you buy, as long as you are 55 or over, and it is your primary residence.
Barak has already started rearranging the deck chairs on the
USS TITANIC-
A wise man once quipped- be careful what you wish for-
that saying certainly fits for the new president elect—
hes already talking about all new “stimulus” packages
which reminds me of another famous quote-
the road to hell is paved with good intentions-
good luck to you dear sir- you will most certainly need it
http://www.financialsense.com/fsu/editorials/schiff/2008/1107.html
Shane-
Of course I’m emotional about it. Duh! Asshat, I don’t like renting. In fact, I’m tired of it. I want to own my home like many of my insolvent neighbors, but because of this foolish ponzi scheme, I have to wait.
You see … everything I thought would happen is now happening. The main problem is this — we’re not even close to deflating this Orange County real estate bubble. Why would I buy a $700,000 Orange County home, if I know I could buy it for $400,000 in two years.
So that means I got to wait! Hell yes I’m mad … hell yes I’m emotional.
Lee in Irvine,
I guess you don’t realize that if such a thing were to happen (a current $700,000 home becoming $400,000 or even $600,000) you won’t have any cash in the banks to buy it. or any jobs to pay the mortgage with or any customers if you own your own business. The whole system is so strained that it won’t even be able to take 10% more price drops from here. You can bet your last Dollar that the Fed will intervene BIG time even if they have to go 100% socialist. If you listen carefully you can already hear the footsteps. Don’t be a dreamer.
Lee is a 50 year old speculator who flipped his home and is tired of renting.
I find this fascinating, I wonder where these people will be next year with their depreciating assets?
This would be called a “dead cat real estate bounce”, nothing more nothing less…let’s talk more in 2011.
You azzhole. Please tell me when I said I owned a house in Orange County! You can’t, Fool! Why? Because I never said that!
Stop your assuming … you’ve got me mixed with someone else.
Doesn’t the RE market sink both in terms of prices and volume over the holidays?
That means for November and December it could fall farther.
I’m in NorCal now. Plan to offer 30% less on a foreclosure. I doubt I’ll get it. The thing sold for $1.3MM in 2006. Bank is asking $1.050 MM now. Unfortunately it sold for less than $600K in 1999, hence the thinking on the 30% less figure.
Even so, it is scary to even think about doing anything in this market. So we will wait perhaps…
Shockg,
The jealousy runs deep.
Lee will be buying your home or your neighbor’s home for 40% less than what you paid for it.
You bubble buyers made a horrific calculated mistake.
The younger generation is using their head not their credit card to buy their home.
And no, you don’t have to be 50 to start using common sense.
See folks, this is the bottom. People are sweeping up deals and soon enough prices will rise and you will be priced out of the market…forever.
Sucker rally in full effect!
Lee in Irvine is Lanser’s pet. He won’t post my comments if I say anything bad about Lee in Irvine !!
Lee,
Back from Costa Rica. Awesome time with the family. We have a president negro as they say.
Anyway you have stated several times that you own a condo and are renting it out. If you are so certain that we are headed for 1998!?? prices why don’t you sell it. Put your money where your mouth is you BFP. Stop your complaining and just blow your husband.
Lee,
You’ve must have struck a nerve.
3 more bubble buyers crying (Gunner, Shane, and Scott)
Scott just took his family to Costa Rica and he’s calling you a BFP?
Maybe if he skips a few more mortgage payments next year he can buck up to Iran or Afghanistan.
I hope his free poppy field tour included flak jackets.
Shane-
No I’m not Lansner’s pet. You’re just mad, because the bears were right about this ponzi scheme. It’s all too bad actually.
Meanwhile, I watch as the banks refuse to offer ponzi scheme mortgages anymore, and the conforming loan limit is reduced another $100,000 at the end of the year.
The American Dream shall return to vastly overpriced Orange County. Buckle up and watch, as yesterday’s $1,000,000 has become today’s $700,000, and will become tomorrows $400,000.
8)
What so many will refuse to rationalize is that people are buying. Let’s take a look at those folks:
(1) These are folks that have 20% to put down, or more
(2) These are folks that are buying based on discount first - they are all getting significant discounts off bubble pricing
(3) These folks are using fixed rate loans - not ARMs - they are in it for the long haul
(4) Most significantly - they are mostly buying in the lower price brackets - that is what they can afford
So those buyers that actually have the $ for down payments with cash reserves left over are buying and they are buying what they can afford. That is in the lower price brackets. The buyer domain is proving where affordability lies in this market. This will keep up for at least 12 more months. This directly equates to downward price pressure. As long as people continue to have to sell - and lending standards remain - pricing will be at least 10% cheaper next year. Facts are facts. Its undisputable.
By the way - lenders see this as well. The number of homes selling in the higher priced homes are directly correlated to the number of folks that want to buy and have the 20% down for that price segment. Watch inventory continue to rise in this sector - and then watch what happens to pricing in the lower sectors.
Lee in Irvine,
From your posts, it seems like you must be a 20 year old kid !!
If the prices were to drop to the levels you’re talking about, there won’t be any cash in your accounts to buy it anyways because there will be no banks left. This would be a third world country and you’ll be scrubbing floors just to feed your face! I hope this loser clown lets my comment post this time!
Lee You have stated many times that you sold your home near the peak and are renting whle you time the market. Stop playing the unforetunate first time buyer who was priced out of the market. By the way, how many aliases do you have on here. I think you forgot who you logged in as when you started playing the “I was too young to buy” roll. Maybe you should keep better track of your online personas.
“You can bet your last Dollar that the Fed will intervene BIG time even if they have to go 100% socialist. If you listen carefully you can already hear the footsteps. Don’t be a dreamer.”
It seems that you and other economists out there seem to have a lot of faith that our government can turn this around.
Japan was an interesting experiment in something very similar in the 1990s-2000. Yes the parallels are not completely equal, but there are some eerie similarities. Below is an article studying Japan’s recession and I have highlighted some interesting points:
http://www.gold-eagle.com/gold_digest_02/powell120602.html
1) Stock market dropped over 60%; real estate dropped 80%…
“The Nikkei stock market index fell more than 60 percent-from a high of 40,000 at the end of 1989 to under 15,000 by 1992. It rose somewhat during the mid-1990s on hopes that the economy would soon recover, but as the economic outlook continued to worsen, share prices again fell. The Nikkei fell below 12,000 by March 2001. Real estate prices also plummeted during the recession-by 80 percent from 1991 to 1998 (Herbener 1999).”
2) Government tried many ‘fiscal stimulus packages’…
“Between 1992 and 1995, Japan tried six spending programs totaling 65.5 trillion yen and cut income tax rates during 1994. In January 1998, Japan temporarily cut taxes again by 2 trillion yen. Then, in April of that year, the government unveiled a fiscal stimulus package worth more than 16.7 trillion yen, almost half of which was for public works. Again, in November 1998, another fiscal stimulus package worth 23.9 trillion yen was announced. A year later (November 1999), yet another fiscal stimulus package of 18 trillion yen was tried. Finally, in October 2000, Japan announced yet another fiscal stimulus package of 11 trillion yen. Overall during the 1990s, Japan tried 10 fiscal stimulus packages totaling more than 100 trillion yen, and each failed to cure the recession. What the spending programs have done, however, is put Japan’s government in poor fiscal shape.”
3) The central bank tried unsuccessfully to cure the recession with monetary policy…
“Japan’s expansionary monetary policy failed to achieve recovery. From a high of 6 percent, the discount rate has been lowered to 4.5 percent in 1991, 3.25 percent in 1992, 1.75 percent during 1993-1994, and 0.5 percent during 1995-2000. This dramatic easing of interest rates has not stimulated Japan’s economy, but the failure of interest-rate easing is not necessarily a failure of monetary theory. Japan’s banking system is widely regarded as in need of restructuring. Much of the stimulus that reduced rates could provide has not been realized because the banking community has been increasing its liquidity instead of increasing its lending. Many banks have bad loans with collateral now worth only 60-80 percent of their value when the loans were made. Some banks are merging, and others have been nationalized. Such problems have contributed to the ineffectiveness of monetary policy.”
– Sound familiar? Banks gone bad due to bad debt, humongous goverment intervention to try to stop the bleeding, lowering interest rates…
Did it work? The answer is a big fat NO.
Policy makers would do well to heed the lessons of the past.
Shane I agree with you, things could turn out very ugly. We really don’t know the full extent of this now. Most economists think this will be at least a somewhat protracted recession. There are some that believe this could the worst thing since the Great Depression. This is actually one very good reason NOT to buy right now. Why commit to a huge 30 yr financial committment when your future financial security is in doubt?
I am waiting to buy, but of course I hope I still have my job after this is all said and done. However, renting during this financial collapse is actually probably a good thing as we wait this thing out to make sure we CAN afford to make a huge financial committment of buying a home.
Oh yeah, and when that happens, home prices will probably be lower too!
shane- you should be a politician - you certainly meet their one
qualification- being clueless
theres nothing the federal reserve can do to stop
this train wreck- see japan for reference- they tried
and failed- fortunately for them their citizens actually
SAVED money- they have a trade SURPLUS- and they
have a very sound MANUFACTURING BASE-
we on the other hand are in DEBT up to our ares–
have a tremendous trade DEFICIT-
a trillion dollar budget DEFICIT-
42 TRILLION in unfunded social security/ medicare liabilities-
our industrial manufacturing base is crumbling-
see GM FORD CHRYSLER - airlines are on life
support- investment banks dropping like flies- see
lehman brothers- oh and now the homeowners who are
in foreclosure want BAILED OUT too…. oh wait I forgot
the state governments are all asking for BAIL-OUTS too-
cant forget them now can we… DUDE my f****** head is
killing me
please explain how the
fed is going to solve these problems… oh and take all the
time you need lloollll @ribsplitter
My wife and I went to Talega last weekend, prices are still quite high? homes with roof-top backyards are going for over $800K, we see headlines everywhere that real estate prices is falling from the sky, yet, homes are still unafforadable, at least for us and we are 2 professionals with good jobs.
Who are buying these houses that are prices well over $900K and anything a little decent is over $1 million. People in orange county are really rich but where do they get their money from? and what professions are they in? now that many jobs in finance and real estate are gone?
National Association of Realtors and O.C. Registers continued to produce many housing spins in 2004 2006 and 2007. The worst has yet to come. It is not getting any better in 2009. No Bail Out.
NO JOBS: The unemployment rate to 6.5% — the highest in 14 years.
The economy lost 240,000 jobs in October, the steepest one-month decline in a contraction that began last January.
NO MONEY. NO HONEY. NO BAIL OUT. WE ALL MISS GEORGE W. BUSH, ALAN GREENSPAN, AND REPUBLICANS.
“Who are buying these houses that are prices well over $900K and anything a little decent is over $1 million. People in orange county are really rich but where do they get their money from? and what professions are they in? now that many jobs in finance and real estate are gone?”
Answer: Move up buyers.
Bill,
I have not made a mortgage payment on my home for 10 months. Does that shock you?
I own my home free and clear. Some of us made a killing flipping houses. Others like yourself just watch in envy and then feel validated when the inevitable bubble pops.
Rants is the same guy as Lee in Irvine, logging in under a different name. I recognize that ignorant logic !! He doesn’t deserve to own a home.
Shane what are you talking about? Ignorant logic? Doesn’t deserve to own a home? Rants’ entire post was full of indisputable facts.
He asked you to explain how the FED is going to fix these problems. What is your reply? Are his numbers wrong or do you know how to solve our economic problems?
EXTRA ! EXTRA! …….READ ALL ABOUT IT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! :)
Check Out the Saturday Edition of our favorite Newspaper OC Register!!
Nov. 8 2008
Both articles in Local Section
Headline: Developer’s plan Supported
By Sean Emery
The Planning Commission has backed a request by Lennar Corp. to increase the number of homes in its Great Park-adjacent development in exchange for committing to provide affordable housing.
–>imagine that. affordable housing.. WHAT A CONCEPT !!
————————————————
Headline: A Major Dip for an Irvine Zip
By: Cameron Bird
One of Irvine’s most lavish tracts, 92603, which includes Shady Canyon and Turtle Rock, has seen home prices dip more than 50 percent from levels seen last year.
—->oc market is toast. more declines coming.
NOW GO OUT THERE AND PICK UP A COPY AND SUPPORT YOUR LOCAL NEWSPAPER!! :)
Scott Says:
“Some of us made a killing flipping houses”
About 99% of flippers couldn’t get out in time and were stuck with 1 or more homes during this crash.
You would have had to been able to call the bottom in 2005 and I frankly don’t think you were smart enough to know better, since most flippers were ignorant to the fact that housing would ever crash.
Second, most flippers were move up buyers themselves, which means you are probably in a home at a 2005-06 price which means you have lost most of your “killing”
Third, if you really made a “killing” you wouldn’t have taken the family to a country where the mexican mafia drug cartel has infiltrated for a vacation.
Please, go blow smoke up someone else’s bung hole.
Hey ‘rants’, you are being a bit belligerent. The impetus for the ‘train wreck’ as you put it may have been b4stards like Sadek who was caught writing escrow account numbers for Quick Loan Funding / Platinum Coast on his casino markers at The Wynn, but that’s all ancient history now. The ensuing credit crisis created by the Credit Default Swap market collapse created when Sadek’s chickens came home to roost caused a significant crash almost 79 years to the day after 1929 and already TWO MILLION PEOPLE are out of work since (the numbers posted by others on here are not up-to-the-minute), with the trend gaining momentum –already more than a dozen states have unemployment rates above 7% and Michigan is at nearly 9%. We were just hit by an economic Katrina dude. Now you have asked, what can the Fed do? Most people agree that the Consumer is “game over” for a decade –as in, even if we hand out checks for $6K/household, people will not spend them and if they do, they will use them for consumables which do not put people back to work. (Reminds me of Africans who ate, rather than planted, the seeds we dropped when I was a kid.) You can’t buy ‘confidence’, so the focus now has to shift to the other two thirds of the economy, which are Business and Government. Fortunately, both of those sectors operate with painful rationality. The Fed can easily create economic conditions favorable to Business and can put the fear of god in the Dems to postpone their messing around with taxes for a while. As far as increased Government spending, anyone over 35 knows the Dems are experts at that and don’t need any ideas from the Fed. But this is a Real Estate blog –and so the obvious question is, how does propping up Business and Government help Real Estate if consumer confidence is shot for the next decade? The answer is that a ’side effect’ will be increasing employment, financing, increasing the consumer population through immigration policy and removal of the market uncertainty created by the bad mortgages and Credit Default Swaps that insure them. Since housing is a staple, like food, and the tax code is not favorable to renters, housing will sell to people who need it. So back to your point, the Fed is pivotal in all of this and clearly they have their work cut out for them.
Bill
“You would have had to been able to call the bottom in 2005 and I frankly don’t think you were smart enough to know better, since most flippers were ignorant to the fact that housing would ever crash.”
Feb 2007 is when the credit meltdown began, I have been liquidating from that time. You probably intended peak not “bottom,” but you think you are a smart guy. Right?
“Second, most flippers were move up buyers themselves, which means you are probably in a home at a 2005-06 price which means you have lost most of your “killing” ”
Wrong again. I purchased my home in 99. I purchased rental properties after that. Now all sold. Had fun jacking up people’s rent and keeping deposits. I am walking away with almost 2.5 million and a paid off home.
Now the economy is in the toilet. Housing has lost its investment/flipping potential. The government is going to raise taxes for everyone. 2 trillion and counting to save this mess.
Bill when you pay your taxes next year you can endorse the check to “Scott’s Killing.” LMAO U BFP!
By the way, Costa Rica has an excellent playground for the avid surfer.