[shannon94]

Originally Posted by Muggy

Dee2e, I will respond to your comments when you respond to the story I posted above (re: couple about to get BURNED in SPB because they bought at peak).

For those of you reading this from a safe distance, I have no problem being attacked as negative. In the end I will be saving you a lot of money.

Hate me now, thank me later.

Also, vote if you haven't yet!

Still love ya Muggy!! I don't understand how people can still disagree that the market is in trouble. Glad some people get it.

[Jammie]

Muggy, there's nothing to hate about the things you're saying. It's just a fact and you've supplied links to back up what you're saying. The sad fact is that real estate had such a tremendous boom and skyrocketed in price. It's not the fact that now it's stabilizing to what it was before the boom. The only sad part in this is that some families who bought during the peak ended up paying way too much for their homes and now they're worth much less.

[MrTudo]

It's doing a retracement to pre-2001 levels AT LEAST. More than 300 billion in ARM's have been and are being reset in 2006. The government needs to sell more debt and borrow more to support it's "socialist" programs and war.

Some of the investors in that debt are the Chinese and Japanese. It's at the point where with more than 8 trillion in debt the countries bonds are turning to junk status ( well not yet but it sure is heading there). Other countries are not interested in buying tbills etc and getting a few percent on their money. That's the primary reason for all the raising of interest rates. To entice investment. However it's not being looked at as investment as it's runaway debt. Whether or not the people/governments who invest money for this debt becoming more and more speculative everyday on getting paid back. And even if they get paid back it's becoming obvious that the payback is in fiat paper that's losing it's value everywhere.

So the illustrious FED raises interest rates and that is having an additional negative effect on what may be the last thing of value in this country. Real Estate. Heck we don't manufacture like we used to, spend spend spend all on credit and it's getting close to a meltdown.

Then on top of that 300 billion in rest ARM's in 2006 the expected amount that will reset higher in 2007 is more than a TRILLION.

Wanna bet that values don't go another 20-40% down in the next year? And more than that before "W" is out of the white house?

Then we have the start of the "baby boom" generation with the first ones going to have their hands out looking for "social security" checks.

The ice is just starting to crack.

Some economists are saying there could be a return to pre-1988 levels.

Wow

[shannon94]

Quote: Wanna bet that values don't go another 20-40% down in the next year? And more than that before "W" is out of the white house?

Yes...I bet they will.....it's not going to be pretty for some.

[Muggy]

From the bank side:
http://www.businessweek.com/magazine...eek+exclusives

WaMu has about $12 billion in loans negatively amortizing ...

[mystree]

Very informative article muggy,I myself would never do an arm or interest only loan.

[sleeper]

Be interesting to see what the market does IF Fla. has little to almost no Hurricane activity this season...

I do think that is a small factor as well.....

[J'Mo]

Not sure exactly what we're voting on here, but here's my story...

My family dynamics have changed and I want to downsize, but can't stomach the idea of paying 3 X's what a new (much smaller) home or condo is really worth. I bought my Pasco County home in '93, and this is what I got, for $116,900... 2 story, 2700+ sf, 2 car extended garage, inground pool, on 1.5 acres.

The only homes now in that price range are 900 sf fixer-uppers in questionable neighborhoods, with taxes and insurance also at about 3 x's what I now pay. These are houses I wouldn't have paid $50k for 3 years ago, so I darn sure wouldn't pay 2-3 x's that now!

The TN mountains are looking better every day. If I didn't have to work for a living, that's where I'd be headed about now. ...I vote for God to send me a sugar daddy who can afford to feel that price is no object. ;-)

[lulu]

I know what you mean... if we'd want to buy something bigger & more land, forget it. More taxes, more ins., smaller home?...so we sit here. If it doesn't level off in the next couple of years, we're going to buy some other place anyhow as a second home & keep this one till we can sell it. For now, it's best to keep whatever home we have & adjust - not get desperate, sit and wait it out a bit longer & see what happens..

[Jammie]

Lulu, you just always seem like you're happy and content there though and that means a lot. We'd love to live in Fla., but the financial part may be a problem. We're middle class and it just seems like a lot of people in our league are struggling to make ends meet down there.

There are a couple of other places that we think would also be near Paradise. Both areas have more economical living. Don't you ever wonder what it is about human nature that so many of us are always looking for something nicer?