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Old 05-06-2007, 03:01 PM
 
Location: Chicagoland area
554 posts, read 2,281,588 times
Reputation: 523

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What caused it?
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Old 05-06-2007, 05:57 PM
 
Location: The 12th State
22,974 posts, read 58,659,860 times
Reputation: 14932
If there is a slump it definite not a national issue every time I get my eye on a house I want to get to hold to to flip later at a price I am wanting it gets snatch within a week. It definite a sellers market in Charlotte Metro area.
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Old 05-06-2007, 06:06 PM
 
Location: Great Lakes region
417 posts, read 989,140 times
Reputation: 365
Adjustable loans. High risk lending. General inflation (every extra dollar you have to put in the gas tank is one less dollar in your housing budget). And, in our area (Michigan) a VERY bad economy.

Just my two cents worth Our house is currently on the market and we've had no prospects as of yet.
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Old 05-06-2007, 06:34 PM
 
Location: Fly-over country.
1,765 posts, read 6,385,391 times
Reputation: 912
prospecting drove real-estate up, pushed it into correction

the sub-prime lenders aided the speculation

the problem there is if you got stuck with an overvalued home, there's not much you can do to get out of it....
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Old 05-07-2007, 09:36 AM
 
767 posts, read 2,271,904 times
Reputation: 698
Quote:
Originally Posted by us2indaup View Post
Adjustable loans. High risk lending. General inflation (every extra dollar you have to put in the gas tank is one less dollar in your housing budget). And, in our area (Michigan) a VERY bad economy.

Just my two cents worth Our house is currently on the market and we've had no prospects as of yet.
As stated before, it's really all about your local market. While Michigan's market is in a slump due to the fact that the economy there is poor in relation to the rest of the country and the state is losing population, Florida's housing market is down more because a lot of speculators came in to drive up prices a few years ago, but now there are few people buying as interest rates have gone up. The effect has been the same, yet the reasons are very different. As a result, the prospects of each of those states' real estate markets to turn around in the long term are going to be markedly different. If I were a betting man, Michigan is going to have a lot harder time getting any type of real estate turn around since the demand is in perpetual decline as people keep moving out, while a place such as Florida will eventually come back into balance since that state is still gaining residents at a very high rate.
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Old 08-13-2007, 04:29 AM
 
5 posts, read 15,091 times
Reputation: 10
Here are the observation that many denying & ignoring because all of us want to retire early.
Beside Americans are loosing the battle of keeping their job a bit longer nor a job that will pay our mortgage & maintain an American way of life. Beside, most job are being ship to China & people from India are beating Americans in most technology side type of jobs.
On top of all this issue, most Americans young & old are into some kind of real estate investment. For the last 20 years, real estate investment or buying houses & foreclosure home are widely advertised as an escape goal towards early retirement. So many real estate investor & buyers that buys houses & turn around sells it more than the value of the property just to make a quick sales for a short period of time.In short easy money making as long as you have good credit & a bank will trust you base on your numbers.This people earn the nickname as "flipflappers".
Many still want to be part of this 20 years old gold mind idea. Today, almost all houses both new, foreclosure & repeatedly previously owned are competing in a market that the demand is getting slimmer every day.Because few qualified buyers, more people loosing jobs, cost of living can hardly support by two people in most household & most dangerous behavior is "greed".
Houses are over valued & it reach it margin for other "flipflappers" to make more money. People used to think when buying a house is their dream home.But for the last 20 years that dream home idea become a dream retirements.
I lost my dream home because I was laid off after five years in service. I lost my credit worthiness.But very few want to talk about it because realistically no banks cares, most definitely those vultures "flipflappers" and in short no body cares. Many white collar jobs out there will only pay & support someone live at his/her parents. Plus more & more companies one of hiring qualification is to check your credit worthiness, beside criminal & previous employment background check.And more American businesses will screw their fellow Americans for a cheap labor.
At the end banks, brokers & real estate industry need to come out an obvious marketing gimmick (like no processing fees) to lure potential house buyer & not necessary a home buyer in order to get a mortgage loan.
In summary of all this statement, "Greed" played a big role that disabled the entire housing market. We can only try to cover up the truth & be optimistic about real estate market will soon get better.But the fact is houses aren't selling the way it should be or at least just like it used to be.The question is why?
The answer is at very front of our eyes....Unless we put on a sunglass & pretend like an invisible men.
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Old 08-13-2007, 09:13 AM
 
Location: Oak Park, IL
404 posts, read 546,525 times
Reputation: 51
From what I hear, the market was flooded with 98% mortgages that people couldn't manage. This may be the mortgage issue and not the housing boom, but they are tied together. Mortgages are harder to come by because more and more people are in default, and the banks get stuck holding houses and eventually selling them in foreclosure at a loss and don't have the reserves to give a mortgage.

I think......
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Old 08-13-2007, 09:36 AM
 
Location: Blackwater Park
1,715 posts, read 6,398,926 times
Reputation: 567
It's definately not in a slump in my area. It's a bit of a buyer's market, but prices are still rising. If anything, it's the new construction homes that are being lowered. Existing home sales, starter homes in particular, appear to be holding steady in my neck of the woods.
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Old 08-13-2007, 10:09 AM
 
Location: South Central PA
1,562 posts, read 3,907,890 times
Reputation: 361
Idiocy. It's stupid to willingly choose a loan that will jump in intrest after 2 years or so.
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