Experience with Drees Custom homes?

[Southside Shrek]

There is still substantial risk in lending right now. People (Borrowers) with jobs today may not have them next month.

[Bigg Mann]

Originally Posted by Southside Shrek

There is still substantial risk in lending right now. People (Borrowers) with jobs today may not have them next month.

Why should anybody ever buy a home or car anytime, good times or bad. Just live in a camper or better yet a tent. Its all about saving money your whole life for a maybe just in case perfect opportunity that spending YOUR money might be a good idea to everybody.

Everybody is not unemployed or about to lose their job. With 8% unemployment there is still 92% employed.

[coastalrap]

Originally Posted by Bigg Mann

Why should anybody ever buy a home or car anytime, good times or bad. Just live in a camper or better yet a tent. Its all about saving money your whole life for a maybe just in case perfect opportunity that spending YOUR money might be a good idea to everybody.

Everybody is not unemployed or about to lose their job. With 8% unemployment there is still 92% employed.

So very true.

Saying that it's not a good time to buy just assumes that everyone is in the same situation as you are. There are very good buys out there that will allow people to get into homes that might have been out of their reach two years ago. Telling them they should wait till the price of that homes goes up 10% may not be in EVERYONES best interest.

[Zoo Animals On Wheels]

Um...no. Saying it's not a good time to buy does not assume that "everyone is in the same situation as you are." EVERYONE doesn't have to be unemployed for it to have a bad effect on the economy.

When there are fewer people who qualify for loans, the pool of buyers shrinks. That puts downward pressure on prices. Period that's Econ 101.

"Telling them they should wait till the price of that [sic] homes goes up 10%..." This assumes that when housing prices go down, they go down for awhile, then immediately go back up, up, up very quickly. This is absolutely incorrect. Never, in the history of housing bubbles ( you DO know this most recent one is not the only one, right?) has this ever happened.

Instead, housing goes down, down, down...then is flat for a long time. "Long time" = YEARS. In other words, there's no question of "missing the bottom" because you weren't able to buy a house quickly enough, and the next day (or next week, or next month) it was suddenly 10% more. This simply does not happen.

There are MILLIONS of "exotic loans" still due to reset in '09 and '10. What effect do you suppose this will have on the real estate market? Will all those loans resetting, with the inevitable result of more foreclosures, have a GOOD effect on house prices, or a NEGATIVE effect? This is not a difficult question to answer.