[lvoc]

Here is the new Report from The Nevada Dept of Business and Industry...

http://business.nv.gov/uploadedFiles...bility-v14.pdf

Interesting stuff. However exactly what a "D+" means is clear as mud. i am not sure they even establishes that an "A" is better than a "D+"

They also lead off with an extremely questionable number. The percentage of mortgages underwater is shown to increase from 65.9% to 67.9% from 4Q12 to 1Q13. That is in the face of a price increase of over 10%. That is of course virtually impossible. Probably indicates that the underwater number is extremely imprecise.

Housing affordability ratio is another strange one. They imply that one third of income for a mortgage payment is normal but then declare around half that to be a "D". Seems to imply that low prices for homes are bad.

[BBMW]

Investors don't distort the market. They're as valid participants as any other class of buyer. If anything, they're taking a bigger risk than owner occupants would be. How much negative cash flow can they take before they have to dump a property. If the rental market doesn't support them, they're hosed.

And there are no "poor souls" out there. There are smart buyers and stupid buyers, but there are no "innocent" buyers. No one puts a gun to anyone's head and forces them to buy a house. Anyone can always just rent. If someone buys stupid high, it's their mistake, and they have to live with it.

Originally Posted by Kevin_nlv

You like that investors are distorting our housing market once again?
What is to be liked unless you are a flipper
or a recent speculator/homeowner looking to unload your house to some poor soul and make him financially broke in few years.

[BeeCee33]

I couldn't agree more BBMW.. Investors realized this market was well oversold and jumped in when the getting got good.. That's the way this life is, the rich (and smart) get richer..

Prices have jumped quite a bit lately, which I see as more getting back to where we should be.. Would rather see 'slow but sure' movement, but it is what it is..

[Willy702]

Originally Posted by von949

Are you one of the 80%?




(╯°□°）╯ ︵ ┻━┻

Why bother asking it, he just made the stat up anyways.

[Willy702]

Originally Posted by Kevin_nlv

From your posted report;
"Investors remain a dominant force in the market..."

And there you have it. Case closed, there is no housing recovery in Las Vegas, just a greed driven short term speculations.

On $180,000 loan principal, interest, tax and mortgage insurance payment
on 5% down loan is over $1600,00. Who is insane enough to take that risk in today's economy when Las Vegas has the highest unemployment in the country? 80% of locals can't afford $1600 mortgage payment + utility costs and etc.

Why do you feel so compelled to make stuff up? A 180k mortgage with 5% down at 4.5% is a payment of $867. Insurance and taxes in Vegas would be around $200 a month. Mortgage insurance if required would be maybe $100. So all in this is probably a $1150 payment, not $1600. Median household income in Las Vegas is $3600 a month. So the median household would spend 32% of income for PITI which is well within affordable range right now. If interest rates went up to 6% them it's a 36% ratio which is still acceptable, although a little closer to perceived safe limits.

You see all these investors who you call greedy deal with real calculations like this. They don't make up numbers and then say well there you have it, see this must be a bubble. They don't commit mental fraud to fit a made up thesis and back it up with more lies.

[airics]

excellent comment, willy....

[Kevin_nlv]

I was using 15 years not 30 years mortgage.
The point is besides the investors and speculators no one else is buying those homes.
Housing recovery can't be real until we create real jobs with decent pay.

Housing Recovery is “Precarious,” Says Economist Gary Shilling
6/20/2913

"But economist & investment adviser Gary Shilling*says the housing rebound is a “precarious recovery because it is based on rentals. It’s not based on new homeowners” who “are the basis of any solid rally.” Even many buyers, says Shilling, are making purchases just to rent homes, not to live in them."

And there you have it. It's obvious that majority of posters here are newly homeowners who cheer for higher prices now. You guys are bold copy of the same attitude that happened 2003-2006.
My guess is that all of you missed that bubble and now you cheer for another one.
Just curious, how many of you have used FHA financing cause you didn't have enough money for a down payment?

[logline]

Originally Posted by Kevin_nlv

I was using 15 years not 30 years mortgage.
The point is besides the investors and speculators no one else is buying those homes.
Housing recovery can't be real until we create real jobs with decent pay.

Funny you should mention employment...
Nevada unemployment at its lowest since 2008 - Las Vegas Sun News

And since CA's economy directly affects ours, here's a two-fer:
http://www.latimes.com/videogallery/...6.premiumvideo

[Kevin_nlv]

Nothing has changed and we didn't learn anything form the last bubble.
Same behavior today. Speculators once again are runing the show
in desert cities like Las Vegas, Phoenix and etc. Newly homeowners cheering for higher prices. Look at the listings today, mostly homes purchased one year or two years ago trying to unload them for much more then they are actually worth. Find the poor soul and sell him the "American Dream" of home ownership.

How many lives will we destroy this time when next recession hits and those people get stuck with overpriced homes and can't afford to pay the mortgage?

[Scott456]

Originally Posted by Kevin_nlv

Nothing has changed and we didn't learn anything form the last bubble.
Same behavior today. Speculators once again are runing the show
in desert cities like Las Vegas, Phoenix and etc. Newly homeowners cheering for higher prices. Look at the listings today, mostly homes purchased one year or two years ago trying to unload them for much more then they are actually worth. Find the poor soul and sell him the "American Dream" of home ownership.

How many lives will we destroy this time when next recession hits and those people get stuck with overpriced homes and can't afford to pay the mortgage?

A house is worth the amount of money that any buyer is willing to pay for it at that particular time. No more and no less.