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Old 10-24-2011, 01:34 PM
 
Location: Sputnik Planitia
7,829 posts, read 11,782,993 times
Reputation: 9045

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Housing market will get much worse - Lansner on Real Estate : The Orange County Register

Analysis seems spot on in my book In my opinion prices need to come down a lot more given the horrible economic fundamentals here...

and commercial real estate analysis:
http://lansner.ocregister.com/2011/0...-ahead/121025/

Read and enjoy the good times now...save up money for the future!
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Old 10-24-2011, 03:54 PM
 
1,874 posts, read 2,232,438 times
Reputation: 3037
Peter Schiff cracks me up. While what he generally says is possible, it's not very probable. I take what he says as the worst case scenario. I like his passion and that he'll never sugar-coat the potential gloom. Lastly, I like that he hopes his predictions won't come true, though I fear when we run out of bubbles, stimulus, and other manipulations that we will find that Schiff was finally right about everything.
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Old 10-24-2011, 06:24 PM
 
Location: Sputnik Planitia
7,829 posts, read 11,782,993 times
Reputation: 9045
actually people laughed at Peter Schiff when he was predicting a meltdown in Real estate as well as the stock market crash, if you need proof the old videos are on Youtube where people outright think he is nuts.
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Old 10-24-2011, 08:10 PM
 
1,568 posts, read 1,551,250 times
Reputation: 414
He could be the old broken clock right twice a day, no?

The housing market will be walking wounded until there is some end in sight for all these underwater mortgages.

We're nowhere close to a path to values appreciating out of that mess.
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Old 10-30-2011, 12:32 PM
 
Location: Minnesota
342 posts, read 1,427,518 times
Reputation: 141
I am not an analyst...but I have been in the mortgage business for 25 years - I could see it coming back in 2000 - 2002, you can't keep inflating prices to make deals work. Raise the sales price so the seller can pay the buyers closing costs by $5,000 to $8,000. The house is not worth that much more, but they made the appraisers make it work so they could close their deals. If the appraisers didn't do it - another one would. The lenders just wanted the files doctored up so they met the guidelines - they just wanted to make the loans. Now it has hurt everyone...and it was all about the "greed". When I hear a loan officer brag about making $20,000 on a deal I have no respect for them...they were not doing their customer any favors.
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Old 10-30-2011, 07:22 PM
 
Location: Las Flores, Orange County, CA
26,329 posts, read 93,734,875 times
Reputation: 17831
Quote:
Originally Posted by IloveOC View Post
I have been in the mortgage business for 25 years - I could see it coming

Why did OC and SoCal (and a couple other places like Las Vegas and parts of Florida) in general bubble up so much more than most other places in the US?
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Old 10-30-2011, 08:50 PM
 
Location: Minnesota
342 posts, read 1,427,518 times
Reputation: 141
Charles - I don't know the answer to that question or the actual stat's - but maybe it is because the population is so much greater - more people to hit up. Many of the loans that were done were because people wanted to take money out - one guy I know wanted to take cash out to buy a Viper. Some got into bad loans because they trusted the person selling them the loan. Florida has always had a high foreclosure rate - even before this all started. Many of those were probably loans which shouldn't have been done.
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Old 10-31-2011, 06:29 AM
 
5,113 posts, read 5,970,285 times
Reputation: 1748
Quote:
Originally Posted by Charles View Post
Why did OC and SoCal (and a couple other places like Las Vegas and parts of Florida) in general bubble up so much more than most other places in the US?
Corrupt governments and regulators who turned a blind eye, and took the bribes. Besides, it was all part of their long term agenda to overload and crash the system.
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Old 11-01-2011, 08:56 AM
 
3,886 posts, read 4,536,471 times
Reputation: 5154
Default Interesting article...

Hubby and I are right now shopping to buy. We've been renting a 1 bedroom for 4 years and we're itching to settle down and buy a small place.
After looking from Santa Ana to San Juan, we've decided to stick closer to my husbands work because we're too lazy to wake up early for a longer commute!
We plan on being there for as long as life/employment etc. situations permit.

This article makes me a little nervous though... although there are some condos that are close to pre bubble prices. Plus with the interest rates so low, they are even more affordable than in 2001 when they were 7%!

I've been seeing SFRs sliding though still... Laguna Terrace have some recent sales that are much lower than last year!

I'm wondering about the banks and why they wouldn't WANT to do a "clearance sale". I mean, yeah the prices would go down further, but woudn't they recoup some at least by volume?
Is the government trying to keep equity up for seniors who depend on it?
If prices were at a level where middle class families could stay within the 2 1/2 to 3 times income rule, wouldn't THAT stimulate the economy in the long run?
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Old 11-01-2011, 11:13 AM
 
11,715 posts, read 40,441,334 times
Reputation: 7586
Quote:
Originally Posted by Podo944 View Post
I'm wondering about the banks and why they wouldn't WANT to do a "clearance sale". I mean, yeah the prices would go down further, but woudn't they recoup some at least by volume?
Because no bank CEO wants to be the one to recognize a trillion dollar loss on his watch. So they drag their feet, delay taking the house back, and trickle out the REO sales, and hope they're off to the next job before it all hits the fan.
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