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Old 01-21-2014, 03:56 PM
 
Location: Barrington
41,297 posts, read 31,305,362 times
Reputation: 13924

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Quote:
Originally Posted by Gtownoe View Post
But what about the people who need a place to live?? Shouldn't home prices be going down if there's an abundance of housing?
All real estate is local, often down to the block.
There is no such thing as an abundance of housing in all markets.
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Old 01-21-2014, 03:57 PM
 
Location: USA
13,267 posts, read 9,907,887 times
Reputation: 4228
Quote:
Originally Posted by middle-aged mom View Post
Market value is a variable. That one cannot afford to pay market value does not mean prices are too high. The flip side of this is that just because the market value is less than the seller needs or wants does not mean prices are too low.

The resale of FNMA, FHLMC and HUD owned properties have an owner-occupied bid process whereby those who intend on occupying the property are given priority and do not have to compete with investors.

BTW, median incomes have been rising.
Market valuable is a variable but when there's an oversupply of vacant homes, and nobody can afford them, it tells you that the equilibrium is out whack.


This particular situation highlights a real problem in this country where everything is being catered towards investors and the wealthy and not toward the American citizens.


If you want a healthy Economy, you don't want investors or corporations propping up prices.
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Old 01-21-2014, 04:03 PM
 
Location: Barrington
41,297 posts, read 31,305,362 times
Reputation: 13924
Quote:
Originally Posted by J746NEW View Post
It all makes sense. The wages of the common American are deflating and as a consequence housing prices should be falling as well based 100 years of data trends. Instead the government in collusion with the banksters are keeping the prices propped up and we see why now. They want a rentier class in order to put them in more debt and extract more wealth from them.


Median income is increasing.

Renters do not have mortgage debt.
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Old 01-21-2014, 04:05 PM
 
8,487 posts, read 5,636,994 times
Reputation: 1113
Quote:
Originally Posted by Gtownoe View Post
But what about the people who need a place to live?? Shouldn't home prices be going down if there's an abundance of housing?
Houses are no longer for living in, they are derivative investments for wall street.

Many in FL live for real estate, especially snow birds. It is not cheap. Insurance is very costly. Can be a very volatile market, if you look back. It was the epitome of bubble. Some never learn, when it comes to the bubble mentality. They seem to have had this problem with affordable housing for sometime. They like the hired help, but aren't very interested in them having a roof. They frown on many in one home, as well and "police" rentals for extras. Plenty of redevelopment, as well. The entire economy counts on real estate and tourism. Not a sound economy in my view, but it worked, until it wasn't working so well. They just count on volume. The whole state is transient, really, most places that are transient are not so large.
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Old 01-21-2014, 04:11 PM
 
8,487 posts, read 5,636,994 times
Reputation: 1113
Quote:
Originally Posted by middle-aged mom View Post
[/b]

Median income is increasing.

Renters do not have mortgage debt.
No renters have debt though. This is always about debt. It is packaged and sold in abstracted security products. Affordable housing is also tied in with redevelopment and PPPs. It is also very much about propping up the stock market and asset prices.

Clearly there is a major problem with housing costs.
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Old 01-21-2014, 04:13 PM
 
Location: USA
13,267 posts, read 9,907,887 times
Reputation: 4228
Quote:
Originally Posted by middle-aged mom View Post
[/b]

Median income is increasing.

Renters do not have mortgage debt.
Exactly what are you trying to say by the bold?
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Old 01-21-2014, 04:15 PM
 
Location: USA
13,267 posts, read 9,907,887 times
Reputation: 4228
Quote:
Originally Posted by CDusr View Post
Houses are no longer for living in, they are derivative investments for wall street.

Many in FL live for real estate, especially snow birds. It is not cheap. Insurance is very costly. Can be a very volatile market, if you look back. It was the epitome of bubble. Some never learn, when it comes to the bubble mentality. They seem to have had this problem with affordable housing for sometime. They like the hired help, but aren't very interested in them having a roof. They frown on many in one home, as well and "police" rentals for extras. Plenty of redevelopment, as well. The entire economy counts on real estate and tourism. Not a sound economy in my view, but it worked, until it wasn't working so well. They just count on volume. The whole state is transient, really, most places that are transient are not so large.
Your good


The Economic impact of what your discussing is going right over some people's head.
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Old 01-21-2014, 04:21 PM
 
Location: Deep State
19,054 posts, read 7,970,458 times
Reputation: 15564
Quote:
Originally Posted by Gtownoe View Post
But what about the people who need a place to live?? Shouldn't home prices be going down if there's an abundance of housing?
There is not an abundance of housing inventory, at least around here. Blackstone bought up a lot of the inventory, so there are fewer homes for sale. Lower inventory--higher prices. Everyone is not selling--only the ones who have been underwater and paying their mortgages until they could sell. These are the homeowners who did not walk away or allow foreclosure. The cheaper prices came when there was an abundance of inventory because so many people walked away or did short sales. I cannot tell you the exact figures, but I would bet a lot more people walked away or allowed foreclosure than kept paying for underwater houses. Then, of course, there are those who simply want to continue to live in their homes, but can breathe a little easier now.
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Old 01-21-2014, 04:25 PM
 
Location: USA
13,267 posts, read 9,907,887 times
Reputation: 4228
Quote:
Originally Posted by Enigma777 View Post
There is not an abundance of housing inventory, at least around here. Blackstone bought up a lot of the inventory, so there are fewer homes for sale. Lower inventory--higher prices. Everyone is not selling--only the ones who have been underwater and paying their mortgages until they could sell. These are the homeowners who did not walk away or allow foreclosure. The cheaper prices came when there was an abundance of inventory because so many people walked away or did short sales. I cannot tell you the exact figures, but I would bet a lot more people walked away or allowed foreclosure than kept paying for underwater houses. Then, of course, there are those who simply want to continue to live in their homes, but can breathe a little easier now.
Is that good or bad for the overall Economy? That's what I'm getting at. Think about it.


What fuels the Economy?
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Old 01-21-2014, 04:48 PM
 
8,487 posts, read 5,636,994 times
Reputation: 1113
Quote:
Originally Posted by Gtownoe View Post
Your good


The Economic impact of what your discussing is going right over some people's head.
The intermediaries keep getting more and more numerous and the actual products more and more abstract and more numerous. You can bundle and "basketize" anything. The problem is it complicates things so badly you can't untangle it. The whole 2007-2008 crisis was due to a run on the banks, so to speak in the repo markets. Most of this back end stuff that is on a massive scale normal joe blow has never heard of. That is no accident. Low profiles can be very useful. And nothing has been done to fix it.
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