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I am looking at buying a home and can tell you people are getting stupid again. Prices are going up and its become a sellers market. People never learn.
Prices and demand are up and it is a sellers market.
I work in real estate and we just had a house go under agreement in a week. I have heard of others that are more affordable for the average family go in days with multiple offers.
We have buyers with 6 figures plus that are looking to buy but there is such a lack of inventory.
There is nothing stupid about the ups and downs of the real estate market. It is very natural but it still comes down to the property being priced right, standing tall (looking good) and of course Location.
What is stupid is when the banks start to get clever with their lending and they over appraise a property and they give a loan to someone who cannot afford it.
So far the banks have been getting creative but they are also being careful and the appraisals are very tight. At least in my area.
Hopefully we will see several more years of the boom because it is so good for the trickle down economy and beneficial to many. There will be a bust because there always is but lets hold that off by natural means and keeping the banks from getting out of control greedy.
Yes, the housing market is usually cyclical in this way. There will likely be an overcorrection in some markets caused by developers overbuilding. Although, not all - the SF Bay Area, for example, is so incredibly underbuilt (hundreds of thousands of housing units underbuilt since the ~70-80's), that even the current boom won't overcorrect there.
My main point is that the underlying factors don't seem comparable to what we were seeing in 2008. I do agree there will be housing correction (or "crash" if you like) at some point - but I don't think we're gonna see another 2008 scenario.
But, hey, I could certainly be wrong.
That's what I'm waiting for: a correction/crash to buy a second home.
The OP's observation is correct: you can't fix stupid. It's not just subprime loans. It's all the slicing and dicing (tranches) and the CDO's.
Supply isn't as rampant as it used to be but the it is certainly picking up, at least in Phoenix metro area.
I'd say so. The dishwasher go after whoever stole his identity
6 loans on 6 houses isn't just fraud...
I'm not defending the banks. I'm simply asking why take the risk if the juice isn't worth the squeeze? Maybe they like to bend over take it dry without a kiss or dinner first... but I find that hard to believe someone's identity was obviously stolen to have 6 loans for houses working as a dishwasher...
A multi millionaire yes.
But jumping on a bad mortgage? Who's the one at fault?
The bank writing the loan or the dummy singing the dotted line?
I thought we were talking about another bubble bursting from bad loans taken by stupid people and artificially inflated home values, not identity theft...
No, the dishwasher was a dupe for the fraudsters. Go over here, sign some papers and we'll give you a couple hundred bucks. His identity was not stolen, he participated, along with appraisers, brokers, agents, banker, and whoever all the way up to and including the Wall Street jackholes who unloaded these toxic loans on unsuspecting investors.
I am looking at buying a home and can tell you people are getting stupid again. Prices are going up and its become a sellers market. People never learn.
Isn't that the truth. I feel really bad for young people trying to get into the market right now.
It's really weird because I personally expected prices to remain steady or drop for the long term with all the kids with student loans ect. They have less disposable income.
Something has to be done about housing for young people who are working and trying to build a life so they can save for their future since these crooks we have in government seem to want to spend the SS fund on more ships and tanks.
I see lower priced homes selling, average priced homes sitting and then the really upscale ( not your average mcmansion but actual estates and working farms selling in no time flat.
Something like this. A few years ago market all around was better, suburban/exurban area just outside of a metro area. A few towns over it's blowing up, people are willing to pay double the price for a house twenty minutes closer to the city.
The difference between when I was young and now is the stupid outnumber the smart.
I sort of disagree with that. There have always been the stupid around. And the stupid have been around in large numbers for many years. It don't think it's so much the stupid being outnumbered back then vs now. I think it's a matter of the stupid having use of things like social media. Stupidity has a voice. In earlier days(or as recent as the 1980s), the stupid knew when to shut up. Nowadays, the stupid can be as loud as they want and there is not a feeling of shame. Now, stupid sells. Stupid gets views on youtube and WSHH. Stupid gets reality shows such as the Kardashians. Kim Kardashian would have been just enough spoiled rotten "princess" if reality TV didn't exist.
I am also a seller, Sold my condo and have a home for sale in SWF. So its not one sided, I was also saying the same thing in 2003. It takes a while but there are many things that Americans and doing stupid again. Autos, paying 50k on a 70 month for some car or truck. Debt is back and it will head in the same direction. Just because some real estate agent says things are good mean crap all. They were saying that to me when I called down in SWF in 2007. I can remember the call, When I said prices are getting bat crap crazy, I was told it will be 10 percent higher next year and the year after that. Things go up until they don't. People are so easily conned into the greater fool theory every time. I am not saying we are at the threshold of 08 this second but we are walking down that road again.
I am looking at buying a home and can tell you people are getting stupid again. Prices are going up and its become a sellers market. People never learn.
Home buying/selling is always a cycle. How are you blaming this on America going stupid???
Home buying/selling is always a cycle. How are you blaming this on America going stupid???
Not everyone fits in this category. What I am saying is that bad lending and people going into debt they should not is headed back the same way it did back in the late 90s and early 2000s. It will end badly.
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