Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
So now that Obama is headed to office, what do you think will happen with real estate? Do you think people will start trusting in our nation's financial system? Are we done with the "bottom" and ready to buy?
So now that Obama is headed to office, what do you think will happen with real estate? Do you think people will start trusting in our nation's financial system? Are we done with the "bottom" and ready to buy?
I don't think we will see the damage this credit crisis has had on the economy until 4th quarter numbers come out toward the end of the year.
I think r/e markets will continue to decline steadily until this temporary credit crisis is over. Whenever private sector lending resumes, if we don't see sky-high interest rates, the markets will still have to deal with the correction to normal lending standards.
You still have record amounts of inventory out there w/limited qualified buyers.
Do you really think we're at the bottom yet? I don't. How could we be at the bottom w/all that supply out there? Also, don't expect a "V" type recovery like everyone assumes....we could be flat for a long time.
So now that Obama is headed to office, what do you think will happen with real estate? Do you think people will start trusting in our nation's financial system? Are we done with the "bottom" and ready to buy?
A new president isn't going to be able to wave a magic wand and everything is over. The damage has already been done with the original lowered interest rates, lenient borrowing from lenders, which in turn made our houses overpriced. The real estate market will take a long time to finally turn around.
Once normal lending resumes, if we don't see sky-high interest rates, the markets will still have to deal with the correction to normal lending standards.
I guess it depends on one's definition of normal lending.
A new president isn't going to be able to wave a magic wand and everything is over. The damage has already been done with the original lowered interest rates, lenient borrowing from lenders, which in turn made our houses overpriced. The real estate market will take a long time to finally turn around.
Wait a minute....are you suggesting that influences like interest rates, mortgage terms and loosey-goosey lending practices were the primary drivers behind most of the home value appreciation?
It suggests that factors beyond the every man's control, drive the market and impact the value of our homes. How can this be?
So now that Obama is headed to office, what do you think will happen with real estate? Do you think people will start trusting in our nation's financial system? Are we done with the "bottom" and ready to buy?
Obama getting elected will not "magically" fix the economy and RE.
There are still big problems that have not been solved..just bandaided over with billions of dollars.
[quote=CouponJack;6017453]The fundamentals in housing still aren't great.
You still have record amounts of inventory out there w/limited qualified buyers.
Do you really think we're at the bottom yet? I don't. How could we be at the bottom w/all that supply out there? Also, don't expect a "V" type recovery like everyone assumes....we could be flat for a long time. quote]
This V-shaped recovery thing is wishful thinking, a hopeful fantasy. That it persists and it does, suggests that the masses have yet to experience enough pain to appreciate market fundamentals.
It took nearly a decade for most homes to return to their former values, during the last post bubble market, in those areas prone to real estate bubbles. This is wider and deeper and impacts areas that did not experience the fluke of double digit annual appreciation.
I guess it depends on one's definition of normal lending.
Quote:
Originally Posted by CouponJack
I would've used a word like "appropriate" instead.
what happened over the past several years should not be considered "normal".
"Normal," to me, is how things were done throughout most of the 20th century. 100% financing, adjustable rates, the influence of mortgage backed securities, the public/private mess of Fannie/Freddie.. none of that was normal.
So like I said, even when the credit crisis goes away, I believe that prices will continue to correct downward, because we're going back to normal lending standards. My opinion is that most private sellers are clinging onto prices from a different era of finance.
Last edited by le roi; 11-05-2008 at 08:32 AM..
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
