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Old 09-12-2010, 09:56 AM
 
5,417 posts, read 10,378,331 times
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Quote:
Originally Posted by jimhcom View Post
Keeping housing at unaffordable levels is what is killing the economy. Recovery cannot begin until debt is wiped out, and money begins to be spent on productive profitable things. Investors will not return to the housing market until prices allow them to make a reasonable return.
The market must be allowed to set prices, and the interference from government in that process is only making the situation worse. The debt the government is running up must be serviced; meaning more of people’s future pay will go to paying interest on debt instead of purchasing goods and services to benefit the economy. Slowly people are beginning to realize that, and the policies of reckless deficit spending are becoming more and more unpopular. No market recovers until capitulation occurs. Postponing capitulation, postpones recovery.
All very true.

B U T . . .

This is designed to be a Banker's Recovery -- not a general economic recovery.

The laws and policies are planned and written by the Corporations and Banks they are designed to serve.

Really comes down to Kill the Banks or Kill US.

So far, the banks are winning.
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Old 09-12-2010, 10:01 AM
 
1,963 posts, read 4,601,128 times
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Housing is at an affordable level that its been in years. Do you think housing should go to 30,000 for a nice house. Well, that`s not going to happen.
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Old 09-12-2010, 11:51 AM
 
Location: PNW
1,803 posts, read 2,214,589 times
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Quote:
Originally Posted by cl723 View Post
Housing is at an affordable level that its been in years. Do you think housing should go to 30,000 for a nice house. Well, that`s not going to happen.
You must be a bag holder.

Housing in most metro areas outside FL, CA, AZ, NV have not dropped significantly. Home prices in NYC/NJ, New England and Virginia are still at around 85-90% of peak. They're not going for $30,000 for a nice house, but $300,000 for a one bedroom hole in the wall.

Due to various schemes to prop up housing prices, most of the East Coast north of Carolina has not seen a significant fall.
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Old 09-12-2010, 01:48 PM
 
1,963 posts, read 4,601,128 times
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That`s my point, houses in nice areas will never go that low. Were I live, you can`t even by land for that price. My point was that some people think that an affordable house is when the whole housing market crashes to the ground to were nice houses become 30,000. Aint going to happen.

Right now housing is affordable in Fl, NV and AZ. If you need a house to get to an afforadable statis , say at 75,000, then you really can`t afford one anyway.
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Old 09-12-2010, 05:22 PM
 
Location: Victoria TX
42,661 posts, read 78,835,301 times
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A house is a house, and to build one costs X dollars to pay workers to work Y hours using Z worth of building materials. Those costs don't vary significantly from one locality to another. I gave the example in another thread of Freeport Texas, where the median value of a house is $61K. 40 miles away, in suburban Houston, those same houses would be listed at maybe $250K.

The market value of a house lies in the value of the land that it sits on, which is nothing but dirt. Supply and demand have been factors on settling on those values, along with a great deal of speculation.
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Old 09-12-2010, 10:39 PM
 
Location: Great State of Texas
86,068 posts, read 77,067,933 times
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Quote:
Originally Posted by cl723 View Post
Housing is at an affordable level that its been in years. Do you think housing should go to 30,000 for a nice house. Well, that`s not going to happen.
Housing should be 2-3 times your annual salary..from a conservative side.
Are homes at that pricepoint yet ?

I was shocked to read that folks were doing 6x and 7x their salaries for homes..and here I thought lots of folks were rich....NO..they were just getting very deep into debt.
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Old 09-12-2010, 11:49 PM
 
Location: Conejo Valley, CA
12,470 posts, read 18,264,147 times
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Quote:
Originally Posted by jimhcom View Post
Keeping housing at unaffordable levels is what is killing the economy. Recovery cannot begin until debt is wiped out, and money begins to be spent on productive profitable things.
If that were true you'd expect the areas with more reasonable prices to be doing better than areas with inflated prices. At least in California you see the opposite though, the areas that crashed ~2 years ago and are back down to reasonable prices have the highest unemployment rates.

But sure, household debt needs to come down. But this can't happen magically, the best way to do it is to transfer household debt to government debt. But....we can't do that! We just HAVE to lower the federal deficit, and hence create more unemployment, and then wave a magic wand that lowers household debt.

Anyhow, the majority of Americans are too easily manipulated by nonsense and as a result the nation is going to stagnant for years. Welcome a even larger gap between the haves and have-nots, but at the end of the day its hard to feel sorry for people when they are digging their own grave.
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Old 10-16-2010, 09:58 AM
 
Location: San Diego California
6,797 posts, read 6,658,228 times
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Forclosuregate is sure not going to help housing going forward.
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Old 10-22-2010, 05:14 PM
 
Location: Chandler, AZ
5,801 posts, read 5,852,664 times
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As long as the government continues to interfere in the normal progression of the clearing away of all of the foreclosures out there instead of continuing to erect roadblocks making it much tougher to get that done, the economy isn't going to turn around anytime soon, and having a JobKiller-In-Chief in the White House isn't helping either, thanks to Obamacare, killing the student loan industry, propping up the Detroit 3 with idiotic programs a la cash for clunkers (an abject failure anyway you look at it), and other dumb moves too numerous to mention.
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