[dude66]

This comes from Jim Cramer of CNBC's "Mad Money". He mentions home prices as falling 20-30% in places like Phoenix and Las Vegas once you figure in rebates.

See video here:

» Cramer: That’s Right - If Your House Is Down, Dump It [New Video] - Housing Doom Housing Bubble Blog
Moderator cut: copyright

[ParkTwain]

Cramer said: "there is no place where [mumble] you wouldn’t be down on your home if you bought it in 2006"

This is flat incorrect. Do your own research.

[Baja Boomer]

You guys might enjoy this video:

Housing Bubble vs Great Depression


http://www.youtube.com/watch?v=pLjo7-J1qho

Or maybe the word "enjoy" is not quite the right word to use...

[asik]

It's comical watching some people deny the housing bubble and now the bust. It will be a lot worse than they can believe. As a renter who sold my house when it doubled, I'm loving it. It won't make sense to buy a house for years.

[Chest Rockwell]

You seem to be trying awfully hard to push your point of view. I am always skeptical of this.

The same people who seem to be forecasting the big bubble burst are the ones waiting to buy this real estate on the cheap. It's all conjecture on both ends. I'm not denying that there are conditions that could lead to dropping prices. But I can recognize propaganda when I see it. You might as well be holding up a sign on a street corner.

[jfkIII]

Maybe, he's really Mr. Happiness?

[olecapt]

I like that...Mr Happiness...with the air guitar...playing I am forever blowing bubbles.

Had a client back in 2002 who looked and looked. Finally listened to the airheads of the airwaves and decided to wait for the bubble burst. Been waiting a long time now and has a lot longer to wait.

[UseJeff]

I know there are a ton of factors for values... but one key factor is just rates in general. If they are low, with very creative programs to boot, they offer extremely low payments.

Now that rates are climbing, and many programs are just flat disappearing, payments are no longer affordable. Add in the huge surplus of houses from builders...and prices have to come down.

Mortgage in general has had an extreme short term change in guidelines across the board, especially on the subprime side.

Here's something that just happend in MN that will have a HUGE effect on homeowners:

Three Minnesota mortgage lending bills (H.F. 1004, S.F. 988 and S.F. 2096), implemented to address predatory lending practices and mortgage fraud, took effect on August 1, 2007. Based on this new legislation, the following loans will not be available for primary residence and second home transactions on properties located in Minnesota:

• Negatively Amortizing Loans (12 MAT and FlexPay loans)
• Reduced Documentation Loans (FastForward, Stated Income, No Ratio, NINA, No Doc)
• Loans with Pre-Payment Penalties
• Loans with Balloon Payments

Additionally, we will require the following for loans originated in Minnesota:

• Borrower qualification will be based on the fully indexed rate for ARM loans and a fully-
amortizing payment for interest only loans
• Prime Credit borrowers utilizing our Nonprime product will require the borrower's written
acknowledgement

While most of that is a good thing...getting rid of the stated income ("liars loans" as people in the industry call them) is going to make it impossible for some people to refinance. While I agree you shouldn't be able to state your income as a "W2'd" employee, this is extremely harsh to people who are self employed. These people have an adjusted gross income significantly lower than their actual gross income, of which qualifying loans is based on. Short version: Many people will not be able to refi out of adjustable loans, and will end up just walking on their house.

[ParkTwain]

Are you saying that some part of the mortgage business is "predatory"? I'm SHOCKED! What a great business to be in, where you have to basically lie to your customers to make your next sale.

[jfkIII]

walk away?!?!?!? Maybe Cramer should had said "run, as fast as you possibly can!"