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 you have no actual retort and only point fingers at other professions? Gotcha
What you can't or won't grasp is not all of us had those products to sell, primarily, the pay option ARM, which was Interest Only for a fixed period. If you had a no income feature, it invited fraud. But, you make a huge assumption any loan officer working in that time-frame offered NINA pay option ARMs, but that was not the case. So your broad strokes with the paintbrush comes across as offensive.
The 2007 drop was a unique phenomenon that was a once in a lifetime event that we probably won't see in our lifetime again. Your grandkids might see it come around again. There will be a market correction but we are talking maybe a 10% drop at most in most metro-areas. Every correction in the last 50 years prior to the 2007 meltdown have been more in line with that 10% to 15% correction. When prices dropped from 2007-2011 some of the hardest hit areas saw prices drop to 1998-1999 prices. We are not 18 years past those prices and the uptick in prices since the bottom are in line with near normal appreciation figures when spread out over that 18 year timeline.
While the root cause of the most recent crash was very much a unique set of factors all coming together (subprime lenders, lax lending standards, insufficiently transparent market for mortgage based securitites...) I would strongly caution against folks assuming that other strong corrections in the real estate market are "once in a lifetime" events. In my own lifetime I have seen MAJOR CORRECTIONS driven by things like the Oil Embargo, stagflation crisis, deindustrialization, savings and loan collapse, changes in tax laws, farmers crisis and probably a few more factors that even I have forgotten about. Each of those crisises were not as widespread as the most recent collapse, but the degree to which that was due to the more limited spread of information is almost certainly a factor -- folks that overreacted to images of entire subdivisions in places like the fringes of Las Vegas being thrown into foreclosure could have seen the same sorts of things happen parts of the country dependent on things like oil production or the closing of a major assembly plant. Back when folks only got the "news" from a local newspaper or a network newscast that was only on for 27 minutes there was a whole different level of concern than today's world were multiple 24x7 networks pump out stories of grief or joy to shift people's reactions and internet infomation spreads even faster.
The volatility of any markets is a complex phenomena. As more and more real estate is held by investors that seek to hedge their foriegn holdings it is highly likely that the volatility of real estate will increase -- the roots of this are just now being sown...
What you can't or won't grasp is not all of us had those products to sell, primarily, the pay option ARM, which was Interest Only for a fixed period. If you had a no income feature, it invited fraud. But, you make a huge assumption any loan officer working in that time-frame offered NINA pay option ARMs, but that was not the case. So your broad strokes with the paintbrush comes across as offensive.
You should probably reread what I posted because I certainly did not label everyone. I did say blame was widespread including loan officers and all those tied to the mortgage process. It was simply a wall st driven issue.
We are seeing a return of the 80/20 no down payment mortgage which was a major contributor to the last crash.
My realtor expects a correction to occur in the next year and a half. In markets short on inventory you're not likely to see much of a crash. But in places not struggling with inventory but prices are still well outpacing salary growth is where you'll see the biggest hit.
What is your wanna be Economist Realtor predicting now?
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.
Reality check!
