WNC #1 in foreclosure rate increase (not foreclosure numbers)

[QuilterChick]

Originally Posted by jstubbspt

I honestly don't even know where to begin with that last post, QuilterChick. The housing market cannot run an economy the size of the US. As for a little bit of inflation have you looked at oil prices lately? How about every time you visit the grocery store? Or how about the price or cotton?

Daily Adventures In 'Limit Up' Zimbabwefication: Cotton Explodes As Asian Mills Panic | zero hedge

We need deflation in housing to bring houses in line with incomes, not inflation in that sector (which is what Bernanke is attempting by keeping interest rates artificially low to keep the TBTF banks alive). We've had serial bottom callers for the last two years. When I first started posting here it was to combat the inanity of the local Realtor hordes posting "Buy in Asheville now or be priced out forever." When is it ever not "The Best Time to Buy A New Home!" Why should anyone capable of independent thought and a basic understanding of math trust anything out of the Johny come lately/get rich quick Realtors and NAR mouthpieces who just happened to spring out of the ground like weeds during the boom?

Amazon.com: Why the Real Estate Boom Will Not Bust - And How You Can Profit from It: How to Build Wealth in Today's Expanding Real Estate Market (9780385514354): David Lereah: Books

There is a 17+ month supply of homes on the market at this time in the Asheville market; do you think that number will go down or up with the spring selling season approaching?

I'm truly hoping for an economic turn around but it has to be based on fundamentals not Fed or Gov't stimulus. For every dollar the gov't is spending currently we're getting about 0.40 of growth. How long can we keep digging that hole? What industry will pull us out of this? Where is our competitive advantage in the global market place? Can we continue to eliminate the middle class by outsourcing and offshoring jobs and still expect a rising standard of living in the US?

Asheville is not an isolated island. We have built an economic house on a foundation of sand in this region.

Edit: Sorry for the rant. I don't want to sit here and right a multi-page discourse on everything wrong with that last post. Yes just what we need more inflation in necessities such as housing. Jesus.

Interesting .... an article this morning from CNN Money regarding mortgage rates hitting 5%. Here is an excerpt:

Housing markets: Best recovery bets
"The interest rate is not the key issue for buyers," he said. "Increases do not produce a huge deterrent."
For one thing, prices tend to decline a bit in response to higher rates, which offsets some of the increase. For another, most buyers could absorb the additional $29 per month that the recent interest rate jump would produce.

Here is the entire article: They're back! 5% mortgages - Feb. 10, 2011

[jstubbspt]

Higher mortgage rates + tighter lending standards + 17 month and growing housing supply in the Asheville area = lower prices. Show me a real organic recovery in the overall economy and I'll price in the bottom of the housing market a year or two from there.

I'm an odd duck I guess, give me a lower principal with a higher interest rate vs. an overinflated price which I can only afford with an exotic loan (I mean because that worked out so well for the Real Estate and Mortgage industries before).

[Xenah]

FASCINATING THREAD!

I thank all of you for sharing your insights. I sincerely appreciate WNC posters' civility towards different viewpoints.