A Positive Economic Spin

[Sparky555]

There's an article in the paper today about the rebounding housing market in the area. The usual comparisons I've seen are the sales for the previous year (down 25%). This big rebound was giving a comparison from the previous month. Nice try.

Dave

 

[chris kennedy]

Which paper are you reading?

 

[BryanMD]

ANOTHER example of why **something** in the location space should be required.

People from all over the world let alone all over the US read these comments and just a little hint like the common two letter abbreviation would work wonders.

 

[growler]

Before anyone gets bent out of shape this just my opinion and is backed up by nothing more than gut instinct.

I really don't think there is going to be a rebound in the houseing market, not to the previous levels of building. Things may get back to normal levels of residential building but the bubble has burst and that's the end of that.

The good thing is that there will probably be new bubbles. People are not very smart and will be quick to jump on board with any new money making ideas that come along.

Just be prepared to jump aboard whatever new scheme comes along and ride that for a few years.

 

[Pierre C Belarge]

The good thing is that there will probably be new bubbles. People are not very smart and will be quick to jump on board with any new money making ideas that come along.

Just be prepared to jump aboard whatever new scheme comes along and ride that for a few years.

With the projected population growth, there most likely will be new "bubbles" to look forward to.

The construction industry has always been one of cycles.
It is just that the good cycle we just finished has lasted much longer than previous good cycles.

 

[Sparky555]

ANOTHER example of why **something** in the location space should be required.

People from all over the world let alone all over the US read these comments and just a little hint like the common two letter abbreviation would work wonders.

I'm opting for a little internet privacy, so I'll just say Midwest USA. Good enough Doc?

Dave

 

[BryanMD]

I'm opting for a little internet privacy, so I'll just say Midwest USA. Good enough Doc? Dave

That wasn't directed at you in particular but since you mentioned it "midwest" in the location spot would do great.

re the real estate 'boom' and such the midwest in general has been isolated from most of the bad stuff seen mostly on the coasts.

From a blog in my local paper:
(OFHEO.gov) Office of Federal Housing Enterprise Oversight says home sales prices are down 3.1 percent nationally, the largest drop on record.
Here's the bottom 10:

1. California, down 19 percent
2. Nevada, down 17 percent
3. Florida, down 15 percent
4. Arizona, down 11 percent
5. Michigan, down 8.9 percent
6. New Hampshire, down 5.1 percent
7. Minnesota, down 5 percent
8. Maryland, down 4.8 percent
9. Ohio, down 3.9 percent
10. Virginia, down 3.7 percent

Most places experienced a market driven rise in prices that was NOT related to the value of the properties as shelter and traditional long term home ownership values but rather a speculator and immoral lack of financing oversight.

Now that bird is coming home to roost with tighter (and appropriate) lending requirements for purchasers and an also appropriate reduction in the price that a house will actually sell at.

In another thread I mentioned that we recently sold the family house and did it quickly (maybe too quickly) by pricing the property at a fair level but one that was a 10-15% less than it would have sold for back at the peak here (late 2005 to mid 2006).

 

[e57]

1. California, down 19 percent

Big state with a lot of regions. Even regions within regions. SF has not gone down by much - depending on where in the city you are - some went up..... Some see it as "a chance to buy". There are a few other cities that are similar.

And rather than continuing the nay-saying with words like depression and recession, popping bubbles and doom and gloom - a sure way to talk our way into bread lines - look at it as a time to load up on property cheap. So long as you can make ends meet, and it is a property that will one day be desirable - which excludes many of the character-less tract type houses and developments being built.

 

[Sparky555]

To clarify the OP, the 25% drop was in quantity of sales, not price.

Dave

 

[BryanMD]

To clarify the OP, the 25% drop was in quantity of sales, not price.

Ya. I figured so. Folks who have the ability to buy but dont *need* to, are sitting tight until the volatility stabilizes.
(see my last comments)

Big state with a lot of regions. Even regions within regions. SF has not gone down by much - depending on where in the city you are - some went up..... Some see it as "a chance to buy". There are a few other cities that are similar.

Very true. In California most of the problem is in the central valley right along old route 99. (Has everyone read "the Grapes of Wrath"?) hmm...

And rather than continuing the nay-saying with words like depression and recession, popping bubbles and doom and gloom - a sure way to talk our way into bread lines - look at it as a time to load up on property cheap. So long as you can make ends meet, and it is a property that will one day be desirable - which excludes many of the character-less tract type houses and developments being built.

I sold what at one time was my personal home 10/06* and mostly for family reasons I have been sitting on that cash since. But I've been monitoring all sorts of things to gage when I should jump in again; probably as a landlord with a multi.

The problem I'm seeing is "cash flowing" a purchase. The numbers just aren't there yet to be able to "load up on property cheap" as you say. Maybe in your town. Good luck with that.


* I would pay what I sold that property for to buy a similar but in any decent neighborhood that house is 1.5 to 2X the handsome price I got.