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What Housing Bubble?

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Stagnant and beginning to drop. Not intending to sell for about 10 years though so I don't care.

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The housing market is stagnant in Mpls/St. Paul and suburbs. Prices down only a percent or so, but numerous homes on the market for 3+ months. My buddy who lives in a nice suburb has a had a vacant house beside him for nearly a year. Inner city Minneapolis has had severe housing problems. Numerous vacant houses serving as nothing more than gang hideouts and drug squatting dives.

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We're seeing houses on the market longer and a lot more of them. Prices haven't started dropping right but if this continues, they will.

 

I live out in the Bethany area and I am not seeing the slowdown in Portland market you are. Houses are still moving within a month or two unless they are just ridiculously overpriced.

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We're seeing houses on the market longer and a lot more of them. Prices haven't started dropping right but if this continues, they will.

 

 

thats what were seeing here too. its seems like people are too stubborn to drop the prices so the house stays on the market for a long time.

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house across street was for sale 3 days

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How does your average schmuck even afford a mortgage on something like that. :D

 

The average schmuck goes to a sub-prime lender, which is a bank that doesn't care what your credit rating or income is. The sub-prime lender gives the average schmuck all the money he wants whether he can make his payments or not. Then the schmuck realizes that he can't make his $3000 a month mortgage payment on his salary at Burger King and stops paying the sub-prime lender. Then the sub-prime lender goes BANKRUPT:

 

http://finance.yahoo.com/q?s=NEWCQ.PK

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Prices down here in South Florida have dropped quite a bit in the last couple of years. Palm Beach county is posting roughly 50-100 new foreclosure cases per day. Broward is a little worse but not much. The wife and I are thinking about moving out to a larger house with an actual yard since the prices of the houses are so low right now.

 

A house near my brother-in-law's place in the next town over from us was first put on sale for around $500K. Was for sale for more than a year. Last we checked the price was down to $325K. Not sure if someone bought it yet but the for sale sign is gone.

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Prices down here in South Florida have dropped quite a bit in the last couple of years. Palm Beach county is posting roughly 50-100 new foreclosure cases per day. Broward is a little worse but not much. The wife and I are thinking about moving out to a larger house with an actual yard since the prices of the houses are so low right now.

 

A house near my brother-in-law's place in the next town over from us was first put on sale for around $500K. Was for sale for more than a year. Last we checked the price was down to $325K. Not sure if someone bought it yet but the for sale sign is gone.

Is Florida a special case? I have heard that the retiree influx is much reduced because of hurricane fears plus the insurance problems associated with that. This might be feeding a price collapse in addition to the problems with sub-primes, etc, etc.

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Is Florida a special case? I have heard that the retiree influx is much reduced because of hurricane fears plus the insurance problems associated with that. This might be feeding a price collapse in addition to the problems with sub-primes, etc, etc.

there also saying the midwest could see a hugh slump in 10-15 years as the older leaches retire and move south to the wasteland of the desert...

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there also saying the midwest could see a hugh slump in 10-15 years as the older leaches retire and move south to the wasteland of the desert...

F'n wonderful. This leech is heading south in ten years time. I was hoping to sell the family shack for profit. :D

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There's a new coal-fired power plant being sited here, too.

 

Thats Detroit, always ahead of the curve. :D

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How does your average schmuck even afford a mortgage on something like that. :D

 

Get an interest only loan. WHen that period ends, lose home and have even worse credit. Luckily my wife and I got in a littlebefore prices really exploded.

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Get an interest only loan. When that period ends, lose home and have even worse credit. Luckily my wife and I got in a littlebefore prices really exploded.

The interest only loan is just going to kill people in the next couple of years. When we bought, we avoided it like the plague even though it was being pushed hard by a lot of lenders. These folks paying 1K per month on their interest only are gonna get hit big time when their monthly nut triples overnight.

 

Right now in the DC area things are stagnant to falling. High end construction (1 mil plus) has pretty much stopped and with only entry level stuff (300k condos, 400-500k towhouses and single family's) still being built. The wife and I would like to get out of the area but we're gonna have to wait until this thing is over.

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Actually most interest only loans have a 10 year period followed by a 20 year P&I...the loans that are going to be affecting everyone are the ARM's and the sub-prime deals that had a 2 year fixed period...

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The interest only loan is just going to kill people in the next couple of years. When we bought, we avoided it like the plague even though it was being pushed hard by a lot of lenders. These folks paying 1K per month on their interest only are gonna get hit big time when their monthly nut triples overnight.

Already happening in Minny. Not only did a boatload of people get sub-primes, now being defaulted in the thousands, many more went ARM or interest only and way overbought. Those folks are now joining the rapidly increasing foreclosure brigade as the adjustment kicks in to double their payment or more.

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Also, far too many people have pissed away their equity, so they are upside down, making a move much more difficult.

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Thats Detroit, always ahead of the curve. :D

actually, "clean" coal is making a comeback

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I'm just glad I am not in that situation. Took a 30-year fixed, and we refused to be talked into buying more home than we could afford. We still spent more than we initially wanted, but after studying the areas we could live in for what we wanted to spend, we decided to be willing to pay more to get into a decent neighborhood in one of the better school system's in the area. Of course, now that we have two children, we are realizing that we need a larger house sooner than later, but hard to give up the yard we have. We're considering adding on to the house, but, we've been noicing lately that quite a few of the houses in our area that didn't sell right away have been rented out.... to less than desireable neighbors. Nothing wrong with them other than having twelve people living in a house, 7 cars to each house, etc.

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we've been noicing lately that quite a few of the houses in our area that didn't sell right away have been rented out.... to less than desireable neighbors. Nothing wrong with them other than having twelve people living in a house, 7 cars to each house, etc.

check your housing codes--that might not be legal

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Thats Detroit, always ahead of the curve. :D

Well, what exactly do you want? Midland already has a gas-fired co-gen plant that burns so much natural gas that people can't heat their homes affordably in the winter... and natural gas is still a hydrocarbon last time I checked, so it's still contributing CO2. The co-gen plant was supposed to be a nuke, but apparently that isn't acceptable, either. Hydroelectric disrupts river ecosystems, and wind/solar isn't viable in most of the country, let alone Michigan. Since we haven't yet perfected the technology to convert snow and lazy, out-of-work union workers into electricity, I fail to see what alternative you're proposing.

Edited by Dr. Love

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Actually most interest only loans have a 10 year period followed by a 20 year P&I

 

If the guy answers the phone, I will be presenting one of these as my first loan, tonight.

 

Here, in Delaware, the headline in today's paper was that in June, the single month foreclosure record was smashed by 20%. :D

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I'm just glad I am not in that situation. Took a 30-year fixed, and we refused to be talked into buying more home than we could afford. We still spent more than we initially wanted, but after studying the areas we could live in for what we wanted to spend, we decided to be willing to pay more to get into a decent neighborhood in one of the better school system's in the area. Of course, now that we have two children, we are realizing that we need a larger house sooner than later, but hard to give up the yard we have. We're considering adding on to the house, but, we've been noicing lately that quite a few of the houses in our area that didn't sell right away have been rented out.... to less than desireable neighbors. Nothing wrong with them other than having twelve people living in a house, 7 cars to each house, etc.

This is the key. When I bought my first house, I ran the numbers and came up with a "max" that I could borrow for a home. When I went to the bank, they did the same thing and came up with a number that was over double what I came up with! How dumb do you have to be to spend 75% of your take-home pay on one bill?

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Here in NYC the housing market will never stagger. To many people and little real estate.

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My little corner of L.A. County (San Gabriel Valley, incl Pasadena,) has been flat or slightly + for about a year, but its hit or miss depending on the exact neighborhood. People will always pay to get into the best streets/schools....

Edited by Coffeeman

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