As house prices double dip, pundits debate how low it will go

Mar 12th, 2011  
by IrvineRenter  in Library News

Astute Observations

Astute Observation by Vincenzo
2011-03-12 01:53 PM

A big question is:
Where will home buyers find private investors who will give them mortgages at the current low interest rate?

Why would I give somebody huge money at the fixed rate for 30 years? At any moment, this person can quit paying and leave with an undervalued property. He will also sue me if I don’t want to renegotiate his payments.

The government wants to quit from the housing market. Good luck finding private investors.
That will lower house prices substantially.

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Astute Observation by Pez Dispenser
2011-03-12 02:53 PM

http://huntingtonhomes.ocregister.com/2011/02/02/trashed-h-b-house-on-good-morning-america/127042/

House trashed by former “owner” back on the market.  These people should do some serious time for this type of destructive behavior.

Hopefully you haven’t had anything like this occur in Vegas, IR.

http://www.redfin.com/CA/Huntington-Beach/6581-Radcliff-Cir-92648/home/3547883

Looks like a lot of work was done on it after the “owners” left, but there is still a ton of work to do.

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Astute Observation by Vincenzo
2011-03-12 09:01 PM

The video tells us that the homeowners left the house in the tip-top condition.

Then somebody, the announcer hints at the ex-homeowners, came inside and opened water faucets causing serious damage.

Well, I’ve been to foreclosed houses. They are usually not locked, every realtor can get inside, and vandals too.

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Astute Observation by Pez Dispenser
2011-03-13 09:32 AM

I’ll start by saying I don’t know the former owners, but the commentary from those leaving comments and the links they share don’t paint this guy in a very kind light. The bankruptcy court’s opinion that is linked is especially scathing of that guy.

Not to mention that this is a GATED neighborhood.

I think all signs point to this being the former owner rather than a vandal.

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Astute Observation by Vincenzo
2011-03-13 12:01 PM

If you leave a house empty, without any inhabitants for a year, vandals will come inside for sure.

Try to leave a bicycle unlocked in a gated community. It’ll be gone. There are always gardeners, cleaners, etc.

That’s why banks allow owners to squat to make houses inhabitable.

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Astute Observation by Pez Dispenser
2011-03-14 06:50 AM

I seem to have touched a nerve, Vincenzo.  My apologies if you know this person and are aware of the facts indicating this was vandals.  I would be interested in hearing more about the situation from someone with inside knowledge.

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Astute Observation by Vincenzo
2011-03-14 10:13 AM

My friends have bought a foreclosed house.
It certainly was in a better condition, but some appliances and the AC were missing.

Also, if a house is going into foreclosure, the owner won’t fix the leaking roof, etc.

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Astute Observation by just some guy
2011-03-13 01:07 AM

The same message has been repeated over and over in recent months:
if you plan to stay in the house for at least 7-10 years, then you will be fine.

However, given how trashed the CA economy is right now coupled with the budget crisis, how confident can any of us be with our jobs/salaries being the same 7-10 years from now?

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Astute Observation by David
2011-03-13 10:15 AM

People in positions like Yun, Bernankee, ... will never have the guts to tell us the truth of what they really think. They always say something positive hoping to calm ans instill some confidence of the would-be buyers in the market. If you listen to them for advice you will always see the world in pink. To me they are just comedians in their fields. They say what they need to say, not what they themselves believe.

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Astute Observation by lunatic fringe
2011-03-14 11:22 AM

I must have missed the memo… Why do we think the economy is improving?

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Astute Observation by matt138
2011-03-14 02:56 PM

I missed that memo too…

0% interest rates and a plethora of government subsidy creating massive economic distortion in capital flows

Currency backed by taxpayer ability to service debt

POMO monetization of debt through primary dealer banks

3 decades of declining interest rates

USA on an ARM

meh. what could go wrong?

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Astute Observation by BD
2011-03-14 06:06 PM

Exactly…what could the harm be to have the whole country finance $14Trillion dollars in debt in 2,5,and 10s?  US on an ARM…what possibly bad could happen? 

Just remember before the gov allows people to starve in the streets they will raise taxes and ‘means test’ all people that make any kind of money.  Higher taxes, downpayments, rates and much lower mortgage interest deductions are ahead…  Doesn’t matter if the libs or conservs are in power - we have past the point of be able to control our own future.  We can’t turn fast enough now to avoid the iceberg.  Just a matter of how we control the damage and it doesn’t look good. 

This is exactly why Japan has stagnated for 30 years.  Imagine your property being worth the same a decade from now… ?  That is a real possibility. 

B

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Astute Observation by BD
2011-03-14 06:10 PM

IMHO…everything bought with borrowed money will decline in value for as long as rates rise (for as long as we can currently see into the future currently). 

This is the only way to keep the cost of ownership the same….  just run the math - see how much your 700K house is at the same monthly payment when you borrow at 7,8,9+ percent.  Yowza… 

B

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Astute Observation by Jon
2011-03-15 03:27 AM

In your example of “Cost of Ownership” for 122 Streamwood Drive you list the income requirement for the estimated monthly payment of $1038 per month as $26,440 per year…....not even close. According to standard FHA qualifying guidelines a monthly payment of $1038 requires a minimum annual income of $40,180.

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Astute Observation by Ben Dover
2011-03-18 09:26 AM

an entire blog devoted to jealous renters.  Amazing.

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Astute Observation by AZDavidPhx
2011-03-18 09:36 AM

Yep.  Totally jealous.  I can’t tell you how much it sucks to be renting, sitting on 6-figures+ in the bank, zero debt, and an 800 credit score while watching house debtors overpay for houses and spend 50% of their income to live in servitude to banks for 30 years.  The jealousy is just overwhelming at times.

You must be one of those lucky “owners”.  Congratulations.  How does it feel to bend over for your mortgage master?  Do you spit or swallow for them?

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