Comments on: The Housing Market: Is It Really Getting Better?

By: Deman

Deman — Thu, 05 Jul 2012 12:56:11 +0000

Oh forgot to mention those folks whose 7/1 option ARM just matured and whose payments just doubled and tripled for those who choose option #4 negative amortization. My associate just put his 4800 sq/ft 890K home (in 2006, now worth some where in 500K range) up for rent to help cover their new baloon payment of full principle and full interest on his new balance of well over 900K for the remaining 23 years of the loan. I just dodged a billet because I was fooled by the so call expert who said we have bottomed once again. I placed a 279K offer on a home where the owner could not come down on his 295K list price. Good thing the offer was rejected because in the last two month, five other homes in the same neighbor went up for sale, three even larger for 30K to 70K less. Thank God once again I used common cense and walked away.

By: Deman

Deman — Thu, 05 Jul 2012 12:23:33 +0000

The truth is in the numbers. The average American has only 5K in their retirement, credit card debt is close to 20 trillion and rising, and student loan debt is even more than credit card. Everyone I know is getting by only day to day

By: Chris G

Chris G — Sat, 30 Jun 2012 00:54:28 +0000

John,
Your comment is to Jared not me, right? I’m not optimistic by any stretch of the imagination.

By: John Bennett

John Bennett — Fri, 29 Jun 2012 21:14:21 +0000

Your optimism here ignores the fact that foreclosures have largely been on hold as the documentation has been shown to be highly questionable if not fraudulent. The banks and mortgage holders have been reluctant to proceed as their chances of success has been questionable. That will change at some point and an avalanche of for-sales will turn prices around.

By: Chris G

Chris G — Fri, 29 Jun 2012 02:53:26 +0000

Okay, here’s what I see as an issue down the road – and my view is undoubtedly colored by the fact that we live in the Boston suburbs where housing prices went nuts during the boom and have remained relatively high – unless the jobs picture picks up, how is housing not going to tank again? You need a good-paying job (or two) to cover mortgage payments. Isn’t one effect of income inequality that there won’t be sufficient customers to buy all the high-priced homes on the market? People who are broke can’t afford much of a mortgage payment.

That said, I have done a little research on the relationship between sale price and number of days on the market. They’re anti-correlated, i.e., the lower-priced homes stay on the market longer. (Well, the anti-correlation holds to a point. If the prices drops to $350k or below then they tend to get bought by developers who tear them down and build a McMansion in its place. Anyhow, that’s some info from the field.) In general, stuff that gets listed for $400-500k stays on the market considerably longer than homes in the $700-800k range. This suggests to me that the lower-upper and upper-upper-middle classes are doing better than the middle and upper-middle classes in this neck of the woods.