housing cost back in line with reality

Discussion in 'Economy' started by Truthmatters, Feb 4, 2012.

  1. Truthmatters
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  2. Truthmatters
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    This is part of the reason we are seeing a recovery
     
  3. Ernie S.
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    Ernie S. Platinum Member

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    So you're good with the fact that millions of people are under water on their mortgages and their largest asset is now worth 1/3 of what they paid for it? Why do you hate senior citizens?
    Actually I made out very well as a result of the housing crunch. I bought my current home for 28% of what it sold for in 2006.
    My late father's house, however is rented out now, at least until the market recovers because it's value is roughly that same 28 to 30% of what it was at the peak.
     
  4. percysunshine
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    percysunshine Gold Member

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    Barney Frank was a genius.
     
  5. Truthmatters
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    Now look at the chart and see where it starts its precipious rise.

    Right when Gramm Laech Blialey was implimented.

    Corrections when some fo GLB was implimented.

    The protections written into the laww were not implimented for YEARS
     
  6. percysunshine
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    percysunshine Gold Member

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    In May 2007, Truthmatters joined USMessageboard....and housing prices immediately plummeted. I wonder why.
     
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  7. TakeAStepBack
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    TakeAStepBack Gold Member

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    "The most misleading assumptions are the ones you don’t even know you’re making."
    Douglas Adams

    In this case, important variables go to the wayside in favor of a-priori judgements. The chart "looks" great, though.
     
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  8. editec
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    editec Mr. Forgot-it-All

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  9. Dont Taz Me Bro
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    Dont Taz Me Bro USMB Mod Staff Member Gold Supporting Member Supporting Member

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    I'm not sure it's an issue of being "OK" with it, but the prices should have never run up as high as they did in the first place.

    Actually, I don't think we've seen the bottom yet. I read something about a week ago speculating that prices will continue to fall slightly more in 2012. I may move out west later this year and if I do I'm going to rent first for a year and wait until '13 to buy a place. Meanwhile, I'll have to rent my house here in SC because I am also underwater, but only by about $10 grand, much better off than most.
     
  10. editec
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    editec Mr. Forgot-it-All

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    The ONLY WAY that the median market value of RE is going to start climbing again is if

    1. We have massive INFLATION (then people will rish to buy any REAL assets) or

    2. If the median incomes in the USA starts rising.

    Right now, neither of those events looks likely in the near term.
     

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