Where will Real Estate Bottom?

[Toro]

Housing should be in balance by 2013 or 2014.

 

[loosecannon]

Government has burned the free market for mortgage money to the ground, with higher capital reserve requirements and free money from the Fed for banks to play with in the stock market.

There is no upside for banks to make home loans.

I am talking about investors buying up distressed properties and supporting prices before they cave another 20%-80%.

I am talking about the decline of personal home ownership and the growth of a rental RE market.

The banks have little to do with that.

 

[Revere]

Government has burned the free market for mortgage money to the ground, with higher capital reserve requirements and free money from the Fed for banks to play with in the stock market.

There is no upside for banks to make home loans.

I am talking about investors buying up distressed properties and supporting prices before they cave another 20%-80%.

I am talking about the decline of personal home ownership and the growth of a rental RE market.

The banks have little to do with that.

You're talking about a cash market (investors) and nobody for them to sell them to (home buyers who can't get mortgages).

The rental market is not going to save the housing market.

 

[loosecannon]

Government has burned the free market for mortgage money to the ground, with higher capital reserve requirements and free money from the Fed for banks to play with in the stock market.

There is no upside for banks to make home loans.

I am talking about investors buying up distressed properties and supporting prices before they cave another 20%-80%.

I am talking about the decline of personal home ownership and the growth of a rental RE market.

The banks have little to do with that.

You're talking about a cash market (investors) and nobody for them to sell them to (home buyers who can't get mortgages).

The rental market is not going to save the housing market.

watch and learn, grasshopper. In 10-20 years I will be proven correct. You may see decisive evidence just in our home ownership stats within another year or two.

But that is hard to sort out since so many unemployed and evicted folks are living with family.

But Americans will not be a nation of homeowners ever again. It's over. The rental market is the future. It's about investments and not credit scores. Mark my words. I won't be wrong.

 

[GWV5903]

I hate to burst your bubble, but there are roughly 161.2 million more people in the USA who own a home than in Germany, thats 63% vs 42%, I would venture to guess that cost is the number one factor....

well, whatever you call a "house". I´ve seen these cheap plank shacks standing everywhere between kansas city and vegas when i visited your country.

We just love quality here. And that has always its price. The new heat insulation rules and regulations are very strict but we take our responsibility to sink our CO2 emission. In addition, here are living 350 people on a square mile. In the US, it´s only 45 people on a square mile. We have to live more close here but it works fine. Single-Family houses aren´t this wise when you have to pack 82M people (what´s a quater of the us citizens) on 360K square kilometres (whats 1/26 of the plain of the us) .

Look, no offense, just the simple facts, more Americans own homes than Germans....

The IRC (International Residential Code) is what most states, county's and municipalities require today and have for over a decade and I doubt your requirements exceed it....

The mentality that only a few should have the ability to own is beyond stupid....

 

[Revere]

I hate to burst your bubble, but there are roughly 161.2 million more people in the USA who own a home than in Germany, thats 63% vs 42%, I would venture to guess that cost is the number one factor....

well, whatever you call a "house". I´ve seen these cheap plank shacks standing everywhere between kansas city and vegas when i visited your country.

We just love quality here. And that has always its price. The new heat insulation rules and regulations are very strict but we take our responsibility to sink our CO2 emission. In addition, here are living 350 people on a square mile. In the US, it´s only 45 people on a square mile. We have to live more close here but it works fine. Single-Family houses aren´t this wise when you have to pack 82M people (what´s a quater of the us citizens) on 360K square kilometres (whats 1/26 of the plain of the us) .

Look, no offense, just the simple facts, more Americans own homes than Germans....

The IRC (International Residential Code) is what most states, county's and municipalities require today and have for over a decade and I doubt your requirements exceed it....

The mentality that only a few should have the ability to own is beyond stupid....

Isn't that a laugh? That Americans will be content to be lower middle class renters, like the Europeans?

 

[Zander]

I am talking about investors buying up distressed properties and supporting prices before they cave another 20%-80%.

I am talking about the decline of personal home ownership and the growth of a rental RE market.

The banks have little to do with that.

You're talking about a cash market (investors) and nobody for them to sell them to (home buyers who can't get mortgages).

The rental market is not going to save the housing market.

watch and learn, grasshopper. In 10-20 years I will be proven correct. You may see decisive evidence just in our home ownership stats within another year or two.

But that is hard to sort out since so many unemployed and evicted folks are living with family.

But Americans will not be a nation of homeowners ever again. It's over. The rental market is the future. It's about investments and not credit scores. Mark my words. I won't be wrong.

I disagree. People want to own their own homes and always will. It has very little to do with selling and flipping houses, or investing- it is about the financial and emotional benefits of owning a home free and clear. It is about being able to do with your property as you see fit - without getting some "landlord's" approval. You'll never change the basic human instinct to want to own our own piece of land. It is a wonderful thing when there is no rent, or mortgage to pay.

 

[GWV5903]

Well that was fuckin' uncalled for, ya jerk.

Not really. This jerk has posted here around 70 times - every one of his/er/it's posts have something negative to say about the USA. Fuck him/her/it. He/her/it is nothing but a troll. Probably not even German.....

We have a word here: "Wenn America hustet, bekommen wir eine Lungenentzündung"

"If the usa makes a cough, we get an infection of the lungs."

The things in your country are going bad in every way. Pollution, education, poverty, criminality, employment and so on. Because this, it can´t be equal to us, what happpens in your country.

All that I trie to tell you is, that this hasn´t to be, if you twist a little bit your attitude. The concepts that made you big are gone. you´ve lost them somewhere. There are other ways to handle problems and every problems got it´s solution. But first of all, you have to open your eyes and accept reality.[/QUOTE]

Reality?? Oh you're going down the wrong path buddy....

I would be happy to keep our troops home, stay out of the ME, lets see how long the EU would survive? If you think what you pay today for gas is bad, let the ME go to hell and see the Russians hold your ass to the fire....

You need us and you hate that you have to admit it....

Wake up buddy, we have created a better environment for all in less time than any European nation....

 

[william the wie]

Housing should be in balance by 2013 or 2014.

I know why I agree with you but why did you choose those dates?

 

[GWV5903]

I am talking about investors buying up distressed properties and supporting prices before they cave another 20%-80%.

I am talking about the decline of personal home ownership and the growth of a rental RE market.

The banks have little to do with that.

You're talking about a cash market (investors) and nobody for them to sell them to (home buyers who can't get mortgages).

The rental market is not going to save the housing market.

watch and learn, grasshopper. In 10-20 years I will be proven correct. You may see decisive evidence just in our home ownership stats within another year or two.

But that is hard to sort out since so many unemployed and evicted folks are living with family.

But Americans will not be a nation of homeowners ever again. It's over. The rental market is the future. It's about investments and not credit scores. Mark my words. I won't be wrong.

The cycle says your wrong, it will not take 10 to 20 years to prove it.....

 

[loosecannon]

Isn't that a laugh? That Americans will be content to be lower middle class renters, like the Europeans?

Isn't that a laugh?

the top 1% of households account for
40% of financial net worth, more than the bottom 95% of households put together.

Citigroup Oct 16, 2005 Plutonomy Report Part 1

In ten more years, as this trend evolves, the richest 1% will own your dick and will charge you to use it.

Isn't that a laugh?

 

[loosecannon]

The cycle says your wrong, it will not take 10 to 20 years to prove it.....

I know, I was being conservative.

 

[loosecannon]

I disagree. People want to own their own homes and always will. It has very little to do with selling and flipping houses, or investing- it is about the financial and emotional benefits of owning a home free and clear. It is about being able to do with your property as you see fit - without getting some "landlord's" approval. You'll never change the basic human instinct to want to own our own piece of land. It is a wonderful thing when there is no rent, or mortgage to pay.

I didn't say that Americans wouldn't want to own their own homes but they won't be able to afford it.

The top 1-5% will own everything. Even your children's DNA* and organs.

(*they already own your children's DNA)

 

[GWV5903]

The cycle says your wrong, it will not take 10 to 20 years to prove it.....

I know, I was being conservative.

They said the same thing in the '80's with the S&L crisis, it happened again...

 

[william the wie]

I disagree. People want to own their own homes and always will. It has very little to do with selling and flipping houses, or investing- it is about the financial and emotional benefits of owning a home free and clear. It is about being able to do with your property as you see fit - without getting some "landlord's" approval. You'll never change the basic human instinct to want to own our own piece of land. It is a wonderful thing when there is no rent, or mortgage to pay.

I think LC is working his courage up for a scary but high percentage move. Like buying when there is blood in the streets there are many moves that you know are low risk but you may have to change pants a couple of times before you can pull the trigger. So I would ignore the nervous hyperbole we all get it to some extent but a 20-25 year decline in homeownership after the 1926 crash did happen.

The Flamingo casino famously opened late because of construction shortages that lasted until 1950. Between a lack of construction workers and other infrastructure home ownership did not rise to 1925-6 percentages until the mid 50s for most of the country. A lot of people will be scared to buy for a very long time.

 

[loosecannon]

I disagree. People want to own their own homes and always will. It has very little to do with selling and flipping houses, or investing- it is about the financial and emotional benefits of owning a home free and clear. It is about being able to do with your property as you see fit - without getting some "landlord's" approval. You'll never change the basic human instinct to want to own our own piece of land. It is a wonderful thing when there is no rent, or mortgage to pay.

I think LC is working his courage up for a scary but high percentage move. Like buying when there is blood in the streets there are many moves that you know are low risk but you may have to change pants a couple of times before you can pull the trigger. So I would ignore the nervous hyperbole we all get it to some extent but a 20-25 year decline in homeownership after the 1926 crash did happen.

The Flamingo casino famously opened late because of construction shortages that lasted until 1950. Between a lack of construction workers and other infrastructure home ownership did not rise to 1925-6 percentages until the mid 50s for most of the country. A lot of people will be scared to buy for a very long time.

VA, VHA loans are responsible for most of the trend reversal. As well as the formation of the Fannies, Freddies and Sallies. Recessions eat the poor, booms enrich the rich.

 

[william the wie]

Not balance sheet downturns, they illustrate the quick way to become a millionaire, start out as a billionaire. While that affects the first generation rich mostly, the old rich multiply until they fade back into the population. The average American with at least one British ancestor can trace his/her ancestry back to Henry III of England and most to far more recent British kings. Likewise virtually all of Japan is a cadet member of the imperial clan. But the ones in both cases who avoid inbred idiocy tend to stay discreetly wealthy. Those poorly known folks come out of the woodwork when the economy hits bottom in balance sheet downturns to buy distressed properties. The Astors for example still own most of NYC and only rent out the land.

 

[mah127]

[ame="http://www.youtube.com/watch?v=GbM2In5Hfx4"]http://www.youtube.com/watch?v=GbM2In5Hfx4[/ame]

70 to 100 years ago it was the norm to build your own house without borrowing money. The problem today is that our greedy government and corporations have designed our cities and told us what we can and cannot build. We then get stuck with a huge mortgage paying for the house 2 to 5 times over. The interest traps us and many people get caught up.

Why don't people go back to what we did in earlier times and build our own homes? I have been researching alternative homes that include cob, straw bale, rammed earth, etc. Many people in the United States and Canada wised up, left the cities, and built their own homes. They ranged from 10.00 to 50.00 sqft. It depended on what people where building and if they took the time to find their supplies.

Just a thought that I wanted to put out there.

 

[iamwhatiseem]

Jesus...I hope this is wrong.

Home prices may fall by up to 25 percent: economist | Reuters

 

[Toronado3800]

My. Were they that over inflated? Interest rates are as liw niw as ever so that isnt to blame. Our poor population growth relative to number of houses and tendency to ship our $20's to China one DVD player at a time nust be the cause.