Demand was UP because people wholly unqualified to buy had NINA loans to buy houses with.
There WERE more people buying homes, (demand was up) so the prices of homes SHOULD have risen at a faster pace than the norm.
Yes, that is how the market works. Sadly the market's normal checks and balances were distorted by the policy that made it possible for lying bankers and offload their bad debts on trusting BOND BUYERS.
Even when this whole mess is said and done with foreclosures, I would bet that more people bought homes during this period and STILL own them than during previous periods of new homeownership, thus the home prices should have ticked up at a faster pace than the normal pace....?
Yes, that might be one good outcome, I agree. Of course ALL of us will be augmenting payments for those houses for a great long time.
Yet i still hear analysts saying that prices of homes have another 10% drop from their already dropped prices just to get to that "normal" pace in price hikes.....? Why do they have to drop another 10%?
Because the VARS that people signed make it impossible for millions of them to stay in those homes, and because the bail out package doesn't help them one bit, that's why.
Every time these prices fall, it makes more and more people susceptible to foreclosure due to putting them in an UPSIDE DOWN mortgage, making it impossible for even good standing home owners with Adjustable rate mortgages.... NOT being able to refinance their homes in to a conventional mortgage which they were TOLD by the lender, that they would be able to do when their adjustable rate mortgage begins its adjustable stage.
Yes. And as the economy falters, even people who are not in crappy mortgages are going to have to sell their homes (at a loss) too.
We might be in for a very vicious cycle when it comes to to the market value of real estate.
which means that this fiasco will even get worse...
I think you are right.
And it has hurt people like Matt and me, who bought their home cash in late 2006...our home has lost about 30% of it's value since we bought it...which sucks, big time! And we bargained the house down $46k from it's listing price when we bought it...the spiral in value down continues.
It hurt EVERYONE who is a real homeowner, that's for damned sure.
And this is the case with pretty much anyone that bought a house in 2005, 2006, 2007, and 2008.....
Or anyone who owns a home PERIOD.
And anyone that bought a home long previous to this, that refinanced or took equity out of their home to invest in other things, is getting hurt and strapped also, to the home they are in, because they too might be upside down in their mortgages.
Even if they did NOT, they have lost net worth, haven't they?
This bail out should have occured from the bottom up, if it was to occur at all....it would have put all of America in a better position and still SAVED the financial institutions.
Yes, that is correct.
Now ask yourself why they did not do that?
Could it be to keep the middle class poor and desperate, maybe?
Just klike FREE TRADE IS DOING?
Just like allowing millions of illegal immigrants is doing?
Just like unfair TAXATION is doing?
We are in a CLASS WAR, Secrets, make no mistake about that.
And the Masters will win this war because they can systematically parce out enough people, reward just enough people, to keep the system going, as it systematically grind the rest of us into dust.
We are becoming a feudal society, one run
now, not by an oppressive Church, but instead by an oppressive chuch which worships at the alter of MAMMON.
And the best part of this system is we can continue to pretend that our respresenational form of government is in charge, when it is in fact, merely the executive arm (the enforcement arm) of the corrupted system which pretends to be a representational government.
Basically we are like slaves who get to choose which other slave wields the whip on behalf of the MASTER.
