Real Estate Article

[jaydub]

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jaydub,

Go ahead and be rude if you'd like, just make sure you explain everything in layman's.

dcifr,

Maybe I'll re-read it. I remember reading the article when I was tired. I know absolutely nothing about real estate, sorry. I guess I'm a moron.

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In layman's terms, RE is crapping the bed. Even the numbers provided by those with a vested interest are ugly. Homebuilders are slashing prices while homeowners watch paper money burn. It may be spreading to non RE which is what is the most interesting question. Do we hit a depression? Recession has been conceded.

This is relevant to major cities excepting NYC's bizarro-verse. I could give two [censored] about any further posters experiences in bum [censored] iowa or some random college town.

I cut down the snarky but will say, if you do not understand the article make zero RE moves in the next few years.

J

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lol, someone likes to pretend they know more than they really do

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Umm, guessing from the undertitle does someone have a deeply vested financial interest? Care to provide any content or are you smugly satisfied with derision?

Soss,

Levelling with the book cover?

J

[icetonez]

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Soss,

Levelling with the book cover?

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The Amazon reviews were ugly.

[Reef]

http://money.cnn.com/2007/04/11/news...ices/index.htm

Real estate group sees 0.7% decline in 2007, first annual drop since it began keeping track.

[Reef]

http://www.sun-sentinel.com/news/local/b...oll=patrick.net

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At the end of May, Broward had more than 47,500 homes and condominiums on the market, according to the Miami-based Keyes Co. That's up 27 percent from a year ago. At the current sales pace, it would take about seven years to sell all those properties.

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[jedi]

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Keep us up to date Jedi! Good luck.

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Since I'm new to this forum, I guess I'll give you the background. This has all happened really quickly. I currently own and live in a 4 bedroom house, all alone. I bought the place in 1999. It has now appreciated 2.5x what I bought it for. Over the last few months, I had been thinking about buying another place, moving into that place, and renting out my house. Prices still seemed too high for me (I live in San Diego County) so it was little more than a back of the mind thought.

Monday night, I looked at real-estate listings and saw a bank repo'd place that I had looked at before. The price had come down substantially (like $40K) because it had been on the market for a while and there were no takers. I quickly called my real-estate agent (the FIL of my college roommate who helped me get the first house) and we went to look at the place Tuesday afternoon and put down an offer. I'm in the process of moving money around for a down payment, but I also have stock options which can pay for the down payment alone (Go company!).

Since I live alone, I need little more than a bedroom and office. The biggest problem for me will be getting rid of the junk that I've accumulated for a while. Plus the fact that I know little about renting out my own place. I think I might want to hire a property manager, because the x% that I'll have to pay him is a good tradeoff for the headaches I might get in running the place myself.

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Update. We're going to close on the condo soon (maybe end of this week). There are a few problems with it, fixable ones, but the bank refuses to fix it or give me any credit back since they're "selling the place for $30K less than market value" already. Not a problem. It's really minor problems that can be fixed later. I just need to move out, fix up the original place and get it rented out. I was thinking about using a property manager. He said that he'll charge 7% of rent to perform the services.

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http://www.abcmoney.co.uk/news/022007112712.htm

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In a notice distributed Tuesday, Wells Fargo informed mortgage brokers that it is curtailing its exposure to so-called "alt-A" home loans - a product that typically doesn't require borrowers to fully document their incomes.

The decision comes just a few days after Wells Fargo pulled out of the risky business of relying on brokers to finance "subprime" home loans for borrowers with bad credit records.

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[Reef]

http://money.cnn.com/2007/07/31/news...ion=2007073115

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American Home Mortgage's survival in doubt. Shares crumble 90% after troubled prime mortgage lender said it may liquidate, retains investment banks to help it consider options.

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[Reef]

http://www.marketwatch.com/news/story/ec...dist=TNMostRead

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* Home prices will fall 10% from the peak nationally, more in the bubble regions in California, Florida, Nevada, Arizona and Washington, D.C.
* Home sales could bottom later this year, home construction could bottom early next year, and house prices could bottom late next year. It'll be 2010 before the housing market could be termed "normal."
* About 17% of total mortgage debt is at risk, totaling about $2.5 trillion in subprime, Alt-A and jumbo debt. About $1.4 trillion is at serious risk of default. Investors will lose about $113 billion as $460 billion worth of mortgages default.
* About 20% of the subprime loans written in the last half of 2006 will fail, with the peak of the defaults not coming until 2011. A "significant number" of these borrowers never made a single payment.
* More than 2.5 million first mortgages will default this year and next year. Subprime borrowers will experience significant financial distress.
* The U.S. economy will grow less than 3% annualized through the middle of 2009. A healthy job market should prevent a recession, although the jobless rate will likely rise to 5% from 4.5% by the end of the year.
* Consumer spending has already slowed and will slow further.

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[Reef]

bloomberg money video - worth watching

[The once and future king]

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Barron,

The economy as a whole of course. I really, really hope it stays at a mild recession but the recent impact on retail does not bode well.

J

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i forgot to get back to this, but i obviously doubt very highly we are going into a recession.

care to make a wager about it?

Barron

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You still taking offers on this, I will do an avatar bet.