Comments on: Is There Any Good News For Real Estate? http://blownmortgage.com/2009/01/28/is-there-any-good-news-for-real-estate/ #1 Free Home Loan Modification & Debt Relief Help For US Home Owners - Truths, Facts & News About the Mortgage Industry Sat, 07 Nov 2009 02:53:18 -0700 http://wordpress.org/?v=2.8.3 hourly 1 By: Trægulve http://blownmortgage.com/2009/01/28/is-there-any-good-news-for-real-estate/comment-page-1/#comment-38630 Trægulve Tue, 31 Mar 2009 04:31:52 +0000 http://blownmortgage.com/?p=2193#comment-38630 news is news even if it is Good or Bad news is news even if it is Good or Bad

]]> By: Bruce http://blownmortgage.com/2009/01/28/is-there-any-good-news-for-real-estate/comment-page-1/#comment-14300 Bruce Fri, 30 Jan 2009 06:50:37 +0000 http://blownmortgage.com/?p=2193#comment-14300 Your last commentator makes some valid points and from what I hear there is still some way before your market reaches the bottom. Our market here in NZ seems to be following the same route as the US (only a year or so behind) with an home affordability reaching levels out of reach of most first home buyers coupled with high interest rates. The rates are starting to come down now but house sales have fallen by a half and prices look to have some way to go also. Nice blog. Your last commentator makes some valid points and from what I hear there is still some way before your market reaches the bottom. Our market here in NZ seems to be following the same route as the US (only a year or so behind) with an home affordability reaching levels out of reach of most first home buyers coupled with high interest rates. The rates are starting to come down now but house sales have fallen by a half and prices look to have some way to go also. Nice blog.

]]> By: westwest888 http://blownmortgage.com/2009/01/28/is-there-any-good-news-for-real-estate/comment-page-1/#comment-14295 westwest888 Wed, 28 Jan 2009 23:04:22 +0000 http://blownmortgage.com/?p=2193#comment-14295 I disagree, because the floor for housing is very well defined. Just like stocks, homes are subject to valuation techniques. 3x the income of the person who would live in the house, maximum. 120x monthly rent, maximum. The house if rented has to have positive cash flow _without_ claiming the home as a primary residence for a tax benefit, no "pro forma" analysis (include a repair and LT renvoation budget), budget for property tax going up and rent deflating or vacancies (especially in this climate).<br><br>So figure out the valuation (hint it's 35% lower than where we are now on average for the top 20 cities and I'm not talking about Vegas I'm talking about Boston, New York, and most of California). Then figure out what the over correction point is. The biggest housing bubble in human history will be following by the biggest over correction in human history.<br><br>I'll go ahead and posit that Detriot is a microcosm of where most of the US will end up. Houses are selling for four and five figure amounts because it's cheaper to rent. There are more houses than there are people. And the tax burden is too high. As every state and county tries to fund its pension obligations in an anemic and range bound stock market for the next decade, they will jack up the price of housing so high NO ONE WILL WANT TO OWN. I disagree, because the floor for housing is very well defined. Just like stocks, homes are subject to valuation techniques. 3x the income of the person who would live in the house, maximum. 120x monthly rent, maximum. The house if rented has to have positive cash flow _without_ claiming the home as a primary residence for a tax benefit, no “pro forma” analysis (include a repair and LT renvoation budget), budget for property tax going up and rent deflating or vacancies (especially in this climate).

So figure out the valuation (hint it's 35% lower than where we are now on average for the top 20 cities and I'm not talking about Vegas I'm talking about Boston, New York, and most of California). Then figure out what the over correction point is. The biggest housing bubble in human history will be following by the biggest over correction in human history.

I'll go ahead and posit that Detriot is a microcosm of where most of the US will end up. Houses are selling for four and five figure amounts because it's cheaper to rent. There are more houses than there are people. And the tax burden is too high. As every state and county tries to fund its pension obligations in an anemic and range bound stock market for the next decade, they will jack up the price of housing so high NO ONE WILL WANT TO OWN.

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