Posted by Bear900/CA on 5/1/13 11:25am
Msg #468038

Will the new Housing Bubble end as bad as the last one?

“Unfortunately, this "housing recovery" is not based on solid economic fundamentals. As you will see below, this is a recovery that is being led by investors. They are paying cash for cheap properties that they believe will appreciate rapidly in the coming years. Meanwhile, the homeownership rate in the United States continues to decline. It is now the lowest that it has been since 1995. There are a couple of reasons for this."

Read on..

http://theeconomiccollapseblog.com/archives/will-the-new-housing-bubble-that-bernanke-is-creating-end-as-badly-as-the-last-one-did

I posted earlier about living in an investor led economy. Msg # 459025

Personal feelings aside, it's good to look at very recent history. Those who don't look at history are ______ __ _______ __.

Reply by ToniK on 5/1/13 11:29am
Msg #468047

I went to a few home builders in my area and they say 95% of homes bought from them are investors.

On Craigslist they out these homes up for rent 2-3x more than current rent in the area.

I guess that's why those property flipping shows are back on tv!!

Reply by Luckydog on 5/1/13 11:33am
Msg #468050

Construction is booming in south Florida, and Condo and townhouses are back in demand. Qualifying for loans is tough, more money down, yet has not affected new sales or construction. Do not see a bubble down here, most foreclosures are sold out to investors, and it seems all property values are rising here. Not sure about any other areas of the state however.

Reply by Bear900/CA on 5/1/13 11:44am
Msg #468061

I'm not a doomsayer. When you have lived through this a couple of times with severe consequences (mid 2000's and late 70's) the reality is becomes more looming.

It's deceiving. There is profit to be made by a few who catch the wave just right and get out in time. Sound familiar? The majority may get caught in another bust. Just be careful.

Condo owners were the first to lose in the last bust.

Definition of a housing bubble:

http://www.businessdictionary.com/definition/housing-bubble.html

Reply by ToniK on 5/1/13 12:58pm
Msg #468082

My husband just bought a condo last year.

Reply by sueharke on 5/1/13 11:56am
Msg #468069

Ah, greed is back! Greed will always get people in trouble and have him or her asking for government help to get out of the situation. Hopefully, the government will not bail out the home flippers when the bubble bursts.

Reply by Stephanie Santiago on 5/1/13 11:39am
Msg #468059

Interesting article. Thank you for adding the link.

Personally, I believe that this will be worst than the last time around; people just do not learn.
Much of the fault lies with the borrowers.
The article was very thought provoking.
While the more loans to conduct by Notary Signing Agents is good for OUR industry, I do not necessarily feel it is good for the economy, as a whole.

Just my opinion here.

Thank you ,
Stephanie Santiago

Reply by 101livescan on 5/1/13 11:55am
Msg #468067

You can certainly feel it coming, at least in my area! Thanks for posting.

Reply by Susan/CA on 5/1/13 9:24pm
Msg #468194

Here in So.Cal. There is low inventory & investors & foreign cash buyers are buying anything the minute it lists. It's sad for first time home buyers who stand little chance beating our these "cash" or huge down payment buyers. Our government really needs to put some regulations on this. It's terrible!

Reply by MW/VA on 5/1/13 1:00pm
Msg #468083

I'm wondering who's responsible for the predictions. I saw

a piece of TV the other day about Wall Street investment cos. (corps.) buying up properties for cash & turning them into rentals. It looks like these guys played both sides of the game. My niece & her fiancé recently bought a home in Phoenix. They had a hard time being beat out on a lot of properties that went to cash deals. From what I saw the other day, it sheds more light on who's doing the buying. Also had a seller deal the other day (TX property) that was a short sale going to a cash buyers. It appears it was the same scenario--several cash buyers coming out of NY. hmmmmmmmm

Reply by Susan/CA on 5/1/13 9:26pm
Msg #468196

Re: I'm wondering who's responsible for the predictions. I saw

MW... Your right about the investors buying up the properties & renting them out. Cash buyers are in most cases (at least in my area) foreigners.