Posted by 101livescan on 10/21/13 7:21pm
Msg #489014

New Housing Bubble Bust Predicted

http://www.thefiscaltimes.com/Articles/2013/10/17/Feds-Fisher-Warns-US-Housing-Bubble-Signs

Plus, beginning in January 2014, it will be more difficult for people to apply and be approved for loans.

We still have many people in "zombie" foreclosure inventory.

Where is all this going?

Can't wait for some good news, what about you?

Reply by Marazz/AZ on 10/21/13 7:54pm
Msg #489020

We had 15 years of price appreciation in one year at the height of the bubble. This was due to an increase in demand, spurred by giving a loan to anyone who could fog a mirror. A shift from traditional collateral based lending to credit based lending.

It's going back where it should have been, had it not been for the artificial demand in the market. All the government efforts since then have done nothing but postpone the inevitable. I'm not saying they shouldn't have intervened, because a hard landing would have been considerably more disruptive for the country. But I don't think there has ever been a way around the bottom. We have to reach the bottom before we can truly have a recovery. The bubble we saw earlier this year was largely caused by demand from institutional investors and was never "real" recovery.

And until the government quits manipulating interest rates, we're not really going to know what the bottom is.

Reply by 101livescan on 10/21/13 8:28pm
Msg #489027

I hear you. The layman consumer who wants to buy a home at fair market value is quickly priced out of the market by the feeding frenzy of investors who are buying up entire city blocks of homes.

Foreclosure is a slow drip now because investors made deals with all the big banks and their huge inventories, and there is more to come.

It's not a level playing field.

Reply by Shoshana/AZ on 10/21/13 10:26pm
Msg #489041

I believe there will be a bubble bust. My house has gone from 218 to 310 in 3 years. It's going to be interesting since there will be a huge slwodown in RMs beginning January 1st. Phoenix Metro is booming. They can't build the new houses fast enough!

Reply by 101livescan on 10/22/13 8:41am
Msg #489070

Scariest thing I'm seeing right now is all the HELOCs people are getting with this CLOUD EQUITY. We all witnessed how this equity disappeared over the last several years, before recent growth in value...oh my, we never learn, do we?

Reply by LynnNC on 10/22/13 10:00am
Msg #489078

I don't see any HELOCs n/m