Posted by Les_CO on 9/20/13 11:57am
Msg #485321

FYI

http://theeconomiccollapseblog.com/archives/prepare-for-tough-times-if-your-job-has-anything-to-do-with-real-estate-or-mortgages

Reply by ME/NJ on 9/20/13 12:07pm
Msg #485324

Wow, posted months ago if rates went up 1% a 400K loan would cost you 75K more over the life of the loan. 8% would cost you 180K more over the life for 300K.

Plus as rates go up, your buying limit decreases, say in May you could buy a 400K home your income has not changed but rates went up 1 point. You would need to look for a 325-350K home.

All new home projects have slowed way down, big push to sell them and no is buying right now.

Reply by Les_CO on 9/20/13 12:15pm
Msg #485326

Yeah, too bad we all don’t work for the Government.

Reply by Notarysigner on 9/20/13 12:19pm
Msg #485327

Re: FYI Once a month four busloads of

foreigners descend on an auditorium and are buying homes (foreclosures, short sales) sight unseen, cash purchases. Then they have lunch and fly back to where ever they came from. It's a shame.

Reply by janCA on 9/20/13 12:48pm
Msg #485330

Re: FYI Once a month four busloads of

it's an investor driven market. When you pay cash, there is no appraisal, so the comps can really be skewed. In a normal market, homes do not increase 30%, 40% in a year. That's what's been happening this past 1-2 yrs. A repeat of 2003-2007. Can you say BUST????

Reply by Susan/CA on 9/20/13 12:53pm
Msg #485332

Re: FYI Once a month four busloads of

It is true that foreigners are buying cash EVERYWHERE!!! And above asking! I agree I think it is skewing the market tremendously! In addition it is making it hard for 1st time homebuyers and others to buy anything reasonable. If your in a hot area, you better have a fistful of cash and be willing to offer way above listing price or your likely to be out of luck. Especially in Los Angeles CA. Not sure about around the U.S.

Reply by Notarysigner on 9/20/13 1:30pm
Msg #485339

Re: FYI Once a month four busloads of

People in my area (Oakland and surrounding areas) are being offered $100,000.00 over their asking price.

Reply by HisHughness on 9/20/13 1:57pm
Msg #485346

Re: FYI Once a month four busloads of

***It is true that foreigners are buying cash EVERYWHERE!!!***

First Aggie: How's business?

Second Aggie: Great, just great!

First Aggie: I forget -- what is it that you do?

Second Aggie: I sell dollar bills. Since I started selling them for 98 cents, I can't keep up.

First Aggie: You sell dollar bills for 98 cents? How do you make any money?

Second Aggie: Easy: Volume, lots of volume.

Reply by JanetK_CA on 9/20/13 2:52pm
Msg #485355

LOL!!!! "But we'll give U volume if you lower your fees" ;>) n/m

Reply by Les_CO on 9/20/13 1:30pm
Msg #485338

Re: FYI Once a month four busloads of

Houses are pretty cheap, even in CA, if you’re buying with Swiss Franks! Just wait (and you won’t have to wait long) until the good ol’ US Dollar is worth 10% of what it’s worth today. How do you pay a 7 trillion dollar debt? Why with dimes instead of dollars of course.

Reply by SueW/Tn on 9/20/13 1:50pm
Msg #485344

Re: FYI Once a month four busloads of

Amen to that Les, great thread! I have been listening/watching what's happening, everyone is delighted with the stock market and well they should be. But what's going to happen when the Fed quits putting $85 billion per month into treasury bills, rates hit the ceiling and no one invests their money in the market because that will no longer look "so good"? Right now one would be hard pressed to point at anything and not call it "artifical", nothing is free and sooner or later the collector shows up at your door.

Reply by Les_CO on 9/20/13 5:15pm
Msg #485381

Re: FYI Once a month four busloads of

I would agree “that nothing is free” for some of us; but not for all, for some much is free, and the ‘collector’ does and will get his due; he will be at my door and yours…but by no means every door.

Reply by Luckydog on 9/20/13 6:17pm
Msg #485396

Re: FYI Once a month four busloads of

That article is trying to sell a book. All is not doom and gloom, and negative attracts negative, misery loves company. Interests rates are still under 5%, and if someone wants to buy, they are still considered low compared to the 1980's. Just have to hang on for the roller coaster of this job...it goes up and down, then back up again. This month is better for me than last month, doing a lot of seller side docs lately, so people are still selling and buying.

Reply by BobbiCT on 9/21/13 9:44am
Msg #485424

Real Estate Roller Coaster NORMAL ...

Please don't take offense, but after Many, Many years connected with the residential and commercial real estate industry, going back to when my Great-Uncle was President of a bank, anyone connected with real estate knows it is a roller coaster ride.

The only difference over 30 years: The ups and downs are more dramatic. More and more people enter the industry every year on the upside, or in this case as the roller coaster was racing down in June, with unrealistic expectations of a net profitable business with a few supplies and companies knocking at their doors to offer them work with only a one-time-only sub-sub-subcontractor application.