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Five Ways to Survive the Housing Slump

Expert advice for would-be sellers and buyers.

By Daniel McGinn | Newsweek Web Exclusive
Nov 6, 2007 | Updated: 2:12  p.m. ET Nov 6, 2007

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  • Posted By: sdeutschie @ 11/20/2007 9:54:50 AM

    Comment: Being a Current Remax Agent, I found a new way of selling my listings. This company requires that sellers be listed with Agents in a Current Listing Contract. So, our commission are protected and the company works through us with the sellers. They also, pay All advertising and do Naitonwide/International advertising packages per property: Commercial/Residential/Raw Land. Check it out: http://www.premierrealestateauctions.com if you have any questions, I am currently working with them and the Bi-Lateral relationship they have with other Broker/Agents is amazing. Any questions please don't hesitate to call me or email. This is a great opportunity to get what we are use to making in one year, back to us. Sheila sdeutschie@yahoo.com 888-640-3100 opt. 1 ext 115 or my cell 540-424-2375 They have their main corp office in Margo Island and a Hub office in Virginia.

  • Posted By: sdeutschie @ 11/20/2007 9:49:50 AM

    Comment: I am a current Realtor, and going down with the property my income also hit a bottom. Thanks to a company I now work with. http://premierrealestateauctions.com it's the only company that requires the agents have a listing contract with the sellers, so the company protects the listing Agents commissions. And, now with this company regardless, I get paid and don't lose my listing and time to another Realtor. They also, pay all the advertising fees. If you have questions one Realtor to Another. Sheila 888-640-3100 opt.1 ext.115 that's my office line. or email me at sdeutschie@yahoo.com

  • Posted By: Calmeta @ 11/20/2007 9:46:35 AM

    Comment: Davecowen:: To get a clear perspective of your postion on this renting issue to you own or rent? Are you a landlord and if so how many rentals do you own?

  • Posted By: TheManWhoTraded @ 11/20/2007 6:46:07 AM

    Comment: There is an amazing new way to sell your house in a tough market. It worked for me and I hope it will help you. It is house TRADING, simply I buy your house and you buy mine. I used onlinehousetrading.com, I didn't have any showings in over 3 months and I got a trading deal done and now I SOLD my house and bought another one in Georgia. It is a great concept and if more people would do it I am sure it would be even better. Best wishes.

  • Posted By: DaveCowen @ 11/20/2007 4:53:59 AM

    Comment: There are two major problems here: one in the article and one in the comments. In the article John Talbot is quoted as the expert in what will happen in the market. Talbot's view is that home prices will return to 1997 values. While I agree home prices will fall, 1997 values is ludicrous. It is now common knowledge that the dollar is being, and has been, devalued significantly. This means that it might take $1.50 today to buy something that you could get for $1 in 1997. These are not accurate values, only an example. So to drop to 1997 values makes no sense. Using this as an example for Talbot would be more accurate to say that prices will return to 150% of 1997 values, or better yet will return to values that are inflation-adjusted to 1997 values. It may sound like a technicality but we are talking about tens of thousands or hundreds of thousands of dollars difference, depending on where you live. The other major problem is in the comments. People are commenting on the rental market, but the comments are not accurate (in general). It may be true that in individual markets that have a huge vacancy rate, such as one commenter said was true in Denver, rents are going down. But, in general, rents go up when it is more difficult to own a home... such as when interest rates go up. It is a matter of supply and demand. Rents have been depressed over the past few years because anyone who had some moderate degree of income have been buying houses with cheap money and low-interest ARMs. This means that the landlords cannot demand as much for rent... those who might pay it would just buy elsewhere. As interest rates rise the bar to entry for owning a home increases, and this allows the rents to increase as well. This is reflected in the fact that, in general, rents are increasing throughout the country.

  • Posted By: Calmeta @ 11/19/2007 1:17:02 PM

    Comment: No bailout. What didn't you borrowers understand about an Adjustable Rate? Did you think it would go down? Did you think that the house value would keep increasing by 15%-30% a year? and if it did continue to increase at that rate did it dawn on you you would be helping to elimante millions of future buyers? Did you not care because you got yours? Did you refiance and buy a RV, SUV, a boat, a rental property, a time share or a vaction home? Now you expect he feds to bail you out with tax dollars collected from citizens that the majority of which did not get suckered into a ARM? The feds may do some type of bail out. It will be sold as good thing for the people. The fact is it will be too little too late and it will really ony help olut the large lenders that have gobbled up all the liitle ones already. This whole thing is due to greed on everyones part, borrowers, speculators, realtors, lenders, appraisers, etc. If you truly can't afford it walk away, foreclose. This happened in the peak of the early 1990's. After that prices dropped and these same people that foreclosed bought again in as aliitle as 5 years for a much lower price.

  • Posted By: Calmeta @ 11/19/2007 1:00:33 PM

    Comment: Why is rent up? Could it be because people bought a second house and kept the first as a rental? Possible with a ARM. Now that thier payment has gone up they raise the rent. As far as the unemployment rate goes the feds only count the people that are currently on unemployment. If your benifits runout, you worked under the table, took a new job for less money or you did not file for unemployment you are not counted. Housing construction in So Cal has come to a stand still. Erosion control has been placed on unfinished projects, lots sit empty. Where did all these people get new jobs at?

  • Posted By: alan static @ 11/19/2007 12:17:42 PM

    Comment: The NAR is the hand of the devil.

  • Posted By: alan static @ 11/19/2007 12:17:22 PM

    Comment: The NAR is the hand of the devil.

  • Posted By: scroberts @ 11/19/2007 8:14:19 AM

    Comment: The Leander that took over for the one that went out of business is still responsible and held accountable for any and all sub prim lending that is going on, any one that feels that they have a mortgage that is deferent or that is not begging told how has their note needs to call their Attorney General office and take leangle action against the new company, there are many company???s still out their not doing the right thing or trying to take short cuts in trying to collect their money ( read Saturdays Cleveland Plain Dealer).

  • Posted By: Out of L.A. @ 11/19/2007 6:57:06 AM

    Comment: It's amazing how many people here are in denial. Of course, a good number of them make their living in the real esate industry. Why would any intelligent person take the word of an uneducated realtor (who typically have only a high school education or less) who uses mindless cliches. like "they are not building any more land", to support their wishful thinking that real estate will continue to yield 20% a year for the next decade.

  • Posted By: copycat @ 11/19/2007 3:38:58 AM

    Comment: There is so much more to the story... but we are not stupid people. We are bright, intelligent, and now desperately hanging on. The lender we signed with originally is now out of business and the new bank that took over our loan just doesn't care.

    So, please don't blame the borrowers, the predatory lenders are really at fault. We have written proof on our acutal contracts from our lenders on what our monthly payments will be and how they will change per year. It was all explained to us... but the way it is typed out in the contract, with our signatures on it was not the case. It was a sneaky, underhanded deal... and now we are the ones to pay the price.

    Thank god we are making due for now.. but many families are not. Have a little compassion... NONE of us want to be in this situation. We did not buy a home intending for the government to bail us out.. but if the government had done its job these big money lenders would never have had a chance to allow such loans to be processed in the first place.

    I hope the government does something to protect a recession or even a depression. Our economy cannot handle it. I pay A LOT of taxes too... it would be nice if the taxes I pay can help get me out of extreme financial trouble. Thats what taxes are for... to help the country with expenses that may not have been previously forseen.

    So... stop blaming the little guy... it was the big guys who should have known better.

    • Posted By: scroberts @ 11/19/2007 8:13:28 AM

      Comment: The Leander that took over for the one that went out of business is still responsible and held accountable for any and all sub prim lending that is going on, any one that feels that they have a mortgage that is deferent or that is not begging told how has their note needs to call their Attorney General office and take leangle action against the new company, there are many company???s still out their not doing the right thing or trying to take short cuts in trying to collect their money ( read Saturdays Cleveland Plain Dealer).

  • Posted By: copycat @ 11/19/2007 3:38:30 AM

    Comment: This article was an interesting read, but basically had a dire outlook on the real estate nightmare. The only reason I am writing now is to comment to all the people who are attacking those who find themselves in over their heads. My husband and I were the victims of predatory lending. We bought our house in the peak of the bubble in Miami, Florida... one of the highest priced markets. Why did we buy? Because renting was just as expensive as a mortgage payment... and unfortunately by the time we had enough money (as recent college grads) to buy the bubble was about to burst. We did not "buy more than we can afford", and go for a huge mansion. We bought a small single family house... and one of the cheapest we could find at the time in the city (without living in a dangerous neighborhood.) If we wanted to own a house... we had no choice. During that time if you even went to see an open house you were bombarded with freakish experiences. Literally buyers were signing contracts on the hood of their realtors cars. If you didn't snatch up your home, someone else was going to get it. You had to act fast. No time to stop and think.
    Anyway, we got a decent loan... but a year later a "friend" of ours convinced us to refinance to bring our monthly payments down, get cash back and help us live more comfortably. Unfortunately this "friend" really f*@#ed us over. We were supposed to get a one year low interest rate but there was a "typo" on the documents that had the wrong year... which basically meant that we NEVER received this teaser rate. Instead our monthly payments skyrocketed to $1000 MORE a month than before we refinanced... and thanks to this ARM it is still going up. This loan added $33,000 to the price of our home (which was appraised surprisingly high for a market that was slumping... was the appraiser in on it?) and now we would actually still owe money on a home that we no longer owned if we were even able to sell.

    • Posted By: gnevins @ 11/19/2007 10:37:47 PM

      Comment: I hate to say that your friend F*@#ed you over Big Time for his own Greed. Housing prices in Miami are going drop 30-50% over the next 2 years. With an ARM Loan interest not being paid is being tacked onto the principal at the very same time that housing prices are Dropping. If you are not already UNDER WATER, you wll be in the near future. If I were you I would try to get the mortgage holder to agree to a SHORT SALE of your house. If they don't agree to a Short Sale you will eventually LOSE your home to Foreclosure. You are now between a Rock and a Hard place. You have dug yourself in to such a HOLE that there is no way for you to prevent it from collapsing on you. I would stop paying your mortgage, put it up for SALE and Price it to SELL and look for a place to rent while your credit is still OK. Once your house is Foreclosed on, you FICO score will go down the drain. GOOD LUCK!!!!

    • Posted By: gnevins @ 11/19/2007 6:24:57 PM

      Comment: I hate to say this but your friend F*@#ed you over Big Time. Real estate prices in Miami are Headed down 30-50% over the next 2 years. With your ARM Loan, every month interest is being added to the principal at the very same time that prices are going down.If you are NOT already UNDER WATER, you will be soon. If I were you I would try NOW to do a Short Sale of your home because otherwise you are just digging yourself deeper into a HOLE every month. Eventually, the hole will collapse and you will lose that Over Priced home. I say cut your LOSES NOW!!!!! If your bank won't agree to a SHort Sale.... I would stop paying the mortgage and look for a place to rent while your credit is still good. Once your house goes into Foreclosure, your FICO score will be seriously damaged. Good LUCK.

    • Posted By: mikeinpanglao @ 11/19/2007 5:32:59 AM

      Comment: I'm sorry about your tough situation. Predatory lending, in any form, should be illegal. It all boils down to greed. It shows that government regulation is necessary to keep lenders in line. I know it doesn't seem like it now but on the bright side you are obviously young enough to recover from this experience. Imagine what it would be like to be retired, be on a fixed income, and have to go through what you are going through. Good luck

  • Posted By: copycat @ 11/19/2007 3:37:27 AM

    Comment: This article was an interesting read, but basically had a dire outlook on the real estate nightmare. The only reason I am writing now is to comment to all the people who are attacking those who find themselves in over their heads. My husband and I were the victims of predatory lending. We bought our house in the peak of the bubble in Miami, Florida... one of the highest priced markets. Why did we buy? Because renting was just as expensive as a mortgage payment... and unfortunately by the time we had enough money (as recent college grads) to buy the bubble was about to burst. We did not "buy more than we can afford", and go for a huge mansion. We bought a small single family house... and one of the cheapest we could find at the time in the city (without living in a dangerous neighborhood.) If we wanted to own a house... we had no choice. During that time if you even went to see an open house you were bombarded with freakish experiences. Literally buyers were signing contracts on the hood of their realtors cars. If you didn't snatch up your home, someone else was going to get it. You had to act fast. No time to stop and think.

  • Posted By: bennocap @ 11/19/2007 3:30:55 AM

    Comment: As a successful mortgage banker, I can tell you that non-conforming loans did not become aggressive until 1999. There might have been a few markets in 1997. However, it is a realtors job to sell and with that, they will try to get as much for the home as possible. That is why an appraisal is very important. Now is a great time to buy a home. Wait two years and you will be able to sell for a profit. Especially if the property is distressed.

    • Posted By: Out of L.A. @ 11/19/2007 6:45:03 AM

      Comment: No, you will not be able to sell for a profit in 2 years. In two years, it will probably be a great time to buy a home. I wish all you people in the mortgage/real estae industry would stop spewing this nonsense just because business is bad. You were wrong when you said there was no bubble at all, you were wrong when you said it would only result in a soft landing, and you're still wrong now.

  • Posted By: abgoodlife @ 11/19/2007 3:08:46 AM

    Comment: He can keep his negative comments to himself! I've been a realtor since 1989 and real estate has always been a good investment. Making improvements on your home does give the seller a nice return when selling. Buyers like and buy homes that are updated and improved. Make the improvements as early as possible in your home so that they can be enjoyed by you and not just putting out the money to put the home on the market. There are not many things that give such a nice appreciation as real estate.

    • Posted By: gnevins @ 11/19/2007 10:43:50 PM

      Comment: I totally Disagree with this Realtor about Home Improvements. I WOULD NOT make any improvements in any house UNLESS you plan to live in that house for more than 10 years. If you expect to sell your house within the next 10 years you WILL NOT RECOVER any of the money to improve your house. In today's Buyer's Market, Buyers are NOT willing to buy for extra improvements that you make and prices are dropping so you are just wasting your money. I would NEVER listen to a real estate agent... they are one step above Used Car Salesman. Realtors are part of the Subprime Mortgage Mess because they didn't care of the buyer could afford the monthly payments after the first year..... thye already made their Big Fat Commission. I think some of the home Owners losing their Homes now should go after their Realtors and SUE the pants off of them!!!! Maybe they will change their business practices BUT don't hold your breath....

    • Posted By: Out of L.A. @ 11/19/2007 6:52:35 AM

      Comment: Since you are a realtor whore, I would never expect you to tell the truth, even if your mother's life depended on it.

  • Posted By: gusgus @ 11/19/2007 3:00:58 AM

    Comment: It is interesting that the National Association of Realtors has started an ad campaign to encourage people to buy homes now, instead of postponing it for later. The only reason they would do that is because they are hurting. Its all propaganda to get would be home buyers that are holding off for prices to continue to drop into a panic that they must buy now. Prices are dropping and it is very possible that they will drop to 1997 levels. So go ahead and buy now, I'll be moving in next door to you in a year for $100,000 less.

  • Posted By: gusgus @ 11/19/2007 3:00:04 AM

    Comment: It is interesting that the National Association of Realtors has started an ad campaign to encourage people to buy homes now, instead of postponing it for later. The only reason they would do that is because they are hurting. Its all propaganda to get would be home buyers that are holding off for prices to continue to drop into a panic that they must buy now. Prices are dropping and it is very possible that they will drop to 1997 levels. So go ahead and buy now, I'll be moving in next door to you in a year for $100,000 less.

  • Posted By: reellc @ 11/19/2007 2:58:24 AM

    Comment: Amazing!!!! Why would a homeowner think that $1 is worth a buck???? Today a buck is worth what the Gov/bank wants it to be, or what they think it should be based on??? So why would a homeowner complain about the value of their home????? Maybe because they voted for the wrong president....And, or the homeowner is misinformed about the way their home is valued. ????Like realtors or appraisers???? In the past the $1 was worth more than a buck. Why has this changed??? Global economics? Greed? I would hope that simple knowledge and credible resources would help the public know that the "Housing Slump", is not a slump. Housing values are still increasing. The interest rates are still low!!!! Quit spending more than you make! Please get educated about your finances!!

    • Posted By: gnevins @ 11/19/2007 10:51:49 PM

      Comment: If you don't think that Cleveland, Detroit, Las Vegas, Phoenix, Miami, Ft. Lauderdale, most cities in California are NOT in a Housing Recession..... you must be hiding under a rock or a Real Estate Agent. Ben Bernanke is responsible for the Housing Bubble being created by keeping interest rates too LOW for too LONG!!!! He continued to print money and feed the Housing MANIA. Banks were giving mortgages to anyone with a pulse. Now the party is over and it's time to pay the PIPER!!!!!

  • Posted By: inet49 @ 11/19/2007 2:36:42 AM

    Comment: I'm going to make improvements in my home for both comfort and status regardless of pay back because it is cheaper than buying a new home. I bought my home in 1997 and it is worth 50% more than that now even at bargain basement prices. I'm not convinced the information provided is practical or correct.. John Talbott is definately a bear on housing, sorry John I guess the bull grazes in my back yard not yours.

    • Posted By: gnevins @ 11/19/2007 11:31:29 PM

      Comment: Dear inet49
      If you plan to stay in your house for another 10 years at the very least then I would agree you should go ahead and make improvements. You are going to discover that 2 years from now your house will only be worth what you paid for it in 1997. That 50% appreciation that you are counting now will Evaporate over the next 2 years. John Talbott is a Realist and he knows what is happening in the current Housing BUST!!! It appears to me that you have had your head in a hole as to what is going on in the real estate market.

  • Posted By: inet49 @ 11/19/2007 2:35:41 AM

    Comment: I'm going to make improvements in my home for both comfort and status regardless of pay back because it is cheaper than buying a new home. I bought my home in 1997 and it is worth 50% more than that now even at bargain basement prices. I'm not convinced the information provided is practical or correct.. John Talbott is definately a bear on housing, sorry John I guess the bull grazes in my back yard not yours.

  • Posted By: erikabladh @ 11/19/2007 2:24:42 AM

    Comment: None of us really know what is going to happen. We'd like to wish we did. Even myself as a real estate agent wants to think that the market will decrease for another year or two and then level out. Which might be the case or might not. I just got sick of reading everyone's postings and hearing that they totally think that their opinion is fact .The fact I do know is if you don't own right now you can find deals that make your payment the same as rent.

    • Posted By: gnevins @ 11/19/2007 11:38:02 PM

      Comment: It doesn't take a Rocket Scientist to KNOW that the Housinfg market is in a Recession in some parts of the U. S. and a Depression in some other parts (Miami, Las Vegas, Cleveland, Detroit, Phoenix, xtc.) of the U. S. You have evidently been buying into all the B#@L S*@it the Dr Lawrence YUN, chief Economist for the NAR. He has been totally WRONG since the beginning of 2006, by telling peoiple this is the time to buy a house. HOGWASH!!!!! Housing Prices are going to continue to DROP over the next 2 years.... then prices will remain FLAT for at least the next 10 years. I suggest that you start looking for a NEW Profession because thousands of real estate agents are already leaving to find jobs that can pay their monthly bills. WAKE UP AND SEE WHAT IS REALLY HAPPENING!!!!!

  • Posted By: woody_alan @ 11/19/2007 2:24:05 AM

    Comment: I took a shet on my house value, i take a shet on the bubbles, i will shet on Mr Talbott, and the NAR, and while i'm at it, i will go ahead and take a shet on the NRA. i've dropped the price by $90k and i still cant sell my house u stupid bittches and ***....

    • Posted By: gnevins @ 11/19/2007 11:40:33 PM

      Comment: I Suggest erikabladh read your message and find our what is going on in the Current real estate market. I wonder if she ever leaves her house or just is too Depressed to go out and see the HOUSING BUST that has occurred and will only get WORSE next year and into 2009.

  • Posted By: toddf72 @ 11/19/2007 2:19:38 AM

    Comment: That last comment from toddf72 is brilliant. That is exactly what I have been telling my co-workers. I suspect rent is up in many places all over the country. If rent is up and people are working then the housing slump will reach a breaking point where it is clearly better to own than rent. Maybe that guy lives in Michigan or somewhere that people are leaving because of a loss of employment.

  • Posted By: toddf72 @ 11/19/2007 2:01:59 AM

    Comment: This is totally ridiculous. 1. All real estate is local. How can he say that when in many places there is still a tremendous need for housing. 2. If rents are up, as they are in San Jose Ca 32%, how can there be a return to 1997 prices.?? With the drop prices it is cheaper to BUY than rent even with ZERO appreciation. If you quantify the tax write off and combine that with the rise in rent, it is cheaper to OWN. 3. With unemployment at Local, State, and National historical lows, people are not forced to sell and will not sell at a certain point because there is no need. The jobs are still here. He is dead wrong. The bleeding will stop when the sub-prime loans run their 2 year course. Most of the subprime loans had 2 Year fixed rates. Most subprime loans were halted in Feb 2007. So Feb 2009 should have flushed all the subprime out. Like they say, when there is blood on the street BUY property. IT is NO mistake that 98% of America's Millionaires made their millions in Real Estate

    • Posted By: erikabladh @ 11/19/2007 2:27:12 AM

      Comment: You nailed it. Love your posting. All the other comments show you why only some make millions in real estate while lots don't/

      • Posted By: gnevins @ 11/19/2007 11:50:54 PM

        Comment: If you only restrict your answer to San Jose, CA., one of the VERY FEW markets that is not in a Housing Recession than I would agree with you. However, the other 85% of Housing markets are in a RECESSION and things are going to get WORSE over the next 2 years. Here in Miami, when you consider mortgage payments, property taxes, and increase premuims..... it is BY FAR Cheaper to RENT than buy a house that is still OVER PRICED!!!! BTW, Warren Buffet and Bill Gates are BILLIONARIES and they made their money by Investing in Successful Businesses and building Microsoft... NOT in Real Estate.... I am afraid those days are OVER for the next 10 years. I SUGGEST you get OUT of real estate and into a Diversified Portfolio of Stocks. If you go back and study the Appreciation of Houses you will learn that they go UP and average of 1 to 2%. Real Estate is like any other investment vehicle... when it becomes OVER PRICED the market will ADJUST prices back into equilibrium. That is just what is happening today and over the next several years. I suggest you do your Homework before using one particular real estate market and suggest that the rest of the U. S. real market is the same.

  • Posted By: erikabladh @ 11/19/2007 2:00:21 AM

    Comment: While I do believe the house values will continue to drop I think that it is very bold to say they will drop to 1997's values. Do we want to continue scaring ourselves and others about a market that we can control if we think at least a little optomistic?

    • Posted By: gnevins @ 11/19/2007 11:55:29 PM

      Comment: Dear ericka: Housing prices are going to drop 30-50% over the next 2 years. Housing prices became WAY OVER PRICED in relationship to WAGES! House prices CANNOT continue to go up faster than Wages.. it is just NOT sustainable. This is Basic Ecinomics 101. Have you ever taken an Economics course? I think NOT. You can deny what is happening in the real estate market but that doesn't mean the Housing BUST is going to get any better any time soon. Prices continue to drop over the next 2 years then remain FLAT for the next 10 years. Real Estate is NOT the great Investment that Real Estate Agents and Brokers wnat you to believe. A House is a place to live and NOT a RETIREMENT PLAN!!!!!!

  • Posted By: Ken11 @ 11/19/2007 1:49:38 AM

    Comment: I totally disagree with the notion that the government will help bail out those people who bought houses they could not afford. If I bought a car I could not afford, will the governement help me make by car payments? It is the exact same principle. Why should my tax dollar go to help some one who was too irresponsible to buy a house they could actually afford? If you got one of those shady sub-prime loans so that you could buy a house based on a future income you only hoped to someday have, shame on you.

  • Posted By: lonnyzone @ 11/19/2007 1:47:07 AM

    Comment: There was no expert advice in this article. Nice headline.

  • Posted By: Ken11 @ 11/19/2007 1:41:58 AM

    Comment: I completely disagree with any type of government bail-out for homeowners who have lost their shirts with their mortgages. This all came about becasue people wanted a house that cost more than they could afford. Why should my tax dollar go to help someone get out of the debt they created for themselves. If I bought a car that was too expensive for my budget, would the goverment help me make my car payments? It is exactly the same principle.

    • Posted By: gnevins @ 11/19/2007 11:59:04 PM

      Comment: Ken, you hot the nail on the Head!!!! If I go out and buy a Jaguar is the Government going to bail me out and help me pay for a car that I knew I couldn't afford. I Don't think so.... so the Government has NO business bailing out people who bought a house that they knew they couldn't afford either. People MUST take some responsibility for their ACTIONS... and stop expecting the Government to bail them out for their own stupid MISTAKES!!!!!

  • Posted By: fed_is_pro_inflation @ 11/19/2007 12:59:09 AM

    Comment: A housing slump driven recession would be good for the U.S. - it would permit the markets to self-correct and re-allocate inefficient resource usage to more profitable sectors of the economy. But in general, if prices are guaranteed always rising with no associated risk, you really have high inflation - many people aren't really "investing" - they're simply keeping even with the core high infation rate

  • Posted By: fed_is_pro_inflation @ 11/19/2007 12:41:47 AM

    Comment: this is an excellent time to rent - or if your job permits remote work, move abroad and get a broadband Skype connection. The outsourcing ( and the open borders "insourcing" ) guarantees falling U.S. incomes - so why not just move to where it's cheap, like Brazil ?

    • Posted By: gnevins @ 11/20/2007 12:04:37 AM

      Comment: Dear fed_is_pro_inflation: The average salary in Brazil is $150.00 a MONTH. Could you live on $150.00 a month. I think NOT and have you ever tried to get a VISA to Live or Work in Brazil? Well, wait till you see the paperwork you need to complete. Brazil has enough unemployed people and they don't want Foreigners coming there to spoinge off the Government. The Government of Brazil requires that you prove that you have at least an income of $2,000.00 U. S. a month before they would even think about granting you a VISA to live there. You would also be required to pay Brazilian Income taxes on any income you receive while living in Brazil.... including Social security. You really should do some Homework before you suggest idea's that seem so SIMPLE!!!!!

    • Posted By: mikeinpanglao @ 11/19/2007 1:54:37 AM

      Comment: Living overseas is not what it used to be fed_is_pro_inflation. I have lived in the Philippines for almost three years and the dollar has fallen 25% in that time. The weak dollar has caused a type of inflation that has been felt overseas first. IMO it will be felt in the U.S. before too long. I am surprised imports haven't risen more than they have already. It is just a matter of time.

  • Posted By: Bevnlou @ 11/19/2007 12:35:55 AM

    Comment: I would like to make an offer on Mr. Talbots home for its 1997 value. Actually, let me make it a no brainer. My offer is for it's 1998 value. If he doesn't accept that offer, than he clearly doesn't believe his own theory.

  • Posted By: Bevnlou @ 11/19/2007 12:27:29 AM

    Comment: First I would like to offer to purchase Mr. Talbot's home for its 1997 value. Actually let me give hime an offer he can't refuse, I will buy it for its 1998 value. Just before I begin to hold my breath waiting for Mr. Talbot to accept my offer, I would like to give you my take on the real estate market. Just about everyone in the U.S. is a slave to the news media. We all were told about a real estate "bubble" and months after there was a "bubble", If we woke up tomorrow morning to our favorite little faces on the "Today Show" or "Good Morning America" and they reported that now was the time to buy and deals weren't going to get any better. You got it! People would buy real estate in a heartbeat and prices would stabalize. I know it sounds simple, but it is true. I just wonder if home prices in Iraq have stabalized since we didn't find any Weapons of Mass Destruction?

    • Posted By: gnevins @ 11/20/2007 12:11:41 AM

      Comment: It is evident that you are a real estate agent and one like Dr. Lawrence YUN (MORON) that continies to deny that the Housing BUBBLE has finally BURST!!!! Have you ever looked at the Foreclosure Reports kept by Realty Trac? The Subprime Mortgage Mess is REAL and over the next 2 years, 2 MILLION people are going to lose their homes to Foreclosure. Have you ever looked at the MLR to see just how many properties are on the Market FOR SALE???? There is a RECORD number of properties still sitting UNSOLD. The news media only REPORT the news SIR... they don't create it!!!! WAKE UP and see what is actually happening across this country and the Real Estate Market that is currently in RECESSION and going into a DEPRESSION.

    • Posted By: svman @ 11/19/2007 1:02:47 AM

      Comment: Maybe Mr Talbot cannot sell for 2007 prices.. fact is cant sell for 2006 or 2004 prices... as prices decline he wont be able to sell for 2000 prices... as was the case in the past bubble decline... so this will also occur.

    • Posted By: Out of L.A. @ 11/19/2007 12:53:01 AM

      Comment: No Bevnlou. Maybe Mr. Talbot does not want to sell regardless of home prices, you moron! People cannot buy because they cannot afford now that the Mickey Mouse loans are gone. It does not matter what the media says, you worthless realtor troll.

  • Posted By: fed_is_pro_inflation @ 11/19/2007 12:11:29 AM

    Comment: to svman - average incomes have been falling in the U.S, but debt is literally skyrocketing, much of it financed by Asian economies - how much longer will they support such debt??

    • Posted By: svman @ 11/19/2007 12:19:35 AM

      Comment: average incomes have been falling in the U.S

      agreed!

    • Posted By: svman @ 11/19/2007 12:18:41 AM

      Comment: Prices to income was 2 to 3x in 1997 ... as was the case in prior health periods.
      now its nearly 10x. Has income gone up that much over 10 yeas now. No! Fact
      is in California incomes have been down adjusted for inflation.

  • Posted By: svman @ 11/19/2007 12:07:49 AM

    Comment: "Talbott, Chavez and Amenijad"

    Good to see Realtors on this board... baby you dont got no job!

  • Posted By: fed_is_pro_inflation @ 11/19/2007 12:06:56 AM

    Comment: The Treasury Secretary recently said that economic growth depended on housing prices not falling - what kind of economy is based on preventing free markets from correcting? Clearly official economic growth policy is based on rising prices - also known as inflation... The pro-inflation policy relies on the outsourcing of jobs to China, India, etc. to keep prices (wages) low... so we have falling wages and rising housing prices and rising personal debt....

  • Posted By: svman @ 11/19/2007 12:06:02 AM

    Comment: "40% Thats how much Real Estate is Overpriced"

    Actually in SF bay area we are over 400% overprived... that is how much we have incresed in prices...
    what was selling for in 1997 for 200K is now selling for over 800K or more. Has anyones paycheck gone that high considering med. salary is around 73-80K... not much !

    As for the NAR being reputable... oh my lord where do I start... they are a disgrace !

    They are scum bags beyond description...
    http://en.wikipedia.org/wiki/US_housing_bubble

    http://en.wikipedia.org/wiki/US_housing_bubble

  • Posted By: Music Man @ 11/18/2007 11:56:39 PM

    Comment: The Housing Slump.
    You ain't seen nothin' yet.
    B-B-B- Baby, you just ain't seen nothin' yet.
    Here's something that you're never gonna forget. Bachman-Turner Overdrive

  • Posted By: Music Man @ 11/18/2007 11:54:30 PM

    Comment: The Housing Slump.
    You ain't seen nothin' yet.
    B-B-B- Baby, you just ain't seen nothin' yet.
    Here's something that you're never gonna forget. Bachman-Turner Overdrive

    • Posted By: gnevins @ 11/20/2007 12:18:41 AM

      Comment: Music Man: you are entirely CORRECT. They haven't seen nothin yet. The Housing BUST is going to get really UGLY in 2008. You are going to see all those Subprime ARM's exploding right and left and more houses going into Foreclosure. Banks will be FORCED to mark down all those investments in home mortgages and 1 Major Bank will go OUT-OF-BUSINESS in 2008!!!!! I predict that Countrywide Financial will GO BELLY UP before the end of 2008. They only write 100% Subprime Mortgages and they have dig themselves into a HOLE so deep that they will never RECOVER. Not even with the cash infusion from Bank of America - that will turn out to be a VERY BAD DECISION!!!!!

  • Posted By: LAinvestor @ 11/18/2007 11:49:53 PM

    Comment: to obtain a real estate licence is extremly easy, anyone of you can get the license and save a lot for your next purchase.
    if u want to buy a house, buy it next year, should be another 5 - 10% drop

  • Posted By: fed_is_pro_inflation @ 11/18/2007 11:47:22 PM

    Comment: The Fed's recent highly inflationary policies have priced the U.S out of the global economy, esp the expensive coastal regions. Even more jobs will now shift overseas or be done by imported foreign labor. Look for job growth in the center of the country and watch the coasts turn into retirement communities... Why inflationary policies? Fed chairman Bernake believes it helps goverments pay off debts - that's right, the U.S. is bankrupt and won't raise taxes or cut spending, so the Fed has used inflation as a unvoted tax increase, which falls mainly on the young, but puts money into hands of retiring home owners, thus bailing out the social security system. But shifts staggering debt onto the young and future generations.

    • Posted By: gnevins @ 11/20/2007 12:23:55 AM

      Comment: Dear fed_is_pro_inflation: Just what till Hillary Clinton gets into the White House!!! OMG, your taxes are going to go SKY HIGH. How else is she going to pay for her Government RUN Health Care System? Democrats are nothing but TAX and SPEND LIBERALS!!!! If Hillary gets elected and the Democrats take control of the Congress in 2009, I am moving out of the U. S. because I won't be able to pay for ALL the TAXES they are going to pass on the American people.... GOD HELP US ALL!!!!

  • Posted By: lonnyzone @ 11/18/2007 11:40:49 PM

    Comment: Everyone stop picking on Talbott, Chavez and Amenijad... They are just expressing their opinion.

  • Posted By: Calmeta @ 11/18/2007 11:37:45 PM

    Comment: Falling to 1997 price seems a little dramatic. On the other hand I purchased a home in 1999 for 167,000 I sold in 2005 for 525,000, This seems very DRAMATIC. The problem was the ARM's, the borrowers and the lack of ethics and or regulations. The price needs to drop more. To qualify for this house now I would need to make 132,000/YR. I would normally be required to place 52,500 (!0%) to 105,000 (20%) down. How many of us can afford this? Oh and I just checked the house is now valued at 498,000. A drop but not much. The 3X increase in price was ridiculious. Dropping to 50% of the 525,000 would seem more reasonable then to the 1997 values. In order to go that low we would need a GREAT DEPRESSION. Any how chew on that you all. Also it seems that several, Realtors, Loan Officers, Home Appraisers, Etc are posting here. I suugest to those they find a neww job the cat is out of the bag...don't buy the PROPAGANDA that is spewed here, do your own research.

  • Posted By: pjrias @ 11/18/2007 11:35:27 PM

    Comment: The last 15 yrs, have been nothing more than a Pyramid Sceme amongst Mortgage Banks, Realtors, Apprasors and the Donald Trump Syndrome!

  • Posted By: RhodeIslander @ 11/18/2007 11:34:28 PM

    Comment: Who Is John Talbott?
    I know who the NAR is, very reputable actually.

    • Posted By: Out of L.A. @ 11/19/2007 12:54:57 AM

      Comment: "I know who the NAR is, very reputable actually."
      You're so hilarious, you must work for the NAR, the organization that claimed there was no housing bubble and that home prices would continue to increase 20% a year for the next 15 years.

  • Posted By: LAinvestor @ 11/18/2007 11:33:59 PM

    Comment: right, rent an apartment has no stress on it, if u make more money, u can save more, if u make less money, u can always rent a cheaper one. but remember, the house is not yours, it is a great time to find some bank own property, the monthly payment could be the same as what u pay to the rent. but of course, also make sure have to add up all the taxes,

  • Posted By: RhodeIslander @ 11/18/2007 11:31:36 PM

    Comment: Who is John Talbott?
    I know who the National Association of Realtors are.

  • Posted By: Bradleyd59 @ 11/18/2007 11:31:35 PM

    Comment: I disagree with John about remodeling doing additions or building a house right now. I what he like most people doinf the reporting are missing is the fact the interest rates are at historic lows and building materials and labor are way down right now. Infact i am hearing as much as a third lower on lumber and trusses and such. Now is the time to take advantage of this. We may not see these kind of bargans again. I have yet to see any one report one the whole scope of this situation. But seem to dell on the negitive. Wise up.

    • Posted By: gnevins @ 11/20/2007 12:30:04 AM

      Comment: Dear Bradley: "We may not see these kind of bargains again". WHAT A JOKE!!!! Just wait till 2008 when houseing prices DROP 10-25% and another 10-25% in 2009!!!! Anyone who buys a house right now (unless you absolutley have to) is an IDIOT!!! Prices are going to DROP 30-50% over the next 2 years then prices will remain FLAT for 10 years after that. Bradley is evidently one of the real estate agents without any CLOSINGS!!!!! I suggest you find a new JOB because the real estate agent job will become a low paying Profession VERY SOON!!!!!

    • Posted By: spinster @ 11/18/2007 11:46:50 PM

      Comment: If I bought vacant land right now and paid current prices for material and labor I would end up spending more than I have my house on the market for today. How can prices fall to a 97 level when those prices are below what it would cost to buy land and build now.

  • Posted By: pingo @ 11/18/2007 11:30:23 PM

    Comment: I wonder if owning a house is really an advantage. People think they make money by selling their house after a few years but they forget that they pay a huge amount of money in property taxes, and in the case of a condo add the assessment. Isn't it better to rent?

    • Posted By: exingobiter @ 11/19/2007 1:55:23 AM

      Comment:
      Well, just do the math for yourself. What is the difference in paying rent or paying property tax? At least the property tax might give you a deduction on your tax return. Rent never does. Anyway, if it was cheaper to rent, there wouldn't be any landlords. On the average, the renters are supporting the landlords. So, maybe it is better to own if you can.

      • Posted By: gnevins @ 11/20/2007 12:33:52 AM

        Comment: If you actually DID the MATH you will discover that it is far cheaper to RENT than own when you consider the mortgage payments, mortgage insurance (if you put down less than 20%), property taxes, insurance, and maintenance expenses. That is a MYTH perpetrated by the Real Estate Industry that it is cheaper to OWN than RENT!!! Do they MATH for yourself people.

  • Posted By: pjrias @ 11/18/2007 11:28:33 PM

    Comment: 40% Thats how much Real Estate is Overpriced! Laugh if you will, but I'm 25% there right now! Banks are going down daily! There Real Estate Portfolios are "Over Stuffed" with bad loans!

    Sounds like, Feels Like, Looks like "Blood on the Tracks"!

  • Posted By: LAinvestor @ 11/18/2007 11:23:09 PM

    Comment: I am an investor in California Real Estate Market, I like to invest to those "city" property, in the early of this year, i dont even see there is really a DROP on the market in most of my property (about 10 property), but today, the end of the year, i can tell it really begin, it is slight drop about 5 - 10% in some of my property, but i still brought another 3 property this month (one is short sale, one is REO, one is foreclosure), for those who own an property, if u have the holding power, try to wait another 2 - 3 years, otherwise, u will have to complete with all those foreclose property. as an investor, I am still in believe the real estate market in USA because USA market is completely different with Japan, Hong Kong, ...market are completely different, cannot compare. but i do suggest if u have additional property, try to rent it out and wait, i dont think there is impact on the income property. so, demand would still high for renter.
    dont worry, as a investor speaking, i give the market a break until 2009 the most.

  • Posted By: DR. FEINSTONE @ 11/18/2007 11:21:00 PM

    Comment: This man is right about the real estate agents being rediculously optimistic. In the next few years, it is not going to get any better unless someone put in alot of money to help this situation. People with alot of money are not stupid to put their money in if they do not gain anything back from their investment. This is no game for amateur. This is harsh to say but it is true. In every games there are winners and losers, but the losers are the one have to make tough choices. My philosophy is you do not rely on no one to bail you out. The losers often will wait for the government to make new rules to help them out. This is true at some times but until that happens, these losers are already end up at bankruptcy.

  • Posted By: Bradleyd59 @ 11/18/2007 11:20:32 PM

    Comment: I disagreewith John about remodeling or doing additions or any type of building at this time. Interest rates are at a historic lows and with this slump we are seeing building materials and labor drop dramaticly. Now is the time to take addvantage of this situation. When things stert to pick up you will lose this chance. I have yet to see people investigate the whole scope of this slump. But like every one else report only the negetive.

  • Posted By: usta123 @ 11/18/2007 11:16:44 PM

    Comment: I agree about the govt better NOT bail out all those people who bought homes they simply could NOT AFFORD!! How stupid do they think people are, you cant blame the lenders if the buyers did not look into the margins and caps on these loans. ANy time you get into a loan whose interest is WAY bleow the regular rates, of course its going to catch up at some point. People need to go back to the old way of thinking. That is, your home is first of all, your shelter and a roof over you and your family's head, and secondly, a tax shelter, NOT your income stream giving you the ability to spend way more than you make. Shame on those who bit off more than they could chewt. I 'm very sorry but you should NOT be bailed out by the govt. If that happens, then what about all those who lost pensions, stock values from corrupt officers etc. ITs' unfortunate, but learn to live accordingly and don't make the rest of us responsible ones who do work hard and barely make ends meet pay for those who overspend. How dare you blame it on realtors or lenders. Lenders were stupid for lending to these people and they shouldnt be bailed out either. GREED and EGO are the reasons most can't afford theri own homes. The wriitng was on the wall, it has been in the papers for years about the bust, where were they when the warnings were put out there.

  • Posted By: governments ways @ 11/18/2007 11:16:05 PM

    Comment: The goverment has us all by our necks. Its all about money, money, money. Its a money making machine. Its all in the plans. They raised homes so they could get the most money out of us. They knew what they were doing. We are the goverments slaves. They make it so we stay underneath their wings. We stress because we need to make these high mortgage payments. We stress because we spend hours upon hours in traffic to try to get to our job so we could pay off this huge mortgage. We need our car to get to our job and ontop of that, we spend tons of money in gas. They make normal business hours from 9 to 5 monday through friday. So we could all get on that road and spend...money, money, money! We never have the time to eat right or be healthy cause we are always on the run. Why are we always on the run to pay our mortgage, car, car insurance, gas, health insurance, taxes, home owners associations (thats a funny one), now there is a special taxes on alot of new homes called the CFD (money, money, money), In return, we get tons of stress that causes cancer. So, now what happens. We get to pay a ton of money to medical bills to try and kill this cancer. MONEY, MONEY, MONEY!!! The goverment is laughing at us. This was just another way to *** us royaly!!! On top of all of this, the war. The war is all based on MONEY, MONEY, MONEY. Those poor troops out there. Getting killed for the governments greedy ways. SOOO SAD. Tell the president to stop spending more money that we dont have. Bring our troops back and lets focus on the real problems over here. They won't, cause it doesnt bring them MONEY, MONEY, MONEY. Open your eyes people...its bad!

  • Posted By: svman @ 11/18/2007 11:15:56 PM

    Comment: "Look for the Feds to adjust the interest rate to assist in the support of home prices, and we will come down softly. "

    Today in my region affordabilty declined to 5%.... only 5% of todays homeowners can afford their own home. Just like in 1988 when affordibilty was down to 10%... both prices and interest rates did decline together to make homes affordable by 1996-97 without toxic loans.

    So lower interest rates are meaningless if you think prices wont drop either.

  • Posted By: svman @ 11/18/2007 11:13:05 PM

    Comment: "but to say that they will come down to 1997 levels is wrong"

    Look back to 1989 when RE peaked and declined 40% multiyear without breaking even for 10 years. The last decline reset prices backward to 6 years.

    http://www.dqnews.com/AA1995OFA06.shtm

    Why are so many surprised prices declining...

  • Posted By: theloanjeannie @ 11/18/2007 11:13:00 PM

    Comment: People need to stop listening to the media for their information. It is not correct. I have been a mortgage professional for 24 years in California. This is a cycle and the deals are right now! I have seen a huge increase in recent weeks for purchases in my office and with rates at 30 plus year lows and great loans anyone with two cents to rub together should be buying. I am not talking about flipping or trying to make a quick buck but to purchase real estate as an investment to hold for at least a few years. It was flipping and wall street demand and bank greed as well as unlicensed mortgage and real estate imposters that took advantage of people and put them in crap loans. I know because I have been helping these poor folks get out of them. The industry needed a good shake out so us professionals can actually do our job and help our clients. theloanjeannie@yahoo

    • Posted By: gnevins @ 11/20/2007 12:49:02 AM

      Comment: theloanjeenie sounds more like a USED CAR SALESMAN or one of the Mortgage Brokers that sold these Subprime ARM's to people he knew could never afford the homes they were buying. The Media REPORTS the news they don't CREATE IT!!! A home is a place to live and NOT an INVESTMENT or RETIREMENT PLAN!!! I strongly SUGGEST that you start looking for a NEW JOB because the Mortgage business is FINISHED. People CANNOT get new Mortgages today because NO ONE IN THE SECONDARY MARKETS WILL BUY THEM ANYMORE. STOP LYING and telling people that loans are available for people with two cents to rub together. You are JUST LYING about what is really happening in the real estate market--- and that includes California. Have you ever looked at the Foreclosure Reports for California???? Have you look ed the MLS and counted the nunber of properties currently on the MARKET FOR SALE!!!! I think NOT.

  • Posted By: michael_in_missouri @ 11/18/2007 11:12:09 PM

    Comment: I just received a full price contact on my home after being back on the market 2 days, and my home is far from perfect. I lowered my price to a reasonable level and someone came along. I didn't take that big of a hit from where I started. If people didn't expect to make a mint off their home and had some patience they'd sell their home. There ARE buyers out there, they're just being choosier. If your home isn't selling, maybe it's a piece of crap, or you're asking too much. One thing is for sure, your agent isn't doing you a bit of good. Most likely they're a "listing" agent, and that's about all you get with most agents. I fired two sets of idiots before finding my latest agent. She was as hungry to sell my home as I was, and worked her but off for two days before I had a contract. First offer in almost 9 months. Most agents are morons as far as I'm concerned. That's the biggest part of the housing problem. Not rates, not supply. Lazy agents expecting you to pay 6% for them to sit on their butt waiting for someone else to sell your home for them. Try this. Tell your agent you???ll pay them their 5-7% for an offer within the first two weeks of your listing, and then it drops ?? % each week it???s on the market after that. Also, if they can???t bring you at least an offer within 30 days, they pay you $1000 each week it???s on the market beyond that. We???ll see how anxious they are for your listing after that!

  • Posted By: houstonrealtor @ 11/18/2007 11:12:05 PM

    Comment: Why does a person purchase a home..? To live in it correct....? Survive the prices falling by simply doing what you set out to do.... LIVE IN THE HOUSE.! Dont watch the values. Dont get information sheets from listing posted on the signs, The " Information tubes" Dont Go to " Open Houses" and then your mind wont worry about somthing that simply does not mater. If you have a interest only loan, or an ARM now is the time to get a Fixed rate note. If you cant get approved ask a family member or friend to co sign or co buy so you can get approved. Then LIVE in the house. We in American have the best of everything. Just when you think its all gloom and doom.. think about how good it really is.. Food on the table.. anything you want is minutes away.. People in the old days traveled 1000s of miles to trade lemons for choc. or wine for oils... today we forget how easy and good our life is.. DONT allow the TV or internet run your life.. Your house is only worth what someone will pay for it.. and if its not for sale thats the highest value there is..! KEEP YOUR HOUSE and values simply dont mater.. oh and focus on paying it off. Dave- Houston Texas Realtor..

  • Posted By: DanT241 @ 11/18/2007 11:11:39 PM

    Comment: The problem I have with "Housing Bear John Talbot" and his predictions... is that it is a national prediction. Many states, cities, and counties are not hit the same way that Florida, California, Nevada, and Arizona are. The National Media needs to start focusing on the areas that are hit the worse, and stop making it a "National Crisis!" I am tired to hearing that the housing market is down, but yet in my area, it's actually up! Imagine that! But the National Media says that everyone and everywhere is down.... Not true! Focus on the facts, and try to state what areas are being hit the worse, and not presume its the same way across the country!

  • Posted By: fed_is_pro_inflation @ 11/18/2007 11:10:44 PM

    Comment: Why the hell should taxpayers have to bail out housing speculators?? Is housing the new face of socialism? If people can't actually afford to buy, what's wrong with renting? A government that absorbs private risk by printing money is creating high inflation - and more bubbles. Can I now send the taxpayers a bill for my dot com stock losses ?

  • Posted By: michael_in_missouri @ 11/18/2007 11:10:40 PM

    Comment: I just received a full price contact on my home after being back on the market 2 days, and my home is far from perfect. I lowered my price to a reasonable level and someone came along. I didn't take that big of a hit from where I started. If people didn't expect to make a mint off their home and had some patience they'd sell their home. There ARE buyers out there, they're just being choosier. If your home isn't selling, maybe it's a piece of crap, or you're asking too much. One thing is for sure, your agent isn't doing you a bit of good. Most likely they're a "listing" agent, and that's about all you get with most agents. I fired two sets of idiots before finding my latest agent. She was as hungry to sell my home as I was, and worked her but off for two days before I had a contract. First offer in almost 9 months. Most agents are morons as far as I'm concerned. That's the biggest part of the housing problem. Not rates, not supply. Lazy agents expecting you to pay 6% for them to sit on their butt waiting for someone else to sell your home for them. Try this. Tell your agent you???ll pay them their 5-7% for an offer within the first two weeks of your listing, and then it drops ?? % each week it???s on the market after that. Also, if they can???t bring you at least an offer within 30 days, they pay you $1000 each week it???s on the market beyond that. We???ll see how anxious they are for your listing after that!

  • Posted By: Quemann @ 11/18/2007 11:10:30 PM

    Comment: Some houses were not even built in 1997 and it is ridiculous to say home prices will return to the 1997 level.
    Housing problems in USA are not an internal issue any longer, but the subprime fallout and aftermath are just another sign of the global economy is undergoing a fundamental structural change with good and bad components. Telecom industry, for exmple, will face a sea change in another two years from now, giving a remarkable innovative benefit to businesses and consumers, while some smokestack industries will go down the drain. Emerging economies like India and China are sucking up construction supplies as well as energy, and home prices will perhaps triple in another 5 years.

    • Posted By: RSanden @ 11/18/2007 11:46:46 PM

      Comment: In India and China only!

      • Posted By: gnevins @ 11/20/2007 1:34:34 AM

        Comment: Dear Quemann: House prices are going to DROP 30-50% over the next 2 years in the 85% of U.S. I don't care when the house was built... it is OVER-PRICED today. Real estate is like any other Commodity... whrn it get OVER-VALUED, the market will adjust the price back to it's TRUE VALUE!!!! The Houing BUBBLE BURSTING has NOTHING to do with the Global Economy. The Federl Reserve kept Interest Rates too LOW for too LONG and they were printing easy money and it all got scouped up and went into the Real Estate Market. Now all that easy CREDIT that was givin to anyone with a pulse is BLOWING UP... ie. Subprime Mortgages. These people could NEVER afford the houses that they bought in the first place and now that these ARM's are RE-SETTING.... these people have discovered that the Interest Rate could Increase along with the monthly payments. They will go into Foreclosure and add more Inventory on the Market, which will in turn pressure SELLERS to reduce their selling prices. Countrywide Financial, the Largest Mortgage Lneder in the U. S. will GO OUT-OF-BUSINESS in 2008!!!!!!!

  • Posted By: michael_in_missouri @ 11/18/2007 11:09:37 PM

    Comment: I just received a full price contact on my home after being back on the market 2 days, and my home is far from perfect. I lowered my price to a reasonable level and someone came along. I didn't take that big of a hit from where I started. If people didn't expect to make a mint off their home and had some patience they'd sell their home. There ARE buyers out there, they're just being choosier. If your home isn't selling, maybe it's a piece of crap, or you're asking too much. One thing is for sure, your agent isn't doing you a bit of good. Most likely they're a "listing" agent, and that's about all you get with most agents. I fired two sets of idiots before finding my latest agent. She was as hungry to sell my home as I was, and worked her but off for two days before I had a contract. First offer in almost 9 months. Most agents are morons as far as I'm concerned. That's the biggest part of the housing problem. Not rates, not supply. Lazy agents expecting you to pay 6% for them to sit on their butt waiting for someone else to sell your home for them. Try this. Tell your agent you???ll pay them their 5-7% for an offer within the first two weeks of your listing, and then it drops ?? % each week it???s on the market after that. Also, if they can???t bring you at least an offer within 30 days, they pay you $1000 each week it???s on the market beyond that. We???ll see how anxious they are for your listing after that!

  • Posted By: tftipton @ 11/18/2007 11:09:34 PM

    Comment: The market may have dropped for the speculators who drove it to insane levels just last year, but unless you live in Hawaii, they just aren't making any more land. The average home-owner has seen his investment in housing grow, along with the tax write-off he receives on the loan interest and taxes he pays. The greed merchants have been burned and the over-all housing market will be well rid of them. Now, if we could just get the media to focus on the positive instead of over-playing the negatives, we would see just how robust our economy really is.

  • Posted By: JWrite @ 11/18/2007 11:09:07 PM

    Comment: If you are a seller, ask a price that your house is worth. Not what a real estate agent is telling you it's worth. In the long run a house will appreciate 3-4 percent per year. If your house is only worth 300,000 don't ask 585,000, it makes you look like an idiot. If you don't sell it for 300,000 now wait till you see what happens to your house price when the interest rate goes up to 11-13 percent. It's coming, the mortgage companies need to recover from all the bad loans.

  • Posted By: DMMitchell @ 11/18/2007 11:08:36 PM

    Comment: It's always amazes me that just because the "masses" in the more populated areas of the US are miserable and on the verge of bankruptcy because they aren't making a 20% per year gain on real estate investments, the entire US must be suffering the same fate. Wake up, there are other areas of the US where prices are holding fairly constant, even some small gains, but the media refuses to look outside the east coast and the west coast to find something positive for a change. Obviously, Mr. Talbott falls into this category....

    • Posted By: gnevins @ 11/20/2007 1:46:53 AM

      Comment: If you think the Real Estate MESS is only limited to the east and west coast... you are in DREAMLAND. Go to Cleveland, OH, Detroit, MI, Indianpolis, IN., St. Louis, MO., Atlanta, GA., Birmingham, AL., etc. etc. etc. and you will find out that the Subprime Mortgage MESS extends to more cities than Miami, Las Vegas, Phoenix, and San Diego, CA. Excerpt for maybe San Francisco, Seattle, WA., and NYC the rest of the real estate markets in the the U. S. are in a RECESSION!!!!!! Try an get a NEW Mortgage today if you don't have a 10 -20% Downpayment, a FICO score above 700, and able to VERIFY your INCOME!!!! Almost IMPOSSIBLE my friend. NO ONE IN THE SECONDARY MARKETS ARE WILLING TO BUY BUNDLED MORTGAGES ANYMORE!!!!!