too many unemployed & salary stagflation

Gabsby | Feb 5, 2013 08:44 PM ET Not buying it...too many crooked For Sale signs everywhere that have rotted at the post . Propaganda but it will not work...too many unemployed & salary stagflation

sidfeinberg | Feb 6, 2013 07:00 AM ET LoganMohtashami | Feb 5, 2013 07:20 PM ET ---------------------------------- Again, Logan is right. To put it simply, water seeks it`s level. Rates are artificially low now and will go to a "normal" level, whether it`s 5,6, 7 who knows, but in that area makes sense. There will still be people buying though the prices will get downward pressure from rates. People will always buy houses, just maybe not as much at certain times. My dad bought a place with a 17% mtg in early 80`s and people were buying then. The issues at hand are that wages are not anywhere close to the RE prices, there is a massive back log of foreclosures and Baby Boomers are downsizing every day. Foreign money is helping markets like here in So Fl, but there are only so many Canadians, Chines, V

sidfeinberg | Feb 6, 2013 07:59 AM ET @MBAGRAD --------------- Having an MBA, you`d obviously realize that prices will fall soon, so why buy? It`s basic economic principles at play here and there is nothing but false prosperity now I`d wait and pounce after the next bubble pops, which should be within 1-2 years. As for now, just save cash (or something else like a commodity) and then when the time is right, strike. Home ownership is not all it`s cracked up to be.

Ronald5224 | Feb 6, 2013 11:57 AM ET Maybe investers are creating a bubble by buying up all the houses or not. But can the person who is buying houses in these areas who is not an invester, but plans on living there able to pay the mortgage with their income? I didn`t see any analysis of that.

RM66 | Feb 6, 2013 12:50 PM ET prices will probably continue to rise in some of the hardest hit areas until they at least come in line with replacement costs. Last year we purchased another home for at least $170,000 below replacement cost and 45% below it`s peak value. In essence, it was like getting free land, paying nothing for a building permit, and getting the home built at a discount to current costs. I just wish I had more cash to take advantage of deals like this.

otg | Feb 6, 2013 04:45 PM ET This reporter must be smoking the newly legalized herb in Colorado. Go to Zillow, search Miami condos and look at the price history. 2006 was the peak of the bubble. Okay, I`ll do it for you: zillow/homes/Miami-FL_rb/#/homedetails/1750-N-Bayshore-Dr-PH5602-Miami-FL-33132/2118476155_zpid/

dannyboo | Feb 7, 2013 03:54 PM ET A housing bubble is definately forming in Charlotte, NC. The more desirable neighborhoods are closing in on the 2007 peak in per square foot cost and they are under contract in days with muliple offers! Other neighborhoods with a good neighboorhood email tree are going under contract without ever hitting the MLS. Just like in the good ole days. Large REITS are at the courthouse buying everything under $200k for rental purposes. I used to be the only one down there bidding. Now I cannot afford to compete against these multi-million dollar companies. I know other companies the size of mine who have not won a bid in months. If we want to continue we have to buy the high dollar homes. $207/sf was the most any house sold for in the neighborhood I currently live in. Last week a home t

maximus34 | Feb 7, 2013 06:51 PM ET Cheap and easy money fuel bubbles. The people buying houses today will be fine b/c it is very difficult (what it should be) to get a loan. With the cheap cost of money one`s mortgage is cheaper than comp rents. So one`s living cost is lower and pretty cheap. Rents have gone insane over the last 5 years. They have never increased this fast and wages can`t keep pace. The cheap and easy money is large multi-family debt. Non-recourse, low equity. They are underwriting these loans w/ super low vacancies and projecting rents to continue to rise (sound like something we said before). They are building these 100-400 unit complexes with the same velocity as the single family craze. Over supply will shoot up vacancies, push down rents and what do investors do with non recourse, low equity loans w

Bureaucrat | Feb 8, 2013 11:54 AM ET American housing prices are being artificially propped up by low interest rates, government subsidies, and government tax policy. American housing valuations still need to decline by anywhere from 20-40% in most areas before housing will find a sustainable floor. The Federal Reserve is desperately trying to start an inflation bonfire in order to suck the all of the excess valuation out of American real estate and wages. Their strategy is working to some extent. Just look at skyrocketing commodity and equity prices if you don`t believe me.

Bureaucrat | Feb 8, 2013 11:57 AM ET It will take some very serious stagflation to erode excessive American wages and real estate prices though. Like another 20-30 years of stagflation.






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