Thread: Anyone see this?

Hu ho...What should we do now?

Wait a little while then start bargain shopping......well at least that's what I'm planning to do. I can't wait for the REO tagsale to hit full swing.

Wait huh? I already bought a pre-foreclosure...Even if I get it at 75% of market value, I may have paid too much ...

Friends of mine think we'll be close to bottom in 2008, others think the bottom is farther off. I read things that say anywhere between 1 year and 7+ for us to hit bottom. I'm thinking 2 yrs or so but I wouldn't pass a good deal now, but by good I mean 50 cents on the dollar and no more.....let that equity be a buffer if things get really ugly.

I thought about that before to control the property. I'm gonna hold and rent the place...
It's definetely a good time to get foreclosure, and I agree to say until 2008. I'll try to get the most of it, hold/rent and see what happen in several years with, hopefully, several properties...

I have had the same thoughts about the market although I have not really been able to get people to agree with me. I posted a graph on one of our blogs that shows the run-up in the housing market and from that, you can understand why some of these people agree with me. Check out this Housing Market Graph to see the visual aspects of what they are talking about.

On another note, I lived in Japan during the early 90's and saw first hand the beginning of the market correction. Amazingly, I also lived in Hong Kong in the late 90's and witnessed the beginning of the market correction there. Both these markets had 50% market corrections which took about 5 years in each case.

Thanks for showing that graph. A friend was talking about the vertical climb and I know numberwise he is right but it is nice to see in graphical form.

I think a significant part of the slowdown is directly related to the lack of a subprime market. This should come back around by next summer. Without the subprime market, we have lost a lot of buyers. Here in Atlanta home sales are down 8% for the first half of 07 vs. 06 for homes under $500,000 which make up about 85% of the market. Many of which are subprime....You can be sure that the lenders will find a way to get most of these buyers back in the market as soon as possible for their bottom line....

Ironiclly the subprime market has actually settled a bit over the past couple of months. Granted, it's not pretty, but atleast it's fairly stable. By monday Alt-A should pretty much be wiped out(Wells Fargo, Wachovia, Taylor Bean and Whitaker removed all such programs today), which is going to throw an even worse damper onto the market.

Essentially, you need to go full doc if you are a 720 or below, aswell has have a down payment. Even rates on government programs such as MyCommunity jumped today. Small homes and FHA will always be strong, but it was a tough day!