Posted by Mike on April 21, 2004, 1:46 pm
The economy has been kinda bad for a few years now.
Right before the recession, a lot of people were either buying bigger
homes or rebuilding their current homes.
So I assumed they took out big loans, but after 2-3 years I thought
there would be a bunch of homes being offered for low prices because
people couldnt afford their mortage payments anymore.
But Im suprised thats not the case, in fact the prices still seem to
be going up.
Strange.
Posted by D. Gerasimatos on April 21, 2004, 9:48 pm
>The economy has been kinda bad for a few years now.
>Right before the recession, a lot of people were either buying bigger
>homes or rebuilding their current homes.
>So I assumed they took out big loans, but after 2-3 years I thought
>there would be a bunch of homes being offered for low prices because
>people couldnt afford their mortage payments anymore.
>But Im suprised thats not the case, in fact the prices still seem to
>be going up.
>Strange.
How many layoffs have there been and where (1000 layoffs in Los Angeles
would hardly register)? Of those laid off, how many owned homes to begin
with? Of those, how many have exhausted their equity/savings/credit lines
and the help of others (relatives, government programs)?
Dimitri
Posted by Bob on April 21, 2004, 10:13 pm
> The economy has been kinda bad for a few years now.
> Right before the recession, a lot of people were either buying
bigger
> homes or rebuilding their current homes.
> So I assumed they took out big loans, but after 2-3 years I
thought
> there would be a bunch of homes being offered for low prices
because
> people couldnt afford their mortage payments anymore.
> But Im suprised thats not the case, in fact the prices still
seem to
> be going up.
I suspect that it can be blamed on the very low interest rates.
When rates go up, things may change.
Bob
Posted by Tracy on April 22, 2004, 9:08 am
> I suspect that it can be blamed on the very low interest rates.
> When rates go up, things may change.
I agree. Low interest rates have created a demand that is cancelling
out any effects of job losses.
Posted by Steve on April 22, 2004, 4:42 am
mike1cheng@yahoo.com (Mike) wrote in message
> But Im suprised thats not the case, in fact the prices still seem to
> be going up.
FWIW, I've heard perspectives from a couple of different authorities
lately that over the next 10 years or so, housing prices will drop
dramatically. Their rationale? The "baby boomers" are retiring and
will sell their homes (Why? I'm not clear on that. The authorities
seem to suggest that retirement automatically equals home sales.) In
any case, the "building boom" that's striking various areas (like
California, where I live) can't last forever!
On a related note, I've also heard (from the same authorities) that
real estate in Northern Nevada, Arizona, and Florida is a good buy.
Perhaps because the baby boomers selling their properties elsewhere
will move there to retire?
It all seems a little shakey to me.
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>Right before the recession, a lot of people were either buying bigger
>homes or rebuilding their current homes.
>So I assumed they took out big loans, but after 2-3 years I thought
>there would be a bunch of homes being offered for low prices because
>people couldnt afford their mortage payments anymore.
>But Im suprised thats not the case, in fact the prices still seem to
>be going up.
>Strange.