10 Things to Know About RE in '10

10 Things to Know About RE in '10

Real Estate Investor · Carlsbad, CA · Member since 2009 · 151 posts · 17 votes

US News Article dated 12.29.09 by Luke Mullins... link

http://finance.yahoo.com/real-estate/article/108487/10-things-to-know-about-real-estate-in-2010?mod=realestate-buy

It talks about prices plummeting back to 2003 levels. As an active professional I can tell you that our data indicates that prices in some counties in the not so beautiful state have plummeted down to the 1993 level, yes that's right 1993.

I read some where not too long ago that some municipalities are slating in a 12% drop in prop tax revenue... what do you think that the local gov'ts know that the average citizen does not know?... answer, everything... they are on the inside track. Get involved in local politics if you want to hedge your bets (investing).

Please share your feedback in regard to this article if you have a chance. Let's be honest to each other. Thanks. -- Dawn :D

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  • Brian LevredgePro Member
    Investor · Chattanooga, TN · Member since 2009 · 1k+ posts · 903 votes
    16y

    I don't think we'll see the bottom for a few more years (on a national level). There is a growing shadow inventory that the banks won't be able to withold forever and we can't keep paying people to buy homes. Both those factors are what made things appear to be stabilizing. The numbers I've seen on the Alt A stuff are that 40% are delinquent before the recast and something like 90% of them are underwater. That is going to dump a lot of inventory at the middle and upper ends, like the article mentions.

  • Plumbing Contractor · rutherfordton, NC · Member since 2008 · 66 posts · 0 votes
    16y
    Originally posted by Richard92011:
    US News Article dated 12.29.09 by Luke Mullins... link

    http://finance.yahoo.com/real-estate/article/108487/10-things-to-know-about-real-estate-in-2010?mod=realestate-buy

    It talks about prices plummeting back to 2003 levels. As an active professional I can tell you that our data indicates that prices in some counties in the not so beautiful state have plummeted down to the 1993 level, yes that's right 1993.

    I read some where not too long ago that some municipalities are slating in a 12% drop in prop tax revenue... what do you think that the local gov'ts know that the average citizen does not know?... answer, everything... they are on the inside track.


    Please share your feedback in regard to this article if you have a chance. Let's be honest to each other. Thanks. -- Dawn :D


  • Plumbing Contractor · rutherfordton, NC · Member since 2008 · 66 posts · 0 votes
    16y

    sorry for that, didnt mean to quote all that... I take no credit, however, the part about getting involved in local politics, HAS been a good help to me. You can see the "real" direction things around you are going.

  • Real Estate Investor · Arvada, CO · Member since 2009 · 68 posts · 5 votes
    16y

    I read an article today that said that jumbo loan foreclosures are on the rise here in Colorado. Many due to the lack of loans.
    First the businesses must grow, then they must hire more people. Then the people can buy homes and get back on there feet. Time will only tell.

  • Accountant · San Diego, CA · Member since 2010 · 34 posts · 6 votes
    16y

    I read this article a few days ago. I thought the graph on Loan Resets was valuable.

    http://news.morningstar.com/articlenet/SubmissionsArticle.aspx?submissionid=666.xml

  • Real Estate Consultant · Lansing, MI · Member since 2010 · 117 posts · 32 votes
    16y
    Originally posted by Aaron Mund:
    I read an article today that said that jumbo loan foreclosures are on the rise here in Colorado. Many due to the lack of loans.
    First the businesses must grow, then they must hire more people. Then the people can buy homes and get back on there feet. Time will only tell.

    The one part of the equation that you are missing is wages must also rise. Along with all the other problems in the economy add this to the pile. With the current oversupply of labor is just about every sector of the economy there is really nothing to drive wage growth. Granted the decreases in home prices will eventually drive some growth as employment begins to increase. But the long term prospects for appreciation of SFR's is limited without wage growth.

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