Comments on: The State of the US Economy and Housing Market and Tips for Future Real Estate Investments http://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/ Learn, Network, Invest Sun, 12 Feb 2012 02:59:04 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Fed Chairman Ben Bernanke to Abandon Lenders and Investors | Real Estate Investing for Real Bloghttp://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/#comment-51073 Fed Chairman Ben Bernanke to Abandon Lenders and Investors | Real Estate Investing for Real Blog Thu, 06 Sep 2007 20:20:05 +0000 http://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/#comment-51073 [...] us how well our economy is doing. Lets take a look at some of the latest news to see how things are really doing . . [...] [...] us how well our economy is doing. Lets take a look at some of the latest news to see how things are really doing . . [...]

]]> By: Ryan Wardhttp://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/#comment-50983 Ryan Ward Wed, 29 Aug 2007 10:15:28 +0000 http://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/#comment-50983 Arn,I think that is a fair analysis of the situation from a Wall Street Perspective. I also think that the foreclure rate is slightly higher than .1%. I believe the number is actually somewhere around 4%. Arn,

I think that is a fair analysis of the situation from a Wall Street Perspective. I also think that the foreclure rate is slightly higher than .1%. I believe the number is actually somewhere around 4%.

]]> By: Arn Cenedellahttp://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/#comment-50967 Arn Cenedella Mon, 27 Aug 2007 04:03:54 +0000 http://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/#comment-50967 Based on your own stats 1 property for every 879 households are in forecloure, that means 0.11% - that's about 1/10th of 1% - not much when you really think about it. Despite the current credit crunch and I submit things look much different today on 8/26 than they did when the article was written 8/16. The economy is fine. Basically, a bunch of Wall Street types have been speculating in the mortgage market by lending people with marginal credit and marginal incomes money at 10%, 12%, 13%. And NOW - BIG SUPRISE - some (actually a fairly small percentage) of those people now have trouble making their payments. These Wall Street types are getting what they deserve - after a few years of making lots of money with this scam now they are losing some money - BIG DEAL. Of course, the media which loves to dump on real estate helps create a panic and the stock market (note the STOCK market collapses).Arn Based on your own stats 1 property for every 879 households are in forecloure, that means 0.11% – that’s about 1/10th of 1% – not much when you really think about it. Despite the current credit crunch and I submit things look much different today on 8/26 than they did when the article was written 8/16. The economy is fine.
Basically, a bunch of Wall Street types have been speculating in the mortgage market by lending people with marginal credit and marginal incomes money at 10%, 12%, 13%. And NOW – BIG SUPRISE – some (actually a fairly small percentage) of those people now have trouble making their payments. These Wall Street types are getting what they deserve – after a few years of making lots of money with this scam now they are losing some money – BIG DEAL. Of course, the media which loves to dump on real estate helps create a panic and the stock market (note the STOCK market collapses).

Arn

]]> By: Austin Real Estate Guyhttp://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/#comment-50961 Austin Real Estate Guy Sun, 26 Aug 2007 19:28:31 +0000 http://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/#comment-50961 Austin, which has a very healthy real estate market, saw a decline of 2% on home sales in July. However, I don't see that as any kind of warning sign. I see it as a drop because fewer low priced homes sold and that was because thos buyers couldn't get loans. The country is still in for a bit of a rough road, but we'll make it through OK. Austin, which has a very healthy real estate market, saw a decline of 2% on home sales in July. However, I don’t see that as any kind of warning sign. I see it as a drop because fewer low priced homes sold and that was because thos buyers couldn’t get loans. The country is still in for a bit of a rough road, but we’ll make it through OK.

]]> By: Vending Guyhttp://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/#comment-50952 Vending Guy Sat, 25 Aug 2007 04:49:11 +0000 http://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/#comment-50952 Speaking of foreclosures, I live in Colorado and we have the second highest foreclosure rate. It's killing our house values here! Speaking of foreclosures, I live in Colorado and we have the second highest foreclosure rate. It’s killing our house values here!

]]> By: Ryan Wardhttp://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/#comment-50948 Ryan Ward Fri, 24 Aug 2007 23:10:35 +0000 http://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/#comment-50948 I really can't agree with your assessment that this economy is turning bad. Sorry, the math doesn't add up that way. The subprime market and the unintended consquences of bad loans cannot make that big of a ripple through the overall economy. It's just not a big enough portion. I am very weary of the doomsayers out here that speak in terms of the economy being as bad as you make it out to be and it doesn't take into account the consequences further down the line which are beneficial due to the free market economy. Remember this - when something (like subprime) goes bad, something else will take it's place in a free market. Real estate is cyclical. This is nothing more than part of a cycle. Will some people be hurt? Absolutley. Others will gain from it.You say borrowing money has become much harder. Good. It was too easy. These lenders play a game called risk management and now subprime is dead so they will find something else.Do you know what would happen to China if they stopped buyimg our debt? This game works both ways. I really can’t agree with your assessment that this economy is turning bad. Sorry, the math doesn’t add up that way. The subprime market and the unintended consquences of bad loans cannot make that big of a ripple through the overall economy. It’s just not a big enough portion. I am very weary of the doomsayers out here that speak in terms of the economy being as bad as you make it out to be and it doesn’t take into account the consequences further down the line which are beneficial due to the free market economy. Remember this – when something (like subprime) goes bad, something else will take it’s place in a free market. Real estate is cyclical. This is nothing more than part of a cycle. Will some people be hurt? Absolutley. Others will gain from it.

You say borrowing money has become much harder. Good. It was too easy. These lenders play a game called risk management and now subprime is dead so they will find something else.

Do you know what would happen to China if they stopped buyimg our debt? This game works both ways.

]]> By: Mr Economyhttp://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/#comment-50904 Mr Economy Mon, 20 Aug 2007 19:14:52 +0000 http://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/#comment-50904 Yes, I agree that the US economy is headed from probelms. The volatile stock markets are a worrying sign as before crashes stock market volatility often increases markidly.On the plus side, should the economy start to faulter and head for a recession then the FED will cut interest rates which should easy the pressure on homeowners.Nice blog Josh, keep up the good work! Yes, I agree that the US economy is headed from probelms. The volatile stock markets are a worrying sign as before crashes stock market volatility often increases markidly.

On the plus side, should the economy start to faulter and head for a recession then the FED will cut interest rates which should easy the pressure on homeowners.

Nice blog Josh, keep up the good work!

]]> By: Austin Real Estate Guyhttp://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/#comment-50898 Austin Real Estate Guy Sun, 19 Aug 2007 17:06:36 +0000 http://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/#comment-50898 I have to agree with much of what you posted. I also want to point out that what you don't see in the press is how healthy certain markets, like Austin, are. I have to agree with much of what you posted. I also want to point out that what you don’t see in the press is how healthy certain markets, like Austin, are.

]]> By: John Hunterhttp://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/#comment-50895 John Hunter Sun, 19 Aug 2007 16:17:17 +0000 http://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/#comment-50895 I think people want to much to view the economy in extremes. In many ways the economy is strong (even in your point about the stock market you say a decline from the all-time high). Mortgage default rates are a big negative. The credit crunch is a negative given how quickly and significantly it has shifted - however the ridiculous easy money policies were bad too (though no-one much talked about them at the time).The unemployment rate is low. Inflation is low - especially considering how much oil prices have increased. Interest rates are low. Many things are good. The huge burden or government and personal debt are serious problems but not significantly different than they were 3 years ago - when you look at the entire economy. The oversupply of current housing for sale is a problem in some areas (and the risks of adding more forced mortgage default sales is a concern) but the decline in median prices nationwide in the last year is 1.5% hardly what the headlines discussing crash suggest to many that don't know that prices are hardly declining nationwide (of course some locations are declining significantly and many are actually increasing).Basically the economy is pretty strong with some areas of weakness (short term housing sector problems) and long term problems: way to much long term government and personal debt and a health system that costs way too much and is increasing each year - <a href="http://management.curiouscatblog.net/2007/01/10/usa-healthcare-costs-now-16-of-gdp/" rel="nofollow">now 16% of the economy</a> - about double the cost anywhere else. I think people want to much to view the economy in extremes. In many ways the economy is strong (even in your point about the stock market you say a decline from the all-time high). Mortgage default rates are a big negative. The credit crunch is a negative given how quickly and significantly it has shifted – however the ridiculous easy money policies were bad too (though no-one much talked about them at the time).

The unemployment rate is low. Inflation is low – especially considering how much oil prices have increased. Interest rates are low. Many things are good. The huge burden or government and personal debt are serious problems but not significantly different than they were 3 years ago – when you look at the entire economy. The oversupply of current housing for sale is a problem in some areas (and the risks of adding more forced mortgage default sales is a concern) but the decline in median prices nationwide in the last year is 1.5% hardly what the headlines discussing crash suggest to many that don’t know that prices are hardly declining nationwide (of course some locations are declining significantly and many are actually increasing).

Basically the economy is pretty strong with some areas of weakness (short term housing sector problems) and long term problems: way to much long term government and personal debt and a health system that costs way too much and is increasing each year – now 16% of the economy – about double the cost anywhere else.

]]> By: Malokhttp://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/#comment-50869 Malok Fri, 17 Aug 2007 22:16:13 +0000 http://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/#comment-50869 Great article - and spot on assessment. Positive cash flowing properties, that you can buy with "built in" equity are the tickets nowadays. Its a great time to buy - if you know what to buy in the first place. Great article – and spot on assessment. Positive cash flowing properties, that you can buy with “built in” equity are the tickets nowadays. Its a great time to buy – if you know what to buy in the first place.

]]> By: Chamonixhttp://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/#comment-50864 Chamonix Fri, 17 Aug 2007 14:40:01 +0000 http://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/#comment-50864 The economy might be under strain but I think that globally the economy is in a better, stronger position than it was during the dot com crash. Lets hope with a bit of monetary tightening we can ride this period out. The economy might be under strain but I think that globally the economy is in a better, stronger position than it was during the dot com crash. Lets hope with a bit of monetary tightening we can ride this period out.

]]> By: Jimmy Rockastahttp://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/#comment-50862 Jimmy Rockasta Fri, 17 Aug 2007 10:23:34 +0000 http://www.biggerpockets.com/renewsblog/2007/08/16/the-state-of-the-us-economy-and-housing-market-and-tips-for-future-real-estate-investments/#comment-50862 Hi, This is a good post. This is the stuff I was actually looking for.I have a question though – Frequent number of times I have got a warning as “spam” when I try bookmarking on sites like dig.com or muti.com.I don’t have any spam pages or websites.Any idea why do I meet with all these?Thanks. Hi,
This is a good post. This is the stuff I was actually looking for.

I have a question though – Frequent number of times I have got a warning as “spam” when I try bookmarking on sites like dig.com or muti.com.

I don’t have any spam pages or websites.

Any idea why do I meet with all these?

Thanks.

]]>