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 Mon, 23 Nov 2009 07:23:11 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: Fed Chairman Ben Bernanke to Abandon Lenders and Investors | Real Estate Investing for Real Blog 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-page-1/#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 Ward 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-page-1/#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 Cenedella 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-page-1/#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 Guy 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-page-1/#comment-50961 Austin Real Estate Guy Sun, 26 Aug 2007 20:28:31 +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 Guy 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-page-1/#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 Ward 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-page-1/#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 Economy 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-page-1/#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!

]]>