Comments on: The Housing Crisis: How Low Can It Get? Pretty Low! http://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/ Learn, Network, Invest Sat, 11 Feb 2012 23:51:37 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Lori Smithshttp://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/#comment-57252 Lori Smiths Fri, 06 Jun 2008 20:57:39 +0000 http://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/#comment-57252 How long will it last?Well, it all depends how the economy will do within the next 12 months. The worst the economy gets the faster people will be running into housing and mortgage problems.Sad but real. How long will it last?

Well, it all depends how the economy will do within the next 12 months. The worst the economy gets the faster people will be running into housing and mortgage problems.

Sad but real.

]]> By: jaxsonsmithhttp://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/#comment-56900 jaxsonsmith Mon, 19 May 2008 20:39:05 +0000 http://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/#comment-56900 It is so hard to tell when things are going to be back on track, after all you cant track when you enter a recession till long after you are in it. With the slump right now you may have no idea your out till you are out for quite a while. It is so hard to tell when things are going to be back on track, after all you cant track when you enter a recession till long after you are in it. With the slump right now you may have no idea your out till you are out for quite a while.

]]> By: Rihanna Take A Bowhttp://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/#comment-56885 Rihanna Take A Bow Sun, 18 May 2008 15:41:59 +0000 http://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/#comment-56885 I'm not sure about it but thanks a lot fod sharing I’m not sure about it but thanks a lot fod sharing

]]> By: Couponshttp://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/#comment-56882 Coupons Sun, 18 May 2008 10:38:36 +0000 http://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/#comment-56882 You can't call this as low.Thanks a lot for sharing. You can’t call this as low.Thanks a lot for sharing.

]]> By: Discount Voucher Codeshttp://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/#comment-56881 Discount Voucher Codes Sun, 18 May 2008 10:38:04 +0000 http://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/#comment-56881 This is not very low I think.thanks. This is not very low I think.thanks.

]]> By: Nadinehttp://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/#comment-56850 Nadine Fri, 16 May 2008 06:09:06 +0000 http://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/#comment-56850 I hope this crisis will pass in months. Years will be too long... I hope this crisis will pass in months. Years will be too long…

]]> By: Gregory Bainhttp://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/#comment-56840 Gregory Bain Thu, 15 May 2008 19:16:06 +0000 http://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/#comment-56840 I like Warren Buffet - he makes no predictions but he has been credited with the quotes: If own a farm and you have a drought, you don't reduce the value of the farm by 30% in the year of the drought. And, capitalism without risk is like christianity without HELL! I like Warren Buffet – he makes no predictions but he has been credited with the quotes: If own a farm and you have a drought, you don’t reduce the value of the farm by 30% in the year of the drought. And, capitalism without risk is like christianity without HELL!

]]> By: Susan Hilton - Texas Aggie Realtor in College Station Home Saleshttp://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/#comment-56827 Susan Hilton - Texas Aggie Realtor in College Station Home Sales Thu, 15 May 2008 03:51:49 +0000 http://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/#comment-56827 As a broker who sells almost exclusively foreclosures, I'm seeing what you are seeing - more properties on the market than last year, more stressed asset managers and fewer buyers being able to qualify. Hope we are wrong and the market rebounds but I think we have a ways to go before we are at the bottom. As a broker who sells almost exclusively foreclosures, I’m seeing what you are seeing – more properties on the market than last year, more stressed asset managers and fewer buyers being able to qualify.
Hope we are wrong and the market rebounds but I think we have a ways to go before we are at the bottom.

]]> By: Tom Lindmarkhttp://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/#comment-56820 Tom Lindmark Wed, 14 May 2008 21:38:10 +0000 http://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/#comment-56820 Charles, It was a good article though it's been attacked pretty hard in a lot of blogs. He did miss some points but I agree with you and him that affordability is the key. Unfortunately, we have a long way to go to get back to historical norms. Here's a chart that pretty clearly demonstrates the issue- http://blog.metro-real-estate.com/?p=394. Charles,
It was a good article though it’s been attacked pretty hard in a lot of blogs. He did miss some points but I agree with you and him that affordability is the key. Unfortunately, we have a long way to go to get back to historical norms. Here’s a chart that pretty clearly demonstrates the issue-
http://blog.metro-real-estate.com/?p=394.

]]> By: Michigan Seohttp://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/#comment-56817 Michigan Seo Wed, 14 May 2008 18:32:12 +0000 http://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/#comment-56817 Luckily here in Utah we haven't suffered as much as the rest of the country thanks to all the mormons who all have 12 kids and they all want to stay and live in Zion. Luckily here in Utah we haven’t suffered as much as the rest of the country thanks to all the mormons who all have 12 kids and they all want to stay and live in Zion.

]]> By: BawldGuy Talkinghttp://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/#comment-56816 BawldGuy Talking Wed, 14 May 2008 17:52:16 +0000 http://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/#comment-56816 We do business wherever the fundamentals are in place. Your points on the bottom are well made. Possibly the point for investors to understand is this: You don't have to time the bottom. You just have figure out (tall order for sure) when we're within shouting distance of the bottom.I think we're there. Whether it hits rock bottom next month or next year won't matter 5-10 years from now on your net worth sheet.Just avoid like the plague buying without paying homage to the fundamentals, and pay attention to the long term, big picture. We do business wherever the fundamentals are in place. Your points on the bottom are well made. Possibly the point for investors to understand is this: You don’t have to time the bottom. You just have figure out (tall order for sure) when we’re within shouting distance of the bottom.

I think we’re there. Whether it hits rock bottom next month or next year won’t matter 5-10 years from now on your net worth sheet.

Just avoid like the plague buying without paying homage to the fundamentals, and pay attention to the long term, big picture.

]]> By: Mark McGlothlinhttp://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/#comment-56814 Mark McGlothlin Wed, 14 May 2008 16:17:56 +0000 http://www.biggerpockets.com/renewsblog/2008/05/14/the-housing-crisis-how-low-can-it-get-pretty-low/#comment-56814 Charles, nice post. My crystal ball is cloudy on this prediction, but I've recently read something that really makes sense. The WSJ recently published (6 May) an op-ed by Cyril Moulle-Berteaux, a New York based hedge fund guy (Traxis Partners). He made a compelling case in the article that the housing market overall is bottoming more or less now - based on the issue of affordability. He presented some fairly convincing arguments regarding influences on affordability (price corrections, lower mortgage rates, growth in real income), and that measures of affordability in many markets are actually beginning to improve for the better.I track data in over 280 markets around the country, and there are markets out there that have very sound fundamentals, ongoing price / value appreciation (not great, but still appreciating), and very decent affordability numbers. The great majority of the horrible markets we all hear about in the press interestingly appear to have very poor affordability.Who knows what will happen, but it does appear that the markets out there that are very poorly affordable still have pain yet to bear. Some of the most poorly affordable markets are in California, Florida, and Nevada - the nation's foreclosure leaders.Maybe Cyril Moulle-Berteaux is right; we're sure going to follow affordability in our markets of interest for and see where things go...... Charles, nice post. My crystal ball is cloudy on this prediction, but I’ve recently read something that really makes sense. The WSJ recently published (6 May) an op-ed by Cyril Moulle-Berteaux, a New York based hedge fund guy (Traxis Partners). He made a compelling case in the article that the housing market overall is bottoming more or less now – based on the issue of affordability. He presented some fairly convincing arguments regarding influences on affordability (price corrections, lower mortgage rates, growth in real income), and that measures of affordability in many markets are actually beginning to improve for the better.

I track data in over 280 markets around the country, and there are markets out there that have very sound fundamentals, ongoing price / value appreciation (not great, but still appreciating), and very decent affordability numbers. The great majority of the horrible markets we all hear about in the press interestingly appear to have very poor affordability.

Who knows what will happen, but it does appear that the markets out there that are very poorly affordable still have pain yet to bear. Some of the most poorly affordable markets are in California, Florida, and Nevada – the nation’s foreclosure leaders.

Maybe Cyril Moulle-Berteaux is right; we’re sure going to follow affordability in our markets of interest for and see where things go……

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