BOOM: HOUSING STARTS DESTROY EXPECTATIONS AT 894K (Analysts expected 840K annualized down from 872K)

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Fannie and Freddie are holding on to almost 6 trillion dollars in inventory that's just sitting there, and the fed is buying mortgage backed securities in QE infinity. It's all smoke and mirrors.

I have personally observed In central Texas a housing boom, but mostly large, expensive, custom homes in high end developments. Real estate is moving as we'll, again mostly high end with ackerage. Real estate values are on the incline.

Sierra Vista, AZ is experiencing a boom, but again it's the high end homes for the retiring wealthy.

a co-worker was making comment yesterday , that all the houses on her street now suddenly have for sale sign on them... she is a little worried.

they are planning for europe collapse, world war, etc. which equals lots of new immigration into the USA

This is fucked. FUCKED. Renters are going to have to live in their vehicles.

agreed! This is horrible for anyone who rents... Hyperinflation is going to suck!

There were 123 homes on the market in my suburb 2 months ago. Today it is less than 19 and values have gone up..

How can people even sell their house if it's 50X average annual income? They may need to sell it to get the cash to buy food. There must be some downside for homeowners.

Q. How are they financed?
A. Freddie and Fannie

I hope that answers your question.

How much have they gone up? Who is buying them?

The Fed and investors will gladly buy it.. The only downside is the property taxes... Hopefully they have the money to pay the property taxes, when TSHTF who cares about paying the mortgage-just pay the property taxes.. Most will be able to live in their homes for as long as they pay their property taxes

50x is nothing (btw, that is probably only true in San Fran) most normal places its only like 7x if that...

Wait till its 500x

50x???? WTF... the avg US income is $36,000 and the median home price is 170k....

You said housing prices were going to hyper-inflate into the millions. 360 is 10, 720 is 20, okay so around 30X.

Hyperinflation will hit incomes, eventually... It has to.. Businesses will have to raise their prices to meet the inflation rate.. it has to trickle down to incomes.... slowly at first-then accelerate

In that case, renters should be okay since incomes will also go up.

I am closing on a house now. Listed for $144,900 in July, I got it for $105,000 and apparently they were still showing it or my realtor is a liar (which is more likely) but she said it has 3 back up offers.

It was on the market for 3 months when I put the offer. So now its been 6 months but the market is starting to rebound.

If you are thinking of buying, now is the time.

3.9% tax after Jan 1 2013

except for their rent will go up at the same rate as inflation.... Rents have already exceeded the inflation rate in most markets... worst thing right now is to not have a set housing cost... If your renting and can buy-look at places before your lease is up-because they are going to jack up your rent!

I hope you get that closed... I have heard of a few deals here where the sellers actually backed out (payed a small penaly) then secured the higher offer...

As a previous poster stated... Food and energy will go up much faster than housing... however it will still go up significantly... If you can fix your housing cost AND prep-best of both worlds IMHO

like anything else, your rent will go up 50% during that same time your pay will go up 20%.

The only thing that changes on a mortgage would be insurance stuff. So your payments don't change real drastically.

Agreed, it doesn't mean shit. I can tell you right now there are no BIG development projects for neighborhoods around here in California. This also doesn't mean these projects will be finished. Homes are still overpriced and they still found some idiots to swindle.

Should be closed Monday or Tuesday. (Knock on wood)

But I've heard similar stories too.

I closed on my house after only a month on the market. 8K less than asking price though but I set it rather high to gauge what kind of demand. Got enough cash out of it to pay for down payment on a nice house which is a big upgrade. Also noticed that, I got a nice deal at the right time before others started wanting to build houses on my street which drove prices up. Just lucky...

Isn't California almost over developed? And everything in cali is overpriced!

Sometimes its better to be lucky! :)

Mine is a Freddie mac, so it will be a big relief when we actually close.

How about if you have a condo or co-op? Do you think they'll really shaft the with the fees and maintenance?

If they aren't fixed fees, yes. That's one thing that's very important now. If you can negotiate a flat fee that's locked.

Otherwise they will make sure they make more money than they should.

I've never been a big fan of condos because its like an apt but you pay the fees and maintenance.

with the coming martial law the value of your suburban property will fall to zero.

''oh honey this one looks nice''

yeah but we've got to go through 2 checkpoints and a riot to get there.

''oh, lets forget about that one''

I'm surprised they aren't building nice new shiny Bridges to sell us....