Housing collapse 2.0 in full swing!!!

I bought mine 15 years ago before the spike, got lucky on low interest rates, now in the process of selling. Praying the exchange of contracts will happen soon, already a month over the estimated date of exchange....Lucky I've got a fantastic wife who accepts my "feelings of doom".

Contaray to everything that I have beleived, I'd rather rent and use my equity to buy gold lol.

That wasn't me, but a 2% ARM that goes to 3% is a 33% increase if it is interest only or Neg Am.

Also, if 30-year fixed goes from 4% to 5%, that's a 12% increase (P&I), which also requires a 12% increase in income to qualify - and that 12% is not happening.

Go to 6% and you're looking at a 26% increase. That could happen in a matter of days, under the right circumstances.

Your 8% figure is wrong. Talk about a dimwit ...

THEY didn't do jack shit.

WE put him there.

And WE are smart enough to know they will try to blame anything on him.

And WE are smart enough to know THEY LIE.

Thanks to Globalism and slave labor, prices have to naturally go down for more people to afford it. They need to be allowed to crash and the flippers and banks need to go broke.

Wages have gone down and business wants to pay less and less inching toward third world wages and then people wonder how can people afford 1st world house prices in this country?

Sorry, the math is not going to work.


Housing Prices along with Medical need to drop which consume a major part of peoples income.

Or we need to end the trade agreements with slave labor nations and start paying people more in this country.


There is no free lunch

When interest rates go up, it will also slash the valuations of commercial property.

I agree. Math is quickly catching up, faster than I think some at the top would like.

Where do they walk to?

It is a wise business decision and is done by personal and business reasons for people of all kinds.

How come it is ok to run a country like a business but not your own personal expenses?

Those people need to walk away so housing prices drop
They are being kept inflated by Greedy Banks, Insurance, Agents and so on

Those that want to get wealthy on the RE sector need to take a cut in pay

...All of those red counties on the Trump map.


Friends of mine got killed in the Las Vegas housing downturn a few years ago, they ended up in Montana.

They are so very happy..

House Prices need to come down to 1980's levels atleast where the average wage is also at now

Not so much anymore. There is a lot of institutional equity out there now poised to buy up property in the right markets (not everywhere mind you), so traditional leveraged investors are not as prevalent today - which keeps return expectations low, and prices high. Additionally, Owner mentality has changed dramatically since the last recession, so the rental Multifamily and single family market will continue to post significant gains for a long time I think. In other words, buying rental real estate is not a bad idea today. Retail and office might be a different story, but a correction in these classes will not be as pronounced as some think either.

The only House that I want is a Whore House!

construction, especially commercial is booming in California. I work in the industry- you simply cannot find skilled workers except on prevailing wage jobs. Apple alone is tieing up half the skilled construction workers in the bay area. Everyone is swamped with work, wtf is opee talking about!?!?!?!?

i am running a 2 million dolla siding job- we had to order our Hardie Siding 2 months ahead of time, lead times are insane right now...

Cap rates are extremely low right now (i.e. valuations are extremely high). Like anything else, when the correction happens valuations will revert to the mean, regardless how much investor capital is available. It will still be available, but seeking better valuations.

Interesting. Property valuations might play a role there -- home equity is borrowed to pay for better quality home improvements.

Were you in the industry during the previous peak? If so, did you notice a similar scenario?

The same way Hoover got blamed for the Great Depression. The banksters gotta have a patsy.

yes and Trump said he's going to pass a new Glass-Steagall

bye bye derivatives!

yes it will... less credit on the market, less buyers, less buyers lower prices, lower prices, can't sell.

In a neighborhood near my office, new homes start from the low $1,000,000s. No joke. These are not upscale houses. Just pretty average.

they are waiting for o to be out of office first

yes but i was in residential, now i'm in commercial. i remember when we were selling houses in San jose circa 2003 for 700-900 k and people would have them up for sale the day they closed escrow with us for 200-300k more... several material classes started climbing in price, i remember drywall went on allocation, cement prices went crazy, now that I think about it, we're definitely in bubble territory about to pop...

by 2005 i was building in hi dolla areas of sacramento (el dorado hills, lincoln folsom) and i KNEW the end was near when a phone tech from pac bell who was setting up phone service for me in a temp sales trailer told me how he was flipping houses...by 2010, semi custom mcmansions we were selling for 2 million in 2008 we sold for 700k... then i got laid off after a a straight 16 years with the same company never missing a day...

i think we're heading for a dirt nap of epic proportions-....
there will be no bailouts this time, the globally sts are going to punish us for electing trump... but maybe we recover and see the biggest fucking renaissance in human history!!!!!

Make America 2008 Again

be careful what you wish for Moran...

so compared to last time, where we at? 2008 was the crash right? before barry took over S&P 666? so stocks havent reacted, so we're at like 2007 and i think this will dump faster as bonds are already dirt knapping and bill gross says trump is the end o da world anti christ ( so we know trump is good) but yeah i think we gotta good 8 10 months till they drop the hamma...karl denninger says we have no more than 4 years till utter federal govern,emt implosion due to leechfuck welfare but we have aabout 1 year of trump honeymoon before they kick the stool out from under us...

so yeah, we have a new solid doom date naggas, fall 2017- all hell breaks loose...

GLiPtardia?

If things unwind there is a clause in most mortages where they can call the full note due at their discretion. If you think you own, you dont - the bank does.

I'm a mortgage banker. Rates are through the roof right now. Many of the realtors I work with see a bubble burst coming too.