Quote:
Originally Posted by marketsmart
to foreclosure...
a new record...
still think the economy is getting better?
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I pose a practical question... What the
fuck is going to stop this downward real estate spiral?
-I live in a realitively small county. There are 3000 houses for sale at the moment and last month 72 sold. That's what? A four year supply assuming no more properties come on the market?
-Soon, tons of Alt-A loans (those given to people with good credit but are ARM) are due to be reset. That's another flood of foreclosures.
-It's nearly impossible to get a mortgage now to buy anything as the banks are demanding gold-plated borrowers.
-Those that can get approved often cannot come up with the required down payments as either they've seen their equity disappear in their existing homes or they can't sell to free up whatever equity they're lucky enough to still have.
-The collateral damage is massive. I was in Home Depot a few weeks ago around noon on a Saturday. The were litterly four other customers in the store.
I bought my first house (to fix up and resell) when I was 23. I got stuck selling it during the Carter era where mortage rates were 18%. And I
still managed to sell it and make a small profit.
Today? Forget it. The real estate market is not just dead, it's a rotting corpse.