GoFuckYourself.com - Adult Webmaster Forum - View Single Post - For those waiting for the housing market to improve !

L-Pink · 06-09-2011, 09:14 AM

Don't hold your breath. Why should it improve ... and improve to what level. Granted the example below is an extreme example but it really does emphasize my point.

The inflated value of existing homes and the over pricing of new homes will never come back. That money is lost forever as it should be. Why would a $135,000 home increase to $750,000? Smoke and mirrors.

At a 5% per year increase it would be worth around the $235,000 value it's currently at. The refinanced windfall went to the tremendous consumer spending binge which also isn't coming back.

Example from Yahoo news;
" ...... Lynn, who didn't want her last name used, purchased a two-bedroom on Tampa Bay in 1998 for $135,000.

As the waterfront property's value skyrocketed, eventually reaching $750,000, she refinanced twice (once to expand a business), and took out a second mortgage. She now owes more than $600,000 on the home, which is worth only $235,000.
Living in this foreclosure limbo is "Hell," Lynn said. "I feel like I'm locked in a box. I work for a financial organization and if this came out, it could cost me my job."

06-09-2011, 09:14 AM
L-Pink working on my tan Industry Role: Join Date: Mar 2005 Location: Florida/Kentucky Posts: 39,151	For those waiting for the housing market to improve ! Don't hold your breath. Why should it improve ... and improve to what level. Granted the example below is an extreme example but it really does emphasize my point. The inflated value of existing homes and the over pricing of new homes will never come back. That money is lost forever as it should be. Why would a $135,000 home increase to $750,000? Smoke and mirrors. At a 5% per year increase it would be worth around the $235,000 value it's currently at. The refinanced windfall went to the tremendous consumer spending binge which also isn't coming back. Example from Yahoo news; " ...... Lynn, who didn't want her last name used, purchased a two-bedroom on Tampa Bay in 1998 for $135,000. As the waterfront property's value skyrocketed, eventually reaching $750,000, she refinanced twice (once to expand a business), and took out a second mortgage. She now owes more than $600,000 on the home, which is worth only $235,000. Living in this foreclosure limbo is "Hell," Lynn said. "I feel like I'm locked in a box. I work for a financial organization and if this came out, it could cost me my job."