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."

So true top notch.

Maybe in another 10 years things will inch up. But I doubt they will get back up to what they were 5-6 years ago at any point in our lifetime.

i wonder when the bubble will pop here. average homes are going for 500k or more, 90% based on location. they can't go up forever.

Several people I know were investing in hyper inflated areas... I warned them.. the greed in their mind was too thick... they're broke, all but the one lady friend of mine who listened to me and got out of several properties maybe six weeks before the bottom fell out in FL and CA a few years ago

Best time to buy is when everyone is RUNNING AWAY from real estate with their HANDS IN THE AIR SCREAMING

That is the time to buy everything you can get your hands on

The woman in the article borrowed $600,000 on a home she paid $135,000 for just a few years before!? And banks gave it to her. That's a half million dollars she spent. Multiply that in various amounts across the nation and look how false our "booming" economy really was.

Now she's bitching because she blew $600k and has nothing to show for it, cry me a river!

I just bought a short sale where the owner bought the house in 2001 for $157k, put nothing down, refinanced on 2006 for $275k and hasn't paid them a dime in the last 8+ months while it sat on the market as a short sale. He makes out like a bandit and is renting the house back from me for $1000 a month.

I doubt he has a dime of that money he got when he did the refi unfortunatly for him, but he still has the same job as he's had for the last 10 years and I got 12 post dated checks! :thumbsup

Yea, not only was there a housing bubble that popped, there was a consumer spending bubble (with borrowed money) that popped.