Why the housing market will continue to crash (pic)
 

Too many people getting in way over their heads are now being forced to sell...

http://photos1.blogger.com/blogger/4...031159_P03.jpg

This 3 bed/2.5 bath 2,482 sqft property in San Elijo Hills, a master planned community in San Marcos, North County San Diego, was purchased June 2005 for $750,000. After 10 months of subsiding on frozen burritos and watching TV from the 13 inch set back from the college dorm years, this proud homeowner finally started missing her payments and a notice of default was issued on 3/2006. Of course, the loan was a zero down, 80/20 loan with the 1st being $600,000 and the 2nd at $150,000.

This property is currently on sale for $779,750, listed since 4/10/06. FYI, the original owners bought this home in 11/2001 for $387,000 and sold it for a 90% profit over a 3.5 years of holding time. Apparently past performances do not guarantee future earnings and sometimes it is a bit too late to get into real estate.

Well, at least I will be buying a house once prices have dropped quite a bit. I should be buying a first home this summer.

as long as ur not the last moron holding it, thats all that really matters.

fuck the market.

Hahaha.. nice TV... even when I had a small living room I had a MASSIVE tv...

i predict mass foreclosure up the ass in the very near future. too many people on $50k a year income buying houses for $350k+..

buying opportunity

why are y'all so stupid

a slow market just means you gotta work harder to sell ur place.

geeze real estate is a slow market because its INDIVIDUALLY based.

coming to a theater near you


:thumbsup


let's just hope the correction isn't TOO severe

damn straight. :thumbsup

Rhode Island leads the nation in foreclosures.

We had a huge run-up in prices --and now the decline.

It's about time that realty market adjusted. They've been driving everything to the moon for years. It's time for it to become more realistic.

As for me.. a perfect buying opportunity is just around the corner.

:thumbsup

some peple are just fucking stupid getting loans they know damn well they can't afford.

lol I have that same Sony trinitron... used to be our kitchen TV, Sony does make the best TVs

But anyway, yeah... real estate prices continue to be out of control in NY... a widowed lady down the road from here sits with a small $179k house on the market asking/expecting $400k for it :1orglaugh My area is a rural, under developed, under advanced area 100 miles north of the city... I point and laugh when we drive by.

Real estate is booming in our area lately....big time. Houses comparable to ours on the street are going for 60-80k higher than what we originally paid for ours 5 years ago. For a small town with a lacklustre economy - that's pretty good these days.

thats one tiny tv

when the market does correct itself, it will be the areas that have had the largest growth that will be hit the hardest. california, arizona, nevada, etc..

slow growth areas like yours will not be as effected.. :2 cents:

Yes, booming over the last 5 years. But no market is heading north these days. Everything is correcting itself. You see reports on median prices going up, but that's year-over-year which doesn't mean squat when looking at today's market. Inventory is what needs to be looked at. San Diego just set a new record for the most number of homes on the market EVER.

Should be interesting to see how the market looks in about a year.

To hell with houses, buy LAND! It's a limited edition collectible. They're not making it anymore.

The market around here booms every 10 years.

Just had a boom, so no more buying for 5 years. Time to throw cash at shares/stocks.

haha... love that tv-rig

Ha funny stuff.

But it depends on the area, some spots will always go up no matter what the market does.

That's where I invest.

80/20 on a $750 house, shit that's crazy.

must of been $4000 a month interest only. :1orglaugh

can't wait for the prices to drop so I can pick some RE up myself...

:1orglaugh :1orglaugh

Good one :thumbsup

Scottsdale is getting waaaaaaaaaaaay overpriced. My buddy just bought a 1300 sq foot condo for 600k... preconstruction!! Granted its very modern and nice but still.. its fucking Arizona!

We are trying to find a place just now, but the prices are ridiculous...

That may be true in some locales, no doubt. Here locally the buyers are outnumbering the sellers 2:1 - one of our neighbours had 11 bids on their house and it sold within 4 days of being listed.

I'm just baffled what's fueling it lately. All the major industry has pulled out in recent years. The only employment left is mostly service sector crap (Burger King - min. wage). Mostly its considered a bedroom community, with commuters heading elsewhere each day.

Mind you - its a nice peaceful and quiet town and central to a lot of popular tourist destinations. Very little crime. Ideal place to raise kids.

Hilarious! Any pics of "Mr. Internet Bubble"? When he popped back in 2000, I lost my dot bomb job and pushed me into webmastering full time :thumbsup

Makes you wonder how she was able to secure that mortgage. I guess she made a really good income but had no savings at all to lean on, or lost her job.

Fuck, people really are stupid. There is little if any hope for the human race these days.

interesting. i hope the prior owners did not carry the 2nd DT. if they did they did not get 90% profit, and unless they they traded up or did tax deferred exhange they might not have done very well at all.

very risky for sellers to do OWC with highly leveraged buyers.

Yep same thing happened here in Australia, Double x 100 % price rise over 8 years amazing. When it dried up our share market went through the roof.

Now that the USA is slowing in the house market look for the USA share market to hit record highs over the coming 2 years.

Good point. The reverse happened in 2000 when the Net bubble burst, people pulled out of stocks into housing. It might be time to go the other way again.

Yup - most people are house poor. They live paycheck to paycheck.

yeah we had a similair surge here between 2002-2005 where home prices surged 90%...this is no gaurantee in this current economical crisis though

Part of the problem is the print media. They spin the stories to reflect a "soft landing" or a "return to normal". This is simply not true. Things are tanking and inventories across the country are at record levels. They spin the stories because real estate related advertising is the largest % of ad revenue for newspapers.

marc

I have been out looking since december...and i have seen MANY of the same houses STILL up for sale.....RE agent says 4 months is now the average in my part of Fla....lots of "reduced" signs is peeps yards....