The housing bubble really hasn't crashed yet

2009-05-26 10:15:51

#1

cpt.fass1: The Cap'n Can Make it Hap'n; +329|6958|NJ

Well I've been thinking that right now is the start of really really dark days. The housing bubble really hasn't burst yet we're going to be seeing a lot worse in years to come. With interest rates still at an all time low the cost of housing soared, now in order to fight inflation we're going to have to raise rates sooner of later to make the dollar worth something again. So lets say on a moderate base the rates end up at an 8%, it's going to drive down the affordability of pretty much ever house in the US. That 150k house that only cost you 800 a month is now going to cost you 1200 in mortgage. It might now seem like a big deal, but the average family income in the US is 50k a year(that's the whole family so a one income family probably make 30K)

With Sky Rocketing Taxes on property to float inflated budgets and rates that are going to have to go up this is going to cause lots of problems with the affordability of homes.. It should be interesting to see what happens, when rome Falls

2009-05-26 10:40:54

#2

Locoloki: I got Mug 222 at Gritty's!!!!; +216|6902|Your moms bedroom

spend $200 get your rate locked in at the lowest %

variable rates are for suckers

2009-05-26 10:47:10

#3

cpt.fass1: The Cap'n Can Make it Hap'n; +329|6958|NJ

Locoloki wrote:
spend $200 get your rate locked in at the lowest %

variable rates are for suckers

It's not about variable rates, the only real reason homes values are up so high is because the rates where so low. Now we're haveing economic problems do to money not actually being worth anything. So when they start to raise rates everyones going to be trapped in there debt. If you think the market right now sucks wait intill the money starts costing more, then the shits really going to hit the fan.

2009-05-26 11:12:53

#4

Varegg: Support fanatic :-); +2,206|7072|Nårvei

The housing bubble did burst some time back ... what you talk about is a bank crisis on the horizon ... that may very well not happen and isn't as dark as your claim, with the market flattening out and now showing improvement with a strong trend in 2nd quarter will yield a higher interest rate but that was already given and has been announced weeks ago ...

But house prices will most surely fall more before they hit bottom, prolly hit bottom in June according to Bloomberg News

Sorry to burst your bubble

Wait behind the line ..............................................................

2009-05-26 11:27:03

#5

DrunkFace: Germans did 911; +427|6943|Disaster Free Zone

https://mozztrader.files.wordpress.com/2009/04/auslonghouse-price-indicies.jpg

Quit your whinging.

https://www.myfreepropertydvd.com/files/page0_blog_entry10-figure2.png

Last edited by DrunkFace (2009-05-26 11:31:04)

2009-05-26 12:16:50

#6

cpt.fass1: The Cap'n Can Make it Hap'n; +329|6958|NJ

My whining? Those graphs seem to say that it's going to be bad..

It's going to be more then a burst and I don't think you know how bad it's going to be. When the rates go up, the house values have to go down, because people are not going to be able to buy the home?

2009-05-26 12:19:23

#7

King_County_Downy: shitfaced; +2,791|6859|Seattle

I agree with the Captain.
We're about to see some shit go down over the next 5-10 years. Our economy is fucked from top to bottom. Where's ATG at? He'll break it down for you guys.

Sober enough to know what I'm doing, drunk enough to really enjoy doing it

2009-05-26 12:49:49

#8

CameronPoe: Member; +2,925|6817

This is why I am holding onto my juicy fat deposit, poised to pounce on some helpless evictees when their misery is at its greatest. Wuahahahahahahahahha.

Last edited by CameronPoe (2009-05-26 12:50:11)

2009-05-26 13:37:53

#9

BVC: Member; +325|6957

Hmm...what would I need to do in order to own a house in the US?

2009-05-26 13:46:43

#10

cpt.fass1: The Cap'n Can Make it Hap'n; +329|6958|NJ

Pubic wrote:
Hmm...what would I need to do in order to own a house in the US?

Where would you like to own a house?

2009-05-26 14:07:20

#11

too_money2007: Member; +145|6570|Keller, Tx

Funny how Wall Street fucked our shit up and the Bush admin did nothing to stop it.

Fucking pricks.

Rich got filthy rich and the porr got royally fucked.

2009-05-26 20:31:36

#12

unnamednewbie13: Moderator; +2,053|7033|PNW

too_money2007 wrote:
...the porr got royally fucked.

But they still have big-screen LCD tv's.

2009-05-26 20:34:18

#13

jsnipy: ...; +3,277|6784|...

I'm not saying things won't get bad or even Holocaustic, but why does everyone compulsively dwell on it?

2009-05-26 20:47:21

#14

Flecco: iPod is broken.; +1,048|6927|NT, like Mick Dundee

too_money2007 wrote:
Funny how Wall Street fucked our shit up and the Bush admin did nothing to stop it.

Fucking pricks.

Rich got filthy rich and the porr got royally fucked.

History 101.

Whoa... Can't believe these forums are still kicking.

2009-05-26 20:57:06

#15

Reciprocity: Member; +721|6842|the dank(super) side of Oregon

do home prices adjust with interest rates? if nobody can afford the $150k house at $1200 per month. someone's gunna have to compromise. maybe lenders could set up special mortgages where a person would pay interest below the prime rate for the first few years and then the rate would increase. and by that time who cares? we all know the middle class is strong and growing, keeping pace with inflation.

i think it could work.

2009-05-26 21:56:49

#16

DrunkFace: Germans did 911; +427|6943|Disaster Free Zone

cpt.fass1 wrote:
My whining? Those graphs seem to say that it's going to be bad..

It's going to be more then a burst and I don't think you know how bad it's going to be. When the rates go up, the house values have to go down, because people are not going to be able to buy the home?

Well firstly (and most importantly) I said whinging not whining.
Secondly was not a rather serious post but rather way to just jab the US once again for sucking so much. Oh an your so called 'bubble' is tiny compare to ours, but we seem to be able to manage our finances .

2009-05-27 00:23:26

#17

Varegg: Support fanatic :-); +2,206|7072|Nårvei

cpt.fass1 wrote:
My whining? Those graphs seem to say that it's going to be bad..

It's going to be more then a burst and I don't think you know how bad it's going to be. When the rates go up, the house values have to go down, because people are not going to be able to buy the home?

If I'm not mistaken you are inside the business no?

It's people like you and your "end of days" rethorics that are holding us back, most people can't make themselves an own opinion and put all their faith in the socalled experts that ruined this in the first place ...

Wait behind the line ..............................................................

2009-05-27 02:51:18

#18

LividBovine: The Year of the Cow!; +175|6642|MN

Varegg wrote:
cpt.fass1 wrote:
My whining? Those graphs seem to say that it's going to be bad..

It's going to be more then a burst and I don't think you know how bad it's going to be. When the rates go up, the house values have to go down, because people are not going to be able to buy the home?
If I'm not mistaken you are inside the business no?

It's people like you and your "end of days" rethorics that are holding us back, most people can't make themselves an own opinion and put all their faith in the socalled experts that ruined this in the first place ...

I hate doom and gloom as much as anyone, but is it really a bad thing for people to be more cautous with their finances? People here have been putting more on credit than ever before, this is good? I for one want people to be scared of what the future may hold if the don't play it a little more safe with their money. I am willing to ride out the resulting crash because of this shift in priority. It would be better for our country in the long run.

"The President does not have power under the Constitution to unilaterally authorize a military attack in a situation that does not involve stopping an actual or imminent threat to the nation" - Barack Obama (a freshman senator from Illinios)

2009-05-27 02:58:42

#19

Varegg: Support fanatic :-); +2,206|7072|Nårvei

LividBovine wrote:
Varegg wrote:
cpt.fass1 wrote:
My whining? Those graphs seem to say that it's going to be bad..

It's going to be more then a burst and I don't think you know how bad it's going to be. When the rates go up, the house values have to go down, because people are not going to be able to buy the home?
If I'm not mistaken you are inside the business no?

It's people like you and your "end of days" rethorics that are holding us back, most people can't make themselves an own opinion and put all their faith in the socalled experts that ruined this in the first place ...
I hate doom and gloom as much as anyone, but is it really a bad thing for people to be more cautous with their finances? People here have been putting more on credit than ever before, this is good? I for one want people to be scared of what the future may hold if the don't play it a little more safe with their money. I am willing to ride out the resulting crash because of this shift in priority. It would be better for our country in the long run.

I almost agree ... it's good for people to get a wake up call but to scare them to desperation is never good in the long run, painting a more diverse picture with a fraction of hope in the end of the tunnel is better than the apocalyptic news that sells better and that dominates the news pr date ...

Wait behind the line ..............................................................

2009-05-27 03:47:26

#20

Flecco: iPod is broken.; +1,048|6927|NT, like Mick Dundee

DrunkFace wrote:
cpt.fass1 wrote:
My whining? Those graphs seem to say that it's going to be bad..

It's going to be more then a burst and I don't think you know how bad it's going to be. When the rates go up, the house values have to go down, because people are not going to be able to buy the home?
Well firstly (and most importantly) I said whinging not whining.
Secondly was not a rather serious post but rather way to just jab the US once again for sucking so much. Oh an your so called 'bubble' is tiny compare to ours, but we seem to be able to manage our finances .

Budget surplus hax tbh.

Whoa... Can't believe these forums are still kicking.

2009-05-27 04:03:04

#21

JahManRed: wank; +646|6890|IRELAND

The Housing market has bottomed out in Northern Ireland, which is a good sign. Estate agents are telling me they are shifting properties again. Mortgage brokers are telling me that the banks are giving mortgages to first time buyers.
My sisters house was valued at £80 000, she just agreed a sale of £95 000. So signs are good here that we have bottomed out, so it can only go up (slowly) from here. Well I hope that's the case.

2009-05-27 06:27:38

#22

cpt.fass1: The Cap'n Can Make it Hap'n; +329|6958|NJ

DrunkFace wrote:
cpt.fass1 wrote:
My whining? Those graphs seem to say that it's going to be bad..

It's going to be more then a burst and I don't think you know how bad it's going to be. When the rates go up, the house values have to go down, because people are not going to be able to buy the home?
Well firstly (and most importantly) I said whinging not whining.
Secondly was not a rather serious post but rather way to just jab the US once again for sucking so much. Oh an your so called 'bubble' is tiny compare to ours, but we seem to be able to manage our finances .

whinging - 2 dictionary results Jump to: News | Nearby Words

/–verb (used without object), whinged, whing⋅ing. British and Australian Informal.
to complain; whine.

:-) As I said I wasn't whineing. It's honestly not a doom and gloom message it's actually a little ray of sunshine I think.. The long story of the fiscal irresponsibility that happened is that everyone was wrong we don't need to point fingers. We need to correct what's wrong, over paid public officals, giant property taxes, low interest rates. I think what might fix things is you do loan mods with forgiven principle at high interest rates.

Experts are people who've seen this stuff happens in the past and say "Oh I know what went wrong before lets not make that mistake" then they make the same mistake.

2009-05-27 09:22:53

#23

Man With No Name: جندي; +148|5837|The Wild West

Home sales are up 2%

2009-05-27 09:27:41

#24

King_County_Downy: shitfaced; +2,791|6859|Seattle

Reciprocity wrote:
do home prices adjust with interest rates? if nobody can afford the $150k house at $1200 per month. someone's gunna have to compromise. maybe lenders could set up special mortgages where a person would pay interest below the prime rate for the first few years and then the rate would increase. and by that time who cares? we all know the middle class is strong and growing, keeping pace with inflation.

i think it could work.

Sober enough to know what I'm doing, drunk enough to really enjoy doing it

2009-05-27 09:57:41

#25

cpt.fass1: The Cap'n Can Make it Hap'n; +329|6958|NJ

Man With No Name wrote:
Home sales are up 2%

what about home values?

BF2S Forums The housing bubble really hasn't crashed yet

Locoloki wrote:

Pubic wrote:

too_money2007 wrote:

too_money2007 wrote:

cpt.fass1 wrote:

cpt.fass1 wrote:

Varegg wrote:

cpt.fass1 wrote:

LividBovine wrote:

Varegg wrote:

cpt.fass1 wrote:

DrunkFace wrote:

cpt.fass1 wrote:

DrunkFace wrote:

cpt.fass1 wrote:

Reciprocity wrote:

Man With No Name wrote:

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