Comments on: Homes: Still Too Pricey to Stabilize http://www.ritholtz.com/blog/2009/02/homes-still-too-pricey-to-stabilize/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 21:38:31 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: Media Appearance: CNBC’s Fast Money (2/18/09) | The Big Picture http://www.ritholtz.com/blog/2009/02/homes-still-too-pricey-to-stabilize/comment-page-2/#comment-172235 Media Appearance: CNBC’s Fast Money (2/18/09) | The Big Picture Sat, 16 May 2009 12:03:19 +0000 http://www.ritholtz.com/blog/?p=19415#comment-172235 [...] See our prior suggestions: 1. Homes: Still Too Pricey to Stabilize the mess! [...] [...] See our prior suggestions: 1. Homes: Still Too Pricey to Stabilize the mess! [...]

]]> By: The Elusive Housing “Fair Value” | Low Interest Student Loans http://www.ritholtz.com/blog/2009/02/homes-still-too-pricey-to-stabilize/comment-page-2/#comment-165032 The Elusive Housing “Fair Value” | Low Interest Student Loans Sat, 25 Apr 2009 01:21:02 +0000 http://www.ritholtz.com/blog/?p=19415#comment-165032 [...] are getting closer to typical levels. They remain elevated, but no longer outrageously so, as they revert back to historic [...] [...] are getting closer to typical levels. They remain elevated, but no longer outrageously so, as they revert back to historic [...]

]]> By: linkfeedr » Blog Archive » The Elusive Housing “Fair Value” - RSS Indexer (beta) http://www.ritholtz.com/blog/2009/02/homes-still-too-pricey-to-stabilize/comment-page-2/#comment-164687 linkfeedr » Blog Archive » The Elusive Housing “Fair Value” - RSS Indexer (beta) Fri, 24 Apr 2009 12:28:31 +0000 http://www.ritholtz.com/blog/?p=19415#comment-164687 [...] are getting closer to typical levels. They remain elevated, but no longer outrageously so, as they revert back to... more on the original website Report This Post: Illegal content | Broken link | Spam | [...] [...] are getting closer to typical levels. They remain elevated, but no longer outrageously so, as they revert back to… more on the original website Report This Post: Illegal content | Broken link | Spam | [...]

]]> By: The Elusive Housing “Fair Value” | All about MICROSOFT http://www.ritholtz.com/blog/2009/02/homes-still-too-pricey-to-stabilize/comment-page-2/#comment-164674 The Elusive Housing “Fair Value” | All about MICROSOFT Fri, 24 Apr 2009 11:40:56 +0000 http://www.ritholtz.com/blog/?p=19415#comment-164674 [...] are getting closer to typical levels. They remain elevated, but no longer outrageously so, as they revert back to historic [...] [...] are getting closer to typical levels. They remain elevated, but no longer outrageously so, as they revert back to historic [...]

]]> By: The Elusive Housing “Fair Value” | The Big Picture http://www.ritholtz.com/blog/2009/02/homes-still-too-pricey-to-stabilize/comment-page-2/#comment-164670 The Elusive Housing “Fair Value” | The Big Picture Fri, 24 Apr 2009 11:29:52 +0000 http://www.ritholtz.com/blog/?p=19415#comment-164670 [...] are getting closer to typical levels. They remain elevated, but no longer outrageously so, as they revert back to historic [...] [...] are getting closer to typical levels. They remain elevated, but no longer outrageously so, as they revert back to historic [...]

]]> By: AlonPlitt http://www.ritholtz.com/blog/2009/02/homes-still-too-pricey-to-stabilize/comment-page-2/#comment-146848 AlonPlitt Thu, 19 Feb 2009 16:15:36 +0000 http://www.ritholtz.com/blog/?p=19415#comment-146848 That Ratio Chart (median home price to income) doesnt look so bad anymore. It looks like we are closing in on a ratio (3-3.5) that put us back to a reasonable level. I guess fear of a downside overshoot is warranted given the size of the run up - but past pullbacks didnt overshoot on the downside from the look of this particular chart. That Ratio Chart (median home price to income) doesnt look so bad anymore. It looks like we are closing in on a ratio (3-3.5) that put us back to a reasonable level. I guess fear of a downside overshoot is warranted given the size of the run up – but past pullbacks didnt overshoot on the downside from the look of this particular chart.

]]> By: Jim Canuck http://www.ritholtz.com/blog/2009/02/homes-still-too-pricey-to-stabilize/comment-page-2/#comment-146839 Jim Canuck Thu, 19 Feb 2009 15:53:51 +0000 http://www.ritholtz.com/blog/?p=19415#comment-146839 Chris Martenson wrote an article last evening on his website whic agrees that house prices are too high. Here's the link: http://www.chrismartenson.com/blog/obama-punishes-responsible-parties/13548 Chris Martenson wrote an article last evening on his website whic agrees that house prices are too high. Here’s the link: http://www.chrismartenson.com/blog/obama-punishes-responsible-parties/13548

]]> By: rktbrkr http://www.ritholtz.com/blog/2009/02/homes-still-too-pricey-to-stabilize/comment-page-2/#comment-146792 rktbrkr Thu, 19 Feb 2009 13:27:57 +0000 http://www.ritholtz.com/blog/?p=19415#comment-146792 I don't think the O'B plan will work well. 1) Too many struggling homeowners won't meet the terms and conditions of the plan. 2) Too many have lost their jobs. 3) Too many will redefault. How many in the bubble states will meet the -5% equity threshhold where those prices have dropped 40% - unless they had 20-30-40% equity in their homes or the US uses some sort of mark-to-model valuation for their homes. A lot of people in the (non-recourse) bubble states are rolling stones who will suffer the consequences of a default rather than try to pay themselves out of a 30-40% hole with a 40 year mortgage at any rate. I don’t think the O’B plan will work well. 1) Too many struggling homeowners won’t meet the terms and conditions of the plan. 2) Too many have lost their jobs. 3) Too many will redefault.

How many in the bubble states will meet the -5% equity threshhold where those prices have dropped 40% – unless they had 20-30-40% equity in their homes or the US uses some sort of mark-to-model valuation for their homes.

A lot of people in the (non-recourse) bubble states are rolling stones who will suffer the consequences of a default rather than try to pay themselves out of a 30-40% hole with a 40 year mortgage at any rate.

]]> By: rktbrkr http://www.ritholtz.com/blog/2009/02/homes-still-too-pricey-to-stabilize/comment-page-2/#comment-146788 rktbrkr Thu, 19 Feb 2009 13:19:12 +0000 http://www.ritholtz.com/blog/?p=19415#comment-146788 Buy a home, get a greencard. A couple million home buyers added to the equation could be a real shot in the arm. Our nation can survive 12 million illegal day laborers living in urban bunkhouses I think we could accomodate a couple million middle class professionals buying vacant McMansions and Detroit row houses. A lot of the day laborers are drifting back home anyway since they can't find work. Buy a home, get a greencard. A couple million home buyers added to the equation could be a real shot in the arm. Our nation can survive 12 million illegal day laborers living in urban bunkhouses I think we could accomodate a couple million middle class professionals buying vacant McMansions and Detroit row houses. A lot of the day laborers are drifting back home anyway since they can’t find work.

]]> By: danm http://www.ritholtz.com/blog/2009/02/homes-still-too-pricey-to-stabilize/comment-page-2/#comment-146782 danm Thu, 19 Feb 2009 12:50:10 +0000 http://www.ritholtz.com/blog/?p=19415#comment-146782 The government is under the illusion that they can stop this with their mortgage flim-flam–if they try enough times, they will eventually be correct. The cost to us as a country is going to be terrible. It won’t kill the housing sector for a few years, but for much, much longer. -------------------- Not so sure they all believe this. I think what they know is that they need to do something so as to not be burned at the stake. And after all sectors got their time in the sun over the last couple of decades, it's finally their time to shine. With all the money flowing into government, I'm sure you can see the dollar signs sparkling in their eyes. Give them a break, they're only human and we now know what happens when a sector gets too much money. Same thing will happen with the governement. The writing is on the wall. The government is under the illusion that they can stop this with their mortgage flim-flam–if they try enough times, they will eventually be correct. The cost to us as a country is going to be terrible. It won’t kill the housing sector for a few years, but for much, much longer.
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Not so sure they all believe this. I think what they know is that they need to do something so as to not be burned at the stake.

And after all sectors got their time in the sun over the last couple of decades, it’s finally their time to shine. With all the money flowing into government, I’m sure you can see the dollar signs sparkling in their eyes. Give them a break, they’re only human and we now know what happens when a sector gets too much money. Same thing will happen with the governement.

The writing is on the wall.

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