Housing Market in 2012
By Barry Ritholtz - June 22nd, 2009, 11:15AM
Home-sellers continue to have a hard time making a sale.
In any great organization it is far, far safer to be wrong with the majority than to be right alone. —John Kenneth Galbraith
Macro Notes
US$ rally continuesPeter Boockvar
Asian currencies continue to sell off vs the $ on the heels of the news yesterday that South Korea said they will look into hot money inflows stemming from the $ carry trade and the Bank of Indonesia said they are looking into the foreign buying of bills. This follows the news a few weeks ago that Taiwan was limiting foreign deposit holdings and Brazil was taxing foreign inflow transactions. As I mentioned yesterday, we may have reached a short term pain threshold in terms of $ weakness and foreign countries are fighting back as they certainly won't wait for...
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June 22nd, 2009 at 12:42 pm
Good for the Desouza’s. Time for them to start spending $.
June 22nd, 2009 at 2:18 pm
Boo hoo, they MIGHT be underwater??? Come to Vegas where EVERYONE who bought a house in 2004 is under water to the tune of tens or hundreds of thousands in some cases.
June 22nd, 2009 at 2:57 pm
“…won’t be able to recoup our investment.”
A house (primary residence) is NOT an investment. It is shelter for you and your family. It is actually a liability (maintenance, taxes, insurance, etc.).
The reason this couple and others like them are losing is they paid an investment premium for their property expecting future price appreciation, akin to premiums paid for growth stocks like Google. This is the wrong attitude to have when it comes to real estate as your primary residence. I’m glad to see attitudes are starting to change on this.
June 22nd, 2009 at 3:39 pm
…reality sometimes will hit you like a 2×4 between the eyes.
These people haven’t dealt with reality yet…
June 22nd, 2009 at 9:56 pm
These people can weather a 50K loss. Many lower net worth folks will be devastated.
June 22nd, 2009 at 11:09 pm
Yes, but “these people” probably didn’t take out second and third mortgages until they were 100s of 1000s of dollars underwater. The article didn’t sound “boo-hoo” to me, just “so sad, too bad” let’s face reality and move to the next stage of our lives.
June 22nd, 2009 at 11:34 pm
Wait’ll the bank assigns an ‘appraisal management company’ to select a ‘random’ appraisor under Andrew Cuomo’s new “Appraisor Code of Conduct” which has been adopted by the Federal Housing Finance Authority for all loans processed thru Fannie and Freddie and effective May 1st, 2009. This will be one pissed off appraisor, who has to share his fee with the new ‘management company’. The appraisor cannot be familiar with anyone in the deal, which means he won’t be familiar with that neighborhood, either.
While the 2009 market’s ‘correction’ of the $556,000 sale price ( and subsequent appreciation thru mid 2006), to say, $560,000., the appraisal for the buyer’s bank will likely come in around $448,000., just to reflect his or her attitude with complying to Andrew Cuomo’s rules. Since Andrew has focused on appraisors as being a prime factor in the housing foreclosure crisis.
Hey, guess who ran HUD under the Clinton Administration when Fannie and Freddie’s ’subprime’ got shoved into the global and domestic capitalist financial system: Andrew Cuomo. While the housing market was on it’s way to sorting itself out with no help from the federal government, this new wrench, designed by a 2nd generation politician, has halted it.
June 23rd, 2009 at 10:32 am
They may “lose money” but they did receive shelter for 5 years, that’s worth something. Apparently renters are not the only ones throwing their money away…