State Of The Nations Housing - Harvard Study

RE:State Of The Nations Housing - Harvard Study

Tim — Wed, 11 Jul 2007 11:00:00 GMT

This is not a shock, the feds have been dumping the National debt deficiencies into the housing market for years. It has gotten worse since the Bush Administration, which incidentally, gave people a FALSE sense of security, and financial strength after 9/11. They had to stimulate the economy then, so essentially the just prolonged the inevitable. The other fact is, that houses have now become UNAFFORDABLE. The values will have to drop.

I am a mortgage broker, and real estate agent as well. In order for FIRST TIME HOME BUYERS to qualify... the values are going to have to come down. There is NO WAY, a person coming out of college making 30K can purchase a home for 200K. The National Median price of homes HAS to come down, in order to Stimulate the purchase market again. As americans we have been borrowing from Peter to pay Paul, for too long. The problem stems, from deeper impacts than housing directly.....

RE:State Of The Nations Housing - Harvard Study

Tim — Wed, 11 Jul 2007 11:00:00 GMT

The fact is we have overspending ocurring at a Federal Government level, and they try to absorb or HIDE the spending, with mythical value increases in housing. It should have been virtually IMPOSSIBLE to see 15-20% increases in values, in a home in a one year time, so essentially, a FALSE sense of value was created by the movement of homes over the past 5 years, because the FEDS dropped the rates to HISTORICALLY low rates, and opened up the guidelines, again to stimulate spending.

In the US, so the economy didnt TANK right after 9/11... We all know... what goes up, must come down, and we are going to see the 5 year inflated value period will have to correct itself.. and the time to look at is jan 1st 2003.. the feds realized with the war, and the overspending that something had to be done... we will see depreciation for the next 3 years until the market gets back to 3-5% over what values were at the time of Jan 2003. These are the facts.

RE:State Of The Nations Housing - Harvard Study

DONNA — Tue, 10 Jul 2007 11:00:00 GMT

Todd, you said it all in a nutshell!!! "I think that, as mentioned, there is less discretionary cash for the average person. The affordability of housing, both in terms of ownership and for renters, has grown disproportionately with that of one's growth in income. todd " PERIOD!!!!

RE:State Of The Nations Housing - Harvard Study

Tina — Wed, 04 Jul 2007 11:00:00 GMT

America (cans) must learn to live with the consequences that they have brought on themselves. Take responsibility and live within your means in a city you can afford. Call your lanlord at the onset of a problem followed with a written letter detailing the circumstances. Handle the small items yourself, remember this is your home whether you make house payments or rental payments. (Continued)

RE:State Of The Nations Housing - Harvard Study

Tina — Wed, 04 Jul 2007 11:00:00 GMT

Consumers consume at a rate above and beyond what they can afford. We are seeing the proof in the pudding. People are not putting back an emergency fund (3-6 months living expenses) and instead opt to live in debt. Renters do not take care of the properties they reside (changing the AC fillter, keeping water off the bathroom floors) thus the rents increase to cover the costs that they themselves could prevent. (continued)

RE:State Of The Nations Housing - Harvard Study

Tina — Wed, 04 Jul 2007 11:00:00 GMT

Renting is your trial run at owning-if you can't properly rent a home you sure can't be responsible enough to maintain your own piece of the American dream.

RE:State Of The Nations Housing - Harvard Study

Todd — Sun, 01 Jul 2007 11:00:00 GMT

Many appraisers have indicated to me that a 3-5 year wash out period to regain balance would not be out of the question. There does seem to be more stability in the 100k-200k price range of homes. However, I have typically seen this to be more of a minority market place. Good Story...Todd Mortgage Consultant/ Wealth manager 15 years.

RE:State Of The Nations Housing - Harvard Study

Todd — Sun, 01 Jul 2007 11:00:00 GMT

How long. Local property taxes in the northeast has also grown disportionately to one's income. Now that subprime lending is virtually gone this too will be a major issue for people who typically needed to refinance for debt consolidation, it is virtually impossible to do so in this current market. Many of these people have little to no equity and many also took the option arm programs that add negative amortization to their priciple balance will this last?

RE:State Of The Nations Housing - Harvard Study

Todd — Sun, 01 Jul 2007 11:00:00 GMT

I think it would be an interesting study to determine the demand for housing over that of health care. I think that, as mentioned, there is less discretionary cash for the average person. The affordability of housing, both in terms of ownership and for renters, has grown disproportionately with that of one's growth in income. todd

RE:State Of The Nations Housing - Harvard Study

Roger — Wed, 27 Jun 2007 11:00:00 GMT

Affordability of housing is very much a factor of where one chooses to live. Eight years ago we built a primary residence in the north Georgia mountains, about 1-1/2 hours north of Atlanta. Land and construction costs totalled $135K. Two years ago we sold, at the peak of the boom, to Floridians who wanted a "second" home ... for $235K. We moved to Kingsport, TN (one of the Tri-Cities), and paid $135K cash for a solid and beautiful 1939-vintage home in Kingsport's historic district.

RE:State Of The Nations Housing - Harvard Study

Mike — Tue, 26 Jun 2007 11:00:00 GMT

In 2003, I sold my 3,000 sq. ft. Home in suburban Ventura County California. I thought I was doing the right thing. We traveled for three years. Back in California again, making about 175K per year, a Home in my old neighborhood, is priced at 1.2 MM. At my income, I can't afford to by that Home. Rhetorically, what middle American family can actually afford to buy a 30 year old house at 600 K plus?

RE:State Of The Nations Housing - Harvard Study

Patrick West — Sat, 23 Jun 2007 11:00:00 GMT

After all, does it make sense to purchase a home for investment purposes when the mortgage, insurance and taxes are $3,500/mo. but market rent for the property is only $2,000/mo.? Of course not, yet it took place every day in Florida.

RE:State Of The Nations Housing - Harvard Study

Patrick West — Sat, 23 Jun 2007 11:00:00 GMT

Very good article with a much more comprehensive economic view than others I've read. Everyone seems to be looking for an economist with physic abilities to tell them precisely when the residential market will turn around. Watch for a return to the fundamentals that make real estate a solid investment and you'll be on target.

RE:State Of The Nations Housing - Harvard Study

Carlson — Fri, 22 Jun 2007 11:00:00 GMT

Marcelo, that is a very good point. As long as our population keeps growing so will housing prices. Simple supply and demand. Most people only look at interest rates as driving housing prices, they do not realize that human population is the backbone of what steadily drives prices up. We can weather high interest rates, but if tomorrow half the population was gone, we would be in a lot of trouble.

RE:State Of The Nations Housing - Harvard Study

Marcelo — Fri, 22 Jun 2007 11:00:00 GMT

I would like to point out 1 thing: Everthing will continue to go up in prices, this is the nature of economics, with limited resources (such as land) and growing demand (such as the human pupulation), of course housing prices will go up at some point in time,. This is all long run forecasts, not very helpful to people who are alive now with limited time. As Keynes so nicely put it "In the long run we are all dead"