October 24, 2024

Video interview with HUD Secretary (Bloomberg News) .. Has Housing Hit Bottom?

httpv://www.youtube.com/watch?v=z6Gs_4vSoqY

Former Federal Reserve Chairman Alan Greenspan said housing may be near a recovery and financial markets should continue improving.

Dr. Stan Humphries, Zillow’s vice president of data and analytics, said in a statement: “The perception of American homeowners is finally catching up to reality, which is that 80 percent of all homes in the country lost value during this past year.

While homeowners are now more realistic when looking backward, they are still pretty starry-eyed when looking forward, with three out of four homeowners believing that their own homes’ prices will increase or be flat over the next six months. Unfortunately, there are few markets we expect to perform this well.

Most homeowners — 74 percent — believe their home will not decline in value in the coming six months, effectively calling a bottom to their own home’s housing slide.”                      San Diego home listings

4 thoughts on “A Housing Market Bottom?

  1. In any case it is NOT a plateau – it ‘may’ be a bottom! I am not a doom-and-gloom guy, but real estate is not the investment of the future. ONLY if you can afford a house, even with lost income for several months, and you expect to live in the same area for MANY years should you buy. And an concrete example (my experience renting): the owner bought in San Carlos (public record) in 1998 for $1.4M, sold in 2007 for $1.8M — having collected ~$400K in rents, paid $110 in selling commission, 120K in taxes, $25K in insurance, and about $50K in maint. >> net in (400-110-120-25-50=95K) >> Assuming 100% interest-only loan at 6%; interest payment: $84K/year; $672K; even at 50% tax savings (net of rent) cost= $536K (part of which will have to be paid at sale IF there is any gain); so 95K-536K; net expenses $440K; IN ESSENCE NO GAIN (if not a loss); AND that in a time when prices were RISING rapidly.

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  2. “They’re not making any more land”, “It’s different in (insert your city)”, “everyone wants to live here”, “buy now or be priced out forever”…etc. These are all the lines that the sheeple have bought into from the real estate industry and all their “experts”. Bottom, line: this is the tip of the iceberg. People seem to forget history, and how it has a way of repeating itself. This is not a 1 year “slump”, this is an end to a cycle of people’s pie-in-the-sky attitude about real estate. I cannot wait to buy a house in 3-5 years, when prices are REALLY good. If you buy now, you’re overpaying. Think about it: is 20% off an item that is marked up 400% a good deal?

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