May 21, 2009

Soot & Ashes Question of the Day




Thinking of buying a house?

47 comments:

eric in vegas said...

Hell no. Why would I? Prices are only going to fall further. I'm in Las Vegas for fucks sake. Maybe in 2-3 years if I can buy something cash or pay it off in 5 years.

Anonymous said...

I'm looking at Greg Swann's house

Should be on the Bank Owned list any day now

Anonymous said...

i bet the census workers have not GPS'd that front door.

Anonymous said...

Living happily in the van by the river.

Anonymous said...

Everyone in NoVA/DC screaming it's the bottom here!

It's "different" here!
We have all the jobs here!
We have all the bailout money going thru here!

Buy a house ! It's the bottom, don't ya know!
There's bidding wars again,
don't ya know!

Go get it knife catchers!

Daffyd said...

http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6301539.ece

Mozilo gets roasted in The Times

Anonymous said...

I swore I would never buy until prices hit bottom, but now I am reconsidering. Prices should continue to fall for the next three years. But prices are almost low enough now that the total money lost over the next three years, even with a 50% drop from today's valuations, is comparable to the rent that I would pay in that time. Obviously not true for everyone's situation.

I would also like to get some of my money into hard assets as a hedge against inflation. People like Mish keep pointing to Japan and discounting the prospect of inflation, but our central bank and government are far more corrupt and irresponsible than in Japan in the 1980s. I don't foresee any political will to end the printing and borrowing until inflation is back with a vengance.

Towjam said...

Yea..
But have to wait until Aug to close so I can get that 1st time homebuyer tax credit.

Anonymous said...

Upscale Chicago suburb here. We're just giving up a house search after a year of looking. Throwing in the towel and renting a home. Waaaay too much inventory, lots of year-old listings, mansions in foreclosure, etc, etc, etc.

Last year when we started the search and I told the realtor it looked like the area hadn't corrected yet, he said, "Oh, I don't think it's going to drop much. We never had a big run up like California."

50k price drops. 100k drops. 200k drops.

Yeah. No big run up at all. Just a somewhat large one. California here we come.

BG said...

Nope. And when interest rates go up, home prices will go down even more. That will be the death knell for all these people screaming "we've reached a bottom, hurry up and buy". I would rather buy with high rates, very low price b/c you can always refinance but you can't refinance the principal. Anyway, I have plenty of time and the majority of sellers/realtors in the Eastern Mass area is in denial.

Boom2Bust.com said...

I'm hearing more and more of "the bottom is in" and "it's a new boom" or "investor bidding wars over foreclosures." I can't help but think this market has a few more surprises left for these guys. When we get to the point where housing is generally detested--- which is where I think we're eventually heading--- perhaps then I'll look at acquiring property.

Mike Hunt said...

Wait till interest rates get forced up... he he. Then housing will really be a slow train wreck. No buyers and the gov't underwater because of Freddie & Fannie.

Hold on to your cash but buy soon after the rates shoot up because inflation is gonna get ugly then.

-Mike

PS- Keefer, any stocks or ETF's at their 52 week low you want to put up as a post? I'm feeling lucky.

Anonymous said...

"...I'm looking at Greg Swann's house..."Heh; now THAT'S a great investment idea.

We should form a pool, and secure it as the future Housing Manic Museum.

Think of all the shit you could hang on the walls; Indymac/Cuntrywide applications on granite countertops, the Hummer parked in the driveway(garage packed full of shit), flat-screens blaring housing porn show loops...

...repo'ed mosquito pond/West Nile Jacuzzi in the backyard...

Swann mannequin bawling balefully in an alcove...

ROM said...

Actually I am because I found exactly what I want for a price that I can easily afford. Not sure if I'll pull the trigger but it's pretty unique.

casey said...

anyone know who is doing stated income loans?I want to buy a house bad.Credit is golden.

FC John said...

Keith,

I am thinking about it actually.

Any compelling arguments why I shouldn't

FC John

Anonymous said...

I am tempted to make an offer on a 10,000 sq.ft. home in the best neighborhood in town. It is bank owned, with a $2.7 million mortgage, being offered at $800K. But it needs plenty of work (it's been empty two years and the wood windows are all dry rotted) and the taxes are $41K a year. If I buy it cheap and fix it up, I still can't afford to pay the yearly costs and who's to say anyone will ever want to own such a monstrosity again, so... No, I won't be buying anytime soon.

Jasen said...

NOVA/DC is WAY WAY better then the rest of the country. My Alexandria condo is still above water (barely).

DC has a floor. repos in columbia heights are selling well, as are the crack houses further north and east. a co-worker went to a city auction where at least 100 people were trying to swallow up land. Government isn't going to get any smaller anytime soon.

vanilla ice said...

Average one bedroom apartment in Manhattan is $500,000. A loft in Brooklyn goes for $250,000. Any questions?

Devestment said...

NFW

consultant said...

Looks like that one had Chinese drywall.

Seriously, the drywall issue is going to wipe out millions of homes that were built in the 2005 to 2007 period.

Call it the Chinese drywall collapse, or, DrywallPanic

Anonymous said...

Here is South Florida anyting worth buying is getting multiple offers with most above asking price. My imperssion is the banks are delibertly asking low in order to start bidding wars. One of the listing said Pre aproval required from Wells Fargo at ###-###-####, when I called, the lending agent sayed he had recieved multiple offers over asking and that I should "Put your best foot forward". I told him to bend over so I could put my foot where it rightfully belonged. The house ended up selling for about 50K over recent comps. People here are still playing monopoly with real money. I really think there might be a second housing buble in SF just for the simple fact people here seem incapable of learning from the past or understanding how our 9.5% unemployement rate and large service industry cannot sustain average houseing in the mid 200K.

it'stheendoftheworldasweknowit said...

But I just saw a commercial from the National Association of REALTWHORES (r) that now is a great time to buy!
Maybe instead of closing Gitmo, we should send all of those lying tools there.

Went2puke said...

Moths are back circling around the porche torch light, battering themselves to death! They think it's the moon, as some theories suggest. They are again coming back, along with other weird-looking bugs, attracted as they usually do by man-made sources of light--usually a scorching fire or even an insect zapper. They keep coming back, no matter how many times they get burned, until they ultimately lose their wings and fall on the ground, helpless. Those that don't get sizzled, usually fall prey to bats and nighthawks.

Anonymous said...

Yes actually. I close in 2 weeks. I'm getting 15 acres, a 2200 sq ft house with hardwood floors, and nice outbuildings for $150,000. I don't care if it corrects further. It's what I want. I can afford the payments I got a %4.75 30 year fixed and I plan to live there for at least the next decade. Considering the kind of inflation we might be heading for, I'm very comfortable with my decision.

Anonymous said...

Can't, really. I had plans to move the family up in 2 years, figuring that the end would be near.

Instead my wife and I are divorcing.

Couldn't have happened at a better time! The half she is 'entitled' to is seriously reduced.

Anonymous said...

"...when interest rates go up, home prices will go down even more. That will be the death knell..."You should of(sic) spelled it death nail, in keeping with our modern Internet illiteracy.

Banana Republicrat said...

$600K for a two bedroom house? I guess I was "priced out forever"!

Oh, well.

Anonymous said...

Homes are still expensive, as Realtors are playing games by hiding shadow inventory and applying bait-and-switch to promote irrational competition. I've checked 20 different homes and noticed the same behavior.

What's selling is POS homes, some in ghost developments and ghetto areas. The Section 8 crowd is responsible for the uptick in home sales, because BO's welfare queens are getting free money from taxpayers to buy those POS homes that no one wants.

Anonymous said...

Let me save you some time by describing how it'll unfold:

1. See home advertised for low price
2. Call Realtor. He says all excited that it's available.
3. Go see the home
4. Put an offer at low price
5. Realtor says that there are many offers above what you're willing to offer.
6. You complain as crooked Realtor shows you phony comps from last year or just the comps overpaid by morons
7. Low price advertised is really a bait-and-switch scam
8. Don't waste your time.
9. Did that myself last week.
10. F-ck you, I'm buying properties overseas instead, and getting out of dollar because this sucka's gonna blow.

Anonymous said...

"Actually I am because I found exactly what I want for a price that I can easily afford. Not sure if I'll pull the trigger but it's pretty unique."

Go ahead. That price you saw is fake due to bidding wars. Banks and realtors are playing deception with fictitious low prices that nobody can get.

Daphne64 said...

I'm looking for something just slightly better than what you have pictured, with 100 acres or so of land.

AKA a doomstead.

It's gotta wait until silver kicks up some more though.

Anonymous said...

The question is...

If you tried to buy a house, were you able to obtain financing?

JAWS said...

Stupid people are still buying.
Just go to an auction. Spam-sucking trailer trash, all of them.

YoungExec2B said...

Always thinking of buying a house. Always planning years, decades ahead. Guaranteed, whenever and wherever I buy, there will be a sizeable downpayment, low term and payments low enough so that I can rent at market rates and cover mortgage, interest + taxes + 15%.

I can't wait until interest rates skyrocket 80s style. Then, for big ticket purchases like houses when people are staring a renewal rate at 12% in the face, cash truly will be king.

Anonymous said...

Nope. Maybe 2012 or 2013 and I am paying cash or cash equivalent.

And with regard to NOVA/DC, while I do not want to see home prices go up here as they are still way too high, those people may be right about home prices going up. You see, Just like Rome in its last days, DC is the last remaining productive teet. So, people will come here to get the last remaining drops. As a result, home prices will go up. After it runs dry, which won't be long, it will run dry and people will return to where they came. So,

Miss Goldbug said...

No way will be buy now.

Waiting for 1/2 off todays prices.

Homes here in Alameda are starting to come onto the market daily, sellers trying to time the market when kids are out of school to sell. They think it will sell on the first open house, like they did two years ago. Realtors telling them to price the house right, they really don't know what that means...

I can smell the fear now.

Anonymous said...

If you buy now, you will be making a 12 months to early mistake. Wait for the first time home buyer tax credit to expire on 11-30-09($8,000 is no big deal compared to the savings on the home your going to get in 12 months or more), and then watch interest rate increase to around 6.5% again (which is inevitable) and you will be able to get probably another 20-30% off, less than 12 months...It hath been foretold as Keith would say

Anonymous said...

saw a nice double wide in the boonies for 50 grand and a yearly keep of 1000 ground included....that buys a lot of time and time is money..once

Miss Goldbug said...

Does anyone have a clue when banks will raise interest rates?

My thoughts are, homeowners who can, will refi, others will live in their homes until banks kick them out. And right now forclosures are piling up while banks figure out who is holding the paper.

I will mention that last week when I was doing business in Wells Fargo, a very nice personal banker did say for me to not lock up money in CD's long term. She said nothing longer than 6 mo. because rates were going up. She didnt say, but I got the impression rates were going to skyrocket...

Could higher 1980's interest rates be just around the corner??

Does anyone have any information on what rates will do come Feb 2010?

Anonymous said...

just gotta love the shill bidders at the distressed sales"auctions..bogus...bogus...bogus

Anonymous said...

BG,

"I would rather buy with high rates, very low price b/c you can always refinance but you can't refinance the principal."

Sure that's how it used to be, but thanks to Obama you might just be able to redo the principal...

too much rope said...

No. Screw the homedebtors, here in Connecticut I'm paying less than 3k a month for a fantastic home, and when something breaks my landlord fixes it. Meanwhile, the wizard down the street just put his house on the market for 2.1 million. The size is similar, although I'm sure it has granite countertops. Even my five year old could figure this one out if I explained p/e to him first.

Miss Goldbug said...

By the way, that $8,000 tax credit in reality is a loan. Due and payable when the owner sells the property.

A real credit it is not.

Lost Cause said...

But where is the sattelite dish?

Anonymous said...

Ms. Goldbug. It is only repayable if you sell within 3 yrs. So yes it is a tax credit.

Randy Renter said...

Looked around a little. Lots of bank-owned houses now. Kind of like renting a small carefree apartment, and...isn't anyone else a teensy bit worried about buying then immediately getting laid off? Dirt cheap houses that used to be stratospheric is only part of the economic picture, you know.