Real-estate pain, behind the stats – CNN Money

“Home sellers are crying but the data doesn’t seem to reflect their woes.”
“An Indiana man writes to say he can’t sell his house even asking less for it than he paid – four years ago.”

Articles like these are going to start showing up more over the next few months or maybe even years. USA Today (the place to go for the best laughs on the planet) just posted an article similar recently.

As Real Estate appraiser Johnathan Miller puts it “We seem to pile on the cheer leading when the market goes up and we pile on when the market falls”. Indeed. And this will get worse before it gets better. When the true numbers start coming out, sentiment will follow but with a lot more “leverage”.

Meanwhile homebuilding stocks have bounced back strongly from their lows. This is feeding the sentiment that home prices too will bottom very soon. Difference is though, stocks don’t work like houses. They’re liquid, can be sold at any moment and are usually bought with cash. Not Real Estate and not in a market that was basically offering homes for 0% down with adjustable-rate mortgages.

With home loaning organization willing to offer obscene loans with the intention of biting only the buyer in the case it defaults home buyers are beginning to realize that the stock market meltdown in 2000 wasn’t all that bad. At least you had a roof over your head.

Advertisements

Tags: ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: