Foreclosure Sales Impacting House Prices

I am ready to buy!

Being from Winchester, VA, which is Brian's hometown, I can attest to the amount of properties that are being bought out of foreclosure. I believe, however, that we are still about 10-15% from the bottom of this housing collapse. The problem is one fundamental economic principle that was forgotten and thats supply and demand. There are way too many houses out there. Why would you buy a home right now without taking your time, being patient and offering less than the buyer is asking? There is no reason to because even if that one falls through, there's one right down the street for less. Until this gets rectified, the housing market won't settle down. I'm not sure what the answer is because you can't just create new people, but there has to be one. Maybe you limit the building permits. Maybe give people a bigger tax credit for selling their homes for a loss. Not sure what the answer is, but we are a long way from this being done. I say at least 10 years before home prices return to their 05-06 levels.

As an Atlanta Mover the market feels like it sold zero in October! We were setting record revenues month over month seasonally adjusted basis and Nov came around and boom. The bottom fell out.. the Gov had to pound the table so hard to get the bail out passed and tel every one the world would end unless we agreed to the bail out so the consumer said ok and retreated in fear. Problem though the consumer is the economy...you broke the golden egg to get the package passed.

National Association of Realtors data in my opinion is a joke. I watch the real estate markets pretty close. Real estate brokers sell houses to avoid capital gains and keep Uncle Sam from knowing exactly who owns what. To get a real look at the market you need to look at government owned property and their forclosiers. A simple example is Clear Lake, California. Relisted in Oct is a 2/1 for $80,000.00 and a 5000 sq ft lot is $11,200.00 relisted in July 2008. http://hud1.towerauction.net/cgi-bin/e4_select_property.cgi?id=042791086&office=e4&state=CA The Federal Government has been attempting to sell off Vaca Ridge. So far its value is only $50,000.00 http://www.auctionrp.com/Property_details.cfm?id=976 If you have ever been to a forclosier auction of tax auction of homes you should take notice the banks are the first and only bid. Might be why the banks are in such trouble. Those high sale prices are just the banks buying back their own bad loans and assets. Last weekend a house that was free and clear of banks morgages sold at auction for $29,000.00 and relisted by the real estate broker that had financing for $129,000.00 and in my opinion a coat of paint and carpet does not justify the $100,000.00 jump in price.

Prices need to come down. The prices on homes are sub prime mania pricing. The banks, cities, goverment are afraid of housing dropping to the price they should be because they don't want people to walk away from there homes. I live in a city where the average yearly income is 32,000.00 and the mediam house is 389,000.00....whats wrong with this picture?? this has been the problem all along. YOu can't buy a house if your income won't support it. I have always been a home owner until I moved to this city and quickly realised it wasn't possible. Everyone else was buying but my calculator doesn't work that way. I am ready to buy but the pricing is still not right.

We were looking for a house to buy but not anymore. Why buy now when we know there is going to be alot more pain coming down the road. Bailout after bailout is not going to help anyone except the crooks that got us in this position. I'm glad we are campers so roughing it is not a problem for us. We'll just go to a national park and take up residence there. Then we'll be old homeless folks living in a tent in yellowstone,the media picks up the story,people will feel sorry for us and they bail us out, America gotta love it.

November 24 10:25 AM TaxPayer's Bail Out Rights Petition This is for All Of Us Tax Payer's! "HOPE" Program has not worked nor is it working!! Not For Us American Tax Payer's Pass it and let's get our Own..... "American Emergency Tax Payer's BAIL OUT MONEY"!!!!!!!! Enough is enough!!!! These Business's and their Co-Hourts, Sandrals, have already has been given Part of The $700 BILLION DOLLAR'S BAILOUT MONEY!!! Now 1 Business Corportation has been given and has received a $20 BILLION DOLLAR'S CASH BAIL OUT MONEY!! Not only have they gotten that $20 BILLION DOLLARS IN BAIL OUT MONEY, too keep them AFLOAT, only last week, 1 week ago today, were they firing about almost 60 THOUSANDS EMPLOYEE'S, also, they got their $700 BILLION AMERICAN TAX PAYER'S DOLLAR'S BAIL OUT MONEY'S, they used part of it apparently to BUY OUT WACHOVIA BANK. Then it seems to also turn out that their $300 something MILLION-BILLION FOREIGN Investor MONEY!!!!!!!! Now their in Financial Melt Down! Give us American's Legal Tax Payer's A BREAK!! Crooks! Sandrals! Theives! We all need to sign Petition Called: "THE REAL LEGAL AMERICAN'S EMERGENCY IMMEDIATE TAX FREE AMERICAN DOLLAR BAIL OUT"!! 1] Your Name: ___________________________________________________. 2] The Immediate Cash Dollar Amount: $ _______________________________. 3] Representatives Name & Party: ____________________________________. 4] Congressional Name & Party: _____________________________________. 5] Legislators Name & Party: ________________________________________. 6] State Representatives Name & Party: ________________________________. 7] Governor's Name & Party: ________________________________________. 8] State Congressional Name & Party: _________________________________. 1] 2] 3] 4] 5] 6] 7] 8] 9] 10] 11] 12] 13] 14] 15] 16] 17] 18] 19] 20] 21] 22] 23] 24] 25] 26] 27] 28] 29] 30] 31] 32] 33] 34] 35] 36] 37] 38] 39] 40] 41] 42] 43] 44] 45] 46] 47] 48] 49] 50] 51] 52] 53] 54] 55] 56] 57] 58] 59] 60] ETC. This is for real not a joke. Serious Measures demanded for serious times. Financial, United States of America's, Urgent Economy. Stand Up for your Civil Financial Rights! Take a Civil Financial Moral STAND!! Do not thru up your hands up in the air and say: "What can we do? Who will listen to our Pleads? No one will really listen, nor do they. Who Cares about US? We'd be called terrible names, and they will investigate us for Speaking Out and Demanding for What is Right and Morally Decedent thing to do for us all, that have and are Suffering with these Economic Financial Crisis! " We Americans have given Our Money Too Charities, to Foreign Entities and Do Not Receive, nor Have We Ever Received it back. They WANT WANT, WANT, WANT, GET, GET, GET, and GET!! We have Rights. Talk is Way Inflated. I Don't Sell My Soul. Nor, should, anyone. So, Show Me Our American Dollar's!! Talking Now & Promising is Cheap. Consensus that Stimulus is Enough to Jolt This Economy. Talk the Talk, Walk the Walk. Bi-Partisan? My, (^*~*^). Who’s Sold US American's OUT. Running with one's tale between your balls and up your (^*~*^). All, Genders. Keep American Worker's and American Businesses Here For Americans By AMERICANS!! No More FOREIGN CHARITIES WITH OUR AMERICAN DOLLARS!! TAKE A STAND. It's not, the 1st nor the last. Tax Payer's Bail Out For AMERICAN'S!!! TaxPayersBailOut2@live.com __

Brian Sullivan, I think you may have hit on a neat nerve to the economy here. Home prices decline ? well - heh, even IF - Bank of America was lending and it's not (after all that basting of that turkey too, still dry). People have to have things reevaluated. If they THOUGHT they had 280k ? when their home was really 200 ? and borrowed against that ? forget credit card debt We have a new brand of card now, the home, and Greenspan warned of this and WAS correct on this at least, that homes are not credit cards, nor are the really 'investments' short of for MOST people - you live in them. I've seen some GREAT moments where people make this same point. Anyway, what if during HELP with the mortgage ? well this wasn't the intent of my comment here, but I think it's a valid point. I offer it up for dialog in that I bet you're ALL into fresh new GOOD points ! as I observe you making on FBN Mr. Sullivan. But - correct me if I'm wrong. (I've always rented, I'm below 600 pico, so no mortgage offering for me, it's going to have to be cash down, which ? will probably never happen - ANYWAY)... But is it not so that the properties VALUE will be RE-ASSESSED ? when the mortgage is redone ? Either way you cut that pie. Cut it on the side favoring the consumer, well, where does the money come from to cover the difference on what the home was appraised at when it was HELOC'd out to the max - AND what it's appraised at NOW, during restructuring. OR ? let's say the consumer picks up the tab. The consumer really picks up the tab one way or the other - heh. I mean, it's just whether it's delayed or not through taxes. I did mean to write to comment on a 'syndrome' if you want to call it. That your article title had me thinking about. Home prices fall, what drives that ? If what drives that is prices of neighboring homes ? I suppose if the stock market is about 55% right now, we can expect homes to settle with the markets ? heh, I can get away with saying that because apparantly homes ARE what put the markets into this. Or, USE of homes as CDO venues, or flipping (isn't there something MORE in life than chasing what one doesn't have ? ). And that's another point - IF homes put the market into this tail spin through sub prime discovery ? Is it more than intuitive to expect a correlation between home price bottom and market bottom ? Other words, when homes settle ? market settles ? Or wait, Liz MacDonald points out we've just STARTED the zero money down, zero interest 5 year sub prime products - in 2008, 2008 IS the year they have to start paying on that free 5 year rental in a 450k home. It's interesting to picture someone with good credit - or lying on the application, to move into a real nice home, then borrow from it, live like a king for 5 years. Then ? everyone says - I just KNEW people couldn't afford to live like they've been borrowing to live. I sure do. I look at cultures ALL over the planet, various times, certain elements help cultures win - I saw- who is it ? Castilla ? Castillo ? this one fellow your network has on, he's triple A, no doubt, he had a neat point about Marx - who I have never read, and always tried to avoid reaching 40 revolutions around the sun - that the downfall of capitalism will be the 'me' as to the 'us'. It IS ironic it's the US isn't it. What are the odds ? and yet ? so many people looted during the low interest rates. Where were the police ? This was a great crime, now potentially jeopardizing our entire economic infrastructure. I have little interest in politics as I see nationalism as yesterdays news in advent of nuclear weapons, I mean, sheesh, I'm not going to use one to defend some arbitrary territory I'm claiming - and who'd the native American's take it from ! where's THAT story ? But I do hope this next admin reverts BACK to far far far - in fact, this nation NEEDS the Lap Band - I hope this next admin puts a LOCK on exploit of low low interest rates. Yet ANOTHER story I think this could lead to, which is - ? We are approaching ZERO again. Since we have made NO changes to regulatory practices ? What is to prevent ANOTHER run on sub prime allocation. Low interest rates spell home markets ripening. right ? so, maybe there IS no bottom to the housing crisis maybe it's - there is NOW again, a top to look forward to ? with low rates ?

Other words, maybe bottom really means - lost focus on the top. All the talking heads I see out of Treasury endorse one thing. confidence LEast YOU have confidence there Mr. Sullivan. it's requisite for good humor. You present a fine balance between humor and serious focus. Odd, I see some people on FBN, and I just don't get any Fox connection to them, just good work, decent people, no political and religious slant. Your Dave Ramsey over there, I can't take. Nation state on down, it's credit credit credit, and how - WITHIN that system ? how long ? are we to sing this song, wait, different line, but how long is it until you realize, the 'cash' you're talking about - is backed by loans from China. He leaves that part out, and I'd oh - nm - I'm learning NOT to negative sell people. He does have good advice on conservation. And economy of home economics ! I mean, Ramsey does promote some excellent life style habits when it comes to managing money. I don't get from him the better message that's out there I think... What was it Rich Dad ? Poor Dad ? That was some terrific advice. I'd merge that with some Louis Kelso and hey - we might have a best seller there.

I guess if it's all snuff from Moody on down with FBN as well as Fox, we do deserve the company we keep I do believe, if not, ? I'd say FBN has a fine line up of consultants - and - hey, I don't even HAVE money to invest, and I just enjoy the whole damn experience. This forum here at FBN, I don't really expect most of what I post to be posted. It's a strange experience, I must say - I have no idea what I'm doing here ! to that - I'm going to go help Treasury indirectly !

absolutely true, I realized before the housing crash, that a crash was inevitable, How can people with a $30,000 salary afford homes that are 400,000 and above? Its not possible. They were affording those homes with lines of credit from home equity loans, subprime arms and reselling fixer uppers and credit cards. The government did NOTHING because they were getting a nice big fat property tax check. Now they don't want to let go. We will keep seeing foreclosures until prices come back to reality AND the government lets its greedy fingers off the inflated property tax bills. Either way they are going to lose, renters don't pay property taxes, and THAT is what most people will do.

Fed actions likely to lower mortgage interest rates….Fed announced a program to purchase mortgage backed securities (i.e they are buying mortgages that other financial institutions don’t want to keep and can’t sell to anyone else) and taking additional measures to sure up Fanny Mae and Freddie Mack. In general I not much for bail outs but this one may actually help spur the housing market because it should lead to lower mortgage rates. After the fed made the announcement the “coupon” for Fanny Mae’s 30 year mortgage back security dropped by .38 basis points (it fell about half a percentage point). The good news is that the 30 year fixed mortgage that “Joe Atlanta” can purchase from the “bank” is usually tied to the Fanny Mae mortgage backed security (you should be able to get a cheaper loan for your house very soon). Then again everything seems out of whack these days so let’s just wait and see (but if rates do go down you can impress your friends with an explanation as to why). www.1866umoving.com 1-866-U-MOVING your friendly Atlanta Movers 3593 Clearview Parkway Atlanta Ga 30340