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Housing Prices

Jenkins

By Jenkins
in Providence

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TheAnk Hamlet

TheAnk

Posted
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Yes, but no one cares about that now.. All the news cares about is telling you how bad it is right now.. you would think that 100% of the market buys frantically on the uptick, and sells frantically on the down by reading this drivol..

Condos are laggards on way up, and frontrunners on way down.. And more volatile.. The one thing that completely under reported is that the 30 year is staying constant.. As that stays constant right now @ 6.375%, a fall in price or prefereably stagnation for a couple years is welcome and maybe the best thing that could happen.. In a few years, inflation catches up @ comp cont rate of 4.5% give or take, and the crash as predicted by the talking heads is far fetched..

Because when it comes right down to it.. They are in the business of making you watch or read, not the business of telling it like it is... A flat stagnant boring market does not get you watching.. A WHITE HOT housing market and a CRASHING HOUSING BUBBLE get your attention...

So for 95% of all people, here's to an incredibly boring few years in housing while the "roving asset bubble" finds a new home for a while.. The rising inflation tide will catch up to housing, and return it to the norm... Regional prices will drop in some areas, rise in others..

For the 5% who BOTH bought at the top AND combined that with horrific creative financing.. Well.. you know what happens to cows at slaughter time...

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Bil Whistle-Stop

Bil

Posted
Posted
How odd that the article mentions we have one of the highest subprime lending rates in the nation. I read a different article in BusinessWeek a year or so ago that said, on the whole, the Providence metro had one of the lowest rates of risky housing loans of all types in a list of major US metros (I think we were 18%, as opposed to some areas of Silicon Valley that were as high as 60%).

Now, this suggested solution in the article I just don't get... Isn't this what got us into trouble in the first place?

- Garris

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JimmyGreaves Hamlet

JimmyGreaves

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For the first six months of 2007, Providence MSA has experienced the 81st highest foreclosure rate of the top 100 metros. Stockton, CA is #1 followed by Detroit and Las Vegas.

http://money.cnn.com/2007/08/14/real_estat...osure/index.htm?

Edit: I should add that the Providence rate represents a 473% increase vs the same period in 2006, the fifth highest % increase.

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Mothra Whistle-Stop

Mothra

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As for Councilman Hassett, I guess he's focusing on fixing the creeping blight in his district. I don't think causing a price crash in his neighborhood (essentially what he's suggesting) is going to help the situation, though. The poorer parts of the city are in for a lot of pain, I think.
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TheAnk Hamlet

TheAnk

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I'd say its about peaking.. Most people that are going to foreclose do so within a year of the loan.. If someone sticks out a 5 year ARM for the whole five they are likely to stick with the ppty.. Honestly, I think there are three main forclosees in pvd.. Greedy landlords, people who had no intention to pay and just want to squeeze the house for some cash, and the misinformed/delusional homeowner.. Generally, the misinf/delusional are likely to stick it out...

I question giving the stick to the banks on foreclosing.. how about for writing the loans????

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Garris Town

Garris

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What he fails to say is that the reason they are boarded up is because the bank took a "chance" on a first time home buyer in the first place, and that irresponsible bank lender and mortgage borrower failed miserably.. .. But that fails to make print for some reason.. pity..
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jencoleslaw Town

jencoleslaw

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I know a few people who are about to be foreclosed on and every one of them are investors who bought high, with stupid ARM, three family homes they tried to turn into condos and flip. And now they are going to lose them. I don't know any first time home buyers who are losing their homes. Which isn't to say that there aren't any, just that i don't know any.

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Jerry2 Hamlet

Jerry2

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I know a few people who are about to be foreclosed on and every one of them are investors who bought high, with stupid ARM, three family homes they tried to turn into condos and flip. And now they are going to lose them. I don't know any first time home buyers who are losing their homes. Which isn't to say that there aren't any, just that i don't know any.
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Recchia Town

Recchia

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When I was buying my condo I was amazed at how much the bank gave me a prequal for. I did the mortgage calculator thing and was like WTF?! There's no way I could afford that kind of monthly payment! I guess when you combine stupid lenders with stupid public this is what you get.

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