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Originally Posted by Astrocreep  But wasnt it predicted for a few years now that the housing boom was bound to slow down? How is it the failing economy's fault for everyone and their mother getting into the real estate business? Is it the failing economy's fault for people to be lured into mortgages by low interest rates and getting assfucked when the rate shoots back up?
Not for nothing those houses will still sell, its not like they are worthless, you just cant sell em for what they used to.
Im not trying to be argumentative but i cant see how all of these things are the blame of the declining value of our dollar. |
Since our company has been in business for over thirty years I don't think we just got into real estate.
And the point is NO ONE IS BUYING... not because of interest rates but because no one has any disposable cash atm. Also the area where we work was one of the fastest growing counties in the nation 3 years ago, with some months having 1000 personal homes being built. Now we go some months wiht only 10 - 20... that is a HUGE difference. I don't understand what your getting at here when the whole reason the housing market is crashing is because no one is buying anything cause they can't afford to purchase anything like a house atm.
Bank aren't lending money cause people are defaulting on loans at record rates, at least around the Atlanta area. One of our banker friends was telling us how he had one builder come in and throw 20 sets of keys down on his desk. This guy had just came in a couple weeks before and took out equity mortgages on all of these houses. He pulled out over 2 million on the houses. Now the bank is sitting on them and can't even rent the damn things out. So the bank instituted a no Equity mortgage rule until this current crisis is over and he said he knew of at least 5 other banks who were doing the same. Now what that means is people who could have pulled out some money on a house and used that money to buy another house while their's sold are now just sitting in their old houses. And people like my brother-in-law who renovates, the buzz word is "flips" now days, old houses and sells them can't atm cause he can't pull out enough money on his houses to keep going.
But you are right... it's not because of the economy at all...
