Comments on: 3 steps to a housing crash http://www.arcadiahousingblog.com/2008/06/07/3-steps-to-a-housing-crash/ Tracking the Arcadia and San Gabriel Valley Housing Market Sat, 31 Jul 2010 04:35:12 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Hojo http://www.arcadiahousingblog.com/2008/06/07/3-steps-to-a-housing-crash/comment-page-1/#comment-2743 Hojo Mon, 09 Jun 2008 22:38:32 +0000 http://www.arcadiahousingblog.com/2008/06/07/3-steps-to-a-housing-crash/#comment-2743 Even if oil prices come down to 100/bbl that still means near 4$ gas. EVERYTHING is going up, wait til the utilities get their rate increases. Fed will buckle and raise rates before year end. Home prices still have at least 25-30% to come down. Why? Because most people cannot get a standard loan. You know, with verifiable income, job, assets and of course a 20% down! This alone will drive prices down a lot more than where we are now. The demand is there but the financing is not and will not be for a very long time, years. Even if oil prices come down to 100/bbl that still means near 4$ gas.

EVERYTHING is going up, wait til the utilities get their rate increases. Fed will buckle and raise rates before year end. Home prices still have at least 25-30% to come down. Why?

Because most people cannot get a standard loan. You know, with verifiable income, job, assets and of course a 20% down! This alone will drive prices down a lot more than where we are now.

The demand is there but the financing is not and will not be for a very long time, years.

]]> By: Anonymous http://www.arcadiahousingblog.com/2008/06/07/3-steps-to-a-housing-crash/comment-page-1/#comment-2728 Anonymous Sat, 07 Jun 2008 18:12:34 +0000 http://www.arcadiahousingblog.com/2008/06/07/3-steps-to-a-housing-crash/#comment-2728 It now cost $60 to fill up my 4 cylinder gas-saving "economy car". I commute to and from downtown LA and even the short 40-mile round trip is creating a dent in my budget. I am just a renter so I can't imagine how life is for those who purchased a home they could barely afford. Like llking said, the Alt-A resets will start forcing people out of their homes because they literally can't pay the mortgage anymore. A weak economy, declining RE values and the high cost of oil and commodities are problems that will take years to recover from. It now cost $60 to fill up my 4 cylinder gas-saving “economy car”. I commute to and from downtown LA and even the short 40-mile round trip is creating a dent in my budget.

I am just a renter so I can’t imagine how life is for those who purchased a home they could barely afford. Like llking said, the Alt-A resets will start forcing people out of their homes because they literally can’t pay the mortgage anymore. A weak economy, declining RE values and the high cost of oil and commodities are problems that will take years to recover from.

]]> By: llking http://www.arcadiahousingblog.com/2008/06/07/3-steps-to-a-housing-crash/comment-page-1/#comment-2725 llking Sat, 07 Jun 2008 15:17:00 +0000 http://www.arcadiahousingblog.com/2008/06/07/3-steps-to-a-housing-crash/#comment-2725 especially for those who spend lots of commuting time on the road. Anecdotal evidence - asked a co-worker to join me for lunch at this noodle place about 10 miles away each direction. He declined and commented that he can't afford to spend well over $10 on gas for a $6 bowl of noodle. I didn't realize that he bought a F250 truck. especially for those who spend lots of commuting time on the road.

Anecdotal evidence – asked a co-worker to join me for lunch at this noodle place about 10 miles away each direction. He declined and commented that he can’t afford to spend well over $10 on gas for a $6 bowl of noodle. I didn’t realize that he bought a F250 truck.

]]> By: Matt http://www.arcadiahousingblog.com/2008/06/07/3-steps-to-a-housing-crash/comment-page-1/#comment-2724 Matt Sat, 07 Jun 2008 15:08:35 +0000 http://www.arcadiahousingblog.com/2008/06/07/3-steps-to-a-housing-crash/#comment-2724 The Fed will have to raise interest rates otherwise oil prices (traded in dollars) is going to keep going higher and cause an economic collapse on its own. The aggressive interest rate cuts since August 2007 has dramatically devalued the U.S. dollar. The Feds had no choice but to lower the rates otherwise there would have been massive bank failures and run on the banks. House prices will continue to drop even more so as gas prices are eating away at household budgets. The Fed will have to raise interest rates otherwise oil prices (traded in dollars) is going to keep going higher and cause an economic collapse on its own. The aggressive interest rate cuts since August 2007 has dramatically devalued the U.S. dollar. The Feds had no choice but to lower the rates otherwise there would have been massive bank failures and run on the banks.

House prices will continue to drop even more so as gas prices are eating away at household budgets.

]]> By: llking http://www.arcadiahousingblog.com/2008/06/07/3-steps-to-a-housing-crash/comment-page-1/#comment-2723 llking Sat, 07 Jun 2008 14:09:32 +0000 http://www.arcadiahousingblog.com/2008/06/07/3-steps-to-a-housing-crash/#comment-2723 And don't forget about the peak of Alt-A reset is coming up in April 2009. This will put another wave of foreclosure to the already flooded inventories. And don’t forget about the peak of Alt-A reset is coming up in April 2009. This will put another wave of foreclosure to the already flooded inventories.

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