|Quoting UALPHLCS (Reply 5):|
But to hear the Media tell it the entire market everywhere is crashing to earth like a rock.
|Quoting AndesSMF (Reply 6):|
One really bad problem, that is worse in more bubbly areas, was the prevalence of interest only or option interest loans. These are loans where you only pay the interest (no principal) or part of the interest (you keep adding to the amount owed on loan). You have trillions of loans out there that will reset soon to a higher payment, but the banks and mortgage companies never qualified the people for the higher amount that the loan can reset too. There are also many cases where the person used their house as an ATM, and now due to these loans, they owe more on their house than its worse.
|Quoting UALPHLCS (Reply 7):|
In my opinion the Media is reporting this downturn as a whole, when real estate, in particular, is really a mosaic. Pieces of the mosaic have come loose and fallen out. But the vast majority is intact.
|Quoting AndesSMF (Reply 8):|
One: there were many people in the bubble areas who attempted to reap the advantages of their high prices by purchasing 'investment' properties in cheaper areas, thereby creating many mini-booms throughout.
Another was that the ease of obtaining mortgages and different mortgage products were not a localized phenomenom, but nationwide.
|Quoting UALPHLCS (Reply 9):|
However, the REPORTING of it is written, in my opinion, in a way that exaserbates the problem
|Quoting AndesSMF (Reply 10):|
I told a friend about a year ago that the bubble had popped, this was about July. My in-laws were looking for a house at the beginning of the year, and were able to lower the asking price by quite a bit.
|Quoting UALPHLCS (Reply 11):|
Even my realtors say that the market isn't as dire as is reported. They certainly know better than I.
|Quoting AndesSMF (Reply 13):|
Depends on the realtor. I was burned to the tune of about 20K by a realtor my uncle knew, in 1994. I have no trust in them at all.
|Quoting Allstarflyer (Reply 15):|
Two members of my family have been licensed realtors - I'm sure it helps to have that on your side
|Quoting B757300 (Reply 4):|
Housing prices have been going up and up for years. A correction was inevitable.