Bush most unpopular President in modern history

#126
#126
truefan said:
I was misleading in my post. I didn't mean to say owning a home wasn't a good thing.....it is an investment. No, I do not have a mortgage, but do own my home.....I am very fortunate. One reason their is more home equity than home debt is because the value of real estate has gone up drastically the last 15 years; that is about to change. Values are going down, it is inevitable and a trend has already started in some of the major US markets
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oh i agree it's a problem for new home buyers, i just object to these studies showing america in more debt than ever that don't take into account the equity in your home. one of my pet peeves. :) I'm a money manager, so i spend my day looking at this stuff (and sometimes overreacting :)).
 
#127
#127
truefan said:
Values are going down, it is inevitable and a trend has already started in some of the major US markets
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Some values are going down, some are flat and some are growing (just not as fast as they were growing).

I've seen nothing to indicate that housing values as a whole are going down (now or future). The housing market is slowing (retreating in a few bubble markets).
 
#128
#128
truefan said:
I was misleading in my post. I didn't mean to say owning a home wasn't a good thing.....it is an investment. No, I do not have a mortgage, but do own my home.....I am very fortunate. One reason their is more home equity than home debt is because the value of real estate has gone up drastically the last 15 years; that is about to change. Values are going down, it is inevitable and a trend has already started in some of the major US markets
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single family housing values, on average, are tied directly to incomes and are very market specific. in the markets where housing prices drastically surpassed buyers' ability to pay for them, prices will fall given that magic financing has retrenched. areas where median incomes have moved with housing, or stayed somewhat in line, prices will remain stable. Some areas will find demand for more expensive homes as jobs and growth come.
 
#129
#129
volinbham said:
Some values are going down, some are flat and some are growing (just not as fast as they were growing).

I've seen nothing to indicate that housing values as a whole are going down (now or future). The housing market is slowing (retreating in a few bubble markets).
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even if values go down 25% across the board, which is unlikely, the fact is the majority of people will have more equity than debt in their homes. we're hearing a lot of sob stories, from people who never should have bought homes in the first place because they can't afford them, complaining about predatory lending and how it cost them their home. it's all bs. they signed the loan documents that told them what they were paying and what the would be paying in the future when the loan resets. the government requires COMPLETE disclosure of the terms of your loan including worst case scenarios. take some personal responsibility. even if you feel sorry for people who are defaulting on these loans it still a VERY small percentage of loans outstanding. the average American isn't having a problem.
 
#131
#131
droski said:
It's an investment. do you not have a mortgage? I assume there is a reason for this? The percentage of people on interest only loans with little equity is very very small (less than 5%). EVERY study has shown that there is FAR more home equity in this country than home debt. That's why these debt numbers are misleading. Any study that puts those owning a home in a worse light (all things being equal) than those not owning a home (even if they have more equity in the home than debt) is a useless study IMO. edit: once again the reason why personal debt is at an all time high is BECAUSE home ownership is at a all time high.
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someone needs to tell wall street, because if today was any indication, they think there are billions going to be lost.
 
#132
#132
oklavol said:
someone needs to tell wall street, because if today was any indication, they think there are billions going to be lost.
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the subprime market is a very small percentage of the overall mortgage market. the percentage of subprimes that are defaulting is pretty low too. this does add up to billions though. the mortgage market is pretty darn large, it's in the trillions.
 
#138
#138
BigPapaVol said:
I don't care for the article. I'd prefer to discuss with someone who thinks.
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:lolabove::eek:lol:

Good one....I'd prefer to discuss with someone who backs up what they claim as fact but I'm not holding my breath.

The drop can be caused by numerous factors. Prices are regional and dependent on the economics of that area. Prices in the South are actually ticking up. Prices elsewhere are dropping. It matches population growth for one thing. Also job growth, etc.
 
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