US Home Prices

[Mega]

I am shocked to say the lest!
I expected a fall of say 5% at this time, may be 10% by the end of year. Well I just been on the other sites and OH BLOODY HELL!

Already 20% falls are here and i seen some homes listed at 25% LESS than their 2006 price and still NOT SELLING !!!!!

Its going to be a Bloodbath!
Mega

[DemonD]

Re: US Home Prices

Looks like there is at least one other ituliper who is an avid reader of the HBB...

btw, it's not "it's going to be a bloodbath," it pretty much already is a bloodbath (2.4 billion in foreclosures in california. in may.)

[Mega]

Re: US Home Prices

I can't think of a time this has ever happened before..............er expect 1929!
Mega

[Jim Nickerson]

Re: US Home Prices

I can't think of a time this has ever happened before..............er expect 1929!
Mega

Question: What did the dyslexic atheist state? I don't believe there is a dog.

[jk]

Re: US Home Prices

Question: What did the dyslexic atheist state? I don't believe there is a dog.

dyslexics of the world, untie!

[Mega]

Re: US Home Prices

Yes, Indeed!
Mega

[TraderJoe]

Re: US Home Prices

Its going to be a Bloodbath!
Mega

Making matters worse:

Mortgage resets: Record bill coming due
Billions in subprime ARMs will be subject to higher payments.
By Les Christie, CNNMoney.com staff writer
July 9 2007: 2:13 PM EDT


NEW YORK (CNNMoney.com) -- More than two million subprime adjustable rate mortgages (ARMs) are poised to reset at much higher rates in coming months, worsening an already suffering housing market.

Borrowers who took out hybrid ARMs in 2004 and 2005 to secure low "teaser" rates for the first two or three years of the loan may see their monthly mortgage payments climb by 35 percent or more. Consumer groups and politicians worry that hundreds of thousands of subprime ARM borrowers will be unable to keep up with their mortgage payments and will lose their homes.

"In October alone more than $50 billion in ARMs will reset," according to Mark Zandi, chief economist and co-founder of Moody's Economy.com. That's a record, according to Zandi.

A buyer in 2005 with poor credit and limited means might have signed on for a $200,000 2/28 hybrid ARM, locking in a fixed rate of 4 percent for two years. After paying $955 a month, his bill would now be set to spike to $1,331, a 39 percent increase.

Until recently, rising home prices bailed out many ARM borrowers in trouble. They could raise cash with cash-out refinancings or home equity lines of credit. If worse came to worse, they could sell the house and get some money back.

But prices have stabilized or slipped in many markets.
As a result, Doug Duncan, chief economist for the Mortgage Bankers Association (MBA), is expecting as many as 600,000 home owners will get into trouble with perhaps half of them actually losing their homes.