In the last two weeks, the market has gone bipolar because of the credit market implosion. It turns out that housing does carry a lot of influence even in the stock market. Even after the Fed injection of credit heroine, the market is still down 10 percent from its peaks last month. Most housing market pundits actually think we are turning around. Suddenly we are in a recovering market because the Fed cut the discount rate by a few basis points. So today, we are going to inject some of our own reality and do a special edition of Real Homes of Genius. Today we salute you
It is important to understand that the nucleus of the housing bubble is born in large urban metropolitan areas. You know, the areas where the bulk of Americans took out super crazy inflated mortgages? We realize that certain areas in
Our first gorgeous home is located in
So this home is off a whopping 21 percent in one year. It is all about location, location, and location with real estate. It doesn’t look like a soft landing for this fruit inspired home.
Our next home takes us from the tropical climate of
This is a nice discount of $82,100 in two years. If you want to be quantitatively driven, this place is down a whopping 29 percent. I’m not sure what constitutes a crash but we are approaching it in many areas. Does this look like a recovering market? Let us move on.
Sin city baby! Flashing lights, all you can eat buffets, the sound of slot machines, and gambling. This gambling also spilled over into the current housing arena and meshed well with the speculative credit bubble. Our next home is actually a condominium but follows the same Real Homes of Genius rules. This condo has 3 bedrooms and 2 baths, and has plenty of space with 2,021 square feet. Vegas has gotten expensive recently hasn’t it? Well this place is currently priced at $650,000. But what was the previous sales price? Oh boy…
A $200,000 hit in one year. Or a 23 percent discount. I’m curious to know who held onto this note or what kind of mortgage backed portfolio held this beauty. Again, I’m not sure how the Fed expects that giving lenders some breathing room is going to fix some of these over inflated areas. Many folks decided to tap out their equity and spend like drunken hyenas. When you see toxic mortgages hitting multiple metro areas maybe it is time for a serious correction without government corporate welfare.
Welcome to the heart of the country,
Another massive discount. This place is selling for $110,000 below the previous sale price. Or to give you another perspective, a 30 percent discount. Now tell me again how injecting more liquidity in the market is going to help homes like this?
Finally, we come back to the west coast once again and leave it to
Price Increased: 08/18/07 -- $299,000 to $350,000
Some one picked up a property on the cheap and is trying to sell the place for a profit of $120,000. Instead of lowering the price, these folks actually shot it up by $50,000. You may be scratching your head but given that this home has only been on the market for 20+ days, they have yet to realize that the inventory here in
Subprime. 2/28. Interest only. Option ARM mortgages. REOs. We’ve been talking about these topics for sometime now. As these words hit the mainstream media it seems that folks want an instant solution to a multi-year problem. Folks still want to tap their home like an American Express card and the housing syndicate is now telling folks that today is a good time to buy. Their logic is if you do not buy now, interest rates may be higher next year and the market will price you out. In addition, these above homes are hot commodities (some have been on the market for almost a year) that if you do not buy now, some renegade flipper will swoop underneath you and buy the home. The only folks that can get fantastic terms right now are those with solid credit and some sort of down payment; go figure that people that have managed their finances wisely do not want to jump into these homes. Could it be that the $5 trillion in pseudo housing wealth is getting ready to disappear? A more recent study by Dean Baker over at the
Today we Salute you
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