Comments on: What the housing bubble looked like up close and personal http://geekyweekly.com/2009/what-the-housing-bubble-looked-like-up-close-and-personal My life as a computer / photo / sound / video game / music / movie / gun geek Fri, 10 Feb 2012 06:00:26 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Jack Campbell http://geekyweekly.com/2009/what-the-housing-bubble-looked-like-up-close-and-personal#comment-20345 Jack Campbell Thu, 25 Mar 2010 20:08:59 +0000 http://geekyweekly.com/?p=921#comment-20345 Looking at the big picture doesn't suggest upward trends for property values. The federal home buyer credit is scheduled to end in the next couple months, rates have an inveitable rise ahead which should leave them near 6% by the end of year. These things tied with the shadow inventory and the unemployment are likely going to keep a lid on property values for at least another 12-18 months throughout California. Buyers right now will be rewarded but not for another 5 years. The reward will be when inflation really kicks in. Interest rates rise and property values inflate(hopefully not hyperinflate or stagflate) while they sit on a 5% rate with a grin and 5% bragging rights. Jack Campbell - <a href="http://www.carlsbadhomesforsalenow.com" rel="nofollow">Carlsbad Homes</A> Looking at the big picture doesn’t suggest upward trends for property values. The federal home buyer credit is scheduled to end in the next couple months, rates have an inveitable rise ahead which should leave them near 6% by the end of year. These things tied with the shadow inventory and the unemployment are likely going to keep a lid on property values for at least another 12-18 months throughout California. Buyers right now will be rewarded but not for another 5 years. The reward will be when inflation really kicks in. Interest rates rise and property values inflate(hopefully not hyperinflate or stagflate) while they sit on a 5% rate with a grin and 5% bragging rights.

Jack Campbell – Carlsbad Homes

]]> By: James Mucci http://geekyweekly.com/2009/what-the-housing-bubble-looked-like-up-close-and-personal#comment-20230 James Mucci Mon, 15 Mar 2010 23:10:13 +0000 http://geekyweekly.com/?p=921#comment-20230 You are right - the housing tax credit is a very small amount, especially in CA. Does not help make a house affordable enough to move a renter to a buyer. The focus should be on Jobs. Without a jobs, there will be no recovery in housing or consumer spending for that matter. Rates are likely to move up at the end of March, with the Fed pulling out of the Mortgage backed securities market, and as you mentioned, there is a very large shadow inventory. When rates go up, anyone who has a really low adjustable, of any type (including Option ARMs) is going to see some major payment changes. Many people are thinking the government and the Fed do something the help, but the truth is, there is only so much they can do. The markets dictate rates and therefore affordability, and chipping in an 8000 tax credit, only goes so far. At some point though, it might make more sense for you to own than rent. Especially considering the tax advantages. James Mucci - <a href="http://michiganmortgageadvisor.com/michigan-refinancing-quote" rel="nofollow">Michigan Refinancing</A> You are right – the housing tax credit is a very small amount, especially in CA. Does not help make a house affordable enough to move a renter to a buyer. The focus should be on Jobs. Without a jobs, there will be no recovery in housing or consumer spending for that matter.

Rates are likely to move up at the end of March, with the Fed pulling out of the Mortgage backed securities market, and as you mentioned, there is a very large shadow inventory. When rates go up, anyone who has a really low adjustable, of any type (including Option ARMs) is going to see some major payment changes.

Many people are thinking the government and the Fed do something the help, but the truth is, there is only so much they can do. The markets dictate rates and therefore affordability, and chipping in an 8000 tax credit, only goes so far.

At some point though, it might make more sense for you to own than rent. Especially considering the tax advantages.

James Mucci – Michigan Refinancing

]]> By: James Mucci http://geekyweekly.com/2009/what-the-housing-bubble-looked-like-up-close-and-personal#comment-20229 James Mucci Mon, 15 Mar 2010 23:00:12 +0000 http://geekyweekly.com/?p=921#comment-20229 We are in for a long slow recovery in housing. Some areas are starting to improve, but rates are slated to go up, by the end on March. We are in for a long slow recovery in housing. Some areas are starting to improve, but rates are slated to go up, by the end on March.

]]>