What's Missing?
February 19, 2007
I subscribe to the Los Angeles Times, The San Bernardino Sun, The Riverside Press and the Wall Street Journal. What I noticed this weekend was that they have ceased to headline "The Real Estate Bubble". It was there during the past week, but it seems to be replaced with the dreaded "Foreclosure".
I guess the news media has decided that the frenzied markets of 2003, 2004 and 2005 gradually turned into the slow down of 2006. Prices did not implode, but eased as buyers became wary and as inventories of listed properties increased. Condition and marketing are playing a much bigger role in real estate sales. With appreciation flat or minimal, Sellers can no longer look to flip a house for great profit but houses are still selling.
It is this flat appreciation (I didn't say negative appreciation) that now is the focus of the media.
Will all that interest only and 100% financing cause Sellers to default? It remains to be seen although as long as the job market is strong, and owners can make their payments, they will probably do so.
Something else that was missing in the news media I read....mention of George Washington. I know his real birthday is the 22 of February, not the 19th, but it would have been nice to see one op ed piece that praised the man "who couldn't not tell a lie" and who is "the father of our country". Please don't tell me that these are myths foisted upon me by the spin doctors of the mid 20th century.
I subscribe to the Los Angeles Times, The San Bernardino Sun, The Riverside Press and the Wall Street Journal. What I noticed this weekend was that they have ceased to headline "The Real Estate Bubble". It was there during the past week, but it seems to be replaced with the dreaded "Foreclosure".
I guess the news media has decided that the frenzied markets of 2003, 2004 and 2005 gradually turned into the slow down of 2006. Prices did not implode, but eased as buyers became wary and as inventories of listed properties increased. Condition and marketing are playing a much bigger role in real estate sales. With appreciation flat or minimal, Sellers can no longer look to flip a house for great profit but houses are still selling.
It is this flat appreciation (I didn't say negative appreciation) that now is the focus of the media.
Will all that interest only and 100% financing cause Sellers to default? It remains to be seen although as long as the job market is strong, and owners can make their payments, they will probably do so.
Something else that was missing in the news media I read....mention of George Washington. I know his real birthday is the 22 of February, not the 19th, but it would have been nice to see one op ed piece that praised the man "who couldn't not tell a lie" and who is "the father of our country". Please don't tell me that these are myths foisted upon me by the spin doctors of the mid 20th century.
posted by shirley harry at 9:07 AM
1 Comments:
Shirley, I found this blog very interesting because that is exactly what I think; when a buyer closes a loan, all that is left is to make the payment, no matter what, make the payment. The 100% financing, I/O buyer would very well be in big trouble if he had to sell, even in the stablized market if he bought let us say even a two years ago.
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