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Home prices 'extremely overvalued' in 53 cities

Thread ID: 19701 | Posts: 10 | Started: 2005-08-17

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JoseyWales [OP]

2005-08-17 21:53 | User Profile

[url]http://biz.yahoo.com/usat/050816/13048929.html[/url]


jay

2005-08-18 02:02 | User Profile

Couldn't care less - coastal liberals are the only ones in severe danger, and I hate them anyway. I'd love to see them feel some pain.


Chad Degenhart

2005-08-19 01:33 | User Profile

[QUOTE=jay]Couldn't care less - coastal liberals are the only ones in severe danger, and I hate them anyway. I'd love to see them feel some pain.[/QUOTE]

Not true that coastal liberals are the only ones in sever danger, seeing as how about 40% of all jobs created in the FUS since 2001 are in housing-related sectors. It will be a shock to many who considered their home as an investment, or who counted on being able to sell it. Cheap money has created unrealistic prices in all housing markets, not just the insane markets on the coasts.


Faust

2005-08-19 01:49 | User Profile

jay,

Yes one more good reason to get out of Aztlan.


jay

2005-08-19 01:53 | User Profile

[QUOTE=Chad Degenhart]Not true that coastal liberals are the only ones in sever danger, seeing as how about 40% of all jobs created in the FUS since 2001 are in housing-related sectors. It will be a shock to many who considered their home as an investment, or who counted on being able to sell it. Cheap money has created unrealistic prices in all housing markets, not just the insane markets on the coasts.[/QUOTE]

Not buying your logic here. The only reason jobs have gone up, is b/c investment went up first in that sector. When the market corrects - and it will - investment will go to other areas, and jobs will follow.

We've over-invested in housing. Your conclusion is really the cause.


Ponce

2005-08-19 03:05 | User Profile

Overpriced? CA. 76%

Underprised TX 17%

Where do you think the illegas will go to?


Chad Degenhart

2005-08-19 13:27 | User Profile

[QUOTE=jay]Not buying your logic here. The only reason jobs have gone up, is b/c investment went up first in that sector. When the market corrects - and it will - investment will go to other areas, and jobs will follow.

We've over-invested in housing. Your conclusion is really the cause.[/QUOTE] We haven't over-invested in housing - we've over borrowed. There is a fundamental difference between a loan and an investment which is for the most part no longer recognized. If a market is inflated with mostly borrowed money, there aren't going to be a lot of investment monies to place elsewhere when those mortgaged assets are no longer capable of being sold for the loan amount.

Something like 40% of all mortgages last year were interest-only loans - please explain how these "investments" will go to other areas and create jobs somehow when the market corrects.


Chad Degenhart

2005-08-19 13:33 | User Profile

[QUOTE=Ponce]Overpriced? CA. 76%

Underprised TX 17%

Where do you think the illegas will go to?[/QUOTE] Isn't it great that illegals are the hot market for mortgage loans?

[url="http://www.thetimesonline.com/articles/2005/08/17/news/top_news/977989ef163de411862570600009cb57.txt"]http://www.thetimesonline.com/articles/2005/08/17/news/top_news/977989ef163de411862570600009cb57.txt[/url]


Blond Knight

2005-08-19 13:46 | User Profile

Chad, welcome to OD, and a tip of the hat for your website. :cheers: :thumbsup:


Chad Degenhart

2005-08-19 13:52 | User Profile

[QUOTE=Blond Knight]Chad, welcome to OD, and a tip of the hat for your website. :cheers: :thumbsup:[/QUOTE] Thanks Blond Knight!