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Wall Street View on Real Estate

Discussion in 'Political Discussion' started by PatriotsReign, Aug 25, 2008.

  1. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    I was wondering what Wall Street thought regarding the short & long term future of real estate in the US. here's what I found:

    "You're seeing a rolling problem that started two years ago in the mortgage business and we haven't touched the bottom of the swimming pool in terms of the housing market," said Mark Travis, CEO at Intrepid Capital Funds."

    http://money.cnn.com/2008/08/25/markets/markets_newyork/index.htm?postversion=2008082512

    Recent increases in sales reflect the depreciation of the market in general. Unfortunately, they are not decreasing the available supply and the prices are still declining...and they will be for a while.
     
  2. Real World

    Real World Moderator Staff Member

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    Why is this described as "unfortunate(ly)"? This is good for the average joe. Not everyone is a Wall Street zillionare who can afford to pay 1,000% of their annual income on the purchase of a place to live. Let the market bottom even further. As long as people are employed, everything will be ok.
     
  3. PatriotsReign

    PatriotsReign Hall of Fame Poster

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    #18 Jersey

    Brother....I AM WITH YOU!! I'd like to see homes, particularly the entry-level ones get down where the average Joe can afford one fairly easily just like my father could. Bus drivers, mechanics, plumbers....all those should be able to afford a home with no problem. That's the way it's always been...or at least until about 8 years ago.

    Here's some more "good" news for those people;

    "Resales advanced more than forecast to an annual rate of 5 million, with at least one-third of the purchases coming from foreclosed properties, the National Association of Realtors said today in Washington. At the same time, the median price dropped 7.1 percent from July 2007, and the number of homes for sale jumped to a record.

    Sales averaged a pace of 4.95 million the past three months, the same rate as the previous period, indicating that purchases may have touched a bottom. At the same time, the glut of houses for sale means property values will probably keep dropping, putting pressure on household wealth and consumer spending."


    http://www.bloomberg.com/apps/news?pid=20601087&sid=afbu6IFvhdlY&refer=home
     
    Last edited: Aug 25, 2008

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