Another Housing Crash

[Eli]

When you look at the debt load on the average American citizen?


Get ready if gas goes to $5 gallon. Or interest rates spike.

 

[djd09]

interest rates were all time lows for the last 8 years. The prices should have skyrocket well beyond the prior highs. That shows how bad and or manipulated the market has become.

 

[djd09]

Get ready if gas goes to $5 gallon.

I saw $3.39 today.

 

[Joe Flacco]

Prices have to go up in order to bring inventory to the market. You only sell for less than it cost you to buy, as a short sale or foreclosure. Burned through that inventory and nobody else can afford to sell at these prices.

See I knew you get it. Prices go UP when there is shortage. It does not crash.

 

[djd09]

 

[djd09]

 

[Meandering]

See I knew you get it. Prices go UP when there is shortage. It does not crash.

Apparently you don't understand
The price doesn't matter when you have nothing to sell.

But you are an appraiser.

Work out the problem

You bought a house for $220k 10 years ago at 8% interest with a one time cost of 12% of sales price for closing costs and transfer taxes..

2 years ago you cashed out your equity in a refinance for a new mortgage principal of $250k and an interest rate of 4%.

You comp your house and see the market value is still $250k.

But as the seller you will have 6% closing costs, plus moving expenses.

So Mr. Appraiser, please do tell us, where the inventory comes from that will push prices higher.

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[Meandering]

And Joe,

Work that problem above and let us know where the price has to be, so my neighbors will know what the market has to look like so they can sell their house and go.

Because right there is the key to getting Salespeople to worship you as a God by preserving their profession and saving them some advertising dollars, so that they are not advertising to people who would lose money selling their home now.

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[Joe Flacco]

I will just let you guys be.

 

[Meandering]

I will just let you guys be.

Why?

It is a basic market exercise. It falls under the purview of “free markets” and appraisal.

Admittedly there aren’t any check boxes or 1004MCs. But as an appraiser you should know where your inventory for comps and market condition is and went.

Pull those old reports of your own. Check the mortgage principals in the public records and tell us what has to change in the market for those properties to become available as other than distressed sales.

Basic appraisal principals. Typical motivations.

Then you will understand ROVs, desktop appraisals, AVMs and the like, because everyone else in the food chain knows what the owner “needs” to sell or refi their property.

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