Housing Bubble Far From Bursting: NHBA Opinion

[Karl]

This story was told to me by the HO on 4/24/06 @12:33 PM Family wants to sell home, family wants to go back to MA. Purchased last year 3/10/05 for 179,000 RE Agent, came at 9 AM 4/24/06 suggested sale price was ask 159,900 expect to take slightly less, probablly 149,. BUT says the Owner we paid 179,000 Last Year, & added a Block Fence Rear Yard. RE Agent informs the HO that the Market has changed, BUT BUT says the HO, this that ETC ETC Well says the RE Agent apprantly the R E Agent that sold you this home took advantage of you when they sold it to you cause this home should have sold for NO MORE than 165,000 MAX!!! Really says the HO & Spouse & 2 over 18 year old children You really think thats the case? OH definaely says the RE Agent I saw that so much when the Market was going up squeeze more out of unsuspected people moving in from richer states. Make sure we get Appraisers that will cooperate, Really says the HO You are so helpful & we will propbablly List with you, hearing that the RE Agent continues to inform HO of other deals & tricks used to get more, HO finally says thank You for your honesty.


Now the part of the story they left off, they will show the agent when they go into the office at 2 PM to set things in motion with the broker, they'll show the Agent that the low life RE Agent that she so willingly bad mouthed this morning that had sold them the home was HER Broker.

Moral of the story check your files before leaving the office. And for those Appraisers that thought kissing RE Agents & Lenders @$$'s, was the way to go, Hope you didn't skip any.

REMEMBER Those that MAY loose there home cause thier UPSIDE DOWN it will be someone elses FAULT. It definately will NOT be that of the HO.

 

[moh malekpour]

This article was published in April, 2002 and is talking about years 2001, 2002 and 2003 real estate market. We are in April 2006 now. Wake up and smell the coffee. Does anybody read the publishing date of the article prior to posting it here?

Seiders also noted that with the inventory of unsold new homes on the market hovering around 4.2 months, housing will not have to make a 'payback' for over-building during past recessions. "The economic and financial market environment in our forecasts should provide a solid foundation for the housing market in both 2002 and 2003," he said. "While some fallback in housing starts seem inevitable in the second quarter of this year, following a huge first quarter, total starts are expected to hover around the 1.6 million annual rate over the balance of this forecast period."
"You always need to go back to the fundamentals," David Lereah, NAR's chief economist, added. "With the economy growing, the job market rebounding and mortgage rates staying relatively low, we see the housing market staying healthy through 2003." A record 906,000 new homes and 5.3 million existing homes were sold in 2001.
Seiders and Lereah both forecast that mortgage rates will rise only marginally, moving towards 7.4 percent by the end of 2002 and 7.7 percent for 2003. The unemployment rate, a key indicator of overall economic health, is forecast to peak at around 5.7 percent. The Gross Domestic Product (GDP) is now estimated to grow at a 3.9 percent rate for the year.
Housing production and housing-related services account for about 14 percent of the GDP and drive other closely related sectors of the economy. After purchasing a newly built home, owners within twelve months spend an average of $8,900 to furnish, decorate and improve that home - more than twice the average spent by non-movers. Buyers of existing homes spend $3,766 more than non-moving home owners in the first year after purchasing their homes, and renters also spend significant amounts on furnishing their new apartments.
EDITOR'S NOTE: Housing is vital to local and state economies, creating jobs and generating taxes and wages that positively influence the quality of life. Find out more about this crucial component of the economy click here. Also, NAHB's new publication, Housing: The Key to Economic Recovery, explains just how housing will lead the economy to recovery in the months ahead. This publication is available free of charge on NAHB's website
The National Association of Home Builders is a Washington-based trade association representing more than 205,000 members involved in home building, remodeling, multifamily construction, property management, subcontracting, design, housing finance, building product manufacturing and other aspects of residential and light commercial construction. Known as "the voice of the housing industry," NAHB is affiliated with more than 800 state and local home builders associations around the country. NAHB's builder members will construct about 80 percent of the almost 1.6 million new housing units projected for 2002, making housing one of the largest and most powerful engines of economic growth in the country.
Published: April 10, 2002