10-07-2006, 05:22 PM
I don't think it requires folks to "fear" falling house prices, but considering how large of an investment a house and or land is, folks need to be aware of pricing trends before going to to buy. I would think Jared is doing them a favor if he can get them to think about the possiblity of the whole enchilada falling before they go out and get financing to buy something expecting the prices to continue to skyrocket.
For the past half decade, all I've heard has been about how the prices can "never" drop and folks who believed this were getting some really strange financing in order to be able to afford to buy properties. Now or if not right now, pretty soon, some of these people will owe more than the properties they bought are worth. If they had extended themselves to get the properties expecting to "flip" them in six months or a year when the price has increased, things are not going to be good. Foreclosures are up and it is just the beginning. If they bought the houses at a price they can afford to pay for the next twenty years, then they will do fine and they will at least have a place to live until the prices are back up to the next peak but that will be about a decade from now.
When was the last big downturn we had? 1995? How fast was it? How far down did prices go? Why can't it happen again?
Heheheh!
A hui hou!
Catz
For the past half decade, all I've heard has been about how the prices can "never" drop and folks who believed this were getting some really strange financing in order to be able to afford to buy properties. Now or if not right now, pretty soon, some of these people will owe more than the properties they bought are worth. If they had extended themselves to get the properties expecting to "flip" them in six months or a year when the price has increased, things are not going to be good. Foreclosures are up and it is just the beginning. If they bought the houses at a price they can afford to pay for the next twenty years, then they will do fine and they will at least have a place to live until the prices are back up to the next peak but that will be about a decade from now.
When was the last big downturn we had? 1995? How fast was it? How far down did prices go? Why can't it happen again?
Heheheh!
A hui hou!
Catz
Kurt Wilson