REAL ESTATE This makes no sense to me, why is market now going down more?

[snowbank]

http://money.cnn.com/2007/09/19/real_estate/steep_home_price_drops_coming/index.htm?postversion=2007091912

After the announcement of interest rates going down, wouldn't less markets be faced with declining?

 

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[Runum]

Isn't the decline in the valuation of the properties due to unrealistic current valuations and also due to unsustainable growth in valuation numbers? I know that the home I occupy would be worth 2-3 times its value if it were in the LA area. To me those house prices are insane when compared to household income. I would think that most of the price run up in California and Florida was due to expected increase in valuations(speculation) so the buyers could flip them or get a HELOC.

In the rust belt areas the problem is layoffs. There are less people to buy more properties. Less demand, more supply. :cheers:

Greg

 

[snowbank]

Isn't the decline in the valuation of the properties due to unrealistic current valuations and also due to unsustainable growth in valuation numbers? I know that the home I occupy would be worth 2-3 times its value if it were in the LA area. To me those house prices are insane when compared to household income. I would think that most of the price run up in California and Florida was due to expected increase in valuations(speculation) so the buyers could flip them or get a HELOC.

In the rust belt areas the problem is layoffs. There are less people to buy more properties. Less demand, more supply. :cheers:

Greg

Ya, maybe it's just weird timing with a big article that everything is going down.

3/4ths of the nation though? still surprised.

 

[terrancefoster]

people cannot not afford these home the value of these homes are well over what people can afford and then you have to remember that people are not paying the 20% down payment now a day so that make the mortage more so if you really thing about it it really has nothing to do with the intrest rates that just my thought

 

[JesseO]

Exactly what was said: they are being more careful with their money now that the idiot companies have lost all their money. Loan requirements are being tightened and down payments are being raised...it's not a bad thing =)

 

[yellowpad]

When talking about loan guidelines, it was so easy at one time that you can get alone if you are alive. Now thing have changed a bit........you have to be alive with 10% down on a purchase