When do you think there will be a Housing shortage? Could it change the metals market Meaning price

YaHa

As the fed lowers intrests rates each month and you know the will continue, I bet you there will be a housing shortage by Spring 2009. This gives alot of first timers low 30 year rates, gives others to move up, and lastly the flippers will try to get back the money they are losing now. It happens everytime we have a resession or fear. What do you think.

I am forecasting a 4 1/4 30 year fixed rate with 2 points by end of the year.

Coinlearner

..My coins will always have a home, so they do not have to worry about such things

LALASD4

Well, tough to say, the Fed drops the Fed Funds rate by 1/2 point and the 30 year fixed went up by 1/4 point!

dbldie55

Another off topic thread. Shocking. They should really start banning these members.

YaHa

<< <i>Another off topic thread. Shocking. They should really start banning these members. >>



Do you think the housing market and coins have anything in common?

Maybe if I would of said if the banking rates drop so low on the 30 years fix, why in the world would the prices of Gold, Silver, Platinum retain such a premium. I see sometimes that many people can't put two and two together to see what one is talking about.

RYK

<< <i>As the fed lowers intrests rates each month and you know the will continue, I bet you there will be a housing shortage by Spring 2009. This gives alot of first timers low 30 year rates, gives others to move up, and lastly the flippers will try to get back the money they are losing now. It happens everytime we have a resession or fear. What do you think.

I am forecasting a 4 1/4 30 year fixed rate with 2 points by end of the year. >>



Please PM me when we get under 4 1/4, so I can refi.

Last I heard, the inventory of available houses is up to a year and a half in some places (and they are still building them).

Will there be a slab and coin album shortage?

VamGuy

<< <i>As the fed lowers intrests rates each month and you know the will continue, I bet you there will be a housing shortage by Spring 2009. This gives alot of first timers low 30 year rates, gives others to move up, and lastly the flippers will try to get back the money they are losing now. It happens everytime we have a resession or fear. What do you think.

I am forecasting a 4 1/4 30 year fixed rate with 2 points by end of the year. >>

You're not taking into consideration the rebound effect of the current mortgage crisis. In the last few years, banks were writing mortgages for anybody who qualified. And by qualified, I mean had a pulse. You could get a $400,000 no interest ARM with no income & no asset verification, as well as poor credit. It didn't matter because by the time you signed the closing papers 30 days later, your $400,000 house was already worth $420,000 (in the wonderland that was the housing bubble). Due to the now obvious disasterous results of those ingenious loan practices, going forward, almost nobody will qualify, regardless of how low the interest rates become. The entire mortgage system is currently being revamped. Many buyers need to put down 20% or more because all across the country we're still in a declining real estate market. So today when you try to get a $400,000 mortgage, the banks appraiser decides that the house will really only be worth $300,000 by next year. So you need to pony up the difference... up front (as in down payment). Along with income, asset, & good-excellent credit. Additionally, a huge percentage of the properties on the market right now are foreclosures & short sales (at least in Las Vegas). Short sales can take over 3 months for the bank to approve or reject. And If the bank already owns the property, they don't think twice about sitting on an offer for a few weeks to see if a better offer comes along. Regardless if the contract stipulates a the offer is only good for a 7 day period. My significant other is a Realtor here in Las Vegas. So I know first hand that these things have already begun to happen.

Now sure, eventually this will all iron out, but not in 14 months. And there is zero possibility of a housing shortage within the next few years.

Edited to add:

Here's a coin...

mrearlygold

Housing shortage?

dbldie55

<< <i>

<< <i>Another off topic thread. Shocking. They should really start banning these members. >>



Do you think the housing market and coins have anything in common?

Maybe if I would of said if the banking rates drop so low on the 30 years fix, why in the world would the prices of Gold, Silver, Platinum retain such a premium. I see sometimes that many people can't put two and two together to see what one is talking about. >>



Another lame attempt to make an off topic thread appear to belong. As said in the last off topic thread, everything can be made to be related to coins, but that does not make them on topic threads for this forum.

ttown

I think coin prices on the common stuff related to gold and silver will continue to rise for the next several years.

Now as far as the housing shortage I can only tell you what I'm seeing in my area. It's way overbuilt and if they do drive out the illegals it's going to get bad. Existing houses aren't selling because most people would rather have a new one on a 30 year loan since they aren't much higher than ones already built and the easy credit where you don't even have to prove your income anymore or be a legal citizen.

In fact I've been amazed that they just keep building them. A big drop is coming to this market and a large percentage are going back to the bank because of their lax loaning practices. In the crash of 29 most people just moved out of their over priced houses and rented because this market was so unstable.

Now not that this is going to happen but if they go back before this housing boom here's what could happen. You take out a loan on a $100,00 house that required 10% down and it drops to $70k the bank could demand that you come up with the margin or they will forclose,even if your current on your mortgage? I think the bank are going to own more houses than they can handle so it's unlikely they'll bother the people that are current.