Recovery Sooner Than Later?
The market is supposed to be a forward-looking discounting machine. It’s supposed to price in what’s expected to happen over the next few months and years. Is the market perfect at this? No. If it were, there would be no real opportunity to do well in it. The market is, however, very good at incorporating…
If interest rates hit 4.5 than I would encourage people to purchase homes. Though I would not be paying more than 15-20 times yearly rent on those homes. And that is only in good locations…
Late 80’s/early 90’s NYC recession= 7 yr supply of housing.
08-10 NYC recession=less than 1 year supply of housing.
Low interest rates too. When I got a mortgage at the tail end of the early 90’s recession my rate was 8.75%. Next year could be a great time to buy, unless those ex Lehman bros become crack whores.
“Good luck Wasder!!! That is great news. Best to your family.”
Slopefarm—you must have written this when I was writing my last post so I missed it. Thanks so much. How are you doing? What is the news on the farm?
The landlords set the rent, but people pay it.
You don’t like the rents, don’t live there and move somewhere cheaper.
11217 – Baloney! Of course it’s the landlords that set the rents you silly fool. What’s come over you? Your insensitivity is really stunning.
Prices on homes are going down another 10-15 percent at least. The market may have a couple of gasps of air in it still. Remember I wrote a couple of weeks ago we will get a runup which would be the mother of all fakes. Its starting to runup and I don’t buy it. Banks are not lending , homes are still foreclosing and I still don’t have my 800k bh home.. The US printing press is throwing money all over the place except where it will help the most. The USA is a consumption based economy and with credit lines being lowered we will see less spending. The Sp 500 can possibly get all the way to 1150 but then we will go back down and if this happens watch out below because we will see sp 400-600. First the SP 500 has to pass the 918 mark to keep going up. The one positive thing I have heard is getting the mortgage rate to 4.5 %.
Or better yet hannible, stop acting like you DESERVE to live in Park Slope or Brooklyn Heights, and go find a neighborhood a couple more subways stops out.
You can find a lovely 2 bedroom in Midwood for 1500 bucks.
Enjoy!
“stucker rally”
just because some guy says we going to have stock recovery in 3 to 6 months doesn’t mean it’s going to happen … if the Fed thought all they needed was $350,000,000,000 (which Paulson has already spent in the last 2 months) to solve the financial crisis, they wouldn’t have asked for $700,000,000,000 for TARP or guaranteed over 5,000,000,000,000 assets. Banks will need more money/capital when mortgage assets continue to fall and credit card debt blow up. More pain is coming. Unemployment is headed towards 8-10% if we lucky. Even if mortgage interest rates goes to 4.5% doesn’t mean home prices will stablize or go up if the economy keeps losing over 500,000 jobs every month (unless you make loans to jobless people).
“And stop raising rents because poor hard working tenents don’t have to pay for your greed and stupidity.”
I think you need to get a better paying job or a 2nd one, because market forces are responsible for setting rents, not a landlord here or there.
Get a clue.