A buyer's market? More like smoke and mirrors.

CBS story about housing price drops making this a buyer's market. I don't think I can agree.

When the housing market growth has dropped a whole, whopping 3%, but interest has risen to make monthly payments higher and to make it harder to qualify for the loan, how does that translate to a buyer's market? Sounds more like a banker's market to me.

I am reminded that back when Reagan went on his "little" military spending spree and when, as a nation, we were in better overall financial shape interest rose to the point that people were finding it difficult to get a home loan. At the time, it was said that the government was sucking up all the loan money to pay for the military build-up. It would appear that history is repeating itself with some slight modifications.

check out this thread where we discussed this to a degree:

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=364x777042

:hi:

I missed it. :)

Yeah maybe if prices drop 50% or more to where they should be. You still have rising interest rates to contend with. Want a mortgage with a fixed 19% APR? Just wait a few more years and the Fed will make it a reality.

He's increased the M3 40% in the last 5 years (that's the number of dollars available worldwide).

was only on the market for 3 weeks. My other neighbor sold his in 6 weeks, it was priced a little high and sold for 10% less than asking (he wanted to sell quick as he was moving to Hawaii). Second neighbor bought his for $199K 3 years ago, he upgraded/repaired it and listed it at $429 and sold for $385.

Housing market in my neighborhood is holding steady this year.

Great news for me as I plan on listing mine in the next few months so I can downsize and get out of debt.

My area isn't faring as well, but things are rather inflated around here most of the time, regardless of the economy and other such factors.

Hope you get what you are asking--and need to get out of debt! :hi:

It's assume if you're playing in the housing market you already have a house or a good chunk of money to play with. They don't see housing as a place to live, but a financial transaction...strictly a dollar game.

A lot of this also is a come on from the real estate industry that is taking its lumps this year. In my suburban area, the prices of houses increased on an average of 5% or more a year throughout the 90s but when the economy slowed around 2002, so did the local market. A few years ago houses in my area were sold within 30 days...last year I noticed a bunch of the higher end houses that seemed to be up for longer than usual. This year there's a lot more signs...mostly on smaller houses, and the market has really slowed.

The change is a combination of a shrinking local job market and wages...a lot of tech jobs have long vanished and the outsourcing of middle management positions has also taken a toll in this area. Add to that rising local tax bases as the state and local governments attempt to make back the federal money lost by a combination of creeping up your real estate values and tax rates. It makes those trying to get into the housing market at a big disadvantage.

If you're already in the real estate market, the prices have stopped skyrocketing...thus in the corporate media's eyes this means a buyer's market. Also, wanna bet the segement you saw was sponsored by a real estate company.

Cheers...