Prepare for the biggest housing boom in U.S. history.

[Nick Gromicko]

http://www.nachi.org/housingboom.htm

[Frank M. Carrio, CMI]

Originally Posted by gromicko

http://www.nachi.org/housingboom.htm

I was watching this morning news and saw that somewhere in California if you buy a 1.6 million dollar home you will get a $400,000.00 home for "FREE"!

[Dominic J. Maricic]

Originally Posted by fcarrio

I was watching this morning news and saw that somewhere in California if you buy a 1.6 million dollar home you will get a $400,000.00 home for "FREE"!

Yeah they were talking about that on the radio here yesterday. Basically the company is going to get screwed with all the $1.6 million inventory homes and has to get rid of them. But you also would be hard pressed to sell them for $1.6 million right now.

[Russel Ray]

Originally Posted by fcarrio

I was watching this morning news and saw that somewhere in California if you buy a 1.6 million dollar home you will get a $400,000.00 home for "FREE"!

Right here in San Diego. Builders are hurting here, even the national builders.

[Steven C. Meyer]

With the home inspection business down, might want to try that marketing plan!!!!!

[Steven C. Meyer]

That tells me the 1.6 million house is not worth more than 1.2 million, which also tells me the 400 thousand house doesn't have much value either.

Will be interesting if this ploy works.

Depends on what the word free means!!!

[Russel Ray]

Originally Posted by Steven C. Meyer

That tells me the 1.6 million house is not worth more than 1.2 million, which also tells me the 400 thousand house doesn't have much value either.

Will be interesting if this ploy works.

Depends on what the word free means!!!

Although if I needed a $1.6 million house, I would have no problem taking advantage of their offer.

[Jay Markanich]

I think you are right on Nick.

Also, there is no such thing as a free lunch...

[Bob Elliott]

Wait till they see the no Inspect clause.

[Steven C. Meyer]

Originally Posted by rray

Although if I needed a $1.6 million house, I would have no problem taking advantage of their offer.

If I had the deep pockets, I would also. Hold them long enough, there would be money to be made!!

If all else fails, donate the "free" house to a non profit, makes a dandy tax deduction.

Looks as thou this down turn in home prices has surpassed the down turn I got caught in during the first of the 80's.

I do wonder, is this just a "market adjustment" or a preview of more to come???

[Brian A. MacNeish]

Originally Posted by gromicko

http://www.nachi.org/housingboom.htm

Got to be kidding!!!! Other than a horrible looking chart, got any any positive prognostications from bank economists and national homebuilders????

[Steven C. Meyer]

Originally Posted by Brian A. MacNeish

Got to be kidding!!!! Other than a horrible looking chart, got any any positive prognostications from bank economists and national homebuilders????

Graph says it all, history repeats itsself, economy (and housing prices) go in cycles. And this is a deep cycle.

NEWS FLASH!!!
Stock, Down the Tubes
Housing prices Down the Tubes
New housing starts Down the Tubes
Disposable income ( caused by inflation & taxes) down the tubes
Consumer spending on hard good Down the Tubes.

Don't know where you get your Financial/economic news, but can only guess it could be:

Weggee Board
Crystal Ball
Fortune Teller
Tara Cards

Concensus of opinions I have read conclude that we may not, as of yet, have hit the bottom, and at best would only see a leveling out, followed by a modest increases.

With housing nearing record lows, and IF intrest rates stay low, housing purchases stand a reasonable chance, but buyers are advised NOT to expect the price spikes we have experienced in the past.

So, keep your head in the sand or those rose colored glasses on.
Ingorance can be bliss.

[Nick Gromicko]

Brian MacNeish writes:

got any any positive prognostications from bank economists and national homebuilders????

Huh? Homebuilders? Forget it. We're sitting on more than 11 months of real estate inventory already!

[Nick Gromicko]

Brian, there is no way for homebuilders to compete with the huge pool of deeply discounted existing homes.

The deals are everywhere. Sellers are motivated. Inventory is piled up. Interest rates are low. Foreclosures pouring into the market. Inflation is coming (so people have to do something with their money to protect against inflation). And investor groups are preparing to gobble up entire neighborhoods.

It's a perfect storm... prepare for the largest boom ever. Home sales galore.

[Frank M. Carrio, CMI]

Originally Posted by gromicko

Brian, there is no way for homebuilders to compete with the huge pool of deeply discounted existing homes.

The deals are everywhere. Sellers are motivated. Inventory is piled up. Interest rates are low. Foreclosures pouring into the market. Inflation is coming (so people have to do something with their money to protect against inflation). And investor groups are preparing to gobble up entire neighborhoods.

It's a perfect storm... prepare for the largest boom ever. Home sales galore.

Quote: Nick Gromicko

1. The deals are everywhere.

2. Sellers are motivated.

3. Inventory is piled up.

4. Interest rates are low.

5. Foreclosures pouring into the market.

6. Inflation is coming (so people have to do something with their money to protect against inflation).

7. And investor groups are preparing to gobble up entire neighborhoods.
End Quote:

Nick,
You seem to have a pretty good grasp on the situation. It is amazing how "some people" cannot see the "big picture" and their Glass is always half empty!