...housing market headed back downward.With mounting indicators clearly showing that the so-called housing recovery was just an illusion, and many housing industry pundits who formerly touted the validity of said recovery now recanting their views, there should be no doubt that we are headed for another/further housing downturn.With over three decades of housing and mortgage servicing experience in a variety of management positions behind me, I have witnessed first-hand several housing cycles in my lifetime. In fact, my father was a builder and real estate broker for many years. I literally grew up in this business. I am not only a keen observer but also an active participant in this vital industry. With respect to the headline above, I offer the following:More at...http://www.nationalmortgagenews.com/blogs/hearing/the-eviden...
If this is true, no complaints here.Bought at the absolute basement, and if true selling at the absolute peak. Bought a home in a very desirable neighborhood that had languished 9 months on the market with two price drops at about $200K below market value with 30% equity out of the gate.For reference the neighbors house, built by the same builder, at the same time, with 100 less square feet, on the same size lot, sold for $400K more than what we paid. Snug as a bug in a rug.
there should be no doubt that we are headed for another/further housing downturn.I dunno... color my agnostic as of an actual reversal. We may or may not eventually post a price reversal, but I haven't seen it yet... not really even solid history of a flattening...One thing's for sure; RENT trends are strong, after being repressed a solid 20+years.If purchase prices drop, it may bode well for portfolio landlords... assumedly more renters driving the trends, and potentially more bites at the all time low acquisition apple.It's always interesting, and there's an opportunity in every market!Dave DonhoffLeverage Planner
The well respected Mr. El-Erian is totally baffled that the stock and bond markets have done well in the first half of 2014. He cites:2.9% 1st Quarter GDPPolicy MissesGeopolitical DramaJapanese Poor Macroeconomic StanceAdditional Loosening of Credit (a la 2008)Declining Lending Standards (a la 2008)Eroding Bond Covenants (a la 2008)Increasing Appetites for Debt and LeverageThe Bank of Settlements (BIS) - the central bank of central banks described"The current environment is worthy of caution, like all financial booms that sprinkle the fairy dust of illusionary riches." The longer this goes on the harder the fall could be. Full article => http://origin.library.constantcontact.com/download/get/file/...
LOL - he might be right...then again he might not be.Since he didn't support his conclusion with any data I guess we'll have to wait to see. Of course his writing style indicates that - at that time - he'll simply seek to curve some anecdotal events to force fit his opinion, as he does with this article, which also (coincidentally I'm sure) mirrors his book. Not that the owner of a foreclosure property management company has any vested in interest in the housing market heading back downward....
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