Are we in for another housing bust? - GoFuckYourself.com

V_RocKs · 03-20-2007, 07:14 PM

http://www.rntl.net/history_of_a_housing_bubble.htm

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1985-1986: Housing is booming, inventory is low.

2002 - 2003?

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1987: Housing still booming, prices increasing, inventories low.

2004?

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1988: People start to question the boom. Realtors assure us the boom will continue. Houses aren't like stocks afterall.

2005?

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1989: Prices are very expensive; affordability an issue. Sales slow and prices drop. Mention of risky loan types.

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New Century, the second-largest U.S. sub-prime home mortgage lender last year based on loan volume, has already stopped making new loans due to a lack of funds.

2006?

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1990: Prices take a serious plunge. One article claims that housing booms are a bad thing and we should hope prices stay low. Increasing mortgage rates are blamed for the bust. The word "recession" is mentioned. Gloom and doom.

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On March 2, 2007, after the close of regular trading, New Century revealed that it was under criminal investigation by the U.S. Attorney's Office for the Central District of California. The criminal investigation focuses on how New Century accounted for losses when it was forced to buy back soured loans last year, and whether its executives profited by selling stock while misleading other shareholders. In reaction to this news, the price of the Company's common stock fell more than 68.8% from its closing price of $14.65 on March 2, 2007 to close at $4.56 per share on March 5, 2007. The Company's preferred Series A fell more 55.3% from it closing price of $17.90 on March 2, 2007 to close at $8.00 per share on March 5, 2007, the Company's preferred Series B fell more than 58.2% from its closing price of $19.15 on March 2, 2007 to close at $8.00 per share on March 5, 2007.

Stock price is now less than $3.

People's Choice, based in Irvine, California, is the fourth subprime lender to file for bankruptcy since December

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Fremont General Corp. of Santa Monica said it told significant numbers of its 2,400 home-loan employees to expect pink slips in two months.

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The Orange-based parent of Ameriquest Mortgage Co. and Argent Mortgage Co. announced large but unspecified layoffs last week. On Monday, Ameriquest said its name is coming off the Texas Rangers? in Arlington, Texas.

Get Ready for the bubble to burst in 2007!

p1mpdogg · 03-20-2007, 07:19 PM

a smart person sold his shit last year like me.

besides keeping 2 rentals with leases signed for another year....

i knew i was born to be rich, i knew it!

V_RocKs · 03-20-2007, 09:14 PM

I have already begun looking for houses with the idea that in 6 to 8 months they will be $200,000 less.

spunkmaster · 03-20-2007, 10:41 PM

You didn't read todays news did you ?

New home construction went up for the first time in 9 months
and new home loan applications are the highest in months.

The corner has turned and the bubble is done popping?

The question now is will the economy have a big slow down without all that
equity cash being spent on toys ?

Rochard · 03-20-2007, 11:01 PM

The entire housing market is bullshit. My little house in Phoenix was purchased in 2002 for $220k. Since then it's almost doubled in value. That's insane. Of course this was going to crash. It was only a matter of time.

V_RocKs · 03-20-2007, 11:33 PM

While new construction might be going on... The loan companies are all tanking... And that new construction will eventually do the same.

JD · 03-20-2007, 11:36 PM

sweet looks like I'll save a fortune on a home purchase

03-20-2007, 07:19 PM	#2
p1mpdogg Too lazy to set a custom title Join Date: Nov 2002 Posts: 16,714	a smart person sold his shit last year like me. besides keeping 2 rentals with leases signed for another year.... i knew i was born to be rich, i knew it! __________________ A fast fortune is easy to earn! Just go with a winner!

03-20-2007, 10:41 PM	#4
spunkmaster Confirmed User Join Date: Jan 2004 Posts: 2,052	You didn't read todays news did you ? New home construction went up for the first time in 9 months and new home loan applications are the highest in months. The corner has turned and the bubble is done popping? The question now is will the economy have a big slow down without all that equity cash being spent on toys ? __________________

03-20-2007, 11:01 PM	#5
Rochard Jägermeister Test Pilot Industry Role: Join Date: Dec 2001 Location: NORCAL Posts: 73,982	The entire housing market is bullshit. My little house in Phoenix was purchased in 2002 for $220k. Since then it's almost doubled in value. That's insane. Of course this was going to crash. It was only a matter of time. __________________ “The choice is no longer between right or left. The choice is between normal and crazy.” - Sarah Huckabee Sanders YNOT MAIL \| THE BEST ADULT MAILING SOLUTION

03-20-2007, 09:14 PM	#3
V_RocKs Damn Right I Kiss Ass! Industry Role: Join Date: Dec 2003 Location: Cowtown, USA Posts: 32,409	I have already begun looking for houses with the idea that in 6 to 8 months they will be $200,000 less.

03-20-2007, 11:33 PM	#6
V_RocKs Damn Right I Kiss Ass! Industry Role: Join Date: Dec 2003 Location: Cowtown, USA Posts: 32,409	While new construction might be going on... The loan companies are all tanking... And that new construction will eventually do the same.

03-20-2007, 11:36 PM	#7
JD Too lazy to set a custom title Industry Role: Join Date: Sep 2003 Posts: 22,651	sweet looks like I'll save a fortune on a home purchase