Comments on: Housing: Still very shaky http://blogs.reuters.com/felix-salmon/2010/02/24/housing-still-very-shaky/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: yr2009 http://blogs.reuters.com/felix-salmon/2010/02/24/housing-still-very-shaky/comment-page-1/#comment-12271 Fri, 26 Feb 2010 20:05:32 +0000 http://blogs.reuters.com/felix-salmon/?p=2699#comment-12271 “If the number of underwater homeowners is going up at the same time as the societal mores urging full mortgage repayment erode, then the ingredients for another real-estate bust are definitely in place.”

It’s not about another real-estate bust. It’s the same bubble as before, who’s been morphing and collapsing in slow motion over two years rather than in one bang – The result of trillions of taxpayers’ dollars pumped into it.

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By: Kina http://blogs.reuters.com/felix-salmon/2010/02/24/housing-still-very-shaky/comment-page-1/#comment-12250 Fri, 26 Feb 2010 09:19:11 +0000 http://blogs.reuters.com/felix-salmon/?p=2699#comment-12250 We should not ignore that unemployment is still going up and deflationary tendencies are starting to appear.

People know housing prices are weak, they expect them to be weak and weaken. They will not buy at prices they think will still fall. And it is known by all that millions of homes are to come onto the market.

This is the deflationary mindset and is why we see house prices still drifting. It will be the same with commercial real estate later this year when those loans start to require rolling over, all 1.4 trillion dollars of them.

That will then suck down residential prices and give us a disastrous little cascade.

Unfortunately the US is really in recession on the verge of depression, depending on the next few months.

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By: LucidOne http://blogs.reuters.com/felix-salmon/2010/02/24/housing-still-very-shaky/comment-page-1/#comment-12238 Thu, 25 Feb 2010 18:50:35 +0000 http://blogs.reuters.com/felix-salmon/?p=2699#comment-12238 Good points Felix. However, what is really scary, is that almost the entire state of Nevada is underwater, and a good portion of California. The average for most other states is about 20%. There will be a reckoning!

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By: rfreeborn http://blogs.reuters.com/felix-salmon/2010/02/24/housing-still-very-shaky/comment-page-1/#comment-12216 Wed, 24 Feb 2010 20:59:30 +0000 http://blogs.reuters.com/felix-salmon/?p=2699#comment-12216 I’d argue that if the positive/negative valuation is so tenuously tied to seasonality that it might as well be below that benchmark all year long…I don’t think the average consumer is going to say “Oh, all will be well in three months when my homes value goes up 3% and now I have 1% equity”…

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