Places to rent?

[ChunkyMonkey]

No offense Pancho... deflation aint happening, inflation is coming fast. The price of the house is going up as are your fuel, groceries, etc. Buy now, you can look into FHA owned $100 down, but that's expiring next month.

Rental rates are going up - again inflation.

[sniper7]

No offense Pancho... deflation aint happening, inflation is coming fast. The price of the house is going up as are your fuel, groceries, etc. Buy now, you can look into FHA owned $100 down, but that's expiring next month.

Rental rates are going up - again inflation.

I agree with inflation on food, fuel, etc, but I don't see houses jumping through the roof. The Fed will continue to give money to banks for nothing or next to nothing. interest rates will stay down. If it were as you say, why wouldn't homes be going up at big rates right now? food has gone up, fuel has definitely gone up, transportation costs, shipping costs, stamps, raw materials like copper, lead, steel, brass, even used cars have gone up due to cash 4 clunkers.

Home ownership has done the opposite. Too many homes on the market, not enough qualified buyers, too many people losing their jobs not able to make a house payment. Then you add in utilities increasing and that mortgage payment gets tighter and tighter each month. Too many people see this, are skeptical of the market, of home prices dropping further turning them upside down for an unknown amount of time...

Fanny and Freddie and the others are still sitting on a shit ton of homes. They are just not releasing them in massive amounts because it would destroy the housing market, deflate prices further and drive even more people into bankruptcy and bailing out of their homes.

Once you see the fed start loaning money to banks for an actual interest rate...then expect within a short time homes to start bouncing back, and their values increasing. More people will see the stability, homes will be harder to buy, harder to come by, and we may even see the days where people ring your doorbell asking to see if you would want to sell your house....when it isn't even for sale yet!

I'm no economist, just the way I see it from all my receptors working together.

[ChunkyMonkey]

You can't be more wrong. Locally in Denver metro area, it's more like seller market. House prices has been going up slowly since February. I never mention it's going through the roof, but inflation is extremely real, and the price will not go down 20% as OP mentioned.

http://www.denverpost.com/business/c...rcent-colorado

Colorado's home price has gained 7.3% in the last 12 months.

I am swamped with applicants, but not enough listings to show them.

As far as foreclosure or upside down homes, tons of them are going through HARP 2.0 at the moment. In short, if you are w/ fannie or freddie and paying more than 3.375% rate on 30 yr fixed- your original loan officer is doing piss poor job on following up with you.

http://www.makinghomeaffordable.gov/...ages/harp.aspx
http://www.knowyouroptions.com/

HARP allows you to refi those crazy arms and high % loans from 4-5 years ago into much lower rate w/o limit on loan to value. If you are already behind in payments, ask for loan modification (always use a real estate lawyer for better chance of result) and principal forgiveness.

[Irving]

Since when does the price of houses going down cause bankruptcy? I didn't follow that part.

[Pancho Villa]

Since when does the price of houses going down cause bankruptcy? I didn't follow that part.

When people live beyond their means, they expect the equity in their homes to go up, and borrow against that at ridiculously low interest rates (because, after all, if they default the bank takes possession of an asset that's increasing in value!)

So, many peoples' lives before the bust were predicated on constantly-increasing home prices.

Also, people borrowed at "teaser rates" that would balloon up, which they would refinance out of after they had some equity in the home. Again, not something you can do very easily now.

stuff about housing

There are literally millions of units being sat on by the banks / fannie / freddie right now, as Sniper7 mentioned. When people figure out that housing isn't coming back and the subsidies can't last forever I think it will crash.

Though if you want to chat about housing/inflation, I'm all for it, but make another thread, yeah?

[Irving]

You could get 3 bedrooms and two baths for under $1,000 in Westminster/Thornton area. Long way away from where you are used to living though.

[Pancho Villa]

You could get 3 bedrooms and two baths for under $1,000 in Westminster/Thornton area. Long way away from where you are used to living though.

Yeah, the problem there is a ton of the savings are eaten up by gas to and from work. Probably $250-300 extra a month from there, between the two of us.

[Irving]

Yeah, we carpool down there, plus our nearly free baby sitter lives up here. It's all a balance. I'm going to second everyone else about owning though. All those repo'd houses are required to be held for a certain period of time, so I doubt they will stop metering them out like they have been, any time soon.

[tmckay2]

I know some nice enough apartments off Havana that last I checked were aroun 800 for a two bedroom. They have fireplaces, community pool, hot tub and tennis courts. They aren't super fancy but they are clean and the administration rocks.

[tmckay2]

Yeah, the problem there is a ton of the savings are eaten up by gas to and from work. Probably $250-300 extra a month from there, between the two of us.

If your cars are even reasonably economical you are only looking at an extra 100 bucks or so from there per month. I did it during rotations and I'm not far from the tech center