Washington Falling
Well this is certainly a bittersweet moment for the housing bears. This is most certainly the first in a long string of we-told-you-so's. Washington, one of the hottest real estate markets in the Northeast is softening, and even more importantly, it's getting media coverage. Now, while I'm sure some will gloat in the news, realize that if the real estate market plays a significant role in our economy and no one really knows the extent of the damage a crash will cause. So while we all want a return to normalcy in the RE market, I'm not so sure we're going to like the pain that is going to accompany it. Even with that, I still believe the U.S. needs to suck-it-up and take the medicine.
Washington home market softens as investors sell
In the Washington D.C. area, once one of the strongest residential real estate markets, things are going soft, and that's becoming hard on home sellers and some home builders.
...
Too many houses are for sale, experts said. Speculators -- who last year bought homes, not to live in, but to sell or "flip" within a year -- are trying to cash in on the price increases now. "For Sale" signs are sprouting on lawns and depressing prices throughout the market, analysts and Realtors said.
...
Would-be landlords have discovered that they are not able to achieve rents high enough to cover their mortgages. she said.
"The rents aren't high enough to cover their mortgage so people are selling" she said.
...
"Things are sitting longer, and I think what's happened is that the buyers have kind of rebelled," she said. "They're not willing to pay these kinds of prices."
Caveat Emptor,
Grim
Washington home market softens as investors sell
In the Washington D.C. area, once one of the strongest residential real estate markets, things are going soft, and that's becoming hard on home sellers and some home builders.
...
Too many houses are for sale, experts said. Speculators -- who last year bought homes, not to live in, but to sell or "flip" within a year -- are trying to cash in on the price increases now. "For Sale" signs are sprouting on lawns and depressing prices throughout the market, analysts and Realtors said.
...
Would-be landlords have discovered that they are not able to achieve rents high enough to cover their mortgages. she said.
"The rents aren't high enough to cover their mortgage so people are selling" she said.
...
"Things are sitting longer, and I think what's happened is that the buyers have kind of rebelled," she said. "They're not willing to pay these kinds of prices."
Caveat Emptor,
Grim
2 Comments:
I, for one, thank all those wonderful homeowners that are helping to subsidize rents.. In the past only the Government would be able to take on such an expensive task, so it's nice to see the average U.S. homeowner helping out his fellow citizens.. (tongue-in-cheek)
In all seriousness, the issue here is that most people are factoring in unreasonably high levels of expected appreciation. With this as a factor in the equation, the short term negative cashflow is offset by expected capital gains.
Unfortunately, once you dial back normal housing appreciation or even a certain amount of depreciation, things begin to get ugly.
Would you invest in a company that has always lost money, and continues to lose money every day that passes in hopes that one day some monster company with deep pockets swoops in and buys you out for millions of dollars? Wait.. Sorry.. Wrong bubble.. Or is it?
grim
I have been following a site now for almost 2 years and I have found it to be both reliable and profitable. They post daily and their stock trades have been beating
the indexes easily.
Take a look at Wallstreetwinnersonline.com
RickJ
Post a Comment
<< Home