Armageddon for Home-Owners? 12 Facts That Show We're in the Midst of the Worst Housing Collapse in U

[Donnachaidh]

http://www.alternet.org/economy/149839/armageddon_for_home-owners_12_facts_that_show_we%27re_in_the_midst_of_the_worst_housing_collapse_in_us_history/

Already, US home prices have fallen further during this economic downturn, then they did during the Great Depression.

We are officially in the middle of the worst housing collapse in U.S. history - and unfortunately it is going to get even worse. Already, U.S. housing prices have fallen further during this economic downturn (26 percent), then they did during the Great Depression (25.9 percent). Approximately 11 percent of all homes in the United States are currently standing empty. In fact, there are many new housing developments across the U.S. that resemble little more than ghost towns because foreclosures have wiped them out. Mortgage delinquencies and foreclosures reached new highs in 2010, and it is being projected that banks and financial institutions will repossess at least a million more U.S. homes during 2011. Meanwhile, unemployment is absolutely rampant and wage levels are going down at a time when mortgage lending standards have been significantly tightened. That means that there are very few qualified buyers running around out there and that is going to continue to be the case for quite some time to come. When you add all of those factors up, it leads to one inescapable conclusion. The "housing Armageddon" that we have been experiencing since 2007 is going to get even worse in 2011.

Right now there is a gigantic mountain of unsold homes in the United States. It is estimated that banks and financial institutions will repossess at least a million more homes this year and this will make the supply of unsold properties even worse. At the same time, millions of American families have been scared out of the market by this recent crisis and millions of others cannot qualify for a home loan any longer. That means that the demand for unsold homes is at extremely low levels.

So what happens when supply is really high and demand is really low?

More at the link --

[villager]

1. thank God we're not letting homeless families live in empty houses, though!

What a "waste" that would be of potential Bankster thef -- er, "profit."

[Lance_Boyle]

2. Why would anyone carry a mortgage, or pay for a house at all,

if all you had to do to get one *for free* was to lose the one you're currently paying on?

This is not all about profit to banks. Some of this is about making sure those of us who are currently paying do not stop so that we can get our free houses, too.

[fasttense]

3. I've been able to keep up with my house payments yet I wouldn't begrudge a

homeless person a safe and warm place to live.

I've been lucky that I can still pay my mortgage but not everyone has been as lucky as me.

Letting homeless people live in a home that has no chance of being sold, maybe with an agreement to keep the lawn mowed, the flower beds weeded and the house cleaned.

It would be a win for the banks and the homeless person. Empty houses don't sell well anyway.

[Lance_Boyle]

4. I would stop paying in a heartbeat if all I had to do to get a new home

free of charge was to agree to mow the lawn at the new place. This is not do-able. You can't give free homes to some while telling everyone else to keep paying OR ELSE they can get their own free home, too. It's a nice thought, but I'm not the only currently-current mortgage payer who would take the free house over the expensive one.

[villager]

6. So: "I, Lance Boyle, upon becoming homeless, will refuse a vacant shelter,

...as it might depress the profitability of banks."

Take the pledge. Swear to stay on the streets if it happens to you.

Put your eventual lack-of-money where your mouth (or lack of empathy?) is...

[Rex]

9. Didn't get a reply to that one!

I'll buy that for a dollar!

[Name removed]

11. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Rex]

15. EDIT

Not worth it.

[Lance_Boyle]

10. Apparently your plan is that I, Lance Boyle, upon becoming homeless

am just given another house absolutely for free. That's a deal I will take all day long. Free house or one I have to pay for... hrm... let me think about this...

Your idea is nice, in a utopian fantasy sort of way. But it is not feasible as it SEVERELY disincentivizes responsible home ownership. Why pay when you can get it for free simply by not paying?

[villager]

12. Good. I trust you also don't begrudge homeless children such roofs over their heads?

Or would that just screw things up for the banks and their "empty stock" too darn much?

[Lance_Boyle]

13. Official "won't somebody think of the CHILDREN!" desperation-in-argumentation fail. n/t

[villager]

19. Official "too damned heartless to care about CHILDREN!" response

not unexpected, however...

[chowhound]

7. i would rather have a home that i had control over

as far as who comes in and who stays. my daughter needs the stability. that kind of stuff. if you arent paying mortgage, any where you stay is subject to anything. the house could be sold or suppose someone else wants to live for free in the house you decided not to pay for anymore you'd have no rights there.

[villager]

8. I don't think the question is whether you'd "rather." A lot of people don't get their "rathers"

...in an economy collapsed from the top down.

[Rex]

18. But that is the most easily ignored part!

[MineralMan]

5. And yet, the house next door to mine, which has been empty

now for two years, has been rehabbed by the new owner, and it's on the market. There's a realtor sitting in it today having an open house. So far, I've seen at least a dozen couples visit the house. I expect it to be sold by the end of the month.

It's just a 50s rambler in a blue collar neighborhood in Saint Paul. Most of those looking at it have been Hmong immigrants. They make great neighbors, BTW. Financing will be within their extended family if a Hmong couple buys it. I'm hopeful.

[leftstreet]

14. How do you know they're immigrants? n/t

[golddigger]

17. Why by their olice skin color of course.

:sarcasm:

[MineralMan]

21. Actually, if I have to speak Hmong to communicate with them,

I assume they're immigrants. If they speak English well, they're probably first generation native US born. I'll be happy to answer any of your other questions about my Hmong neighbors.

I've learned enough of the language to be polite and ask simple questions, thanks to a kid from the neighborhood. The block I live on is populated about 50% with people of Hmong heritage. Your sarcasm is misplaced.

[MineralMan]

20. The Hmong? There are now a number of Hmong people

who were born here, but there are still many immigrants in the area. Several on my block. All are very nice people, good neighbors, and friendly, if reserved. You're probably right. The young couples looking at that house were probably born here. First generation US-born. Their parents and grandparents were refugees, though. If they speak English very well, they were probably born here. If not, then immigrants.

It doesn't really matter to me.

[Bandit]

16. So what happens when supply is really high and demand is really low?

The rich buy at pennies on the dollar and get even richer..

[MineralMan]

22. Actually, it's not the rich who are buying the houses now on the

market in Saint Paul, MN where live. Rather, it's mostly first-time homebuyers, who are buying because prices are within their range. Once they buy them, they move in with their families and start fixing the places up. They can afford a house, so they're buying one. The only houses that aren't being looked at are the ones that need extensive rehabbing.

[Bandit]

23. I read an article not too long ago that said Chinese Nationals

were scouring the nation and gobbling up real estate deals left and right..I am sure there are some people getting their first home but there are also many more that are just buying for the bargains..

[Mojorabbit]

24. I wish it were so here in central Fl

On the news last night there was a piece showing that people were coming here to buy investment homes at pennies on the dollar and paying cash. The average home price was now, I believe they said 95,000 and it was impossible to get financing for a condo so those were going cheap for cash. It is terribly sad.