60 Minutes Subprime Meltdown

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IrvineRenter_IHB

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<a href="http://www.cbsnews.com/sections/i_video/main500251.shtml?id=3756665n&channel=/sections/60minutes/videoplayer3415.shtml">CBS website version</a>





<a href="http://www.cbsnews.com/sections/i_video/main500251.shtml?id=3756665n&channel=/sections/60minutes/videoplayer3415.shtml">http://www.cbsnews.com/sections/i_video/main500251.shtml?id=3756665n&channel=/sections/60minutes/videoplayer3415.shtml</a>





<a href="http://60minutes.yahoo.com/segment/134/subprime_meltdown">60 Minutes Subprime Meltdown</a>





Did you see this?
 
It was interesting. Info was old news for those following this awhile, but to see the attitudes and expressions of the people (ex. at the auctions, underwater) was interesting.
 
<p>I saw this last night with my wife. A little simplistic for my test but I have been chin deep in this thing for two years. I wonder what if any effects the report would have on the general public? </p>
 
<em>"I wonder what if any effects the report would have on the general public? "</em>





I wonder about this as well. Will it make people even more hesitant to buy? Will it bring out the kool aid drinkers looking for a bargain?
 
I liked the show. I thought it made simple a very complicated situation.

Which is the way to go if you want to communicate it to the masses on natiional television.

If you make it complicated, you go in circles just like this blog sometimes.



On a side note, a friend of mine is purchasing 2 amoret dr, 92602. I cant find the sq ft info. How does 700K sound? He said that it is

all decked out and does not need any work whatsoever. In this case, would the purchase still constitute as a knifecatcher when you really

need it? Him and his wife really NEED it. It's not for investment or anything. I just want to see how far you guys and gals think this

one would really go down to. For a nice home with no HOA and it does not need any work.
 
Looking at the sales history of that place in Zillow, it last sold in 04 for $705k (assuming it's correct). 1999 price was $311k.





I also see that another house on the same street sold for $475k in 2003 and then for $790k in 2005. I don't know if those are the same models or anything, but that type of pricing sure looks bubblicious to me. I wouldn't be surprised at all if prices went back down or surpassed their 2003 levels when all is said and done.
 
The 60 minutes piece was interesting to watch because it was properly presented as a bad thing. I thought the chart with all the red and blue dots was jaw-dropping. Especially when the guy said..."3 months from now 90% of those blue dots will be red and the blue dots will be replaced by all new ones"



ouch. A lot of people watch 60 minutes and I bet they were left with a bad view of housing. I don't think too many people watched that and said to themselves.."Hey bargains!"
 
<p>I watched the show last night as well.</p>

<p>Two interesting points I picked up on were that:</p>

<p>1. The couple didn't see any negative to walking away from a depreciating asset as their loan was resetting, other than credit being effected for a while.</p>

<p>2. Comment that the potential buyers who were taking the "repo bus tour" that the realtor offered were mostly saying that they were expecting further price drops.</p>

<p>Everything people have been saying here for how long??? Ok, Ok, so it's not orange county... but like the guy said.. this bubble is contained... contained to planet earth!</p>

<p> </p>

<p> </p>
 
<p><em>"This bubble is contained... contained to planet earth" !</em></p>

<p>This comment stood out to me as well. Let's make it the Quote of The Week.</p>
 
<a href="http://www.lunarregistry.com/">Do you think the bubble extends to the moon?</a>





Maybe it isn't really contained to the planet Earth.
 
<p>Trooper</p>

<p><strong>Its always a good time to buy on the moon. There aren't making any more moons. </strong></p>

<p><strong>If you want something closer I have some waterfront property for you in Florida!!!</strong></p>

<p>Spoken as your favorite REALTARD!!</p>

<p>LOL </p>

<p>Have a safe day!</p>
 
If I remember an article a few weeks ago that same Stockton Realtor had 2-3 homes he owned in forclosure as well.

Failed flips and he was walking away from them. They did not mention that on 60 Minutes last night.
 
I would seem that one of the big factors pushing prices lower is the fact that a lot of potential buyers are holding off buying now because they are (1)aware that prices are dropping and (2) beleive they will continue to drop. Obviously there are lots of other factors in play but I have always wondered how big a factor this (beliefsexpectations)has and will continue to be. I wonder what percentage of potential buyers are aware of everything going on in the housing market and what percentage of potential buyers are holding off on purchasing due to their perceptionexpectation that prices will continue to drop.For those who saw the 60 minutes episode is this all new to them?
 
<p>I actually think that the "buyers are out there" argument is a red herring. I think that there are not enough buyers to sustain these prices. Tighter mortgage standards, loss of equity, inability to sell their homes, and general fears over the economy creates a near perfect storm of real estate collapse.</p>
 
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