Predictions 2007

It is not so much the ridiculous prices for homes these days,  ... I don't understand why banks continue to give loans to people that are not even qualified for them.  The stated-income loans coupled with the negative amortization loans (which should be outlawed) will keep prices relatively the same.  The sellers won't sell lower than they bought.  Even the so called "foreclosed" home are priced at or above other similar homes.  Where are the deals Exactly?  How are people (couples) making payments of 4000-5000 a month ( total bills) when the average income in the US is still around 50k per year.  Finally,...investment properties.... I heard that the norm in the market is 200k per unit.  Raelly?   Only 3 years ago, it was about 100k per unit.  Rents have only gone up 5-10%, and yet the prices have doubled??  In Los Angeles, it is almost impossible to find decent investment properties.  I believe that it starts and ends with the banks.  If they tighten their monetary (lending) policies, prices will come down.  As long as these option loans are around, ...forget it.  If a couple cannot afford a 30 year interest only loan (forget about principal), that tells you we have a bubble.  The median home price far exceeds the median income for a family.  What do you guys think???

The US real estate market is down the tubes, no one listened to the pundits, well when the markets are depressed, it is a great time for investors to pick up deals, so those of you with money play with it and you will be laughing in 5 years.

The US real estate market is down the tubes, no one listened to the pundits, well when the markets are depressed, it is a great time for investors to pick up deals, so those of you with money play with it and you will be laughing in 5 years.