housing prices to free fall in 2008 - Merrill Lynch
01-23-2008, 02:49 PM
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housing prices to free fall in 2008 - Merrill Lynch
The worst housing financial crisis in decades is only going to get worse, a Merrill Lynch report said Wednesday.....
http://money.cnn.com/2008/01/23/real...ion=2008012313
http://money.cnn.com/2008/01/23/real...ion=2008012313
01-30-2008, 02:58 PM
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Ah, nuts! Just found a great deal on some investment property. That makes me wonder if I should wait for a better deal to come along.
This housing crisis is great for people trying to pick up inexpensive investment property.
This housing crisis is great for people trying to pick up inexpensive investment property.
01-30-2008, 03:25 PM
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That's a report coming from one of the companies that subsidized the sub-prime mess - I'm not surprised to see they have a gloomy outlook!
John Thain, presiding over his first set of earnings on Thursday as the new leader of Merrill Lynch (NYSE:MER) (OOTC:MERIZ) & Co., cleared the decks with some $15 billion of subprime mortgage related write-downs that led to the largest quarterly loss since the brokerage was founded 94 years ago. link
01-30-2008, 07:15 PM
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I think the housing market will decline steadily for over a year, probably closer to two years. Houses which were valued around $150,000 in 2003, before the real estate boom, are still priced at over $300,000 in much of the country.
The asking prices will have to return back near the pre 2003 levels before the market will turn around. I expect price corrections in excess of $100K throughout much of the US.
The asking prices will have to return back near the pre 2003 levels before the market will turn around. I expect price corrections in excess of $100K throughout much of the US.
02-03-2008, 12:09 AM
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I'm not getting why it is called a "crisis." A house worth $300K in 2002 nearly doubled and jumped to $500K. Now in this period of "housing price freefall" the same house goes down to $450K or $400K. It's still higher than it was previously.
The rumors of "free fall" are both crap and truth. They are true because housing prices will fall, but crap because they will still be higher than they were in 2000 (inflation HAS been taken into account here). Here in California some houses went from $500K to $1 mil in a few short years. It would take more than the "worst housing financial crisis in decades" to bring those houses back to $500K. I don't even think a depression could get them below $700K. I see no crisis there.
The rumors of "free fall" are both crap and truth. They are true because housing prices will fall, but crap because they will still be higher than they were in 2000 (inflation HAS been taken into account here). Here in California some houses went from $500K to $1 mil in a few short years. It would take more than the "worst housing financial crisis in decades" to bring those houses back to $500K. I don't even think a depression could get them below $700K. I see no crisis there.
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