Housing Market Still a Mess?

flip_it_fast · #1 03-17-2011, 01:54 AM

What the heck, one day i read a report that says things are improving and the next day things are as bad as ever. I guess it all depends on who is doing the writing lol.

Anyhow, I guess new construction isn't doing too well at this point. Building permits acquired fell 8.2% in just one month.

That is the lowest it has been since the government started keeping track in 1959.

I imagine the job market, cost of food and gas has a lot to do with it. People are no doubt scared to jum into too much, even companies.

And besides, housing are still sitting on the market as it is so some may think it too much of a risk right now to build new.

Quote:

It's consumer nervousness," said David Crowe, chief economist with the National Association of Home Builders. "It's a fragile recovery to begin with, and then you throw in high energy costs, new uncertainties about congress, and it's just enough to spill over the glass again."

badmomma · #2 03-17-2011, 03:16 AM

You know I don't like when they report things this way. I really don't believe that the issue is consumer nervousness. It is the fact that the real estate financing was ruined by bad banking practices.

Banks have rules that they now have to follow and many are making it extremely hard to get a loan. Well any kind of loan actually. If you doubt that ask your bank about the types of loans they are offering and then ask what you will need to get one. You may be shocked.

homealone · #3 03-17-2011, 03:37 PM

Banks have made it difficult to get a loan. Things that they have done in the past to their customers is shocking. No wonder there are so many people who are unwilling to trust banks. I know I sure don't.

Any way I think it is a combination of things that are messing with the housing market. People are worried and don't want to take chances, banks have lost the trust of the people, and the government hasn't help matters either.

realestatehound · #4 03-18-2011, 02:59 AM

I think that you all should sit down with your banker and ask them who is really making it hard for them to make loans. Try the Feds, they change the laws every day and have the banks so restricted that it's crazy. My banker just happens to be a good friend of mine and it is amazing the things he tells me. For instance the man that owns the bank can't even make a loan anymore and it's his money they are loaning out. Mark told me that he couldn't even loan one of his kids money through the bank. Now how crazy is that. I know that the banks have tightened up on loaning money, but the feds are the real problem.

flippinout · #5 03-18-2011, 02:20 PM

I agree that it is the Feds. I have heard the same thing at my bank.

The question is, why do they always wait until after the damage is done to make changes? They had to be aware of what was going on but chose not to put any controls into effect until after all the damage was done.

So many people lost homes because of the fact that the people at the banks got carried away with the foreclosure stamp and by giving loans that werent in the best interest of the people getting them. So now the rules have changed but the people that suffered the losses werent any better off. They still have no home and no way to get a loan now to get another.

homealone · #6 03-18-2011, 02:51 PM

That is insane that your friend the bank owner couldn't loan his own son money through the bank!!!

Wow this country seriously needs to take a step back and look at what they are doing to people.

Granted even though the feds have their fingers in everyones business, I still don't trust banks. I don't know if I ever will.

flip_it_fast · #7 03-19-2011, 03:19 AM

Every aspect of our lives revolve around the government. I have no doubt about that. There are laws on top of laws, so much that you can't decipher what is what anymore.

I can see consumer nervousness effecting the market as well though. With the very bleak job market people are scared to even try to make loan payments.

As a matter of fact, I just had to get a car loan. Well wouldn't you know it that in last Sunday's newspaper was an article that said the company I work for will be cutting some jobs. Now it didn't say it was in my area but it's still scary. Now I have to think "am I expendable?" And if I end up being expendable what in the heck will I do? How will I make these payments? This consumer is nervous.

The housing market is a balancing act of many factors.