Alert: .."Real estate market topping out and ready for a major fall"

[No DUplicitous DUpe]

From Author Dick Kazan

"Entertaining and compelling real-life stories with valuable lessons on how to succeed in business and in life. The author is successful business, real estate, and media entrepreneur Dick Kazan."
http://www.kazantoday.com/

If you or someone you know owns a home is considering buying a home or is a real estate investor, this message is very important to you. I strongly believe the real estate market is topping out and is ready for a major fall.

I say this to you as someone who has invested at the opportune points in the real estate market cycle for nearly 30-years. U.S. markets such as Boston, Los Angeles, Miami, New York, San Diego, San Francisco and many other markets that have had a giant run-up in price in recent years, will be heading down.

This major fall will begin mildly, with tighter lending standards and a gradual buildup of housing inventory. At first, sellers will resist lowering their prices but inevitably, those who need to sell will reduce their asking prices to the levels the market will bear. As the pace of the decline increases, so will seller flexibility.

Why will this fall come? The biggest reason is that income levels have greatly lagged the sharp jump in housing prices so; many buyers can’t afford the prices they’re paying. To buy, what many of them have done is taken the profit from selling their homes, used creative financing and traded up to even more expensive residences.

more at http://www.kazantoday.com/

[Divernan]

1. BECAUSE Bush is ready to axe the mortgage interest/property tax deductions

If anything will burst the bubble it's that. So many people refinanced and took out seconds or bought the most house they could barely manage payments on. Some of them are only paying off the interest and have no equity AT ALL in their homes or second home/investments. if they lose those tax deductions, no way can they keep up the monthly payments. tie that in with the harsh new bankruptcy law, and it's hasta la vista hacienda, baby!
Mi casa es the mortgage holder's casa.

[soothsayer]

3. many mortgage companies can be traced back to China

THIS is how they are waging war against us----economically!

[Bonhomme Richard]

2. When the Ads in our local CT paper say "New Price"...

you know damn well that the new price won't be higher. I noticed that a couple of weeks ago here in western CT. A lot of new price ads and it's not surprising. Seems like every other day a company is closing, relocating or making some other change that will put people out of work.

Oh yeah, we did get a new Home Depot. Go figure.