Real estate market going in the crapper

I was talking to couple of my acquaintances that seam to know a lot about the market a few weeks ago on how the market had been taking a plunge.

Listening to the radio this morning while driving to work I heard some really outrageous numbers that got me thinking.

1 in 24 houses in US foreclosed last month now that’s a huge number!
Also as of yesterday there have been some roomers that the financial institutions are going to drop interest rates to an all time low.

What’s your take on this?

 

1:24 no where near them numbers. Im a architect in oklahoma and my wife works for a large national mortgage company. HER department deals with homes going thru BR. She has not seen any rise. Now this is just her bank. She knows of some others that are not doing so good, because there are lots of morgage companys buying up other mortgage company's loans going on right now.

Now things are differnt from where they have been. No 100% loans anymore. They threw money out to people who over bought. Too many stated income loans etc. You would not believe how many people have interest only loans so they can look rich.

I dont' see the banks lowering rates untill feds lower it.

 

so you mean 1:24 is low? or high to what it actually is?

 

real estate prices in certain developing countries like India are still very high, they must correct in some places to the extent of over 100% in order to attract fresh end user buying, speculative black money from poloticians, beaurocrats and businessman has inflated prices to unreasonable levels without any backing of basic infrastructure

 

its more of interest rate play and temperary effect, for long term real estate is best investment, also prime property prices don't fall off so easily.

 

Real estate has never been the best investment, but it's the only big one open to the masses.

 

I think real estate is a solid long term investment but too many people jumped on the bandwagon buying 2-3 properties hoping they could sell after 3 years. Real estate is the best investment if your in it for the long run.

 

Real estate is always going to be about the local market. The housing market in the Michigan area is bad due to their economy, but the market for North Carolina has actually held up nicely. As for the interest rate drop, yes the FED dropped interest rates by a half of a percentage point. But its no where near an all time low.