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Consumer confidence in homebuying hits all-time low

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Mortgage Professional America | 11 May 2016, 06:30 AM Agree 0
A new survey shows fewer consumers than ever think it’s a good time to buy a house – but there’s a lot of optimism among sellers
  • Griff | | 11 May 2016, 11:35 AM Agree 0
    In my area, as many others, it is a seller's market. I feel this seller's market is different because if I were a seller I'd put my home on the market RIGHT NOW. Houses are selling in hours in my city. So my question is why more sellers are not listing their homes. There is an underlying reason, and I think it all backs up to the housing collapse 8 yrs ago. Wall street and bankers have more than recovered, but main street still is not confident. Jobs have recovered, stock market has recovered so we should be more stable, however, there is no trust going forward after this year. If Trump ends up in Washington it will be a disaster for main street. The only plan he has is to build a wall. If Hillary does we may not see as much relief for main street as is over due.

    I have a daughter who has been house hunting for about six weeks now. Given my profession, it is depressing for even ME that homes that overpriced homes are selling in hours. Not a good time to buy. So call that reason #2.
  • BCM | | 11 May 2016, 12:30 PM Agree 0
    This post is over simplistic...what does a "wall talking point" have to do with the article? Here's another view. Trump is in Real Estate. Trump is a businessman. The reason that there is no confidence is that the Government has OVER REGULATED the markets where the degree of difficulty for businesses to operate has forced corporations to hunker down and stick money in Treasuries...which is why the rates on the 10 yr. Treasuries is so low. In comes a person to push back on this BIG GOVERNMENT wet blanket and all of a sudden trillions of dollars flows from corporations in plant expansion, hiring and market expansion.
    Stop the blind Trump bashing....people like this only listen to the media who claim that a Trump Presidency is the end of the world as we know it and have no original thought. It's a little more involved than that my friend....
  • Perfparjer | | 11 May 2016, 12:46 PM Agree 0
    Agree with BCM. Free thinkers and optimists will see the coming political shake up as an opportunity for cleansing of the current political party stranglehold on our economy and liberty. Trump has turned many in our political class into paranoid schizo's and I revel in their continuous lies to all regarding a Trump presidency.
  • mlo | | 11 May 2016, 01:27 PM Agree 0
    To stay on topic .. the housing market is constantly being manipulated by some entity .. realtors play a big part in price pushing .. by strongly suggesting their buyers make over asking price offers .. most extreme was a woman who thought it wise to put a 200k offer over a 699k asking price .. she was feeling good that she paid 899k for the house.

    Wall street jumped immediately on the opportunity .. hedge funders with massively deep pockets came and bought pre-foreclosures on the golf course. In our county one hedge fund bought 450 home cash before they hit the market . Alot of this was rental based but at the same time price manipulation. The inventory was kept low as a result, thus giving basis for a demand that allowed for rapid price increases. With the changes in the lending world , many now could not get financing as the only way they could would be via a stated income product.

    Because of the limitation in financing available many have ended up staying in their existing homes as they could not move up or out due to not being able to buy again. This has played a additional major role in inventory issues resulting in price inflation.

    The Real Estate market is way to frothy ... the cycle is due to turn ,, rents are out of control, house prices are out of reach yet people need a place to live .. we will see a return of people simply not paying for housing as they cannot afford it. The affordability index is rapidly declining to a its lows .. it will soon rear its head and so goes live with another cycle
  • pjk | | 11 May 2016, 05:21 PM Agree 0
    1. Look up "real estate cycle" on google image search and youll see the canary in the coal mine is the easing of rental prices. That's occuring in all but a few places in the US.
    2. Today's Wall Street Journal had a lede about cooling luxury property prices.
    3. If/when rates for a 30 yr fxd mortgage go from the 3's/4's to the 5's or (gasp) even the 6's, sellers simply have to reduce their prices across the board.

    I think the market has figured out the ceiling (for real estate prices) this economic cycle, and as more supply comes online, the prices will be reduced so that they get to the closing table.

    Id sell my house in a heartbeat if i were selling, and be very weary of overpaying if I were buying.
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