I was watching this morning news and saw that somewhere in California if you buy a 1.6 million dollar home you will get a $400,000.00 home for “FREE”!:shock:
Yeah they were talking about that on the radio here yesterday. Basically the company is going to get screwed with all the $1.6 million inventory homes and has to get rid of them. But you also would be hard pressed to sell them for $1.6 million right now.
Right here in San Diego. Builders are hurting here, even the national builders.
With the home inspection business down, might want to try that marketing plan!!!
That tells me the 1.6 million house is not worth more than 1.2 million, which also tells me the 400 thousand house doesn’t have much value either.
Will be interesting if this ploy works.
Depends on what the word free means!!!
Although if I needed a $1.6 million house, I would have no problem taking advantage of their offer.
I think you are right on Nick.
Also, there is no such thing as a free lunch…
Wait till they see the no Inspect clause.
If I had the deep pockets, I would also. Hold them long enough, there would be money to be made!!
If all else fails, donate the “free” house to a non profit, makes a dandy tax deduction.
Looks as thou this down turn in home prices has surpassed the down turn I got caught in during the first of the 80’s.
I do wonder, is this just a “market adjustment” or a preview of more to come???
Got to be kidding!!! Other than a horrible looking chart, got any any positive prognostications from bank economists and national homebuilders???
Graph says it all, history repeats itsself, economy (and housing prices) go in cycles. And this is a deep cycle.
NEWS FLASH!!!
Stock, Down the Tubes
Housing prices Down the Tubes
New housing starts Down the Tubes
Disposable income ( caused by inflation & taxes) down the tubes
Consumer spending on hard good Down the Tubes.
Don’t know where you get your Financial/economic news, but can only guess it could be:
Weggee Board
Crystal Ball
Fortune Teller
Tara Cards
Concensus of opinions I have read conclude that we may not, as of yet, have hit the bottom, and at best would only see a leveling out, followed by a modest increases.
With housing nearing record lows, and IF intrest rates stay low, housing purchases stand a reasonable chance, but buyers are advised NOT to expect the price spikes we have experienced in the past.
So, keep your head in the sand or those rose colored glasses on.
Ingorance can be bliss.
Brian MacNeish writes:
Huh? Homebuilders? Forget it. We’re sitting on more than 11 months of real estate inventory already!
Brian, there is no way for homebuilders to compete with the huge pool of deeply discounted existing homes.
The deals are everywhere. Sellers are motivated. Inventory is piled up. Interest rates are low. Foreclosures pouring into the market. Inflation is coming (so people have to do something with their money to protect against inflation). And investor groups are preparing to gobble up entire neighborhoods.
It’s a perfect storm… prepare for the largest boom ever. Home sales galore.
Quote: Nick Gromicko
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The deals are everywhere.
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Sellers are motivated.
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Inventory is piled up.
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Interest rates are low.
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Foreclosures pouring into the market.
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Inflation is coming (so people have to do something with their money to protect against inflation).
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And investor groups are preparing to gobble up entire neighborhoods.
End Quote:
Nick,
You seem to have a pretty good grasp on the situation. It is amazing how “some people” cannot see the “big picture” and their Glass is always half empty!
One of my 22 year old employees (in another business) bought 2 homes at about 1/2 off, direct from the bank. If anyone wants to talk to him about it and learn more, email me and I’ll give you his cell phone #.
Anyway, all we really need is a stronger threat of inflation and this perfect storm will explode.
Threat of inflation forces those with savings to either spend their dollars or lose them.
A perfect example of seeing the Glass “Half Full”.
Wait until things get back to “normal” and people will be saying “why didn’t I think of that”!
The old supply and demand. With such a high inventory of available houses, sellers are desperate, and are thus competiting for buyers. Deals abound.
With lower prices and a low interest rate, more people can qualify.
Property ownership has always been the best hedge against inflation.
The up side is just around the corner.