Spec Home Business
I'm a bit baffled... With all of the real estate cheap and already sitting vacant on the market, why does building more make any sense? Or, for that matter, building spec homes? If anything, if one wanted a home that you couldn't get, they would be more likely to custom build.
Spec Home Business
My own experience is, this is situational. I know some banks are unwilling to drop values on selected properties for their own reasons, so they let the property sit vacant
Spec Home Business
> I'm a bit baffled... With all of the real estate cheap and already sitting vacant on the market, why does building more make any sense?
Maybe it's the ultimate contrarian investment.
But given depressed prices, a recent report that there is a 30 month inventory of existing foreclosed homes, and the fact that the Fed pulled 2.2 billion in liquidity out of the lending markets today in a reverse repo (they might as well send Bernanke riding from town to town on a horse shouting "higher interest rates are coming"); you'd either have to have: 1) a unique set of local conditions, 2) onions the size of boulders, or 3) a stunning level of economic and financial illiteracy to try and pull it off.
Spec Home Biz - where T-Dog wanted clarification
> I think what T-Dog wanted to know was why "over-building" was absurd.
>
> We weren't "over-building", we were "over-loaning". Builders were building as fast as banks were loaning. In some instances here in SoFla, there were stories of loans in the $1 million+ range to $30k/yr janitors from South Dade for new homes in North Broward, a bad trend that thankfully came to an end.
>
> This (mostly) caused our bubble down here.
$1M loaned to $30K janitors??? More BS. Machete's got the squirts today.
Spec Home Business
What's baffling is just how FOS "Macheteman" can be...
Whatever you say T-Dog
Chew on this biscuit:
http://www.palmbeachpost.com/news/content/local_news/epaper/2009/09/26/0926versailles.html
Whatever you say T-Dog
"Sorry, that article is no longer available"
LMAO
Whatever you say T-Dog
Interesting chart....
Whatever you say T-Dog
A.) There's going to be the oddball here and there, but that's not indicative of loans on the whole.
B.) It likewise has little to do with CRA and all the other nonsense the right wing loves to trot out about banks being "forced" to make bad loans. The vast majority of foreclosures were not under the purview of CRA.
C.) It's largely because of unscrupulous mortgage brokers and others who really didn't care about the risk, because they resold the loan as soon as it closed. Countrywide and others made tons of money on the "churn" - they didn't care about the longterm consequences.
Whatever you say T-Dog
Not to mention the spec buyers investing in 2nd, 3rd, 4th,... homes that didn't hesitate to walk away at the drop of a hat...
