Nickname: Joe

Review: Housing prices move up much more easily than they move down. Remember a majority of people in overvalued markets purchased their homes before the markets went crazy and have a substantial amount of "equity" in these homes, which they are not going to give up without a fight. Also keep in mind that housing is a consumer market largely driven by supply and demand. The demand for housing is not a fad and will continue to increase with the population. While we can have a temporary downturn in the market, people will need places to live and prices will remain high in the most desirable locations. There is no doubt that some markets will see a downturn as excess inventory is sold off, get rich-quick investors bail, those who are overextended are forced to sell or be foreclosed on, and if the local economy in that market slows down.

Date reviewed: Sep 8, 2006 3:50 PM

Nickname: zk

Review: Frank's question is, "how can you have a bubble burst when everyone has been talking about it for five years?" "Ridiculous." Here's your answer, Frank: Just because prices have kept climbing (until recently) doesn't mean they weren't overvalued to start with. Tulip bulbs in 17th century Holland appreciated by massive amounts despite being overvalued already. And yet their prices did return to a reasonable level. As will housing prices.

Date reviewed: Jul 11, 2006 7:40 PM

Nickname: Frank

Review: More hammering away at the housing market by people who have a vested interest in causing panic. Look at all the blogs out there that are trying to spin the market downward. My question is, "how can you have a bubble burst when everyone has been talking about it for five years?" Ridiculous.

Date reviewed: Jun 28, 2006 6:51 PM

Nickname: Mortgage broker

Review: I see first hand the decline in home sales. This fluffy cooling off, is bunk. In 2003 in the peak of low rates we wrote 100 million per month! Now we write 5-10 million. I have customers that are looking for 100% financing and the seller to pay closing cost. That's all we have left out there for buyers. These loans are future foreclosures. The media needs to get real about the true situation--stop lulling people into false hopes. Time to put on the life jackets, hope you are prepared to swim. The party is over.

Date reviewed: Jun 25, 2006 12:56 PM

Nickname: Alexis

Review: As a former vice chairman and CFO of an international airline, I believe the Fed has a difficult choice: save the domestic housing market or save the US dollar. Whatever the decision, their fix will only last for a short time given the amounts of debt in both public and private sectors. Government spending and unfunded liabilities are simply out of control. Our tax base is being destroyed as jobs are further lost to foreign nations. Local tax revenues will no doubt crater once overpriced real estate returns to true support levels. In short, we are headed for disaster. The average American has little or no savings to weather hard times. For those who have savings, diversify out of the USD or risk losing it all to inflation. The choice is yours. Good luck. We will all need it. A little prayer might help, too!

Date reviewed: Jun 25, 2006 2:58 AM

Nickname: Seeingwotsinfrontofyourface

Review: I love the way self-interested parties (builders, mortgages houses, the Fed, Fannie Mae, realtors, etc.) keeping trying to spin this. "No worries. Maybe a little down trend, not necessarily a soft landing, but not likely either, etc. etc." These people are spin meisters. They are trying to avoid a negative panic. Laudable enough, but they have no problem inciting a "positive" panic do they-- by lending, building, buying like drunken sailors without standards. The 1% interest rates (thank you, Alan Greenspan) cheaped up out of a recession that contributed to the perfect storm now imploding all over the market. It's not panic pals, it's a reality check. The fundamentals are not there. Prediction, tremors late 2006, earthquake early to mid 2007, and serious aftershocks by late 2007, early 2008. Glutted inventories, rising defaults, bankrupt builders, speculators leaving the market, incomes insufficient to pay mortgages, ARMs coming due, difference between home prices, and rentals.

Date reviewed: Jun 24, 2006 11:18 PM

Nickname: Jonathan

Review: I believe the market is going to be split in areas. The Washington state area had some 2000 permits awarded from Seattle to the Oregon border. John Buchan Homes has a surplus of homes, they have stopped their production orders in the greater Seattle area. Quadrent Homes has been selling them before they were built. The company I work for is kinda baffled about it. Housing seems to be rather steady in my area, in others it might be worse. Cost and what you get in a home is going to be the main driving factor in the housing industry. I hope to see it keep going, we need work.

Date reviewed: Jun 24, 2006 9:01 PM

Nickname: Crash

Review: This "down trend" won't look like the 1990s. The "Great Real Estate Crash" is just beginning and will look worse than the 1930s when the dust settles years from now.

Date reviewed: Jun 24, 2006 2:07 AM

Nickname: Boomer

Review: I just turned 50. I, as well as several friends, will soon be looking for new and second homes. New construction, of course. And who will want my post WWII house? A first time buyer or demolition. The country is in dire need of the home builders and new homes. There is a lot that is just worn out! Yes, prices will become somewhat stable or come down. However, the home builders have a product that will be in great demand for many years down the road. It is our "American Dream," isn't it?

Date reviewed: Jun 23, 2006 6:23 PM

Nickname: A REAL RE ADVISOR

Review: Trump is building and says the real estate debacle is more hoopla than reality. You would think billionaires know the markets better than novices. Real estate always goes up over time. Our monetary devaluation system of 5% a year or so means the dollar loses half its value every 15 years or less. The point to remember is that even after the Great Depression, life went on and real estate prices continued to rise. 1929 did not end real estate nor will any "doomsayer" "shorting idiots" who need to learn that selling stocks short forever doesn't an investment make either!

Date reviewed: Jun 23, 2006 6:29 AM