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Home >> Stock Forums >> Fannie Mae -housing prices will decline into 2008

Fannie Mae -housing prices will decline into 2008

JAP said: "Personally, I believe they will decline into 2110. [URL="http://www.washingtonpost.com/wp-dyn/content/article/2007/08/16/AR2007081602393.html?ref=patrick.net"]http://www.washingtonpost.com/wp-dyn/content/article/2007/08/16/AR2007081602393.html?ref=patrick.net[/URL]"

lil dickie said: "Everything is a cycle. They might be right."

FirefighterB said: "I can't see how they can only claim a 4% drop in prices next year. Seriously, housing prices have gone up as much as 100% (if not more) in some areas over the past few years, but have incomes? WHERE THE HELL DID THIS INCREASED VALUE OF REAL ESTATE COME FROM? (I know, through overextended credit, cheap loans, etc., but is that TRUE value?) Am I missing the boat? Was real estate THAT undervalued and was interest in it as an investment that neglected and undervalued in the years prior to about 2002 when the FED rates were 1%?"

Rbreb13 said: "[QUOTE=JAP]Personally, I believe they will decline into [B][COLOR="Red"][U]2110[/U][/COLOR][/B]. [/QUOTE]Now THAT is a really pessimistic view of the housing market. I won't be around so really no worries for me!"

AlfredSokol said: "I agree. I don't care what happens in 2110 :)"

FirefighterB said: "I do. By then I plan on having my head bionically attached to a robot, just like Mr. Burns. Except I won't lose my beloved Bobo"

Aligator said: "[QUOTE=FirefighterB]I can't see how they can only claim a 4% drop in prices next year. Seriously, housing prices have gone up as much as 100% (if not more) in some areas over the past few years, but have incomes? WHERE THE HELL DID THIS INCREASED VALUE OF REAL ESTATE COME FROM? (I know, through overextended credit, cheap loans, etc., but is that TRUE value?) Am I missing the boat? Was real estate THAT undervalued and was interest in it as an investment that neglected and undervalued in the years prior to about 2002 when the FED rates were 1%?[/QUOTE] I can understand a 4% drop. That's because in my area prices have not dropped at all. But my sisiter sells - well, SOLD, because there is no market now - real estate in California. It was all hype. Many people bought houses with nothing down, held tham for some months and sold them after never having lived in them. And they made plenty - for a while. Now they have houses that in order to be sold require the seller to bring his checkbook to the closing. Study the history of Tulip Mania; that'll show you what pure hype will do. [HTML]http://en.wikipedia.org/wiki/Tulip_mania[/HTML]"

FirefighterB said: "I've actually read about that, before. Pretty interesting. I also understand the 4% drop, but what I don't understand is why it isn't more, considering it's after a 100% increase... Even in Tulip Mania, things crashed back down. 4% doesn't, to me, bring those homes back to "affordable levels." (This also reminds me of the Florida boom and bust, which people paid 4.5 million in 1926 dollars for a luxury property...of which you could pay the same now, 80 years later.) I think things are gonna come a-crashin down much harder than 4%. Hell, I HOPE they do so that homes in desirable areas can be affordable again... [QUOTE=Aligator]I can understand a 4% drop. That's because in my area prices have not dropped at all. But my sisiter sells - well, SOLD, because there is no market now - real estate in California. It was all hype. Many people bought houses with nothing down, held tham for some months and sold them after never having lived in them. And they made plenty - for a while. Now they have houses that in order to be sold require the seller to bring his checkbook to the closing. Study the history of Tulip Mania; that'll show you what pure hype will do. [HTML]http://en.wikipedia.org/wiki/Tulip_mania[/HTML][/QUOTE]"

newinvestor123 said: "We're just rounding the top..."

JAP said: "[quote=Rbreb13]Now THAT is a really pessimistic view of the housing market. I won't be around so really no worries for me![/quote] LMAO! :laugh: Sorry... I meant 2011."

AlfredSokol said: "Well then. Maybe I will still be around then :)"