Sounds like the right time for short trading!

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Originally posted by rahul_singh23

Little increase in RE sale or price in next three months is normal cycle. There is 60% RE sale happen in four (April, May, June, July) months in North America. There can be more than expected sale with super low interest rate these days.

TREB ( All RE boards) is still forced to make useless comparisons to the Winter months, where they are traditionally slower than the spring months. Who cares that sales are up in April compared to December and January? It is expected. how about sales of air conditioning units are up 100% in June compared to January sales.


Why would interest rates rise?
Easy--the U.S. is borrowing trillions of dollars a year and once the rest of the world either runs out of cash or the desire to give us all their surplus capital then interest rates will rocket regardless of what the Fed or U.S. Treasury do.

Here's the exact problem with most of the people's mentality about real estate today - no one thinks twice about taking on debt of $300,000.00 or even $500,000.00. Why stop there? All they look at is the monthly low payment and lose sight of the amount of debt they are taking.

Credit bubble unwind, global deflation, falling employment, falling commodity prices, falling aggregate demand, falling real estate prices, exorbitant prices for shoe boxes, tapped out consumers, massive over capacity, end of 40 year mortgages, heavy over consumption and subsequent lower corporate profits are mere distractions. The world has changed with hope. We can wish the recession away if have strong will power but who's is going to pay the looser's bill who owned RE ATM machine.

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Home prices continue to drop. Realtors, Government, Banks and Debtors can’t stop it. No one can. It has to happen. The whole system became corrupt and rotten. The fundamental driver of the housing bubble was once in a centry kind with low interest rates and loose/fraudulent lending.

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Beware the mainstream media's skewed agenda - columnists or salesmen?

http://www.examiner.com/examiner/x-8340-SF-Business-Examiner~y2009m4d27-Beware-the-Mainstream-Medias-Skewed-Agenda--Columnists-or-Salesmen?ref=patrick.net


The title of the article is what lures the reader into thinking that a deal is to be had. Unfortunately nothing could be further from the truth as the “advertised” condominium is nothing more than a one-bedroom dwelling that provides a roof over one’s head if standing in the upright position and nothing more. It’s truly sad how far the mainstream media or what one would consider a “professional columnist” has fallen when their articles are quite comparable to your typical real estate advertisement seen within millions of websites across the country.

“Well below surrounding median price!”

“Significant price reduction!”

“Live in desirable location for a fraction of the price from several years ago!”

It’s all quite ridiculous in my eyes.

All one must do is crunch some simple math to understand that this is not a good deal in any way, shape, or form. Since I feel as though it is imperative for all potential home buyers to understand the true costs of owning, I will simplify this deal in comparison to that of renting a comparable sized dwelling within the same Bernal Heights area.

In Betsy’s “article” she states that the property is currently listed at $379,000 down from the original February listing price of $416,000.

Let’s say that one were to haggle and get the price down to somewhere in the region of $350,000 while placing $70,000 for the down payment to avoid Property Mortgage Insurance. That would make the mortgage balance $280,000 which if purchased by someone with absolutely stellar credit at the lowest interest rate possible (4.88 over 30 years), your monthly payment would hover in the range of $1,500. This doesn’t take into account the $300 HOA (homeowners association fee), property taxes, homeowners insurance, or the intangibles of having to fix one’s own appliances once they break down.

Including HOA, property taxes, and homeowners insurance… the monthly total hovers around $2,200.


My main issue with these types of articles from the mainstream media is that they are more akin to advertisements than true journalism. Unfortunately a lot of the general public has developed a trust for “certified” newspaper writers when in reality, these people seem to always have a hidden or not so hidden agenda for their pieces.