Metro housing: A whiff of stability

  • Article by: STEVE ALEXANDER , Star Tribune
  • Updated: February 10, 2010 - 11:18 PM

The January median price of $157,000 was up 1.3 percent, mostly because of distressed sales.

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SupervonFeb. 10, 10 8:58 PM

The increase of distressed sales should lower prices. However, when the market looks better, prices go up. So, the market is looking better for homes that are priced in line with incomes. The stupidity was when the GOVERNMENT wanted EVERYBODY to own a home and told the lenders to make bad loans. That was when I pulled out of the market and sat on it. Needless to say, I made out due to the stupidity of government. And, you want to re-elect these dopes. Be my guest.

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notmetooFeb. 10, 10 9:04 PM

Really? I think a lot of people would disagree with that statement. Sounds like a typical realtor, though.

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kirby96Feb. 10, 10 9:09 PM

the prices that distressed sales are fetching has increased, thus overall sales price has increased. Let's say there were 100 sales last year: 99 distressed, one non-distressed. Let's say there were another 100 sales this year, again 99 distressed and 1 non-distressed. If the 99 distressed sales were at $100,000 last year and the 1 non-distressed was at $150,000, and this year the 99 distressed were at $110,000 and the 1 non-distressed was sold for $100,000, overall average sales price went up due to distressed sales. Get it?

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webfootFeb. 10, 10 9:25 PM

My property value just dropped another $5,000. So far...it has dropped $12,000 but my property tax bill continues to go UP, UP, UP.

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paulpalin12Feb. 10, 10 9:42 PM

Who told the lenders to make bad loans and what bank, in their right mind, would go along with that idea? The collapse happened because the banks could sell their loans to other institutions who would then divide up the mortgages and repackage them as derivates, whereby; other institutions (like AIG) provided insurance on the derivates and repackaged the repackaged derivates and resold those to other institutions. Thereby the banks didn't have to worry about making bad loans because Alan Greenspan "Ayn Rand disciple" thought the markets would take care of themselves. So he and Larry Summers and Robert Rubin and others pushed hard to not have the derivates regulated or any tranperancy provided. Alan Greenspan realized he was wrong and admitted he was wrong to a Congressional committee. Since the banks didn't have to worry about holding the loan if it went bad, they didn't feel the pressure to do due diligence when providing the loan. Therefore, many people who shouldn't have gotten loans applied anyways and were able to get them. I don't fault the people for trying; I fault the backs for giving it away. 20 years ago, if you didn't have nearly perfect credit you couldn't get a loan. Why? Because banks were afraid they would be left holding the note. However, when they were able to sell the loans, they no longer felt the sense of "ownership" and "stewardship" to the loan or the money.

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tpatmahoFeb. 10, 1010:57 PM

with the fraudulent banks because our "investments" were going up. So let's all get a bunch of mirrors and find out who the culprits are.

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liqid8Feb. 11, 10 8:27 AM

First it was home sellers who were greedy. Now it is home buyers. Organic home purchases are not compeling (non-distressed) . Home buyers are intoxicated by the bargin properies offered by banks and mortage servicers. This will cause all real estate properties to reset in value to the bottom of the market....36.5% below the 2006 peak values. When this happens. Homes should again start to inflate to equal wage and income about 3% a year. It will take eleven years to return to previous values....2021. To get here. Mortages will need to change. Equity requirements on pruchases should be 25% and 35% on refinance. Home owners at this point will not want to give up their equity. And mortage companies and tax payers will not be on the lam.

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