Comments on: The Sub-Prime Demographic Shift http://sirenschronicles.com/2008/04/23/the-sub-prime-demographic-shift/ "To announce that there must be no criticism of the President, or that we are to stand by the President, right or wrong, is not only unpatriotic and servile, but is morally treasonable to the American public."-Teddy Roosevelt Tue, 02 Dec 2008 20:57:00 +0000 http://wordpress.org/?v=2.6.5 By: fran http://sirenschronicles.com/2008/04/23/the-sub-prime-demographic-shift/#comment-4811 fran Thu, 24 Apr 2008 00:10:50 +0000 http://sirenschronicles.com/2008/04/23/the-sub-prime-demographic-shift/#comment-4811 Our family just stepped in the real estate market scene in Chicago. What is happening there, defies the scenario you mentioned. Basic brick bungalow homes within a 1 mile radius-- 50 up for sale, some for over 1 year on the market selling for $50 to $100K less than just a few years ago. The market is flooded, many of them are "short sales" meaning they are on the brink of foreclosure, & the lender is allowing them to sell them for less than what is owed & way less than their true value is, dragging the whole market down with it. The inventory is flooded, and the prices keep going down... another crappy feature in this scenario--- the pendulum has swung to the extreme opposite-- sloppy/loose lenders are now super strict & tight about approving loans. The opposite is happening in the burbs-- those values are much higher priced & desirable w better schools. With more jobs being lost, and gas going way up, it will be harder to sell homes in general. It is a huge mess. <em>fran's last blog post..<a href='http://ramblings-fran.blogspot.com/2008/04/gone-for-laugh_5785.html' rel="nofollow">Gone for a laugh</a></em> Our family just stepped in the real estate market scene in Chicago. What is happening there, defies the scenario you mentioned. Basic brick bungalow homes within a 1 mile radius– 50 up for sale, some for over 1 year on the market selling for $50 to $100K less than just a few years ago. The market is flooded, many of them are “short sales” meaning they are on the brink of foreclosure, & the lender is allowing them to sell them for less than what is owed & way less than their true value is, dragging the whole market down with it. The inventory is flooded, and the prices keep going down… another crappy feature in this scenario— the pendulum has swung to the extreme opposite– sloppy/loose lenders are now super strict & tight about approving loans.
The opposite is happening in the burbs– those values are much higher priced & desirable w better schools.
With more jobs being lost, and gas going way up, it will be harder to sell homes in general.
It is a huge mess.

fran’s last blog post..Gone for a laugh

]]> By: trog69 http://sirenschronicles.com/2008/04/23/the-sub-prime-demographic-shift/#comment-4807 trog69 Wed, 23 Apr 2008 23:07:09 +0000 http://sirenschronicles.com/2008/04/23/the-sub-prime-demographic-shift/#comment-4807 Good aftermoon, Jet. One facet of the problems we face as the energy crisis really starts to set in, is the way the Federal government doles out funds to state expenditures for public transit. The Feds provide up to 90% of the needed funds for highways, but far less than 50% of the money necessary for mass transit solutions in the cities. Obviously, this is as backward-looking as the push to the suburbs were, as the tax base was also pushed out the door with them. Now that they're returning, wait'll they get a load of the same damned buses being used as when they left! haha, for sure. Also, the newly increased tax base in the city better guard the henhouse, cause the state is strapped, baby, and they desperately need those funds from the cities to make up for the losses caused by the housing bust. Good aftermoon, Jet.

One facet of the problems we face as the energy crisis really starts to set in, is the way the Federal government doles out funds to state expenditures for public transit. The Feds provide up to 90% of the needed funds for highways, but far less than 50% of the money necessary for mass transit solutions in the cities. Obviously, this is as backward-looking as the push to the suburbs were, as the tax base was also pushed out the door with them. Now that they’re returning, wait’ll they get a load of the same damned buses being used as when they left! haha, for sure. Also, the newly increased tax base in the city better guard the henhouse, cause the state is strapped, baby, and they desperately need those funds from the cities to make up for the losses caused by the housing bust.

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