Despite 11.4% price drop in US homes for January....

Charlotte was the only city with an increase - 1.4%.

http://biz.yahoo.com/ap/080325/home_prices.html

 

it's coming

 

Why must you be so negative?

I wonder what effect the Beazer foreclosures (and other subprimes) have had on the prices in Charlotte?

 

I don't doubt it. I just thought it was funny my hometown was on the last line....

 

You can call it being negative but I call it reality. From being one of the top in price increases to the only one positive is a big hit. It needs to happen beucase it's fucking rediculous. I got out of my hood when I realized it wouldn't be long before people wised up on paying 240K of a piece of shit.

 

Already started. Just had a bank say a home one of my customers was trying to purchase was in a declining market. It was in Charlotte.

100% is gone. Subprime is gone. Stated Income is gone. Stated Income being gone is terrible. That's how business owners buy their homes. Now they'll use the income derived from their tax returns. Since most business owners write off everything under the sun...a LARGE percentage won't qualify for shit.

Jumbo rates are atrocious as well. Looking at 6.875% WITH paying a point and 7.25% with no points. That's a 30 Fixed.

 

Foreclosures ARE having an effect on housing. Especially in the sub $130,000 neighborhoods. These places are getting crushed. Now with subprime gone and 100% gone look for HUGE declines. The lack of stated programs with crappy jumbo rates will begin to hurt the higher end hoods soon.

 

That's always been a catch 22 for borrowers and lenders. Lenders use modified AGI to calculate cash flow but borrowers try like hell to minimize AGI to reduce taxes. Lenders get the "well, that's not really what I make" comment from borrowers but unfortunately, that didn't cut the mustard. At least not where I worked. Now, if the borrower had bunches of money in the bank, well, that was a different story.

 

Yup, and as a business owner I have already been advised on the changes that have to be made. A lot of people in my position are heavily compensated by write offs and distributions. That won't cut it on stated loans. Luckily, I refinanced everything a while back and am in a good position everywhere but down the road if I want to buy another home, it will be done differently than before.