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How will this Housing/Credit Crisis effect your future business?

by High Horsepower
8 replies
NYT: Housing index expected to show new price low - Business - US business - The New York Times - msnbc.com
The above report will be released this morning showing the worst downturn in housing since 1929.

Why house prices will keep falling - Street Sweep: Fortune's Wall Street Blog Term Sheet
This report shows why housing prices may fall another 25%.

Home Prices in 20 U.S. Cities Declined 3.1% From Year Earlier - Bloomberg

http://www.nytimes.com/2011/05/23/bu...t.html?_r=2&hp

A recent survey shows the average American thinks the housing market won't improve for at least the next 3 years.

If the above scenarios happen (very strong possibility) where the heck is this economy headed?

No one would have believed 5 years ago we would be in this positon. Even the doom and gloom guys are in shock. Without disposable income many people will be hurting. Politicians all suck, they will only add more misery to this situation. There is no easy fix to this mess. That's why Ireland, Greece, Portugal, Spain, and the US are in deep doo doo.

It seems like sites like Groupon and these Coupon sites are popping up all over.

Being a Capitalist I'm curious as to what markets you think are exploitable under the above scenarios?
#business #crisis #effect #future #housing #housing or credit
  • Profile picture of the author shmeeko69
    The day that the tax payer bailed out the much maligned banks (without asking our permission), was going to have huge long term effects with the government and private sector businesses. Billions of pounds spent saving these blue chip companies to keep there pride in tact and now we're all indirectly paying for it!

    The fortunate position for people in the online business is that, more and more people are using the internet as a means to purchase goods and with that comes new opportunities, so the future looks fine for the online marketers who can position themselves in the marketplace.

    Mark
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    The Rock n Roll of Marketing Reviews
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  • Profile picture of the author christina ward
    I guess time will tell, I hope we will all be fine but don't know for sure.
    I wish you all good luck.

    Thanks
    Christina
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    • Profile picture of the author High Horsepower
      Home prices drop into double-dip territory - Business - Eye on the Economy - msnbc.com

      It's confirmed, Double Dip: Home prices drop into double-dip territory - Business - Eye on the Economy - msnbc.com

      NEW YORK — U.S. single-family home prices dropped into double-dip territory in March as the housing market remained bogged down by inventory and weak demand, a closely watched survey released Tuesday showed.

      The S&P/Case Shiller composite index of 20 metropolitan areas declined 0.2 percent in March from February on a seasonally adjusted basis, in line with economists' expectations.

      The latest data show home prices have reached their lowest points since the housing bubble burst in 2006.

      “This month’s report is marked by the confirmation of a double-dip in home prices across much of the nation,” David Blitzer, chairman of the index committee at S&P Indices, said in a statement. “Home prices continue on their downward spiral with no relief in sight.”

      Prices fell from February to March in 18 of the metro areas tracked by the S&P/Case-Shiller 20-city index. And prices in a dozen markets have reached their lowest points since the housing crisis began. Prices in March rose only in the Seattle and Washington, D.C., metro areas.

      The nationwide index fell for the eighth straight month.

      A record number of foreclosures are forcing prices down, and they are expected to keep falling through this year.

      The 12 cities now at their lowest levels in nearly four years are: Atlanta, Charlotte, Chicago, Cleveland, Detroit, Las Vegas, Miami, Minneapolis, New York, Phoenix, Portland, Ore., and Tampa.

      Does the drop in home prices make it more tempting for you to buy a home now?

      The housing sector is struggling even as the overall economy is in the midst of a steady but slow recovery. Some of the worst declines in home prices are in cities hit hardest by unemployment and foreclosures, such as Phoenix, Tampa and Las Vegas.

      The Case-Shiller index measures sales of select homes in those cities compared with January 2000. For each of the areas it reviews, the index provides a three-month moving average price. By measuring the sales prices of the same homes over time, the index seeks to gauge market values and conditions.

      The Associated Press and Reuters contributed to this report.
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  • Profile picture of the author E. Brian Rose
    Originally Posted by High Horsepower View Post


    Being a Capitalist I'm curious as to what markets you think are exploitable under the above scenarios?

    If you are taking advantage of this down economy and are profiting while others are not, then you should be using your funds to take advantage of the down real estate market, as well. How does a million dollar Vegas strip condo sound for say... $200k? Just yesterday, I saw a waterfront home with a boat dock going for $150k. It was appraised at almost $400k.
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    Founder of JVZoo. All around good guy :)

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    • Profile picture of the author myob
      There are markets/niches that are doing extremely well. Many businesses are investing heavily in capital equipment and emerging technology is unfolding opportunities in new markets that did not even exist just a few years ago. There are also products and services that people will buy even when they can't afford to buy food or make a mortgage payment - some examples being movies, their cable TV, internet and cell phone service.
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  • Profile picture of the author Ken Durham
    there is some talk that housing may not recover until 2025....
    As you noted, discount venues are gaining notice. So anything that will save the consumer money. Alternative energies and DIY strategies are another possible avenue. Of course you could always open up a church and declare you have the doomsday date and amass millions from your followers, to help spread the word of course. People seem to love the idea of an apocalypse.
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    yes, I am....

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    • Profile picture of the author High Horsepower
      Originally Posted by Ken Durham View Post

      there is some talk that housing may not recover until 2025....
      As you noted, discount venues are gaining notice. So anything that will save the consumer money. Alternative energies and DIY strategies are another possible avenue. Of course you could always open up a church and declare you have the doomsday date and amass millions from your followers, to help spread the word of course. People seem to love the idea of an apocalypse.
      I think it will be 5 to 10 years before any chance of seeing homes actually appreciate again. We still have over 3 years of foreclosures coming from mortgages that are adjusting (remember those ARM's) balloon payments, etc... in the meantime we need to hit bottom before any chance of appreciating.

      At this point we can't even get prices to flatline. All these Realtors and politicians keep trash talking over the last 12 months saying the economy is recovering, homes prices are stabilizing, spring will help home sales and prices, yeah, yeah, yeah, wanna sell me a bridge?

      I think whoever hits the right niche (assuming chaos is coming) will make a killing. Like picking the Winning Lotto numbers in the future.
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      • Profile picture of the author seasoned
        Originally Posted by High Horsepower View Post

        I think it will be 5 to 10 years before any chance of seeing homes actually appreciate again. We still have over 3 years of foreclosures coming from mortgages that are adjusting (remember those ARM's) balloon payments, etc... in the meantime we need to hit bottom before any chance of appreciating.
        GOOD POINT! The 5/1 will not really hit until sometime AFTER 2013! The 7/1 will not hit until sometime AFTER 2015! The US is apparently FINALLY talking about doing what I said they should have started doing over 11 years ago! Of course, they are stuck in a paradox! They HAVE to do it to help secure the conomy, but CAN'T do it because of the economy. But what is THAT? Raising the "fed funds rate". Apparently, many plans are limited to like 2% a year, so in 2014 the average APR of the 5/1 may be OVER 7%. It will probably reduce monthly income by $200-$400 each year! SO, by 2016, it may be $600-$1200 per month.

        No one would have believed 5 years ago we would be in this positon. Even the doom and gloom guys are in shock. Without disposable income many people will be hurting. Politicians all suck, they will only add more misery to this situation. There is no easy fix to this mess. That's why Ireland, Greece, Portugal, Spain, and the US are in deep doo doo.
        BULL, **I** did! I even mentioned it HERE every now and then!

        Steve
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