Comments on: Picking a Real Estate Bottom

By: Won The Lottery Revisited | Critical MAS

Won The Lottery Revisited | Critical MAS — Fri, 17 Sep 2010 19:32:41 +0000

[...] When will real estate bottom? Read my thoughts on Picking a Real Estate Bottom. [...]

By: Irrational on the Way Up, Rational on the Way Down? | Critical MAS

Irrational on the Way Up, Rational on the Way Down? | Critical MAS — Sun, 02 May 2010 17:12:46 +0000

[...] in March, I listed 4 rules for Picking a Real Estate Bottom. I would add market sentiment as a loose 5th rule. Be aware of it. Listen. Save money and [...]

By: Requirements For Buying A House - Don’t Lose Money | Geldpress

Requirements For Buying A House - Don’t Lose Money | Geldpress — Thu, 12 Feb 2009 22:11:50 +0000

[...] these conditions. Note, however, that MAS and I disagree on using inventories when trying to pick a bottom in real estate. Watch the latest videos on [...]

By: GKM

GKM — Mon, 24 Mar 2008 23:12:53 +0000

You may find this video interesting re the housing market. http://www.youtube.com/watch?v=2B1HJ3INc5k

By: MAS

MAS — Mon, 24 Mar 2008 19:14:53 +0000

Thankfully I read Shiller’s 2nd edition of Irrational Exuberance in 2005 and was able to sell at the top.

I find it interesting that people that cheered the irrational market on the way up now expect the market to behave rationally on the way down. It will over correct in the same manner that tech stocks over corrected in 2002-2003.

By: dhammy

dhammy — Mon, 24 Mar 2008 18:28:03 +0000

I read an article on the general state of the mortgage industry this weekend which had a statistic that shocked me. 58% of all mortgages over the last decade had a down payment of 0-2.99%. It’s amazing to me that the mortgage companies, banks, and builders have lowered the bar this far. Shame on them! I’m not an advocate for regulation at all but this is ridiculous. If you can’t afford to put at least 5% down (and really should be 10% or more) then you really, really should NOT be buying a home!

The one underlying (but unstated) premise that many people have is the idea that a home is a great asset/investment. With all costs of upkeep, taxes, etc. it really is at best a very, very poor asset. And it borders on becoming a liability. This is in regard to most U.S. markets that have had more rational home price growth.