Next Segment of the Housing Market to Crash: $1+ Million McMansions

Please. I'd rather live in a tent instead of being ripped off by this crap credit system every minute of my life in my 'own' home.

Worst headline ever. Nothing says we (the writers at TT) are morons like using ancient phrases like McMansions...I REALLY need to stop clicking on Tech Ticker...

I have a McTent.

People with their McMansions are STUCK with them. Those capable of upgrading to one will hold off for fear of more economic turmoil. Also, most property tax laws readjust your base when you swap homes. So your property taxes triple/quaduple. For that reason alone it's far cheaper for me to stay put (renovate what I have) than to "upgrade" and buy a newer, better place.

My two $600k spec homes are rotting away here in Dallas - - a little more than twenty serious buyers since the beginning of the year and NO ONE can buy them, even if they have decent credit and income because the banks are NOT lending PERIOD. Cash buyers DO NOT abound like TV shows appear to promote on HGTV. Also, look at the EXPONENTIAL moving averages so the numbers are not ask skewed. Builders like me are screwed while the banks get to hoarde the dough. GUESS WHAT DORKASS TECH-TICKER ANALYSTS, IT IS SUMMER - - THE BUSIEST TIME OF THE YEAR FOR HOUSING SALES, of course the price rate will smooth out while realtors are looking for ANYONE to bite on a price (especially newbies) - - hmmmm, what will happen to house prices when the season is over? FALL LIKE A ROCK. P.S. Hey you realtors, brokers, and appraisers out there, have any of you taken a brief moment to read the fine print on your NTREIS RACKET-WEBSITE? The "price sample points" you collect are skewed as far back into the past as possible, not to mention the B.S. percentage limit / tolerance rules applied by the gov't to make the data look better. QUIT COLLUDING with the banks, you miscreants.

Bravo familyguy. Tech Ticker seems to be run by infants.

The people that should be reading this are all the state and local politicians that are under the impression the prices will return to where they fell off, the dumb fools are betting the entire state and local budgets on this theory. What is going to happen next is state and local government BK's, as they have no idea what the real world is experiencing, then goes all those perks, like 95% retirement packages, this whole house of cards is starting to fall apart, thank god! Maybe there is some light at the end of the tunnel, we need a total crash to rebuild this disaster correctly, just hope the people restructuring all of this isn't the same dumb fools that created it!

The cost for materials to build a home is higher than a non certified appraisers estimate value, as a building official explain!

A big AMEN to that, Ginny - "being ripped of by this crap credit system". If only Americans would educate themselves to the outright fraud being perpetrated by 'our" Federal Reserve & their Wall St. bankster friends...and who's REALLY pulling the strings here & in every country there's a "central bank"....pushing DEBT onto us all, and to make us digest it, they call it "CREDIT"... Hmmmmmm.....here's a hint - can you say Rothschild & Rockefeller?

As an alternative to the Tanking Market, of which we can no longer depend, is to re-trench to Real Estate. The Strategy is to make an offer, based on what "I" think the Market will drop to, or my comfort zone. If the Sellor does not accept, what have I lost, other than the time to make another offer on another piece of property, and so on! Water will seek it's own level. Banks are looking to "dump"!

The jumbo loan space will see huge declines from here. It is not just in Orange County either, but can be seen from the Hampton's, Palm Beach and many of the Mcsuburbs across the nation. So, not only are many mortgage holders refusing to foreclose even if the payments are 9+ months in arrears, but we are also seeing massive depreciation in the jumbo space. Overshooting a housing correction and especially a housing bust is the norm, not the exception and we should see generalized overcorrection of 7-15% this cycle. Anyone that is purchasing a home now for anything more than 40% of peak price is paying too much.

What is a McMansion?

The best advice I can give someone who does not own a home now while the federal reserve continues to print more money is to protect yourself against a growing prospect for increased inflation. Inflation will increase your rent as well as the price of a home. I feel it would be wise to purchase a small affordable home now in an area you like with a fixed interest rate mortgage while interest rates are relatively low. Take advantage of the $8,000 first time home buyer credit if eligible. Your equity will grow over the years while you slowly pay off the loan, and as the price of your home slowly begins to rise. If your credit is bad, however, everything changes...and it is not the fault of the "crap credit system".

McMansions ?? "The latest reading on the Orange County housing market from Steve Thomas at Altera Real Estate," In Orange County, CA, $1,000,000 might only buy you a dump in a good location. McMansions in Orange County near the coast are rare, due to lot size, and/or sell for millions. Whether a house is selling for $3.7M or $3.1M, the issue isn't the price. It's price uncertainty, income uncertainty and the new wave of 'what we have now is good enough'.

There is a residential neighborhood in Miami, Called Pinecrest where all of the homes.....ARE Overly "OVERPRICED".....I See THE Foreclosures.....INCREASING By....50%- 60% In The Next 6 Months.....

What a revelation! I can speak from personal experience in Orange Cty. We paid what we thought was stupid money ($975k) for a 3,200 SF house in just south of Irvine. Two years prior it had sold for $700k - two years later we sold it for $1.2M. The market was crazy and I'm glad to see it come back to reality - but the reality is that most of the people on our street paid reasonable amounts for their houses and their houses have appreciated over the last six years. Pricing takes place at the margin on current transactions, but the current (annual) transactions account for less than 2% of the total market, so don't read too much into a year over year decline - some people are going to get squeezed but most won't andwe are going to come out of this...

In Los Angeles, house prices in certain "nice areas" are still 100% more than they were in 2001 and 2002. For instance, there were lots of under $500,000 in La Canada Flintridge in 2001. But now, you still can hardly see any under $1,000,000. Seeing the house prices in its vicinities and many other parts of the So. Cal. makes you wonder where are those 50% drop located. Before everyone is coming down to the real world from his/her dreamland, prices will keep going down to their pre-2001 level.

What happened to all the Chinese buyers???

How can the value of a house "crash below fair value"? Does not compute! The value of a property is based on what the buyer is willing to pay and the seller is willing to accept.

nobody knows nuttin but me , and i'm not talking! SWEET LOU.