Monday, December 01, 2008

Stock market wipeout today!

The DJIA is down 680 points today, on news that we are officially in a recession. (We're in a recession? Gee, what a shocker!)


  1. Can somebody please comment on how this new law will affect house prices in DC?

    And why hasn't there been more mainstream articles on this? I would think it would be a pretty big deal if a lot of Real Estate investors hold a lot of mortgages.

    The New Law:

    This law is going into effect on Dec 1st, 2008 and many lenders are already modifying now to comply with these new rules. This means that if you own 4 properties (and one of them includes your primary residence) you can’t get a loan for that fifth mortgage via Fannie Mae. This means that most lenders won’t do it and that you will not get the best rates out there.

  2. well, we naturaly pay a lof of attention to the US markets here in Canada, although until recently our housing market wasn't as badly hit as 'down south'.

    I track activity locally in Toronto - which you might find of interest:

  3. Washington Post claims the "real estate slump was almost unimaginable three years ago." Really? Unimaginable?

    There were more than a handful of bloggers and posters sounding the warning signals three years ago - to the Post and to others - but nobody wanted to hear it.

    I remember writing in to Haggarty's chats about price to rent and price to income ratios, and Haggarty practically laughed in my face in response at the silly notion that prices may do something other than skyrocket forever. At one point she said that a single income household would never be able to afford housing in Arlington ever again. It was a new paradigm and anyone who disagreed was a "fear monger."