So, when do you guys think this housing market is going to recover? Ya think the worst is over yet? I think am guessing maybe 1-2 years...
Housing in my area slowed down, but homes haven't dropped in value. I'm up 100% since I bought my house in 2001. I see more homes for sale for longer periods of time than before, but they're still selling.
Probably when they pass the immigration reform because illegal immigrants can then legally apply for a loan and finally buy a house. At least 8 million of them! That's just me though.
im guessing 2-4 yrs...... the market where i live is getting hammered !!!! houses that were going for 800K are selling for 650 K...... it sucks, for my house is for sale to no avail.....
That's a pretty regional question. Here in my part of the Midwest, the housing market never really spiked and won't really fall. It's more of a slow-and-steady pace around here than a volatile market.
around 2 yrs ago the housing market was on fire. if you put your house up for sale you sold it FAST !!! and made money almost every time. the interest rates were down which abled people to afford more house. there were many buyers and not enough property so it made the market a [ sellers market ]. well all that reversed now. i bought a house 3 yrs ago- paid 260 K and sold it around a yr later and made 140 K. but its not like that now.........it seems to be happening all across the country to my knowledge. Florida is getting hammered more so than the northeast right now. if your a buyer, its easy pickens right now..... did i menion, your a good man pap... ?
If Illegals can afford quarter-million-dollar houses (or some sub-prime lender is dumb enough to loan them that kind of cash with zero credit history), then maybe....but I doubt it. Part of the problem is, as I see it, banks are being stuck with forclosures on loans they never should have made in the first place. As a result, banks are being stuck with gobs of real estate that they can't move, and it will get WORSE once interest rates start to rise and more people's ARMs and 80/20s explode. Those fools who used their current homes' increased equity as an ATM to pay for fancy cars, remodelling, and what-not will also get burned eventually. If you look at where home prices were just five years ago, Houses need to fall to 35-50% of their current levels for home prices to return to normalcy (based on personal income stagnation). People are crying like their dog died just for losing 2-3%......there will be more tears to follow.
+1 Real estate is ALWAYS local and ALWAYS about location. In my area I've seen new housing slow down along with existing homes being on the market longer, but that's mostly in overbuilt areas. Location is always key. In my area houses seem to be appreciating about 3-5% a year which is normal for the area. My neighborhood is appreciating about 10% a year which I doubt will be sustainable. However, I have a good location. I have a beautiful golf course on one side and a beautiful protected wooded area and lake on the other and no more building allowed. My commute to my office is 4 minutes on a BUSY day.
The worst is not over for the housing market. If you think this is bad, wait till Dec 07. You have to realize that most sellers are hanging on with the hope that they will bail in summer (peak sales time for RE). It is amazing how most of them are stretched WAY beyond their means and it is their wishful thinking that they will get out this summer. Did you know that in over 30% of ALL mortgages, the owners have NEGATIVE equity? I don't think the housing market will recover for another 3 years.
It will get worse. Historically, it takes 7-10 years for realestate markets to rebound. Nothing rebounds in a year or two... If you are counting on prices starting to zoom next year...you might be a wee bit optimistic. Last slump in California took about 7 years, as it did in Chicago, etc. Homes were very overpriced last year, now, they are just overpriced. If prices don't fall further, figure inflation will correct the gap by 3-4% a year. Most folks still can't afford the homes they are in, absolutely nothing fundamental has changed over the last year. And those ARMS are just starting to come due...
With another 52 months to go... And let's not leave out the CDO house of cards cough Bear Sterns cough and the recent mortgage rate hike in the last several weeks. Image Unavailable, Please Login
That reminds me of something a successful real estate investor once said. He was talking about the current conditions in Florida and listening to people talk about the sky falling, yet he was still buying up real estate in prime locations. He said that prime locations will always be in demand, and I think that he's exactly right.
He is indexing, Mike. He bought high property which is now losing. He is now buying losers which will rise, at least a little. The fight in Florida is not over by a long shot. Really depends on what and where he is active in the market.
I believe that the property he was referring to was waterfront land in Miami. To be fair, I know nothing about the real estate market in Miami so I shouldn't assume that he was correct in his statement.
Well, in my area things look like they've been going down significantly. Maybe 20-30% alteast. It seems like a good time to buy, but I just don't know how much farther things will slip. I live in middle tennessee and I swear I saw some properties in a neighborhood that sold for maybe over 300k. Now after a few year I just checked some are in the low 200's.
Miami, in my estimation, is still pretty good while the west coast of Florida is falling. I am amazed that I can rent a house in Cape Coral for a month for what one costs for a week in Ocean City Maryland. Never thought I'd see that.
Before considering property in Florida, you should apprise yourself of the property tax and homeowners insurance issues. These were not problems 5 years ago, but they are now.
....not to mention what CAUSED these rates to skyrocket lately....its one thing to afford ocean-front digs....its another to look down the barrel of a category-4/5 Hurricane year-after-year-after-year. I have yet to see a sandlot house, short of a concrete bunker, that can withstand 120 mph winds AND 20-foot storm surge. Been there, done that, got out before I lost everything.....
Quote: Originally Posted by 8 SNAKE That reminds me of something a successful real estate investor once said. He was talking about the current conditions in Florida and listening to people talk about the sky falling, yet he was still buying up real estate in prime locations. He said that prime locations will always be in demand, and I think that he's exactly right. Maybe he was holding the waterfront property long term, they flooded the coast with condo's and they are dropping. If you are able to afford two mortgages and the ungodly property taxes and Homeowners insurance for these types of properties, for a few more years you'll probably clean up.
+1. I'm a home builder in the Midwest and he is correct. Last year was a blood bath due to the national panic. Now it's just like he said, slow and steady. Prices never increased here like they did elsewhere. Here's my 550K model. 4K sq. ft. 4 bed 5 bath 4 car garage. Professional appliances, 16' tall ceilings on the main, etc. Image Unavailable, Please Login
