Real Estate Discussion

[robivi3]

Here also, even though our foreclosure rate is now 4 times the national average, bloody ridiculous.

[HRx]

Reports that I've read are indicating the the real estate market is pretty much cooling off in most of the east coast markets now. Don't get me wrong, prices are still to high for the majority of the middle-income buyers though! The Washington Post reported that the Northern Virginia/DC Metro area prices, and sales pace has declined quite measurably. I know first hand, how expsensive the housing market is in NoVa.

A house in a neighborhood adjacent to mine, has been on sale for about a year now! The seller even dropped the asking price down to $750,000, and it still isn't selling! lol There's going to be a lot of foreclosures throughout the next decade in my opinion---buyers have been simply paying to much for houses over these last few years, and the expensive is definately going to catch up to them! The low-middle-income families will be the first to foreclose...then so on.

[HRx]

I read an interesting article about the real estate market in the United States...cooling off. Check out the article at: http://news.yahoo.com/s/ap/20061215/...estate_outlook

[robivi3]

Yeah HR, they've built two behemoth towers out here, visisble from the Everglades wetlands and "Artesia" acroos the street, massive Venetian community. The 2 bdrs. topped 400k, feel sorry for those who did it on a whim! Talk about "GLUT".

[HRx]

Hell the rental market is even tremendousley inflated in the Boston Metro area too. Boston is a mediocore place for rentals though. The majority of the rentals are private rentals -- from slumlords! Boston/Metro doesn't have a major commericial rental market like many of the Southern cities. Both the rental, and real estate market could use a nice "resetting"!!! Let's see how far this real estate cooling actually goes. High real estate prices is a major money maker for both private and public sector organizations/companies. Which is another reason why prices soared to record breaking levels over the past few years.

[robivi3]

It's odd that you responded today. I ws on realtor.com and those 400k 2 bdr's are priced around 599k now. I didn't know it, I don't think they will fetch that but who knows.

My wifes uncle is renting a "studio" in Carol City, a VERY undesirable area down here, REALLY UNDESIRABLE and paying $600.00 for a hole in the wall, and glad to get it at that price. Understand, it is made from the carport of a house, all concrete but still made from splitting the house and closing the carport. My sister-in-law says that a mediocre 2bdr. is going for $1500.00. How the hell are people making it???

[HRx]

How the hell are people making it???

My guess is they technically aren't, "making it". The majority of Americans are in credit-card debt up to thier ears. Add a hefty mortgage to this and it's safe to speculate that they aren't in the best of financial situations.

[HHM]

It's all relative, where I am, rentals are still fairly reasonable, you can get a 1900 square foot, 3 bd, 2 1/2 house for $1,300. The weird thing is, a 1000 sq foot apartment in the same area, 2bd 2bth, would cost you around $1,050 per month.

However, the housing market has stalled, we have huge existing home inventories and home prices are down about 10%-15% from where they were at the peak about 16 months ago, and home builders are throwing around $25K to $50K worth of purchase incentives.

[Spartan]

The bigger the disaster, the more opportunities there will be, for us to walk in and pick up the pieces later. Since we just have the biggest real estate boom, we may very well be looking at either one hell of a crash or a prolonged depressed market. Unlike stock prices, housing prices do not crash dramatically. Thus a multi year depressed market will most likely be the outcome.

Just sit back watch for pundits and talking heads proclaiming that the decline is over. Got to love those. If such tactic worked, the Japanese wouldn't have to suffer decade long of deflation.

[HRx]

Wow...houses just aren't selling right now. It will behoove existing homeowners that are thinking of selling to sit tight for a few months. Flooding the market with more (expensive) inventory isn't going to help one bit. I'm personally hoping for a slight market crash, because the cost of houses for person(s) within the $30k-$100k (middle-income) salary range is completely bank-breaking. And a 15% - 20% market-cost-deflation would bring prices down to a more respectable level, that people can afford.

[JeepMom]

There's a house we looked at the first day we started looking. It's still on the market, so it's been up at least 6 months now.

My sister ended up doing a leu of deed (or what ever it's called) after having her house on the market for 9 months.

[FilingOnMyOwn]

My guess is they technically aren't, "making it". The majority of Americans are in credit-card debt up to thier ears. Add a hefty mortgage to this and it's safe to speculate that they aren't in the best of financial situations.

Well, for some time now america has had a negative savings rate. How do you accomplish a negative savings rate? Borrowing of course.

[HRx]

Well, for some time now america has had a negative savings rate. How do you accomplish a negative savings rate? Borrowing of course.

Well...excessive borrowing will do this---regardless of "why". A report that I read a couple of years ago stated that more than 60% of U.S. households have less than $5,000 of liquid cash available for emergencies.

[brokemommy]

good thread, love reading about Florida's population boom. Hard to believe.
Agree with spartan, disaster equals growth.

[brokemommy]

It's all relative, where I am, rentals are still fairly reasonable, you can get a 1900 square foot, 3 bd, 2 1/2 house for $1,300. The weird thing is, a 1000 sq foot apartment in the same area, 2bd 2bth, would cost you around $1,050 per month.

However, the housing market has stalled, we have huge existing home inventories and home prices are down about 10%-15% from where they were at the peak about 16 months ago, and home builders are throwing around $25K to $50K worth of purchase incentives.

Just curious, what city, and what is the value of the property that rents for $1300. My guess your talking about a $250,000 plus home?