Real Estate Discussion

[SinkingFast]

There are tons of rental properties here. College town. Ebbs and flows with classes being in session.

Existing housing does not move and builders continue building new houses like crazy. These aren't local builders with a vested interest in their community. It's a handfull of large contractors from various parts of the country that have swooped in. Everywhere adjacent to the city boundaries where they can find a scrap of farmland, they buy, rezone, subdivide, and build.

We have one of the highest Foreclosure Rates in the country. Except for the higher priced range homes. For some reason, $350K and up sell like hotcakes. But if you own a $100K, existing house, you might as well sit on it. Otherwise, you're gonna sell for less than you paid.

[HRx]

Another critical element that really isn't helping with the inflated cost of real estate is how mortgage lenders are now offering 40 and 50 year mortgages---that are intended to make $300+ mortgages more affordable to buyers within the middle-income bracket.

[FilingOnMyOwn]

Another critical element that really isn't helping with the inflated cost of real estate is how mortgage lenders are now offering 40 and 50 year mortgages---that are intended to make $300+ mortgages more affordable to buyers within the middle-income bracket.

Yes, and those are really nothing when compared to the interest only loans...

[HRx]

Yes, and those are really nothing when compared to the interest only loans...

That's another thing. But when lenders offer loans that are for 40, and 50 years. This only makes it easier for sellers to continue to increase the selling price of homes. Which is rediculous. The astronomical increase in real estate--within the high-economic regions on the U.S. isn't because theirs a lack of inventory. What there is a lack of is---affordably-priced homes!! The inflated cost of real estate is do to sheer greed, from private sellers, builders, investors, lenders...hell local governments even enjoy the real estate trend, because they're getting more money in property taxes each year.

[robivi3]

The problem is that when you stretch the term, the price ultimately will increase. Availability of Insurance raised the medical costs, it holds true in any industry. Better to have ten year Mortgage limits, no Insurance at all, no Governmanent giveaways to raise the cost of education, etc... That isn't going to happen so I AM NOT arguing all of that, simply stating that raising the term will ultimately allow HUGE increases in price.

My DAD bought cars on the streetched two year plan in the sixties

[FilingOnMyOwn]

That's another thing. But when lenders offer loans that are for 40, and 50 years. This only makes it easier for sellers to continue to increase the selling price of homes. Which is rediculous. The astronomical increase in real estate--within the high-economic regions on the U.S. isn't because theirs a lack of inventory. What there is a lack of is---affordably-priced homes!! The inflated cost of real estate is do to sheer greed, from private sellers, builders, investors, lenders...hell local governments even enjoy the real estate trend, because they're getting more money in property taxes each year.

It all goes back to the statements of the greatest economists of all time, who agree that the true cost of inflation is easily loaned money.

With the interest only loans, thats not even like a 40 or 50 year mortgage, because the principal NEVER GETS PAID. And with the "1%" mortgage, your principal balance actually goes up over time. So when you sell your house in 10-15 years, and it didn't appreciate, you would lose money as you would owe more than what you paid for it.

[HRx]

Housing starts plunge
Government report shows 14% drop in pace of new homes started in January, well below forecasts; permits also fall.
February 16 2007: 8:51 AM EST


NEW YORK (CNNMoney.com) -- Housing starts plunged in January to the slowest pace in more than nine years as the latest government reading on the battered housing market came in much weaker than forecasts.

New homes started in January fell 14.3 percent to an annual rate of 1.41 million from the 1.64 million pace in December, the Census Bureau reported Friday. Economists surveyed by Briefing.com had forecast a 1.6 million rate for January.

The last time starts fell to this slow a pace was August 1997.

The number is not only well below the December pace, but it is 22 percent below the average for all of 2006, when housing was already slowing down, and about 32 percent below the record building pace through all of 2005.

Applications for new home permits, which is generally viewed as a measure of builders' confidence in the market, fell 2.8 percent to an annual 1.57 million rate from 1.61 million a month earlier, which was a bit below economists' forecast of a 1.59 million pace.

The housing permit reading was helped by a second straight month of strong permit application for buildings with five or more units. The permits for single-family homes fell 4 percent to a six-year low.

The one piece of good news in the report is it could help cut down on the glut of homes available for sale on the market, which has been pushing down prices for both new and existing homes. But it also suggests that builders aren't seeing the stabilization in housing that some economists had been looking for.

The housing sector hit a severe slump in 2006 after a record building boom in 2005 left a glut of homes available for sale on the market, pushing down prices. On Thursday, the National Association of Realtors reported the deepest and most widespread decline in home prices on record during the fourth quarter.

But some other recent readings have also suggested a more recent stabilization in the battered real estate market. The National Association of Home Builders' survey of its members, released Thursday, showed builders' confidence at its best level since June, although the builders surveyed still saw the market as a weak one.

The nation's leading homebuilders have all reported declining sales and prices for new homes, due greatly to the glut of new homes available for sale on the market. KB Home (Charts) reported a net loss of $49.6 million, or 64 cents per share, for the fiscal fourth quarter ended Nov. 30, earlier this week.

Other leading builders reporting weakness in prices and reduced sales include Lennar (Charts), Pulte Home (Charts), Centex (Charts), D.R. Horton (Charts) and Toll Brothers (Charts).

[robivi3]

Real Estate

Talked to my buddy, a realtor up in Crossville Tennesse. He says the boom is over and Florida money has dried up. He said it has cooled significantly.

We still have our place and still plan to build, maybe live there in spring and summer or possibly permamnent and do some Christmas there. Plans are somewhat fluid due to wife re-establishing her career after a twenty year hiatus.

SoFla is slow, our TH's still going in the 250k to 260 area according to a sale last month. No one is selling unless they are leaving the state. Of 104 homes in here none for sale today. I paid 86k in '01. If you move you pay taxes on the price of the new home (neighbor pays around 5k per year), if you stay increase can only be 3% per year. People staying put until the legislature hammers out the new deal in a afew weeks. Governor Crists deal does't look to good, a promise of 10.5% sales taxes with NO property tax may turn into 10.5 with a 20% cut, the shaft bigtime!

What's up in your area?

[HRx]

Please continue this discuss in the sticky thread regarding real estate. This will help organize this content/topics.

Thanks!

[robivi3]

didn't realize we had the sticky. we ended up not selling the land in TN and they let us back out of it. it was just to nice a place once we went back again.

[HRx]

It definately appears as though real estate prices are dropping now! I'm now seeing single family houses listed in sought after areas in the $400-$500k range now! A year ago, you could only purchase a condo, or townhouse for this price!! The real estate crash panic, is just causing more, and more owners to list thier properties for sale, increasing inventory...which is ultimatley helping to reduce the supply & demand theory causing prices to drop. :-)

[HRx]

It's definately nice to finally see real estate prices begin to drop!! Prices are still high for what you get...but I'm keeping my fingers crossed for prices to continue dropping, which I believe will continue to happen. The average price for a single family home in the Northeast is simply absurd!!

[DisneyGirl]

It's definately nice to finally see real estate prices begin to drop!! Prices are still high for what you get...but I'm keeping my fingers crossed for prices to continue dropping, which I believe will continue to happen. The average price for a single family home in the Northeast is simply absurd!!

We're currently looking to buy our first house and thanks to the drop in prices, we can finally afford one! Here in Southern California the prices are so sky high but they are slowly coming down. Also there are lots of short sale/foreclosures/bank owned properties out there. Most are brand new homes too. I'm hoping it gets better over the next few months. I'm sick of renting this house.

[HRx]

I know that SoCal has some extremely high prices for modest property. The median prices up here in Ma. isn't quite that bad, but they are by no definition "affordable"!! lol

[HRx]

The latest report that was posted after a national realtor convention in D.C., stated that many industry gurus are anticipating that the real estate slump will continue to worsen, and sag through 2009.