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I don't feel bad for most of the people that knowingly took on more then they could...but I watched where some of those subprime pimps changed applications, etc. and told the people that it was all okay. WE should all know better but honestly some people just don't know. Any other industry -- that kind of thing is called fraud -- but for some reason EVERYONE -- every level just didn't want to know about it.
It's just not about the guy who bought a little over his limit..it's the woman who was told that definitely she should get the sub-prime mortgage and was lied to, and applications were falsified in order to get the application through.
I'm starting to have a glimmer of hope that maybe one day some of us rural backwoods Southerners might eventually, just possibly, SOME DAY.. get the opportunity to get down there before we die. But I'm not holding my breath on it, just yet.
Since the money from the North is drying (or has dried) up, and most of those ridiculously priced houses/land in the MLS have been sitting on the market for quite a while, I'm hoping that one day soon charleston county will get the picture and understand they've sold off as much of their birthrights for profit as they possibly can... and that the party is over.
But it still may take a long while for them to *get it* as they are very proud people.
I'm starting to have a glimmer of hope that maybe one day some of us rural backwoods Southerners might eventually, just possibly, SOME DAY.. get the opportunity to get down there before we die. But I'm not holding my breath on it, just yet.
Since the money from the North is drying (or has dried) up, and most of those ridiculously priced houses/land in the MLS have been sitting on the market for quite a while, I'm hoping that one day soon charleston county will get the picture and understand they've sold off as much of their birthrights for profit as they possibly can... and that the party is over.
But it still may take a long while for them to *get it* as they are very proud people.
JMHO..
You should have hope. Nature will take its course sooner and quicker than you think. In fact it is already happening. Get ready!
The only problem is that you won't know when the bottom hits until after it is already past....
If the government would have stayed the hell out of this mess with the repeated failed bailouts the pain would haved been severe and quick, now we are pealing the bandaide off slow and painfully....
The only problem is that you won't know when the bottom hits until after it is already past....
If the government would have stayed the hell out of this mess with the repeated failed bailouts the pain would haved been severe and quick, now we are pealing the bandaide off slow and painfully....
Bottom in the housing market won't be terribly hard to identify - it's not like the equity markets. When we do hit bottom, we'll scrape along there for a WHILE. Will be no quick recovery and anyone expecting one will be sorely disappointed.
Peter Schiff who wrote CRASH PROOF and is a regular guest on CNBC says that real estate prices will have to get back to 1996 prices before they start heading back up. I've seen some dramatic near 50% drops in asking prices since a few years ago of fancy townhouses on James Island near Folly Beach that just aren't selling at their $600k to $900 k prices of a few years ago. I think they could go even lower.
I bought at the height of the last real estate boom and lived through 12 years of my house being worth less than I paid for it (with no rescue from the federal government ). In years 13 through 18 it finally appreciated and I made money when I sold it but I'd like to get a good deal this time and buy at or close to the bottom of the market (and not be married to a home for 12 years like I was before). I think we have a way to go before that happens.
I get a kick out of realtors who say the Charleston market is immune from what is going on in the rest of the country. LOL! Don't they realize that without being sure you'll have income from work, there is no guarantee someone will be able to continue to pay a mortgage? With SC having the 3rd highest unemployment rate, how could the Charleston market be insolated from that? Rates will have to come down a lot more than they have thus far.
I'm sorry but dated old homes built in the 80's with vinyl siding that people paid $50k for brand new and have done nothing to but put in new faucets and painted inside are not worth $300k today. Completely updated with new kitchens and baths with granite slab counters and new hardwood floors, and crown moldings, I was only able to get 2.5 times what I paid for my house in coastal southern New England ---that had wood siding and was walking distance to shopping in 2007.
If you want to sell a home today in Charleston, you need to have a state of the art home with new kitchens etc AND UNDERPRICE IT. The people who are selling non updated homes should expect and not be offended by extremely low-ball offers of 50% of the asking price -- because to a buyer, the homes are just NOT WORTH any more than that. The sellers should be happy they even got ANY offer and NOT OFFEND the buyer who mad the low-ball offer . For all the sellers know, this might be the only person who will make an offer on their home. Taking what they can get is better than not getting anything at all. Beggars can't be choosers. On top of that there are zero comparables within the past few months to prove that these homes are "worth" their asking prices
Last edited by emilybh; 03-07-2009 at 05:58 PM..
Reason: finish
I just bought a house in Goose Creek. Got a good deal on it and I plan to be in it for at least 3-5 years so I think I am ok.
BTW:30 year, fixed rate. None of this interest only adjustable rate nonsense. The only reason my payment will change is when my insurance goes down and or taxes go up.
Peter Schiff who wrote CRASH PROOF and is a regular guest on CNBC says that real estate prices will have to get back to 1996 prices before they start heading back up. I've seen some dramatic near 50% drops in asking prices since a few years ago of fancy townhouses on James Island near Folly Beach that just aren't selling at their $600k to $900 k prices of a few years ago. I think they could go even lower.
I bought at the height of the last real estate boom and lived through 12 years of my house being worth less than I paid for it (with no rescue from the federal government ). In years 13 through 18 it finally appreciated and I made money when I sold it but I'd like to get a good deal this time and buy at or close to the bottom of the market (and not be married to a home for 12 years like I was before). I think we have a way to go before that happens.
I get a kick out of realtors who say the Charleston market is immune from what is going on in the rest of the country. LOL! Don't they realize that without being sure you'll have income from work, there is no guarantee someone will be able to continue to pay a mortgage? With SC having the 3rd highest unemployment rate, how could the Charleston market be insolated from that? Rates will have to come down a lot more than they have thus far.
I'm sorry but dated old homes built in the 80's with vinyl siding that people paid $50k for brand new and have done nothing to but put in new faucets and painted inside are not worth $300k today.
Anyone who's still saying the Charleston market is immune has no credibility left. Lots of Stealtors used to say this - few say it now. If you are a homebuyer and you are getting your advice from a Realtor, there's your first mistake. Do your own research. Seek out unbiased parties who don't stand to gain financially from your purchase. The truth is out there. What we've seen in Charleston is a market that was slower to start depreciating than some others and it will likewise be slower to recover. There are still huge inventories and very little going on in the way of transactions. As a potential buyer in MP, I'm staggered by the sheer number of homes on the market, nearly all of which are ridiculously overpriced. It's not 2006 anymore. MP prices will return back to 2001 prices and may go even lower. You've got so much inventory in the $500k + range in MP that it will take many years to move it even with significant price reductions.
The other shoe has not dropped in this market - but it will and very soon. It's going to be ugly folks. Really ugly. I'm just thankful I'm not a Realtor.
fk
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