Is housing market growing or slowing? (Columbia, Forest Acres: sales, real estate, 2009)

[8t9vt]

We have been renting and are starting to think of buying a house. We plan to stay in the Forest Acres general area, we do not want to change schools. This does narrow the search somewhat I realize, but why change what we think is a great thing?

My question is this; it seems that some of the houses we see seem to think we are back in a boom market. I've owned 4 homes previously, parents were realtors, so I know all about location, location, location. But should location override mediocre condition of a home? Or another point in fact: houses on the NW of Forest seem to be priced anywhere from 50-100k less than those on the SW side? Same schools, similar size yards, built same era, and similar conditions...why the big difference in price? Is there really that much more "prestige" being 3 blocks off Forest in the southern direction vs northern?

Any input to help explain will be appreciated!

[jlboney]

A lot of it has to do with location and obviously what people are willing to pay for a home in that location. I would certainly not say that we are in a boom market by any stretch, but there are areas that sell well. We have not seen the huge drop in prices or activity that some the nation has had, but we are all affected by the current market.

As for Forest Acres, like some other areas of town, they tend to sell pretty well in spots. Certain streets some to sell better than others, and that is due to the buyers who are attempting to move into the community. I guess basic supply and demand, as there are only so many homes available in the spots that the buyers would like to be in. Their willingness to pay more for said homes drives the price up more than in the other areas, even though they are in the same general area.

[logogorman]

Hi:
I am a real estate Broker, although not sure what area location you are referring to in your post. My market is New York City and Westchester county, NY.

The housing market is definitely bouncing back here, as evidenced by multiple offers on properties and the numbers of people attending open houses. Also, the interest rates are beginning to climb, and prospective buyers don't want to miss out on the advantage of the lower rates. Also, it sounds like you might be a first time buyer, in which case you could qualify for the tax credit incentive program...BUT you have to close on a home by December 1, 2009 (although there is a movement out there to try to get that date extended, as it has stimulated home buyers to move forward, creating a new energy in the otherwise almost dead markets around the country).

Location, Location, Location is STILL rule #1; I don't know where your area is...but in many cases, being North of a highway (instead of South) makes a difference in schools, assessed values of land, (ie: a parcel of land might be located in an area where homes are tapped into the city sewer system, whereas another area isn't...BUT will face the inevitability of HAVING TO in the future, which will create a need for an assessment or taxes to go up to be able to afford it.) Another example would be that one area might be in a flood zone, whereas another is on higher ground.

The purchase of a home is probably the largest investment that you and your husband will ever make. Be sure to research everything carefully...go to the Town Hall and familiarize yourself with the records of the community where you are interested; ask lots of questions (not the the realtor, but to officials at the Village Hall). Don't assume anything; drive around the communities with your eyes open; talk to residents in the areas that you are considering; go to town meetings if there are any; issues are usually discussed at those meetings. Go into this with your eyes open!!

Good Luck.
LS

[Brandon Hoffman]

Village hall...I chuckled about that. Anyway...

Sales price of the ones that sell and asking price of the ones sitting on the market can be 2 different things. You should first talk to a lender and see what price range you need to be in and then focus on homes.

As far as the market, this will be 4th year in a row Columbia has had a declining # of home sales and probably the last year of declining of sales according to most experts. I don't always agree with them but on this I do. Price always lag and after holding steady with a median price of 145k the last 2 years we're at 139k this year. Next year we may see a decline next year in prices again but combined with the interest rates and tax credits now is probably as good a time to buy as we'll have. In 2007 we have over 11k homes sold, this year we'll probably finish around 7k homes sold.

2 years from now I expect prices will start to appreciate again, but of course it depends on other factors like credit guidelines, govn't assistance/interference, and such.