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Unread 01-20-2008, 11:52 AM
 
Location: Kent County, DE
682 posts, read 1,755,184 times
Reputation: 392
Quote:
Originally Posted by elizamary View Post
Good point PA and well put. A few years ago, the real estate market was ridiculous. People were offering more than what the house was worth. it had to stop somehow.
As we know, the housing market spun out of control and now there is a price to pay.
Hopefully, it will straighten out with a new administration and become more affordable and reasonable.
In the past 7 years, the only people that have benefited from this administrations goals are rich and corporate america.
They have robbed us blind and they were re elected again in 2004 which blows my mind.
Sorry for the ramble.

I do know the homes in Southern Meadows have not decreased in price. If anything they are staying the same.
After we bought, they went up about $7/$8 k a home but some extras were added in as incentive.

I have to laugh when people insist the housing market is worse in DE. If anything, many people are moving to DE because of the cheaper living.
Thanks Elizamary for getting my drift. Another point to make about forclosures is that when rates were down, mortgages were plentiful and people were buying beyond their means. Adjustable rates were attractive then but couldn't they see that in 5 years they would have to refinance?
We took that into account when we bought in DE. The real estate market has been cyclical ever since I can remember.

Bought our 1st home in PA in 1970 for $25,500. Sold in 1980 for $55,000. Pd $80, for that home and sold in 1988 for $165,000. Took half my equity (divorce) and bought a condo for $ 80,000. Sold it in 1998 for $70,000. (loss) but bought new townhome for $165,000. This is when the rates dropped enough and through incentives we could afford the new home.The market was in a slump then as well. Sold it for $308 in 2006 to buy here in DE. All the while, using conventional 30 year fixed mortgages and never beyond our means.

The summer before homes in our neighborhood were selling for $325+. We quickly realized the market trend and reduced our price accordingly. There are homes that remain on the market today as they are still trying to get $325 when the market has dropped.
Try zillow.com (for fun) and see just how the prices vary.
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Unread 01-20-2008, 12:47 PM
 
15,451 posts, read 7,035,755 times
Reputation: 28050
Oh My zillow.com is interesting. Thanks for recommending this site.
It is good to know. My present home isn't on there yet. This community is not quite on the map but given time, I'm sure it will be

People were buying beyond their means with adjustable mortgage rates. Not a good idea.
the mentality behind this was to buy then sell at a profit in some cases. Unfortunately, they didnt' count of the market crashing or taking a dramatic loss.

We bought our home in 1985 for $55K and sold it at $208k. We took a small loss but I was so glad to be rid of it and get on with our lives in DE where we have met such nice people and live more reasonable than we did in Philly.
A lot more reasonable.
My utilities here are half of what the were in Philly.
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Unread 01-20-2008, 06:08 PM
 
Location: Nashville, TN
957 posts, read 2,133,897 times
Reputation: 388
Quote:
Originally Posted by from PA View Post
During the real estate boom several years ago, sellers were asking silly money for their homes and getting it.
Here in Sussex County they are still asking and getting those silly prices. Seriously, before writing that check, do some demographic research and realize that housing costs should be proportionate to the average income. If you did, you would realize that you are overpaying by at least 1/3. The reason prices are where they are is because you keep paying them. It is simple economics...and greed. Charge what the market will bear.

Costs of living here can be cheap or ridiculous, depending on where you are moving from. I came from rural NH and was shocked at how little you get here for your money. I sold a property for $240k which would cost me over $500k to replace here. TN, MO, AL, parts of NC, GA are all very reasonable. Some areas were not effected by the real estate bubble and thus are not going through the radical crash that others are.
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Unread 01-20-2008, 10:45 PM
 
405 posts, read 881,345 times
Reputation: 148
Basically the country is in this mess because of these stupid subprime loans. Actually we are in a "crisis". 2 million people with subprime loans are in foreclosure. 4 Lenders have filed bankruptcy!

Subprime loans were mostly granted to people with less than perfect credit. The loans had low interest rates for the first two or three years.

Then, the loans were adjusted to a higher rate every six months to a year, making the monthly interest payment much higher than the borrower may have initially planned for.

Some economists say the mortgage defaults because of the subprime loans could push the economy into a "recession" because lenders are tightening their standards and making it more difficult for people to get loans. Then guess what you will have less and less eligible buyers. I'm going thru this now with trying to sell my house. I am so mad at these idiots with these subprime loans that are losing their houses left and right and bringing down the comps in my neighborhood. There is a 2700 sq ft house in my neighborhood that is a foreclosure and it's $75,000 cheaper than my house it just kills me to watch my equity go in the toilet.
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Unread 01-21-2008, 06:54 AM
 
113 posts, read 303,381 times
Reputation: 40
Hi PA and Eliza!

I've got about 500 things to do (it seems) in the 4 days before I head back to the left coast, so I'm not getting a chance to read or post much.

PA, that was a very large house on a good-sized piece of land near a golf course, and it was priced correctly two years ago, I think. Not entirely sure. In any case, we feel very lucky to have an arrangement with friends, so we haven't sold our house yet, and we could still return to it if things don't work out for us.

Moderator cut: personal/off topic
Lori

Last edited by christina0001; 01-21-2008 at 07:22 PM.. Reason: no chatting/off topic
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Unread 01-26-2008, 06:55 PM
 
5 posts, read 10,441 times
Reputation: 14
I do appraising; Most places surrounding City of Wilmington
- prices appear fairly stable, but marketing times WAY up,
so I expect the stats to show decline soon.

My own house (near Concord Mall on Route 202) probably down around 8-10% from peak.

Areas down toward Bear & "Below the Canal" (Middletown / Townsend)
show 10-12% decrease since 2006.

Last time this happened - in late 80's early 90's Delaware showed some
decreases, but not nearly as bad as say Phila., where there was a clear -20%.
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Unread 01-26-2008, 07:11 PM
 
405 posts, read 881,345 times
Reputation: 148
2 things I've noticed the last 6 months about the Delaware market the houses aren't moving but people are sitting on their house prices. It will be interesting to see if they continue to go down as predicted.
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Unread 01-26-2008, 11:30 PM
 
Location: Delaware
902 posts, read 2,319,155 times
Reputation: 341
Laural,

One of the many reasons hubby and I decided to rent a year as new Delawareans. As we quickly approach our 1 yr anniversary as official residents... we are pondering renting one more year to see what happens with real estate around.

We have pretty much decided the area is working for our needs, and intend to buy soon. But will prices falling, and mortgage companies dropping like flies, we are leaning toward sitting it out a bit longer. The beauty of our situation is... our landlord is a manager of a mortgage company (as I have posted elsewhere on the forum)... so we stay very close in touch with him as each month goes by and we send him our rent check. Eventually, he will hate to lose us as tenants, but will still have a relationship with us on a different level.

Not too familiar with the market flux of the late 80's/early 90's around DE, but at that time we were in Va Beach and similar issues occurred there as well. In fact, we were a seller at that time, and just broke even on our house! I won't say what happened with the 2 properties in NC we have owned and sold, but I'll leave it at the fact we did not come out on top.

Mary
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Unread 01-28-2008, 11:44 AM
 
5 posts, read 10,441 times
Reputation: 14
Here's the picture from "60 Minutes"

CBS News Video - Top Stories and Video News Clips at CBSNews.com

Last edited by Riick; 01-28-2008 at 11:47 AM.. Reason: oooops
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Unread 01-28-2008, 05:09 PM
 
405 posts, read 881,345 times
Reputation: 148
couldn't bring it up

Quote:
Originally Posted by Riick View Post
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