U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 01-04-2009, 10:40 PM
 
3,720 posts, read 4,446,402 times
Reputation: 4741

Advertisements

Quote:
Originally Posted by Stac2007 View Post
I don't know why anyone would want to buy now. Here in the suburbs of New York it is no secret that baby boomers are retiring and want to sell their home so the can live out their last days in Florida. On my block alone they own the majority of home built in the 1980's. With many Xers and Yers moving to where they can live the competition is pretty tough. Homes have been inflated for years and since Boomers are tired of paying New York taxes the younger generations has them by the throat. They may have purchased their homes for $105k in the 1980's and thought they can sell them for $600k a year of two ago but that is now a dream. With Wall Street giving out pink slips along with other jobs losses, their homes will be priced back under $250k. Besides there are home foreclosures all over Rockland County and banks are not giving out mortgages because the younger generations simply doesn't earn the salaries needed to buy them at such a ridiculous price. Doesn’t life stick when you’re greedy.
I don't think these people are greedy, they just didn't get out in time. My co-worker sold her house two years ago and has rented ever since. She is the master at getting out when the getting is good and benefiting from it. If these retirees own their homes free and clear they should still be able to retire to Florida if they can get a nice price.
Reply With Quote Quick reply to this message

 
Old 01-05-2009, 04:07 AM
 
Location: USA
27 posts, read 67,354 times
Reputation: 16
Yes, buying a home may not be advisable today as experts are saying that the prices may fall even more. So why buy today when you can buy tomorrow and pay less?

But then if you are buying to stay there, I guess you cannot avoid it. But try to postpone the purchase if you are just making an investment. Do remember, there might be better investment opportunities out there at this time than real estate.

It is probably best that you seek some professional advice before you make that investment decision. You know these guys are experts and so,
they are best placed to offer good advice. You need to think twice before investing your money in these troubled times. But then there are opportunities to prosper as well.

If you need a financial planner or advisor you can try them here - [url Mod cut. I tried the planners
they have here and they sure looked experienced and qualified.

Thanks & Regards.

Last edited by Waterlily; 01-05-2009 at 11:21 PM.. Reason: no ads
Reply With Quote Quick reply to this message
 
Old 01-05-2009, 10:38 AM
 
5,463 posts, read 5,789,187 times
Reputation: 1803
Quote:
Originally Posted by goldengrain View Post
If people lose their homes where will they go? Either home with mom and dad, if they can, or they must rent, driving up the prices of apartments if the number of apartments stays the same.
What happens to all of the vacant houses they leave behind? One - they get added to the "for sale" pool, driving down prices and therefore equivalent rents. Two - they get picked up by investors and rented out, adding to the supply of rentals on the market. I guess there's also option 3 - bulldoze them and let the land go back to nature, but I can't see that being popular.

Also, keep in mind that number of people per household goes up during recessions, so "move in with mom and dad" happens enough to change the number of rentals needed.
Reply With Quote Quick reply to this message
 
Old 01-05-2009, 03:02 PM
 
Location: Humboldt Park, Chicago
2,686 posts, read 6,838,957 times
Reputation: 1174
Default Another downward force on rents

I own a place that I rent out in Itasca, a western suburb of Chicago. Many of the townhomes like mine are staying on the market a long time and many owners who cannot sell for the price they want are now renting their units out, competing with landlords such as myself. My rent this year is $100 less per month than I got the past 2 years. I locked in for 2 years with my current renter thru 2010 to protect myself against further rent reductions, which are now being seen. I would get $100 less per month than I get now were I to have to rent it out now. All these "accidental" landlords are having a negative impact on prices, particularly in traditionally owner-occupied areas, the more affluent suburbs of major cities such as Chicago which do not have lots of apartments but are mostly townhomes, condos (not Itasca so much), and single family homes.

I think anyone who is looking to buy in 2009 should either get a great foreclosure price or be willing to stay put for at least 10 years to get their money back. I think it will be 2011 or 2012 before prices recover to where they are at now in the beginning of 2009. I bought 2 places, one in Jan 04 and the other in July 06. I see housing prices going back to Jan 04 and maybe even Summer 03 levels before bottoming. By late 2010 I expect to be even on my Jan 04 purchase and will take until late 2012 or 2013 for me to be even on my July 06 purchase.
Reply With Quote Quick reply to this message
 
Old 01-05-2009, 03:17 PM
 
373 posts, read 1,332,819 times
Reputation: 112
I haven't read thru all 6 pages so I don't know if anyone else made the following point. How about this for another reason to believe there will be further price drop in the next 2 to 3 years.

As we all know, the whole housing market came undone with the wave of subprime loans going bad. Some experts are now predicting another wave of foreclosures hitting the housing market.

Can anyone guess where the next wave of foreclosure will come from?
Reply With Quote Quick reply to this message
 
Old 01-05-2009, 04:21 PM
 
Location: Humboldt Park, Chicago
2,686 posts, read 6,838,957 times
Reputation: 1174
Default Lightning

Next major wave of foreclosures is coming from Alt-A borrowers. Sub-prime is already running its course.
Reply With Quote Quick reply to this message
 
Old 01-05-2009, 04:21 PM
 
Location: Los Angeles Area
3,306 posts, read 3,331,151 times
Reputation: 592
Quote:
Originally Posted by Humboldt1 View Post
I My rent this year is $100 less per month than I got the past 2 years. I locked in for 2 years with my current renter thru 2010 to protect myself against further rent reductions, which are now being seen. I would get $100 less per month than I get now were I to have to rent it out now.
Gee, would have guessed! Oh yeah....me 2 years ago. The variability of rents is something the new breed of "investors" completely ignored in their calculations. If I recall you discounted such things last year...

The collapse of rentier capitalism is right on schedule.

Quote:
Originally Posted by Humboldt1 View Post
I think anyone who is looking to buy in 2009 should either get a great foreclosure price or be willing to stay put for at least 10 years to get their money back.
Oh yeah? How exactly will you get your money back after 10 years? If prices continue to drop you've lost money, no amount of time is going to change that. The person that waited will not only make more money off the sale they will be better positioned to lower rents when such is necessary.

This is of course to say nothing of inflation, usually in real estate when you "get your money back" its merely a change in the nominal price, in real terms you've lost.
Reply With Quote Quick reply to this message
 
Old 01-06-2009, 08:55 AM
 
5,463 posts, read 5,789,187 times
Reputation: 1803
Quote:
Originally Posted by LightningMcQueen View Post
Can anyone guess where the next wave of foreclosure will come from?
"Investors" who thought that a 10% drop in prices in bubble markets made it a great time to "snatch up bargains". Or does that come after the pay option resets, other Alt-A failures, and then the prime loan failures?
Reply With Quote Quick reply to this message
 
Old 01-06-2009, 09:51 AM
 
1,989 posts, read 3,847,079 times
Reputation: 1379
Quote:
Originally Posted by KCfromNC View Post
"Investors" who thought that a 10% drop in prices in bubble markets made it a great time to "snatch up bargains". Or does that come after the pay option resets, other Alt-A failures, and then the prime loan failures?
I don't know what the traditional ratio of investors/flippers in the market is, but one informal indicator I'm keeping my eye on is a drop off of them. I still see too many homes being bought and put back on the market 6 months later with granite counter tops-- and those "new" listings aren't selling.

Once these idiots are out of the game, it may be easier to get a read on what the true market for a home is.
Reply With Quote Quick reply to this message
 
Old 01-06-2009, 10:03 AM
 
28,393 posts, read 68,085,348 times
Reputation: 18202
I tend to agree that there are goofy folks out there that still seem to have the cash / credit to "buy" a place and do some fix-ups. I think this is preferable to having properties sit unimproved, but it is troubling that these folks still seem unaware that there are TOO MANY houses for sale. What is the adage? A fool and his money are soon parted... Be nice if it happen a BIT more quickly so that over improved properties would not be clogging up the market...
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top