2008 Florida Housing market Thread Jan - Mar (Tampa, Orlando: mortgage, credit)

[chisoxfan]

I think you will be fine if you plan to stay long-term (10 years or more) and as long as you didn't take out a subprime/exotic mortgage that could make it difficult to keep the home. The next few years probably will be rough on anyone trying to sell their home or holding an unconventional mortgage as prices fall to match market fundamentals, but over time the housing market is like the stock and (unfortunately) oil markets -- the long-term direction is up.

[SKB]

Originally Posted by Margel

Just wondering how many have bought before this bubble started to burst? I love my new home and plan on living in it for the long haul (hate moving, never want to do it again, if it can be helped), but I did buy before the prices started to fall. How much of a mistake did I make? I didn't want to flip or just live there a few years and move on. If I plan to stay, did I still make a major boo boo? I would really like to hear honest opinions. I know some of you watched this market very closely and could predict what is happening, obviously, I was not one of those people!

Don't feel to badly, a lot of people bought at or close to peak (to live in). Some people still bought that were well warned and refused to listen (some friends of ours did just that and now have lost half of their 113,000 down payment)
The only issue I see (as long as you can afford your home) is the fact that you are paying way to much in property taxes due to the insanely unfair tax system.

The NAR, and Greenspan really did a great job at convincing people to continue to purchase despite the warnings from economists.

It is a shame that as a society we have had our trust breached in such a way that it is going to take a long time to ever feel comfortable to believe anything these "leaders" have to say again.
Greenspan had said there was "no national bubble" but "froth" in some local markets and Bernanke said "there is no bubble" but the increases "largely reflect strong economic fundamentals," such as strong growth in jobs, incomes and the number of new households."
The lies are now being revealed.


Just live in your home and forget about it. My hope for you is that nothing ever happens that forces you to have to sell.
IMHO, I don't think in our lifetime we will ever see a bubble of this magnitude again.

[THX 1138]

I know of plenty of people who paid way too much for their houses during the boom, one person paid over $750K and put in another $100K+ into the house, another paid $1 MIL and put in $200K+, both are devalued even with the improvements because they were overinflated to begin with and they could have bought a much nicer newer home on a larger piece of property in a nicer area for less now. The way the ball bounces.

[Margel]

Thanks for your replies. I believed what my broker said and went calmly ahead with my purchase. I am happy in my new home, but have to admit I feel like an a_ _ for not looking further into this myself instead of blindly trusting someone selling me not only a house, but a good story as well. Luckily we can afford our home and plan on staying for the long haul, but still worry that my home will devalue like some used car.

[firemed]

Originally Posted by Margel

Thanks for your replies. I believed what my broker said and went calmly ahead with my purchase. I am happy in my new home, but have to admit I feel like an a_ _ for not looking further into this myself instead of blindly trusting someone selling me not only a house, but a good story as well. Luckily we can afford our home and plan on staying for the long haul, but still worry that my home will devalue like some used car.

If you like your home Don't let it get you down, If its a new home you won't have to put any repairs into it. You can afford it, So just sit back and enjoy it!

[gypsychic]

Originally Posted by Margel

Thanks for your replies. I believed what my broker said and went calmly ahead with my purchase. I am happy in my new home, but have to admit I feel like an a_ _ for not looking further into this myself instead of blindly trusting someone selling me not only a house, but a good story as well. Luckily we can afford our home and plan on staying for the long haul, but still worry that my home will devalue like some used car.

MARGEL - if you love your home, can afford it, and plan on staying in it you have nothing to feel bad about in any way. A home should be purchased for the long term, for a family to live in and enjoy, not to worry about being an ATM or some kind of short term "cash cow". History has shown that over the long haul real estate is always a good investment anyway.

While it's true there are some "price corrections" going around, there is nothing to say you "overpaid", or even if you did, maybe not even that much. It really doesn't matter. After all is said and done, Florida will ALWAYS be a place people want to come to, it's like California, sunny and beautiful and people will come here no matter what. In any nice town or area prices will fall to a certain point and then people will come in and start scooping them up again and prices will then rise, I have seen it time and again. None of us know exactly when these ups and downs will happen but history always repeats itself.

Bottom line - ENJOY YOUR NEW HOME IN FLORIDA! You are living a life many can only dream about, I am sure you made a good choice!

[Flor909]

I agree, forget about it and enjoy life. The real estate industry took many people to the cleaners the past few years. As long as you don't have to sell, at least they didn't ruin you like they did many others.

[Wild Style]

Supposedly 39% of mortgages in 2006 were interest only loans. This is not going to end well folks

link

[SKB]

Originally Posted by SKB

Don't feel to badly, a lot of people bought at or close to peak (to live in). Some people still bought that were well warned and refused to listen (some friends of ours did just that and now have lost half of their 113,000 down payment)
The only issue I see (as long as you can afford your home) is the fact that you are paying way to much in property taxes due to the insanely unfair tax system.

The NAR, and Greenspan really did a great job at convincing people to continue to purchase despite the warnings from economists.

It is a shame that as a society we have had our trust breached in such a way that it is going to take a long time to ever feel comfortable to believe anything these "leaders" have to say again.
Greenspan had said there was "no national bubble" but "froth" in some local markets and Bernanke said "there is no bubble" but the increases "largely reflect strong economic fundamentals," such as strong growth in jobs, incomes and the number of new households."
The lies are now being revealed.


Just live in your home and forget about it. My hope for you is that nothing ever happens that forces you to have to sell.
IMHO, I don't think in our lifetime we will ever see a bubble of this magnitude again.

Update on this:
" (some friends of ours did just that and now have lost half of their 113,000 down payment)"
This home which my friends said that "their area was special and different and the prices would hold".
The same home on the same street but with an added screened in lanai and a pool just sold on Feb 06 as a REO for 281,259. My friends paid 365,000 exactly one year ago. Since they put down 113,000 and if they had to sell today and pay a realtor they will have lost their entire down payment.
I told them NOT to buy a home, I said the market is tanking and they should wait. They looked at me in disbelief as if I were wearing a tin foal hat on my second head and said "we would never throw money away on rent".

[MrTudo]

You should stay in "Pittsburg" that lovely place........hahaha

Lifes not that complicated. Neither is life in Fla unless you insist and it sounds like you're already off the deep end. Take it light, stay where you are.