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Old 02-18-2007, 12:19 PM
 
2,313 posts, read 2,385,220 times
Reputation: 471

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Quote:
Originally Posted by Jammie View Post
What is the actual projected percentage that real estate will bottom out at? What I mean is if they are asking 300,000 for a home now, will it drop another 10%,20%, or what?
When the supply and demand get closer prices will stop dropping and may even go up. As long as you have so much on the market sellers will have to take lower prices and the bar will continue to fall. At some point this has to stop. I just sold a lot in a gated community for $30,000 below the next lowest priced lot and $25,000 below the appraised value. Why, there are no buyers and lots like mine are a dime a dozen, I was happy to get a buyer.

I actually got a nasty e-mail from a neighbor who said people like me devalue property. F him, I made a $104,000 profit on the property and am happy to move on and not think about what if's. I had only two choices. Sit on the property hoping for a buyer to come along, or sweeten the pot with a great price and sell it. I chose to sell. People who have too much in their properties and still need to sell will have to take a loss. No big deal you don't make money every time, they made a mistake. Cut your loses and move on. In my case, I was paying $2000 a year in taxes, $300 in home owners fees and a capitol gain loss of around $10,000. It was costing me over $12,000 a year to continue owning the property and it could continue to go down in value.

One of my favorite TV shows is "Deal or no deal". It is like a metaphor of life in some respects. The player turns down a $120,000 and later the banker is offering him $60,000. Now the guy wishes he had the $120,000 and he would take it. Decisions, decisions. decisions, we all have to make them. Some are good and some are bad, or are they?
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Old 02-18-2007, 12:26 PM
SKB
 
Location: WPB
901 posts, read 3,155,538 times
Reputation: 320
Sad for some families yes, but great for people that will purchase homes with more than enough for a down payment and can actually afford what they are buying.
I found it quite sickening to see 23 year old kids buying homes with 100% financing using liar loans. I really have no sympathy for people like this at all.

Thanks to Greenspan all the 1% interest rate we saw for an entire year combined with easy financing, he made it possible for anyone to buy a home. Many of these people had no business venturing into real state.

I can not wait until we see the Median income inline with the Median price of homes again.
When we see this we will know that life has returned to normal again.

For me I have been waiting and watching this slow train wreck for the last five years and it's almost over.

SKB
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Old 02-18-2007, 12:38 PM
SKB
 
Location: WPB
901 posts, read 3,155,538 times
Reputation: 320
Quote:
Originally Posted by macguy View Post
When the supply and demand get closer prices will stop dropping and may even go up. As long as you have so much on the market sellers will have to take lower prices and the bar will continue to fall. At some point this has to stop. I just sold a lot in a gated community for $30,000 below the next lowest priced lot and $25,000 below the appraised value. Why, there are no buyers and lots like mine are a dime a dozen, I was happy to get a buyer.

I actually got a nasty e-mail from a neighbor who said people like me devalue property. F him, I made a $104,000 profit on the property and am happy to move on and not think about what if's. I had only two choices. Sit on the property hoping for a buyer to come along, or sweeten the pot with a great price and sell it. I chose to sell. People who have too much in their properties and still need to sell will have to take a loss. No big deal you don't make money every time, they made a mistake. Cut your loses and move on. In my case, I was paying $2000 a year in taxes, $300 in home owners fees and a capitol gain loss of around $10,000. It was costing me over $12,000 a year to continue owning the property and it could continue to go down in value.

One of my favorite TV shows is "Deal or no deal". It is like a metaphor of life in some respects. The player turns down a $120,000 and later the banker is offering him $60,000. Now the guy wishes he had the $120,000 and he would take it. Decisions, decisions. decisions, we all have to make them. Some are good and some are bad, or are they?
You are one smart man, as you correctly reacted to a changing market, instead of chasing it all the way down like many are doing,you did the right logical thing. Your neighbor could have made the first move and did what you did first, if he wanted to sell. He is pissed for you selling your the property first thus you lowered the comps of course.

In time homes will gain value again so if he is planning on staying he should not get so upset over this. People like this make me sick, what was he expecting? You wanted to sell, if you have priced it to match his "dream" price it would not have sold like the thousands of homes/lots that are up for sale right now.
For us we will not be buying until at least 2008, we are going to rent until the timing is right for us and then we will make our move. We are sitting on a pile of cash and look forward to paying 1100.00 rent on a real nice house.

SKB
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Old 02-18-2007, 12:45 PM
 
2,141 posts, read 6,334,745 times
Reputation: 588
Quote:
Originally Posted by firemed View Post
I think Jammie is right. This is the way I see it. We probably won’t get full blown panic yet, nationwide that is obvious. We might get pockets, mainly in heavy investor infested communities. Remember Florida had a bust in the 1920s based on the same thing. We are seeing large numbers of foreclosures in overbuilt markets and this will continue for the next two or three years. Some areas will not get hit this hard but all this will be based on if panic sets in. We are seeing some now, but Optimism and Denial is keeping the market alive. Most investers are just trying to get out by any means possible and the anxiety will only build. Remember Austin in the late 1980s.
If panic sets in we will see large numbers of foreclosures advertised at 50c on the $1. This will continue in 2010 which perhaps will be the bottom; thing is in the 50c on the $1 areas, even the 20% down payment people will end up having to walk (or stay till 2015+). Right now I'm seeing homes sold by people who have to move due to the loss of construction jobs in big numbers. But I might be wrong.
Optimism and denial is good but you have to get real at some point in the game.
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Old 02-18-2007, 06:16 PM
 
Location: Central Florida
800 posts, read 2,804,225 times
Reputation: 305
Every market is different. In my market, sales volumn is up 3.6% over last Januaryat an averager price of $249,700. However, inventory is up too. My market does not stay a buyer's market long historically. The biggest drop is in the condo market here.

The challenge is selling is not to overprice and many homeowners want high returns on their investments. If you're holding out for a high price, you'll have to wait quite awhile to sell.

Interest rates are steady and that's definately good. I sure don't see a 50% drop in value here!
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Old 02-18-2007, 06:24 PM
 
2,141 posts, read 6,334,745 times
Reputation: 588
Quote:
Originally Posted by Dee2e View Post
Every market is different. In my market, sales volumn is up 3.6% over last Januaryat an averager price of $249,700. However, inventory is up too. My market does not stay a buyer's market long historically. The biggest drop is in the condo market here.

The challenge is selling is not to overprice and many homeowners want high returns on their investments. If you're holding out for a high price, you'll have to wait quite awhile to sell.

Interest rates are steady and that's definately good. I sure don't see a 50% drop in value here!
What do you think about all the foreclosures ?
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Old 02-18-2007, 07:03 PM
 
Location: WPB, FL. Dreaming of Oil city, PA
2,909 posts, read 12,964,252 times
Reputation: 991
Quote:
Originally Posted by firemed View Post
What do you think about all the foreclosures ?

I discussed this with dad and he thinks I can get a decent foreclosure house for $50k in Port Saint Lucie. I cant go wrong at that reasonable price. How low do you think prices are gonna go? Right now the cheapest decent house is $150k in Port Saint Lucie thru a realtor selling it for the owner.
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Old 02-18-2007, 07:37 PM
 
2,141 posts, read 6,334,745 times
Reputation: 588
Quote:
Originally Posted by Need_affordable_home View Post
I discussed this with dad and he thinks I can get a decent foreclosure house for $50k in Port Saint Lucie. I cant go wrong at that reasonable price. How low do you think prices are gonna go? Right now the cheapest decent house is $150k in Port Saint Lucie thru a realtor selling it for the owner.
I see high numbers in the area of foreclosures and each week it gets higher. Winter is the selling season in Florida. Spring is the season in the north and with the rate of homes on the market and sales at a low right now you might get a great deal on a foreclosure.
Its a good time to buy on the court house steps.
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Old 02-19-2007, 06:56 AM
 
2,141 posts, read 6,334,745 times
Reputation: 588
How long will it take for the panic to set in ? Many people are hurting now. Badly. Either they can’t pay the mortgage, or they’re stuck with a real estate investment that grows less profitable every day.”

“Many think flippers are getting what they deserve now: They ran up home prices with their frenzied buying, this argument goes, when they had no intention of living in the houses and condos they bought. Let them reap what they sowed.”

“Meanwhile, homeowners who weren’t playing market games and who need to sell are caught, too. A large sign at the corner of Flagler Drive and Almeria on West Palm Beach’s lakefront reads: ‘$1 million reduction.’”

“Another sign, this one on Olive Avenue a few blocks north of Belvedere, states simply: ‘Make me an offer.’ ‘There’s a lot of desperation out there,’ How long will it take for the panic to set in ? Its just starting and will play out for a long time.
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Old 02-19-2007, 01:23 PM
 
Location: So. Dak.
13,495 posts, read 33,975,871 times
Reputation: 15058
Quote:
Originally Posted by macguy View Post
When the supply and demand get closer prices will stop dropping and may even go up. As long as you have so much on the market sellers will have to take lower prices and the bar will continue to fall. At some point this has to stop. I just sold a lot in a gated community for $30,000 below the next lowest priced lot and $25,000 below the appraised value. Why, there are no buyers and lots like mine are a dime a dozen, I was happy to get a buyer.

I actually got a nasty e-mail from a neighbor who said people like me devalue property. F him, I made a $104,000 profit on the property and am happy to move on and not think about what if's. I had only two choices. Sit on the property hoping for a buyer to come along, or sweeten the pot with a great price and sell it. I chose to sell. People who have too much in their properties and still need to sell will have to take a loss. No big deal you don't make money every time, they made a mistake. Cut your loses and move on. In my case, I was paying $2000 a year in taxes, $300 in home owners fees and a capitol gain loss of around $10,000. It was costing me over $12,000 a year to continue owning the property and it could continue to go down in value.

One of my favorite TV shows is "Deal or no deal". It is like a metaphor of life in some respects. The player turns down a $120,000 and later the banker is offering him $60,000. Now the guy wishes he had the $120,000 and he would take it. Decisions, decisions. decisions, we all have to make them. Some are good and some are bad, or are they?
Firemed, you sound like my husband. He doesn't miss that show. I think you made a wise choice in selling and I'd just ignore the other homeowner who wasn't happy about it. Sounds like he made some bad decisions and is just looking for someone to blame and you were that person for the moment. Since you still made a VERY nice profit, it goes to show that you weren't filled with greed and that's a great attribute.
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