Housing Bubble Popped but why aren't the prices reflecting it? (Tampa: real estate, lease)

[Mike Peterson]

Originally Posted by JimKing

“Jan Hatzius, Senior economist, Goldman, Sachs & Co, believes Florida’s record home price appreciation since 2000 now makes the state ‘the epicenter of the U.S. housing bust.’ His take: Homes prices will decline deeply for a couple of years.”

“Hatzius: ‘Forty percent is the current level of overvalue in Florida. I would guess the area will have 10 percent or 15 percent price declines for a couple of years. Beyond that, my crystal ball doesn’t go.’”

In the same article Sean Snaith, Director of UCF Institue for economic development, had this to say " I think 40% is probably excessive...A 10-15% price decline is the worst case scenario.

Hatzius went on to state "I'm no expert on the area, being in NY, but thats how it looks from 36,000 feet."

[SKB]

Originally Posted by kort677

moral to the story:
get any promises from a RE agent or developer in writing before accepting it as the truth

"‘They promised us they were not going to go below market value.’”


How is this not the truth?, the houses sold for current market value.

What that couple wanted was for the seller to refuse to sell for any lower than they paid in December, thus protecting their investment. It's just not going to happen and is unrealistic given the current market conditions.

[dreamofmonterey]

Originally Posted by cariad

Think Again, most of us baby boomers have extra because we never bought more house than we could afford. I know it's unthinkable now, but our children often had to share a bedroom and anything over 1500 sq. ft would give you cred as the elite of the neighborhood. Our home and product buying habits are much different than the younger generation today.


We have no intention of changing our habits now and wasting money on interest, taxes and insurance, especially to live in less house than we could afford before. Don't hold your breath waiting for the boomers to make it all go away.

Good post cariad. People planning to retire early- teachers, younger boomers, etc., are not going to miraculously sweep in and buy Florida property anymore. It has seen its heyday. In the 70's 80's and 90's it was a trend. Trends change

Some people are even considering retirement in other countries, Canada, Mexico, Costa Rica. Few corporations offer pensions, the USD is at its lowest exchange rate. This is a global issue and people are no longer going to do what was predicted. With the deficit we now have, people are looking at innovative solutions, as it is clear our government is out to eke away at peoples retirement savings.

[nychiefsfan]

Originally Posted by JimKing

“He says he closed on his three bedroom San Simeon townhome in December, ‘You’ve got to be kidding me, that’s not fair.’”

“Tara Gionpalo said, ‘I feel really mad, really sad, hurt.’ Victoria Toher said the developer went back on their word, ‘They promised us they were not going to go below market value.’”

good stuff, jim. thanks!

I have a feeling that a lot of people will be feeling the same way in the next few months (or years).

[nychiefsfan]

Originally Posted by SKB

"‘They promised us they were not going to go below market value.’”


How is this not the truth?, the houses sold for current market value.

What that couple wanted was for the seller to refuse to sell for any lower than they paid in December, thus protecting their investment. It's just not going to happen and is unrealistic given the current market conditions.

It's funny how the definition of market value depends on which side of the fence you're on.

Did you get an eye exam yet?

[nychiefsfan]

Home Sales Expected to Take Gradual Upturn

Home sales are projected to move in a relatively narrow range with a gradual upturn becoming more pronounced by the end of the year, according to the latest forecast by the NATIONAL ASSOCIATION OF REALTORS®.
(Knox County) Home Sales Expected to Take Gradual Upturn - Real Estate - VillageSoup

They never quit pumping people full of _______, do they?

[kort677]

Originally Posted by nychiefsfan

It's funny how the definition of market value depends on which side of the fence you're on.

Did you get an eye exam yet?

market value = what a buyer and a seller agree on at that moment, it can change as soon as another sale is made.

I just bought a house on tuesday, I got what I think is a great value for that house, on tuesday, today is friday, the market could be totally different

[nychiefsfan]

[Audacious]

Originally Posted by nychiefsfan

Hey ! You already used this one a gazillion times.

[Baja Boomer]

Originally Posted by Audacious

Hey ! You already used this one a gazillion times.

Maybe he did, but it's a beauty and bears repeating for those who just can't seem to wrap their heads around the fact that we're in a real estate recession and the NAR lied to us (and continues to lie) the whole time it was going down.