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

[JimKing]

No offense, but offers are meaningless. The only thing that counts is when the sale is 100% complete.

I would advise those that need to sell to do whatever it takes. Things will be worse for sellers in 6 months, in a year, and in 3 years.

[kelly3120]

no offense taken. My point is ...this is a normal market IT'S NOT BAD! I actually thought it was at first too BUT after doing the research, things are moving ...just not like they were a few years ago!!! No bubble has popped. my point w/ the offers is ...we are getting traffic. people are still looking to buy, it's just not going to go back to people offering to buy homes that aren't even for sale or homes being on the market a total of 12 hours and then sold.

and the offers are meaningless comment ...that goes for any market!!!
...but thanks for the advice ????...

...it's not as dramatic as everyone makes it!!!
...I was flipping out a a while asking "why isn't this house selling" ....but years ago it took 4-6 months to sell a house and that was acceptable and common. Don't be scared of the market!

[UKOK]

Originally Posted by kelly3120

no offense taken. My point is ...this is a normal market IT'S NOT BAD! I actually thought it was at first too BUT after doing the research, things are moving ...just not like they were a few years ago!!! No bubble has popped. my point w/ the offers is ...we are getting traffic. people are still looking to buy, it's just not going to go back to people offering to buy homes that aren't even for sale or homes being on the market a total of 12 hours and then sold.

and the offers are meaningless comment ...that goes for any market!!!
...but thanks for the advice ????...

...it's not as dramatic as everyone makes it!!!
...I was flipping out a a while asking "why isn't this house selling" ....but years ago it took 4-6 months to sell a house and that was acceptable and common. Don't be scared of the market!

Sorry, but it is nowhere near a normal market. It might be taking longer to sell a house but prices still have a lot of adjusting down to do before they come back in line. Unless you think a 50% appreciation in one year is normal.

[milosarah]

Here is the deal from a potential seller's perspective. I moved back to Miami after many years away because my mother was ill. Coming from DC, the prices did not seem that extreme to me, and I bought at the peak of the market. Big mistake. My mother passed away sooner than expected and now I need to move on myself yet would take a huge loss if I tried to move this house quickly. I am not trying to be greedy, just to break even and move on. The problems with the housing market in South Florida are multilayered, and include low wages, high property taxes, insurance costs and one of the largest subprime loan markets in the country. It is going to take about 3 years for this inventory to move. if you are a buyer, by all means take your time and wait for the right price. Don't express your anger at the seller's needs, though. Its not always greed.

[firemed]

Give it time, Out of state and out of country investers are now looking at the big picture. And now they found it won't sell at the dream price. Hundreds of British investors who pumped their money into Florida's soaring housing market have been caught out in its spectacular collapse.


Britons count the cost of the Florida property slump | the Daily Mail

[carolac]

I've been reading the messages here and tend to agree with you, wondering why the houses are now going pretty rapidly on our street, while one street over in the same subdivision, they're not. Our street is not quite as pricey as the street over. I've looked at the prices being asked for the houses on the street over from us and they're pretty much at appraised value. A couple of houses are vacant because the owners have retired, living elsewhere and are in no rush to sell their homes--which have been on the market for several months. But the houses sold on our street dropped just a little--clearly not 20% or 50% as some project here. And they sold within a short period of time--within 30 to 60 days. The one that sold the quickest is the one that didn't have curb appeal and needed some TLC, but still was priced over $200,000.

Six to eight months ago nothing was moving, but now I see "sale pending" signs on houses near our neighborhood, watched the price and quick sales of two homes side by side in the neighborhood over from us. I don't see the prices dropping, although they have a little. I didn't expect houses would sell unless they were dropped by 20%, but they obviously are. The real estate department of my former law firm is really picking up with sales on homes where the prices did not drop much (they're handling a sale for my dad in law, so I stay in touch).

Now this is in Orlando, and I'm in the Conway area, which is a good area. I've also seen on the news that while housing prices are dropping nationwide, Orlando seems to be holding its own, and have actually experienced a 2.5% increase in sales and the prices of some homes have even increased slightly.

I'm not sure what's going on, but I'm clearly watching.

Originally Posted by kelly3120

no offense taken. My point is ...this is a normal market IT'S NOT BAD! I actually thought it was at first too BUT after doing the research, things are moving ...just not like they were a few years ago!!! No bubble has popped. my point w/ the offers is ...we are getting traffic. people are still looking to buy, it's just not going to go back to people offering to buy homes that aren't even for sale or homes being on the market a total of 12 hours and then sold.

and the offers are meaningless comment ...that goes for any market!!!
...but thanks for the advice ????...

...it's not as dramatic as everyone makes it!!!
...I was flipping out a a while asking "why isn't this house selling" ....but years ago it took 4-6 months to sell a house and that was acceptable and common. Don't be scared of the market!

[LingLing]

Originally Posted by milosarah

Here is the deal from a potential seller's perspective. I moved back to Miami after many years away because my mother was ill. Coming from DC, the prices did not seem that extreme to me, and I bought at the peak of the market. Big mistake. My mother passed away sooner than expected and now I need to move on myself yet would take a huge loss if I tried to move this house quickly. I am not trying to be greedy, just to break even and move on. The problems with the housing market in South Florida are multilayered, and include low wages, high property taxes, insurance costs and one of the largest subprime loan markets in the country. It is going to take about 3 years for this inventory to move. if you are a buyer, by all means take your time and wait for the right price. Don't express your anger at the seller's needs, though. Its not always greed.

I am not a seller or buyer. I already have my dream house and I don't plan to move for a long time. We have a lockbox on our door to give our subcontractor the access to our house when we are not at home. I was surprised how many people will knock our door to see the home. There are a lot of buyers who are taking their time and waiting for the right price. I completely agree with Milosarah's post. There is no point to call seller or buyer greedy.

[nychiefsfan]

Originally Posted by UKOK

We looked at a house in Sarasota last week. The original list price was $999k then dropped to $949k and now $899k. It is either a scraper or a house that needs a TON of work. I looked up what they paid for it and they bought it "as is" in 2004 for $640k. They have done some work but mostly just cosmetic. I will be generous and say they have spent 50k on it. Even in Sarasota they are kidding themselves that it's worth so much more 3 years later.

You're doing your homework!! Awesome!!!

I'm currently tracking 57 houses on an Excel spreadsheet. None of them were bought by the current owner for more than $200k when they were orginally purchased. 37 of the 57 were bought within the last 10 years. 25/57 were bought between 2000-04. None were bought after 2004. All are over 2000sf and have at least 4 BR's and an in-ground pool.

Here's the averages of the 57 homes I'm looking at:
Number of years seller owned home: 10.35
SF: 2271
Asking Price: $301,787
Price per SF: $133.41
Just Market Value: $252,892
Difference between Asking and JMV: $48,895
What the current seller paid for their house: $148,641
PPSF when seller bought house: $65.75
Difference between asking PPSF and PPSF when seller bought house: $66.66
Difference between seller's asking price and what they paid for it: $153,146

There is no way I'll pay more than $200k for any of these homes. Eventually, I'll pick out between 20-30 homes and have 6 or so realtors offer $190k the ones I selected. Whoever gets the seller to drop their price, gets the commission. I'm not tieing myself down to one realtor, because the last two I spoke with seemed to be working against me. Instead, I'll have them work against each other.

[nychiefsfan]

Originally Posted by kelly3120

no offense taken. My point is ...this is a normal market IT'S NOT BAD!

The average time it used to take to sell a house was around 3 months. Time will tell. The longer your house is for sale, the less it's worth, due to new home builders selling homes with warranties for less than existing homeowners are willing to lower their prices to. Plus, you'll be receiving a TON of additonal existing home competition with the next wave(s) of ARM foreclosures.

My honest opinion is to sell now for whatever you can get, because the value will be dropping significantly in the next 2-3 years.

[nychiefsfan]

Originally Posted by milosarah

Don't express your anger at the seller's needs, though. Its not always greed.

I totally agree with you in that respect. Just like my neighbor who bought his home for $279k at the height of the boom. He's trying to sell his home and dropped the asking price to $248k. Some people HAVE to get a certain amount for their home. The greedy ones are the ones who have the leverage to make a significant drop in asking price, but don't, because they think they can still get 2005 asking prices. I guess they're doing you a favor by keeping the comp prices high, but until the prices drop, the market will be over-flooded with homes.

Meanwhile, I'm sitting on the sidelines, waiting. The ball is in my court. I have all the time in the world to wait for the right price.