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Old 05-29-2007, 06:05 AM
 
Location: Riverview
372 posts, read 745,063 times
Reputation: 74

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My neighbor is in the police force. One of his co-workers bought a 300k house and has to work several jobs just to pay the mortgage.

Is that what it's boiled down to? Who's the sucker if you have to work 60-80 hours per week just to live in a house that you call call your own? Where's the family time? Who's really winning and losing here? Certainly not the children of this man who never gets to see his kids.

Some lenders and budget advisors suggest spending no more than 30% of household income for housing related expenses (mortgage, upkeep, etc). According to the Habitat for Humanity:
- "Housing is considered "affordable" if it costs 30% or less of household income."
-"One out of every three families in the United States lives in unaffordable housing: one-third of American households spend more than 30% of its income on housing."

These numbers were from a 2002 report. I wonder what percentage of the US population spends more than 30% right now?


Housing Costs out of Reach for Many American, Florida Borrowers
Home prices across the national and Florida housing market may have dipped over the past year, but many American workers would still struggle to afford a median-priced home in major cities, a new study said last week.

The study found an annual income of nearly $85,000 was needed to afford the median-priced U.S. home. This has caused many locals to flee due to rising housing costs.

The study assumed home buyers needed a 10 percent down payment and could afford to pay 28 percent of their income on Florida mortgage payments, property taxes and home insurance.
Housing Costs out of Reach for Many American, Florida Borrowers - Florida Home Loan

As most of us know, we get paid in sunshine in FL. I have a Masters degree and I don't earn over 40k. Fortunately, my wife is an RN, so we do well combined.

 
Old 05-29-2007, 06:25 AM
 
Location: Riverview
372 posts, read 745,063 times
Reputation: 74
Quote:
Originally Posted by sunnyhelena View Post
what strikes me here is someone waiting for sellers to hand their house to a buyer.
The new home market is starting to put pressure on the existing home market by undercutting their prices. It's all about supply and demand. There is always a demand for housing, but if the cost is more than what's affordable, then it isn't worth the expense. And if there's little demand for an overpriced home, then the supply continues to increase. Sellers have been very prudent in their asking price. New home builders see this as their opportunity to pick up a few extra sales if they drop their prices to more affordable levels.

I'm willing to pay more than what the previous owner paid for their home. I'm all about people being able to make money on their investments. The problem lies between what is a fair asking price and greed.

I'd buy somewhere in the middle of those two.
 
Old 05-29-2007, 06:28 AM
 
20,729 posts, read 41,174,971 times
Reputation: 10232
the housing price issue is so tied to local market that speculation by real estate and economy gurus just fuel speculation of information---in my home area of Dallas FTW metroplex--prime housing is a seller's market--some houses are only on market two days before there is pretty much a full price contract---the area that is hurting is the entry-level market which is pretty much tied to tract builders and cheap financing--that market has suffered because the easy--no proof of income--mortgages are as hard to find as snow in tx in August---

In FL, where our daughter lives--the market has slowed but people are sitting on property--especially if it is occupied or has rental history that has made money---heard a guy talking to realtor in mall where she was putting home-for-sale info up on her company's board--he wanted to know why his house had not sold in past year---supposedly it was "priced right" which meant he was not dropping price because he did not want to lose any profit--real or imagined he was due---said all he had had was lot of lookers....

so dont' feel sorry for him--he wants to sell at HIS price, not the market price--all houses will move when the selling price is what the market wants to see---seller may lose money then, but it just depends on how badly you want to sell that house....if people can afford to stay in home when market is soft--they will---where would they go-
most of the sell off is from investors who follow tends and don't really investigate what is driving a hot market---FL has lots of low to avg paying jobs and high real estate--when the speculators leave, there are few people to take up the slack...at least from what I have seen...
 
Old 05-29-2007, 08:25 AM
 
Location: Florida
1,738 posts, read 7,096,137 times
Reputation: 653
nychiefsfan


your last post makes sense and I agree w/ you last post. ...no reason to pay 200-300 for a 1200 sq ft home ....yet!

...On the other hand if I were the buyer, I think I would buy before the prices get to high. Another reason we are moving! We want a bigger home for future kiddies and recognize Florida is the next Cali. We want to get into a bigger house, before the prices are outrageous! ...there might be a slow down in the market right now, but Florida is still a popular place to move! ...things go in circulations and "if things" are at a low they will circulate up soon enough. ....and if things are normal(as I believe they are) then that leaves some room to get set up and comfortable before the next big circulation.
 
Old 05-29-2007, 08:32 AM
 
Location: Riverview
372 posts, read 745,063 times
Reputation: 74
Quote:
Originally Posted by loves2read View Post
the housing price issue is so tied to local market that speculation by real estate and economy gurus just fuel speculation of information---in my home area of Dallas FTW metroplex--prime housing is a seller's market--some houses are only on market two days before there is pretty much a full price contract---the area that is hurting is the entry-level market which is pretty much tied to tract builders and cheap financing--that market has suffered because the easy--no proof of income--mortgages are as hard to find as snow in tx in August---

In FL, where our daughter lives--the market has slowed but people are sitting on property--especially if it is occupied or has rental history that has made money---heard a guy talking to realtor in mall where she was putting home-for-sale info up on her company's board--he wanted to know why his house had not sold in past year---supposedly it was "priced right" which meant he was not dropping price because he did not want to lose any profit--real or imagined he was due---said all he had had was lot of lookers....

so dont' feel sorry for him--he wants to sell at HIS price, not the market price--all houses will move when the selling price is what the market wants to see---seller may lose money then, but it just depends on how badly you want to sell that house....if people can afford to stay in home when market is soft--they will---where would they go-
most of the sell off is from investors who follow tends and don't really investigate what is driving a hot market---FL has lots of low to avg paying jobs and high real estate--when the speculators leave, there are few people to take up the slack...at least from what I have seen...
You hit the nail on the head, L2R.

I can understand why those people, who have a specific number in their head, want to make a certain dollar amount profit. IMO, the recency effect of the housing boom is still in their minds and they're having a difficult time justifying why they should sell their house for $50-75k less than what their neighbor sold the exact same house for 2 years ago.

The recency effect can be defined as, "the most recently presented items or experiences will most likely be remembered best." In this case, the housing boom may weigh heavily on those who want to sell in a buyer's market, outweighing the current market's supply over demand, hence the stalemate between seller and buyer.

There are still some people who, in my opinion, are overpaying for homes. That's great if you're the one selling your home to that person, and more power to you! Unfortunately for the buyers, this seems to encourage others sellers that they will eventually get their asking price.

Total housing inventory jumped 10.4% to 4.20 million at the end of April, which translates to an 8.4-month supply at the current sales pace, up from a 7.4-month supply in March. March was, supposedly, one of the best months to sell a home and housing inventory jumped 10.4%. The writing is on the wall.

The problem lies in the flooding of the housing market, at least in the Tampa area. Some houses will eventually sell in this market for what the seller is asking. The time it takes to sell their homes will eventually increase, due to the competition of fellow homeowners trying to sell their homes as well. In the meanwhile, new home builders are lowering their prices to meet the market's demand, creating even more competition for the existing home owner. That's why there was an increase in new home sales last month and a decrease in existing home sales.
 
Old 05-29-2007, 08:39 AM
 
Location: Riverview
372 posts, read 745,063 times
Reputation: 74
Quote:
Originally Posted by kelly3120 View Post
nychiefsfan


your last post makes sense and I agree w/ you last post. ...no reason to pay 200-300 for a 1200 sq ft home ....yet!

...On the other hand if I were the buyer, I think I would buy before the prices get to high. Another reason we are moving! We want a bigger home for future kiddies and recognize Florida is the next Cali. We want to get into a bigger house, before the prices are outrageous! ...there might be a slow down in the market right now, but Florida is still a popular place to move! ...things go in circulations and "if things" are at a low they will circulate up soon enough. ....and if things are normal(as I believe they are) then that leaves some room to get set up and comfortable before the next big circulation.
You're right too, kelly. Timing is everything.

We're not gonna wait too long, but long enough (easier said than done!!!). The plan is to buy while the houses are dropping, but not wait until it hits the bottom. That's why I'm all for the existing home owner making a few bucks while offering a fair price.

We'll probably buy a house in November or December, depending if the market drops enough. I have a feeling that after the summer, people whose houses have been on the market for 90+ days will finally begin to realize that they probably won't sell their house in November or December, when the holidays are right around the corner, and will be more willing to negotiate the asking price.
 
Old 05-29-2007, 09:11 AM
 
Location: Riverview
372 posts, read 745,063 times
Reputation: 74
Home construction bust may last until 2011, U.S. builders say

New home construction in the U.S. may take until 2011 to return to last year's level, said David Seiders, chief economist for the National Association of Home Builders in Washington...
Home construction bust may last until 2011, U.S. builders say | IndyStar.com

Last edited by Marka; 12-10-2007 at 06:35 AM.. Reason: copyright issues
 
Old 05-29-2007, 12:52 PM
 
Location: Florida
1,738 posts, read 7,096,137 times
Reputation: 653
market usually picks up in Mid-June and in any market people are desperate by Nov-Dec. ....fact is homes dont sell often in those months(nov-Dec) due to busy schedules, ...so if you started looking in those months, regardless if prices have droped enough you could talk down prices.

I on the other hand found my dream home and we bought it! We wanna sell this cutie of a house and have good condition, quality, included items(due to our laziness ....I'm not moving a spa, curtains won't match the new house, and we are leaving the surround sound/DVD because he wants new electronic toys) and landscaping and personality on our side ....especially compared to other homes in our price range. It's not a matter of price here ...it's a matter of finding this diamond among all of the 40,000 other homes for sale in the Tampa Area. We can wait a while for our home to be discovered. Realtors can only look at 12-15 a homes a day soooo it's just about patience here.
 
Old 05-29-2007, 01:19 PM
 
3,269 posts, read 8,384,067 times
Reputation: 2000
Quote:
Originally Posted by nychiefsfan View Post
You're right too, kelly. Timing is everything.

We're not gonna wait too long, but long enough (easier said than done!!!). The plan is to buy while the houses are dropping, but not wait until it hits the bottom. That's why I'm all for the existing home owner making a few bucks while offering a fair price.

We'll probably buy a house in November or December, depending if the market drops enough. I have a feeling that after the summer, people whose houses have been on the market for 90+ days will finally begin to realize that they probably won't sell their house in November or December, when the holidays are right around the corner, and will be more willing to negotiate the asking price.
I would have to say, wait longer if you can. Even if it means being "uncomfortable" for the next year or so. Don't forget - A few percent off a 100-year-peak is still a Fools Market.

http://graphics.nytimes.com/images/2...aph2.large.gif

We are no where near the bottom. It's ludicrous that realtors (or whoever) would even say such a thing and even more preposterous that sheepeople believe them. What is suddenly going to make housing costs go up? Nothing is the answer. Not a sudden influx of investors or people who have been waiting on the sidelines with a pocket full of money and who just can't wait any longer. It's going to take a long time to clear out this inventory. People will continue to call the bottom and real estate prices will continue to slide until prices come in line with what the average Joe can afford, plain and simple.

Only people who depend on real estate for their livelihood or people who were shortsighted enough to buy this year will try to convince you the market is on the up-swing.
 
Old 05-29-2007, 01:43 PM
 
Location: 32082/07716/10028
1,346 posts, read 1,388,595 times
Reputation: 167
Quote:
Originally Posted by UKOK View Post
I would have to say, wait longer if you can. Even if it means being "uncomfortable" for the next year or so. Don't forget - A few percent off a 100-year-peak is still a Fools Market.
Sometimes it makes sense to take the hit to cut costs, there is no guarantee that in a year or 2 that you're going to get your price and now you've added all the addition costs of carrying the house, your mortgage, taxes, insurance, HOA fees add up fast, how many people can carry 2 houses with all these costs.
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