HOusing (Coeur d'Alene, Hayden, Sandpoint: 2011, loans, houses)

[Sandpointian]

Borrowing this link from the Washington thread.

http://www.ofheo.gov/media/PDF/3q08hpi.pdf

Gosh I wish I had more ready cash to buy! 15 year loans are below 5% and may drop as low as 4.25%.

The overpriced $400K homes during the boom dropped to $300K before the crisis, and are now at $250K...So many good houses to buy in Coeur d'Alene and Hayden...

[SacTown11]

The great deleveraging will continue throughout 2009. The bottom isn't even close to being here yet...and won't be as long as banks are terrified of each other.

[Sandpointian]

With the recession coming and unemployment bound to soar above 8% or perhaps even 9% nationwide, 2009 will not be pretty.

But...markets are also forward looking. And there has already been considerable blood letting. Whether we are near the bottom yet, no one has a crystal ball...we are certainly getting closer. But the answer really is contingent on location. Calif valley, AZ, Vegas, Florida are all areas without geographic boundaries to limit supply. Prices may take a lifetime to recover.

NID is a different market altogether. It has too much inventory and prices did get away, but future expectations are far brighter than in Sac...but we'll see...

If rates do get down to 4.5% or less...the prices my be low enough to entice...In any case, the smart ones are getting prepped for 2009...research, open houses, keeping powder dry, etc.

[SacTown11]

Originally Posted by Sandpointian

With the recession coming and unemployment bound to soar above 8% or perhaps even 9% nationwide, 2009 will not be pretty.

But...markets are also forward looking. And there has already been considerable blood letting. Whether we are near the bottom yet, no one has a crystal ball...we are certainly getting closer. But the answer really is contingent on location. Calif valley, AZ, Vegas, Florida are all areas without geographic boundaries to limit supply. Prices may take a lifetime to recover.

NID is a different market altogether. It has too much inventory and prices did get away, but future expectations are far brighter than in Sac...but we'll see...

If rates do get down to 4.5% or less...the prices my be low enough to entice...In any case, the smart ones are getting prepped for 2009...research, open houses, keeping powder dry, etc.

Good points. I was thinking about my own locale. California will not hit a bottom for at least two more years...and the prices will remain depressed for much longer. Overbuilt and oversold. The people here tried to debt their way to high society. The big drop has already happened and I think what we'll see, especially in California, is a long drawn out fall in prices. Maybe another 20% in the next year or two...slow and steady. Sacto is already down 50-60% from the 2006 highs.

Sad really...I had been expecting it since 2004 so I had gone through many periods of wondering if I was wrong in my bubble beliefs. I feel good about being right and for protecting myself and my family from being duped into bankruptcy. I just don't think I will want to enter home ownership until I can pretty much pay for the land outright....I don't like the idea of owing a bank anything. Let the United States government owe the banks....

[Sandpointian]

Sac--

This has been a once in a multiple generation liquidation and vaporization of many a net worth. NID has not been immune although it has fared much better. There is a traditional lag between the CA markets and our Inland NW markets, so we are expecting a bottom in 2010/2011. That said, the bottom will be flat not a "V". Wounds will take a while to heal.

The challenge in the meantime is not to get so desperate as to lose control over all standards...

We better take stock and take a cold hard look in the mirror and decide who we are and what we want going forward. In 2003-2005, so many simply sold out and price gouged. While they made a few bucks (and most likely bought in a really huge bubble market), they ended up selling the soul of our area. I am talking about all the plowing under of farmland to boxy developers and strip malls.

These times will test us all big time.

[SacTown11]

Originally Posted by Sandpointian

Sac--

This has been a once in a multiple generation liquidation and vaporization of many a net worth. NID has not been immune although it has fared much better. There is a traditional lag between the CA markets and our Inland NW markets, so we are expecting a bottom in 2010/2011. That said, the bottom will be flat not a "V". Wounds will take a while to heal.

The challenge in the meantime is not to get so desperate as to lose control over all standards...

We better take stock and take a cold hard look in the mirror and decide who we are and what we want going forward. In 2003-2005, so many simply sold out and price gouged. While they made a few bucks (and most likely bought in a really huge bubble market), they ended up selling the soul of our area. I am talking about all the plowing under of farmland to boxy developers and strip malls.

These times will test us all big time.

I know exactly what you are talking about...only multiple it by about a million. N. Idaho definitely sounds like my kind of place....