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Old 06-06-2008, 07:51 AM
 
Location: Kings Park & Jamesport
2,425 posts, read 5,250,096 times
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Quote:
Originally Posted by brassbin View Post
i take issue with that, that kind of sentiment is what's really dragging the feet of price correction, thus prolonging the recession, it's not good for the overall economy, also i'm very interested in what you said during the boom time to all those buyers who had to pay overinflated prices?
If I was in that position, I would not sell. Recession or not, I would refuse to lose $100k. I don't sell stocks when I would lose money, Why would I lose it selling my house? IMO, they have no choice but to ride it out.

Who cares what the agent says? The buyer bought & now needs to deal with the situation at hand.

I looked at "trading up" a few years ago when the market was going crazy. I was my decision not to do it and thank God I did'nt. The addition I put on my home worked out to be the best choice I have made to date.
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Old 06-06-2008, 08:18 AM
 
Location: Bridgeville,Pa
4,176 posts, read 6,780,329 times
Reputation: 1966
I wouldnt sell either. We were going to, but luckily we were able to stay put and ride it out. We did trade up 4 years ago, but we were also able to hold onto a house that is paid off. We are not selling for a long time.

But I would hate to be in the position that I had to sell. Loosing money is bad, but to loose $100,00 ; that would hurt big time.

d
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Old 06-06-2008, 08:20 AM
lxl
 
74 posts, read 323,938 times
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Quote:
Originally Posted by Kbinspections View Post
I do stand corrected but look at the increments from 0-100k and from 100k-200k, they are not the same!
The y-axis starts from 60k, not 0. There's no problem with the scaling.
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Old 06-06-2008, 08:35 AM
lxl
 
74 posts, read 323,938 times
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Quote:
Originally Posted by Az2Ny View Post
.

Okay, read the rest of the page. The fact is this. At no time in history have values doubled in 9 years. When they do they will come back to the mean. Why, because incomes don't double in 9 years. Home values have always had a 3%-5% appreciation per year not 10% + for 9 years.
When you have homes selling for $350,000 to $550,000 in areas with an average income of $80,000 you have a serious problem. These areas are all over suffolk & nassau.
Any financial planner worth his salt will tell a person not to spend more than 3 times his or her salary on a home. That would mean $240,000. So who is going to buy these bubble inflated homes? The ARMs, no money down and no doc's are all but gone. No more free money for those who couldn't afford there mortgage to begin with.
I'm not trying to predict the bottom but they have a long way to go. But if you think everything is in line you should start buying up some of these bargains.
I don't disagree with you that the house prices are still grossly inflated. My post was to state that I didn't see any technical problem with how the chart was constructed. I just happen to have a graduate degree on this kind of stuff
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Old 06-06-2008, 08:45 AM
 
Location: Kings Park & Jamesport
2,425 posts, read 5,250,096 times
Reputation: 416
Damn, I hate when I'm wrong......thx!
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Old 06-06-2008, 09:57 AM
 
419 posts, read 768,563 times
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Quote:
Originally Posted by GigiBowman View Post
I didn't say a damned thing. I do rentals.

But this is what I'm coming in contact with. People who say "I paid $500,000 for my house --how can you expect me to put it on the market for $400,000". They will never list with me. Never. The sellers don't want to see the reality of what's happened because the bottom line is, their mortgage is still $500,000.

What would you say to them?
the same thing everybody has been saying, hold on to the house if you can manage, otherwise get your head out of the sand
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Old 06-06-2008, 10:06 AM
 
419 posts, read 768,563 times
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also i would like to add, it's certainly not fair for realtors solely to bear the burden of convincing sellers, we should all get the word out
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Old 06-06-2008, 10:08 AM
 
2,930 posts, read 5,337,889 times
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Quote:
Originally Posted by brassbin View Post
also i would like to add, it's certainly not fair for realtors solely to bear the burden of convincing sellers, we should all get the word out
I think that sellers really do know. Some are just stuck in an untenable position.
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Old 06-06-2008, 10:36 AM
 
82 posts, read 96,311 times
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Quote:
Inflation remains the willdcard here. If inflation takes off the cost of everything goes up. Being the cost of homes is already over inflated, inflating the cost of living could normalize housing prices, or limit the ammount of decline. Same goes for the price of oil/gas. Perhaps the corrections won't come from the decrease in value of property or gas for that matter, but from the normalizing of their cost vs what a dollar will buy in America.

Owning a home remains an excellent hedge against inflation.

Yes, I agree home ownership is a great thing for many different reasons. But if your buying now it is a horrible idea.
As far as inflation goes right now were at a 4% inflation rate. If that figure takes off from here it will only leave houses on the market even longer than they are now and drive the prices lower.
When incomes do not keep up with inflation which is the case now there are problems. That situation does not help housing in a regular market forget about today's.
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Old 06-06-2008, 12:37 PM
 
2,930 posts, read 5,337,889 times
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Originally Posted by Az2Ny View Post
As far as inflation goes right now were at a 4% inflation rate. If that figure takes off from here it will only leave houses on the market even longer than they are now and drive the prices lower.
True. However if inflation takes off so will mortgage interest rates. As I have said so many times before, those who try to time the market end up getting burned.
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