LI Housing (real estate, 2009, loans)

[glags11]

I read in Newsday the other day that the median price of a LI Home dropped again....Is this a continuing trend for the next 6-12 months? I keep hearing that LI and Eastern NY have yet to see the bottom of the housing slump...Any thoughts?......

[dman72]

Originally Posted by glags11

I read in Newsday the other day that the median price of a LI Home dropped again....Is this a continuing trend for the next 6-12 months? I keep hearing that LI and Eastern NY have yet to see the bottom of the housing slump...Any thoughts?......

Here we go again.

I don't see the price going up until the employment situation improves, which isn't happening, it's getting worse. Now, a slew of people with their own motivations will tell you that it is going to go up based on the fact that it went up astronomically from 2002-2007 at a rate that it never has in history based on horrible and dangerous lending practices, so you can choose whether or not you want to believe them.

[workingclasshero]

the prices will continue to drop until the median price meets with the median salary...meaning since the median salary at about 70-90k the median home should be (BY the 30% rule) about 220k-290k,,possible lower if you equate taxes into the math

until that happens longisland will never be affordable for the average person

[dman72]

Originally Posted by workingclasshero

the prices will continue to drop until the median price meets with the median salary...meaning since the median salary at about 70-90k the median home should be (BY the 30% rule) about 220k-290k,,possible lower if you equate taxes into the math

until that happens longisland will never be affordable for the average person

LI was above the national average before the boom, so increase the range by 10-20% and you're probably right.

[S.I.B.]

it appears you ask this question every few months or so. If you're trying to time things so that you can finally jump into market at the absolute bottom...well good luck with that. Chances are it won't happen.

[glags11]

Originally Posted by S.I.B.

it appears you ask this question every few months or so. If you're trying to time things so that you can finally jump into market at the absolute bottom...well good luck with that. Chances are it won't happen.

Well, I've been right on so far, so I will definitely take my chances!!

[S.I.B.]

Originally Posted by glags11

Well, I've been right on so far, so I will definitely take my chances!!

unfortunately, you're not buying the "market", your puchasing something tangible which can potentially have it's final price impacted by many factors...the market being just one of them. Even if you time things perfectly and find your dream house...it's certainly possible somebody could outbid you. On the other hand, you might luck into a situation where a seller is forced to sell quickly and you get an absolute steal. You might get the wrong house for the right price...or you get the right house at a price that's a little more than what somebody paid around the corner from now.

Years from now, we'll be able to look back and pinpoint the "bottom" of the market, but the month to month changes don't appear to be that significant right now. Obviously it's better to be buying now than in 2004....but you'll go crazy trying to figure out if June 2009 was/is better than October 2009.

[Elke Mariotti]

Originally Posted by S.I.B.

unfortunately, you're not buying the "market", your puchasing something tangible which can potentially have it's final price impacted by many factors...the market being just one of them. Even if you time things perfectly and find your dream house...it's certainly possible somebody could outbid you. On the other hand, you might luck into a situation where a seller is forced to sell quickly and you get an absolute steal. You might get the wrong house for the right price...or you get the right house at a price that's a little more than what somebody paid around the corner from now.

Years from now, we'll be able to look back and pinpoint the "bottom" of the market, but the month to month changes don't appear to be that significant right now. Obviously it's better to be buying now than in 2004....but you'll go crazy trying to figure out if June 2009 was/is better than October 2009.

[scottzilla]

Originally Posted by dman72

Here we go again.

I don't see the price going up until the employment situation improves, which isn't happening, it's getting worse. Now, a slew of people with their own motivations will tell you that it is going to go up based on the fact that it went up astronomically from 2002-2007 at a rate that it never has in history based on horrible and dangerous lending practices, so you can choose whether or not you want to believe them.

Yes, unlike others with their own motivations that will have you believe it will continue to decline.

[dman72]

Originally Posted by scottzilla

Yes, unlike others with their own motivations that will have you believe it will continue to decline.

It's very simple..loose lending is over, people can't afford current prices, even if they want to..if you can't get the mortgage, you can't buy the house. I don't know how you can call that subjective information, it's facts. The only thing that can change this situation is if the banks start putting through more fake loans....do you think that is going to happen?

I'm both a seller and a buyer in this current market, so make of it what you will. If prices go up, I might not actually lose money on my current place when I buy a house. I'm in the same situation either way. If it goes down, houses are even more affordable to me, but I lose 20 grand on my current place. IF they go up, I break even but have to pay 20 grand more on the other end. I'd rather break even when selling, to tell you the truth.

I'd take my view on it over a real estate agent who makes money by moving volume, that's for sure.