Are house prices really dropping?

[titaniummd]

Originally Posted by Pene

Take my word for it, I am a real estate broker in seven states. we haven't even seen the tip of the iceberg. The market is already crashing and it will get worse for the next couple of years. Don't buy now, hold on and wait for it to hit bottom

Can you let us know when it hits bottom?

[bethie_73]

Things don't seem too bad here, there is movement. My house in CO has been on the market over a year.

[Tim Rankin]

Originally Posted by bobrulez

An asset is essentially worthless (it has value, but it is indeed worthless) until you convert it into cash (i.e. sell it). So what if you've lost $50k this year on the value of your house. What's that against your virtual gain of before? You have not lost a dime (or gained a dime) until you actually close the sale. The same is true for any asset class.

Also, keep in mind converting a home "into cash" may not be a wise idea. Cash is not all it's cracked up to be. Remember, the dollar has been falling for a while. If the value of the dollar is falling, hard assets like houses are a better store of value.

Right now the headlines are screaming "recession." In 6 mos. they could be screaming "inflation." Most people, including the gurus and pundits, have NO idea what's going on, and the few who really do, aren't talking. At least not to you and I.

There have been periods in history where cash is worthless. Truly, worthless. As bobrulez stated, focus on the value of your house, not how much cash it's worth. There is a difference.

[seethelight]

Originally Posted by titaniummd

I lived in 20852, Rockville/N Bethesda.

Just to look at what was offered in my old neighborhood, the price offering for a house was 30 - 40 k less than what my neighbor sold their house for (same size but I don't know what is in the current offered place).

I just think that the prices in Bethesda,Rockville, (in Mont Co) are normalizing to what is reasonable to pay.

The market was at its peak in 2004-2005 here. Investors were flipping houses making a huge profit. Many people were buying in cash.

I checked Zillow and it reflects a trend in the prices of houses but not the actual value. In 2005, zillow showed my neighborhood listing houses at 787k. Each subsequent year, it trended down. In 2007 it showed that the house price dropped about 100k - when I sold my house that trend in pricing is what the market was willing to pay. It listed my house for a certain amount and I sold for 10 k higher than what Zillow state the 'value' to be.

Thanks for this very useful information.