When is the best time to buy a home in Miami ? NOT NOW. Please read (mortgage broker)

[big mean bear]

People would rather have thier house forclosed on then accept a legit offer. I hope these greed merchants get their heads cut off by the feds. It should be illegal for cousins to sell their family members a mortgage or a house, this kind of activity was and still is a uniquely Miami phenomena. I remember two years ago when everyone was applying to be a real estate broker - then the market went bust. It takes "old school" instinct to not follow the latest trend or bandwagon. It seems like everyone in Miami really got duped off the edge of a cliff. Maybe that's because there are so many young people here.

Not only does Miami lack instinct, (immigrants are so enamored by Miami's glitzy malls and car dealerships, they think capitalsim doesn't involve financial restraint) it is in even greater need of patience. The problem here is not forclosures - yet- it is that people bought way expensive houses that they expected to flip in a year. If half of these people actually lived in these houses instead of owning them strictly as investments in an attempt to rip someone else off in 12 months, Miami and South Florida would not be in the predicament they are in.

Bottom line, I'm happy to be a renter. Let someone else pay the taxes for now.

[tallrick]

Most property "owners" in Miami are not aware that values can drop. They will hold out till the last day and be foreclosed on without lowering their price. They forgot about the 70's, and the 20's with huge drops. Same "paradise" but falling prices. I just want the stupid bubble to burst and save Miami from complete disaster. A hard crash is the only hope for south Florida.

[rogerbacon]

Originally Posted by big mean bear

People would rather have thier house forclosed on then accept a legit offer.

Of course! If you owed 350k on a house worth 200k why on Earth would you "sell" your hosue at 200k and then have to shell out another 150k to the bank? If you get forclosed on you are only out the house (value 200k) instead of being out 350k. Only an idiot would take a 'legit' offer when forclosure is a much more attractive deal. Is your credit rating reall worth 150k?

[doggiebus]

Luiso I have friends that put their home on the market in the end of May, they close in two weeks. I have a neighbor on the next block that has had her house on the market for over a year. My friends that put their home on the market two months ago, are serious to move (they have purchased a new house already) so they priced the house at the price the market today not what it was. The staged their home, fix everything that needed fixing, they had a open house a few hours ever weekend (one day out of the weekend) and they are closing in two weeks, two months on the market. My neighbor on the next block however is still asking 2006 prices (not sure why because she will be making a profit as she has lived here for like 20 years), she obviously is not in any rush to sell. So I really think it comes down to how serious the sellers are.

Originally Posted by Luiso

The House next door to me has been for sale and empty (the owners moved back to CA after trying it for a yr ) for 8 months and price has dropped 50 grand.

Plus the real estate co planted the backyard real nice new fence roof, painted interior ,etc very nice .

There are about 2 houses for sale, rent every block in this community I must say not having neighbors is nice but my dream of selling and moving to diff area is shot for now ESP since the houses here are clones of each other .

[StoneOne]

Originally Posted by rogerbacon

Of course! If you owed 350k on a house worth 200k why on Earth would you "sell" your hosue at 200k and then have to shell out another 150k to the bank? If you get forclosed on you are only out the house (value 200k) instead of being out 350k. Only an idiot would take a 'legit' offer when forclosure is a much more attractive deal. Is your credit rating reall worth 150k?

Agree, although if we're talking about people who are wealthy enough to take the $150K loss and need a solid credit rating for other types of loans, say small business loans, it may very well be worth it to take the legitimate offer. But for most people, I agree, foreclosure is the better deal.

[Bette]

Originally Posted by socrates

The best time to buy is always when the general public thinks its the worst time to buy. The market reacts late and by the time people realize it is time to buy, valuable time has been lost.

You are correct.

[Luiso]

Originally Posted by doggiebus

Luiso I have friends that put their home on the market in the end of May, they close in two weeks. I have a neighbor on the next block that has had her house on the market for over a year. My friends that put their home on the market two months ago, are serious to move (they have purchased a new house already) so they priced the house at the price the market today not what it was. The staged their home, fix everything that needed fixing, they had a open house a few hours ever weekend (one day out of the weekend) and they are closing in two weeks, two months on the market. My neighbor on the next block however is still asking 2006 prices (not sure why because she will be making a profit as she has lived here for like 20 years), she obviously is not in any rush to sell. So I really think it comes down to how serious the sellers are.

Yes I imagine thats the case how eager you are to sell though in my area lots for sale and since the houses are CLONES of each other the cheaper the house the better but comes a point you can go any cheaper .

[Luiso]

Originally Posted by Wild Style

you made that last part up right? LOL *he said Bison*

As for prices, this thing has a LONG way to go. You want to see how all this is going to play out? Lets look at how it all played out last time this stupidity happened link

Be sure to read through each of the NY times posts. You can then see how far prices dropped. It will be worse this time because this is the biggest run up in home prices in U.S. history. This economic downturn is unprecedented. I think many people get that.

lol It does come with 6 bison . I would love to have 6 pet Bison that know me .
This ranch had land for them 1 M 5 F .

[jcblanco22]

I would love to have 6 pet Bison that know me

Realistically, wouldn't we all?

[tallrick]

Let me give you some real world examples:

My parents bought a BRAND NEW 1500 square foot home in 1960 for 15,000.00 Household income was 6,000.00 more or less. Home less than 3x income Today "worth" 350,000...LOL

Friend of parents buys a home east of them 1,800 square feet on 1.25 acres for 17,000.00- the asking price was 25,000.00 Their income was 8,000+- in that year. Home today "valued" at 600,000.00.... really funny!

Another friend of family purchases a home in 1980 near Flmingo park in Miami Beach for 30,000 or so. Tiny home but decent area. Household income- 12,000 or so. Value today? Somewhere around 400-500K. ANother good laugh

Friend three homes from me. Purchased home for 67.000+- in 1994. Income at time, 26,000.00 "valued" today around 400K. His salary today, around 40K.

My home- assessed at 120,000.00 in 2000. Assessed over 500K now. My income, close to 50K. Built for 35K in 1990. No improvements since 1990.

Bottom line, homes today have a long way to go. While foreign money can inflate prices, when the Category 4+ storm wipes a city in Florida they will run for the borders. Don't be a fool, follow the 3X rule!!