If home prices are going to fall (foreclosures, credit)

[judithexit]

If home prices are going to fall so much then some tell the rest of America the lower there price too. Back in 2002 milk was 1.99 now its 4.39 gas in 2002 2.90 now 2.95
a loaf of bread 1.50 now 2.99 . So far do you think home price will fall when everything else is on the raise? So lets say it cost 100,000 to build a home. plus the land depends on where you want it. How much do you think a resale price should fall to say on a 3 bedroom house ? Just want to know what everyone thinks .

[BobKovacs]

There's really no correlation between the two, but if anything, the rising prices of everything else is only going to hurt home prices, since it reduces the amount people have available to spend on their homes.

[ottomobeale]

A color TV in 1966 was $800 in 1964 dollars ($5364 now). $167 today and its a far better television. Remember the TV guy coming to put in new tubes every year?

House prices have more to do with incomes, economy, and unemployment. NJ will always be higher than many others due to proximity to NYC... That does not mean it is immune to declining prices. They have been eroding here but not crashing... At least compared to my parents area in Bradenton FL.

[shannybannany]

Originally Posted by ottomobeale

A color TV in 1966 was $800 in 1964 dollars ($5364 now). $167 today and its a far better television. Remember the TV guy coming to put in new tubes every year?

House prices have more to do with incomes, economy, and unemployment. NJ will always be higher than many others due to proximity to NYC... That does not mean it is immune to declining prices. They have been eroding here but not crashing... At least compared to my parents area in Bradenton FL.

Wow, no wonder why we didn't get a color TV til sometime in the 70s.
It was that console type where it was supposed to blend in with the furniture. LOL!

~Shanny

[judithexit]

Originally Posted by BobKovacs

There's really no correlation between the two, but if anything, the rising prices of everything else is only going to hurt home prices, since it reduces the amount people have available to spend on their homes.

I am Just trying understand were people are coming from when they say home prices are going to still drop out.

Originally Posted by ottomobeale

A color TV in 1966 was $800 in 1964 dollars ($5364 now). $167 today and its a far better television. Remember the TV guy coming to put in new tubes every year? You got that right...

House prices have more to do with incomes, economy, and unemployment. NJ will always be higher than many others due to proximity to NYC... That does not mean it is immune to declining prices. They have been eroding here but not crashing... At least compared to my parents area in Bradenton FL.

YOU are so right..... I know this But ,just trying understand a lot of people thinking that home prices still have alot more to drop.
I seen Dondal Trumps report last week on ABC he said that NYC is still Gaining Equity on everything in the City . ITs the city that never sleeps
its the market that has not been touched. Unlike the rest of other states!

[MoorestownResident]

Dramatic tightening of credit, low demand, huge supply on the market + foreclosures = weak prices.

[Calico696]

Originally Posted by shannybannany

Wow, no wonder why we didn't get a color TV til sometime in the 70s.
It was that console type where it was supposed to blend in with the furniture. LOL!

~Shanny

OMG-My parents still have one like that, always have, the one they have now is about 25 years old and doesn't even work right. Mom was telling me she has to just leave it on all the time, because if she shuts it off, she has to bang on it for a while to get the picture to come up. When asked, why not buy a new one, she says...you can't get them like this anymore, all they sell now are the ones that go in entertainment centers ...gotta love the older folks

As far as the housing market goes, I agree with Bob, if people have to spend tons of money on the basics these days, gasoline, milk, bread and cereal, it leaves less to spend on a mortgage.

[fischfan13]

Originally Posted by judithexit

I am Just trying understand were people are coming from when they say home prices are going to still drop out.


!

Lets see...
The Wall Street Journal.
NY TImes
CNN
MSNBC
CNBC
Merrill Lynch
Shall I go on.
NO offense, but you are a realtor...a salesperson. It is your career to tell everyone that everything is rosy. I bet that for the past three years you have been telling clients the same thing that you are preaching now. I bet you that you will go into a persons house and tell them that it is a great time to sell, and on the other hand walk a client into a house and tell that person that it is a great time to buy.
Orders for new homes have fallen for yet another quarter.
The market is dead...period.

[jy_2007]

Shocking that judithexit, as in "exit realty" doesn't think prices will drop. It's quite simple - entry level buyers are priced out of the market. Worse now, with tightening credit, they can't borrow enough to get into this crazy market (which is a GOOD thing). Are you familiar with the food chain analogy? If the source at the bottom of the food chain dies, it affects all the other species in the chain.

Market has to correct itself. It's the only way.

[wileynj]

Originally Posted by fischfan13

Lets see...
The Wall Street Journal.
NY TImes
CNN
MSNBC
CNBC
Merrill Lynch
Shall I go on.
NO offense, but you are a realtor...a salesperson. It is your career to tell everyone that everything is rosy. I bet that for the past three years you have been telling clients the same thing that you are preaching now. I bet you that you will go into a persons house and tell them that it is a great time to sell, and on the other hand walk a client into a house and tell that person that it is a great time to buy.
Orders for new homes have fallen for yet another quarter.
The market is dead...period.

Ahhh..our lovely media! They are the ones who drive the economy... if they tell everyone things are horrible... we all listen and tighten up on our purse strings. If they came out with an article today stating that they economy is on the rise, everyone would start spending again. No one wants to purchase large items at the moment as we are all living in fear that the world is going to end tomorrow..lol.