Price of new homes going up! (house, rent, income)

[Grass Is Greener]

Originally Posted by shannon94

Finally!! Someone with a brain!! lol There has already been a huge jump in foreclosures! I'm from San Diego and I looked up a suburb called Santee....out of 300 and something homes there were like 200 and something homes in some kind of foreclosure status. When are people going to wake up?!! Not only will there be more and more houses on the market but alot of those real estate industry jobs are going to dry up too. There goes the unemployment rate!! When people say they have been hearing for 10 years that it's gong to burst and it hasn't ...so it won't....??? No it will......it's just going to be worse the longer it takes!! Maybe they will come up with a "lifetime loan"!! LOL

Well let's not confuse "bubble burst" with "market corrections". As I said, there are markets where homes are extremely overvalued, and the price will come down to more reasonable levels. But I don't think it's going to be this apocalypse that you predicted. California might have the biggest drop, since the homes there are ridiculously overpriced.

And also I didn't say that the "bubble" won't burst just because it hasn't in the past few years. My crystal ball is out for repair But in any case, as I said, if you want to wait, go for it. I personally don't see my house as a stock ticket. It's a place where I enjoy living. But everyone is different..

[TBLTZ]

Originally Posted by Weis02

thats nothing, 1 studio apt in NYC in a decent area is probably over $2k a month -

Yes and you can't even control your own heat. Plus you have to pay for utitlies.

[Weis02]

Originally Posted by TBLTZ

Yes and you can't even control your own heat. Plus you have to pay for utitlies.

I think many are lucky in the winter to have heat (LOL)

[Weis02]

I personally don't see my house as a stock ticket. It's a place where I enjoy living. But everyone is different..[/quote]

While no one wants the value of their home to decrease, I am with you, I bought a house to live in and enjoy and the fact that they appreciated so much just was something that happened....If you buy any home and stay there for 20-30 years, it will go up anyway - a house in and of itself is an investment but too many are trying to make a lot in a little time and these are not stocks.

[mmdj43]

Originally Posted by TBLTZ

When is the right time to buy then? Will charlotte new construction keep going up or will it come down?

When we bought our new home in Charlotte back in April, we had to lock in right away because the prices were going up 10k. If the demand is there, and costs are on the rise (ie., materials, etc.) then expect the prices of homes to go up as well. Now, certain counties are placing high costs to builders to help with the overcrowding of the schools/communities. So I'm sure that the builders will then carry the cost down to the buyers.

[RedNC]

I have read what the so called experts are saying.

I’m curious what are you predicting the price correction will be?

Take a market area and list your prediction.

[Weis02]

Originally Posted by RedNC

I have read what the so called experts are saying.

I’m curious what are you predicting the price correction will be?

Take a market area and list your prediction.

My prediction for the LI, NY area the prices will continue to fall another 3-5% over the next 6 mos to a yr and then stablize with 2-3 % increases

I think the interest rates will play a role in what happens too after the corrections are done.

Prices need to be set more realistically and at market value, if prices are continually set too high and then decreased, buyers will still wait for a deal...

[mmdj43]

Originally Posted by RedNC

The media have been talking about a RE bubble bursting for several years. About two years ago a friend decided to sell and buy a bigger house. When he sold his neighbor was convinced that the bubble was about to burst so he sold his house and decided to rent and wait. The house sold for just around $400k and my friend bought a bigger house for $550k. Now my friend’s house is worth about $950k and his old house is around $650k. His brilliant neighbor who is still waiting for the bubble to burst has lost about $250k in appreciation and he is still renting.

The last real estate “bubble” where houses lost value was in the early to mid 90’s. In Orange County, CA it was about a 21% loss. This was due to a recession and the loss of several hundred thousand high paying aerospace jobs. It’s not likely that another recession like that is going to happen anytime soon. If it did and houses lost 21% then if you had purchased two years ago you would still be ahead. Of course if you bought now and prices dropped then you would be upside down until the house appreciated again.

If you are banking on adjustable loans being the killer of the RE market I wouldn’t bank on it. There have always been adjustable loans, but I can’t remember them ever being the reason for a housing crash. The fed raised rates all through out the late 90’s, but that didn’t kill the RE market in fact it enjoyed record appreciation. Even through out the 2000 recession RE appreciated.

I do think we are in for an adjustment, but I doubt it will be anything more than no appreciation for this year and modest 2-3% a year for a couple of years.

If you are waiting for homeowners to give their houses away because of a slow market you are in for a long wait.

I couldn't agree with you more. My brother went to an open house about 2 years ago looking at a house on my block. It was on the market for about 550k. Well, my brother told the agent that he was waiting for the bubble to burst so that he can buy it for 350k. Well, needless to say that the agent got the last laugh because that house is still worth between 500k-550k...and this is on Long Island, NY where the market is taking a little slide.

Sellers are not looking to give their homes away, but they have seen buyers submitted very lowball offers thinking that the sellers are anxious to sell.

[Weis02]

Originally Posted by mmdj43

I couldn't agree with you more. My brother went to an open house about 2 years ago looking at a house on my block. It was on the market for about 550k. Well, my brother told the agent that he was waiting for the bubble to burst so that he can buy it for 350k. Well, needless to say that the agent got the last laugh because that house is still worth between 500k-550k...and this is on Long Island, NY where the market is taking a little slide.

Sellers are not looking to give their homes away, but they have seen buyers submitted very lowball offers thinking that the sellers are anxious to sell.

There is a game going on here now, and yes some people will give their house away just to get out and others will play the waiting game..While houses are dipping, they are only going to lose so much and if you purchased your home in the past 5-10 yrs, and did not take out equity, you are still ahead.

[Grass Is Greener]

Originally Posted by RedNC

I have read what the so called experts are saying.

I’m curious what are you predicting the price correction will be?

Take a market area and list your prediction.

I think San Diego is one of the most critical ones. Most people buying there are locals moving up using their profits on their existing homes. This is not self-sustainable in the long term, and for a lot of people is somewhat of a trap. They now find themselves in a very expensive home in a very expensive area that they couldn't afford in first place. Prices will have to come down but it will remain a high cost real state market no matter what.