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Old 12-06-2011, 07:21 PM
 
3,576 posts, read 5,903,599 times
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Quote:
Originally Posted by StealthRabbit View Post
I agree with this ^^^^ You will not be able to time the bottom, so buy when AND ONLY WHAT IS right for you (costs / rates).




I don't predict this will happen to personal realestate, but potentially a significant bump to commercial. Many Folks don't have lots of money, many companies (and dirty banks) are flush with cash and LOTS of it. Personal Real Estate wil PROBABLY climb slowly, but as mentioned the financing costs will likely not be more favorable than now.

I try to ONLY buy 30% BELOW CURRENT market, be it good or bad. You make your money when you buy, not when you sell. Remember it costs a minimum of 10% to sell (even on your own). AND there are many lost opportunity costs to buying wrong realestate investments. (Way too capital intensive to be considered 'flexible'. )
You won't get anything 30% market value.

Mainly because in distressed sales its the banks determining the short sale or foreclosure prices.

Many markets the distressed sales are the comps and you won't get much below the going distressed sales.

The only times I ever see a home significantly underpriced its because there is something structurally wrong , mold etc or when there has been significant damaged done by the previous homeowners.

So go ahead and buy those homes at 30% below value and be ready for swear equity labor.
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Old 12-06-2011, 07:25 PM
 
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I live in Florida. I see the bottom for homes less than $200k already happening.

However homes over $500k are still experiencing tremendous pressure because of

1. Move up buyers have very little equity
2. Loans required significant downpayments
3. FHA not an option (goes hand in hand with number 2)
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Old 12-07-2011, 03:40 PM
 
Location: Lexington, SC
4,281 posts, read 10,286,407 times
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The markets I am most familiar with are Charleston and Columbia SC. I believe that overall sales prices have bottomed out.

In a recent discussion with a new homes developer he said:

1. They do not have to lower/discount/drop prices as they have been for the last few years.

2. While the amount of interested buyers they are seeing is lower then a few years ago, the amount of buyers they are seeing is up during the last 6 months.

3. His main problem is lenders have gotten tighter and many interested buyers are being turned down for mortgages.

He says the good news (buyers and no longer having to lower prices) is offset by the bad news of less buyers being approved for mortgages.

My daughter has a home for sale in the greater Boston area and she agrees with what I see here in SC.

Last edited by accufitgolf; 12-07-2011 at 05:06 PM..
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Old 12-07-2011, 04:59 PM
 
1,678 posts, read 3,081,920 times
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Default Increased Sales

We're looking for a condo in Seattle and are headed there tomorrow to meet with the realtor for the second time. The mortgage lender sent this to me this morning.
Home Sales Increase Across the Country
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Old 12-07-2011, 05:09 PM
 
Location: Lexington, SC
4,281 posts, read 10,286,407 times
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Quote:
Originally Posted by Chilkoot View Post
We're looking for a condo in Seattle and are headed there tomorrow to meet with the realtor for the second time. The mortgage lender sent this to me this morning.
Home Sales Increase Across the Country
While I do not dispute the report....talk about an organization whose best interest is pumping sunshine up ones butt......LOL
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Old 12-07-2011, 05:25 PM
 
1,678 posts, read 3,081,920 times
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Quote:
Originally Posted by accufitgolf View Post
While I do not dispute the report....talk about an organization whose best interest is pumping sunshine up ones butt......LOL
Yes, always a good idea to consider the source. Interesting info nonetheless.
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Old 12-07-2011, 07:01 PM
 
Location: Florida -
8,238 posts, read 9,994,274 times
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Default The 'bottom' is an illusion.

The fact that housing prices are almost universally lower now than they have been over the past 2-3 years is indisputable. Likewise, prices in some markets are better/worse than in other markets.

Are prices as low as they are going? -- Depends on who you ask (and the market) -- A number of 'expert real estate professionals' have regularly proclaiming that the market is at its absolute bottom ... for the past 3-years. But, whether the market has hit bottom or not, is also somewhat irrelevant to the individual home buyer. It's like the job 'market'; 9% unemployment is a scarey number, but, how many jobs does one individual need (one or 9% of all the available jobs). .. or like a 200-300 point drop/increase in the stock market ... vs the underlying financial basics of 1-2 stocks.

In my opinion, people are far too often looking for a popular consensus before making a decision. Yet, each must live with their own choices ... not the opinions of "the majority". Unless there is another crazy 30-40% price bubble on the horizon, we've likely weathered the 'brunt' of the storm. The real question now for a 5-year+ buyer is, does the deal make sense today and is the property one you can afford and live with for the forseeable future? Too much 'analysis paralysis' merely consumes great gobs of energy with no productive return.
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Old 12-07-2011, 11:50 PM
 
4,472 posts, read 5,126,862 times
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Quote:
Originally Posted by jghorton View Post
The fact that housing prices are almost universally lower now than they have been over the past 2-3 years is indisputable. Likewise, prices in some markets are better/worse than in other markets.

Are prices as low as they are going? -- Depends on who you ask (and the market) -- A number of 'expert real estate professionals' have regularly proclaiming that the market is at its absolute bottom ... for the past 3-years. But, whether the market has hit bottom or not, is also somewhat irrelevant to the individual home buyer. It's like the job 'market'; 9% unemployment is a scarey number, but, how many jobs does one individual need (one or 9% of all the available jobs). .. or like a 200-300 point drop/increase in the stock market ... vs the underlying financial basics of 1-2 stocks.

In my opinion, people are far too often looking for a popular consensus before making a decision. Yet, each must live with their own choices ... not the opinions of "the majority". Unless there is another crazy 30-40% price bubble on the horizon, we've likely weathered the 'brunt' of the storm. The real question now for a 5-year+ buyer is, does the deal make sense today and is the property one you can afford and live with for the forseeable future? Too much 'analysis paralysis' merely consumes great gobs of energy with no productive return.
I would rather be stuck over analysing than stuck in a property I cant sell and if I walk out on it the banks will slap me with a deficency judgement. There needs to be some refomes in the laws if anything is to improve, the banks created the bubble they need to eat the losses not the poor guy that just had half his equity stolen from him becuase banks were irresponsible in their lending.

We have debtors prisons and deficincy judgements in this nation now, les and less people are going to participate in the economy in a meaningful way because there is no safety net. The govt has brought down an iron fist in all the most critical areas of our lives, mortgage (deficincy judgements), student loans (dept of education has a SWAT team and student loans are not dischargeable in bankrupcy), having kids (CSED who is disproportionaly more ruthless to men than women)

They have hammered every aspect of the american dream and removed ALL safety nets short of litterally starving to death, because if you starve they cant choke any more money out of you.

This nation is litteraly on its last leg. We as americans live as a pack of rabid wolves just barely functioning as a pack, or as a brood of vipers.
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Old 12-08-2011, 05:57 AM
 
Location: Michigan
4,571 posts, read 6,738,980 times
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House Prices Are Finally Nearing A Bottom

I think I'd agree that the bottom is sometime soon. Well...at least for my area (Metro Detroit).

So far in my area, estimates have leveled out and prices haven't changed a whole lot. What I'm seeing a lot of though, are people renting houses and waiting to see what happens. Or people buying houses and then renting them out. I can see why people doing it if they plan on living here in the short-term, but I'm seeing more people who are getting jobs in the area and are looking to rent homes. Some people have said that they'll rent to get used to the area and then buy...I mean, I guess that's okay, just my not particular style. I'd just hope people know that in the long-term that renting probably wouldn't be the wisest choice.

Also, the homes in this area are incredibly cheap. New construction homes that were going for $300K are now listed at $180K. It sucks for the previous owners, but for people looking to buy a new house with a not so high mortgage (I think that's what was mentioned in the video), you'd think that those houses would be sold already. In reality, the particular house that I've been checking every so often has been listed for sale since August.

If prices still go down, I can't imagine people losing as much money as they did in 2008. Then the house would be for sale for like...$2,000. So there are definitely some deals to be had if you know what you're looking for.
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Old 12-08-2011, 11:20 AM
 
4,472 posts, read 5,126,862 times
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Quote:
Originally Posted by animatedmartian View Post
House Prices Are Finally Nearing A Bottom

I think I'd agree that the bottom is sometime soon. Well...at least for my area (Metro Detroit).

So far in my area, estimates have leveled out and prices haven't changed a whole lot. What I'm seeing a lot of though, are people renting houses and waiting to see what happens. Or people buying houses and then renting them out. I can see why people doing it if they plan on living here in the short-term, but I'm seeing more people who are getting jobs in the area and are looking to rent homes. Some people have said that they'll rent to get used to the area and then buy...I mean, I guess that's okay, just my not particular style. I'd just hope people know that in the long-term that renting probably wouldn't be the wisest choice.

Also, the homes in this area are incredibly cheap. New construction homes that were going for $300K are now listed at $180K. It sucks for the previous owners, but for people looking to buy a new house with a not so high mortgage (I think that's what was mentioned in the video), you'd think that those houses would be sold already. In reality, the particular house that I've been checking every so often has been listed for sale since August.

If prices still go down, I can't imagine people losing as much money as they did in 2008. Then the house would be for sale for like...$2,000. So there are definitely some deals to be had if you know what you're looking for.
I think there are quite a few people who will never buy again, once you loose your shirt and are facing a deficincy judgement from a bank that would kind of leave a sour taste in your mouth or if you had to write a check for tens of thousands of dollars to sell. Not sure thoes people are going to jump in the saddle again, either that or they will make REALLY low ball offers to try to recoup their losses. People can only afford to take so many hundred thousand dollar hits in their life time. If there was no fear of deficincy judgements then people might be more inclined to participate in the economy but as it is now in most states banks are not held accountable for their back door theft of peoples equity.
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