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my bad...i shouldnt predicting what years...but my intention was to convey it would be a very very very very long time before housing market recover. some predicted it would recover in 2010-2012, but that is being very optmistic. i dont think the media has cover the full scale of what is going on in the housing market.
If I got an ARM, bought a boat and pulled out equity to buy other properties I need to sell my house now? Only people with fixed rate mortgages don't have to sell their homes?
I don't understand, please explain?
Can I borrow your crystal ball?
im trying to say all those sellers who bought back during the housing booms were told by real estate brokers aka mortgage brokers aka low life that they can get ARM rates cuz their house prices will always increase and dont worry about it that they will make lotsa $$$ when they sell it in a couple of years, then u have other sellers who took out home equity or refinance so they can buy an suv/boat/hummer to keep up with the joneses, then u have flippers, etc. THOSE sellers will have to sell or face foreclosures either walk cuz they can't afford their houses right now. those are the sellers im talking about...and there are lotsa of them in cali, florida, and midwest. those will have effect on the common folks who have 30 yrs fixed, didnt take any home equity to buy a boat, etc. this housing bubble will affect everyone.
This is an article from today's NYT, but it explains a lot of what I see in our market. As a buyer whose been kicking tires for several months, the same houses are sitting, sitting sitting. There is a lot of activity at open houses, but still few places get sold.
Homes get pulled from the market and relisted. Top shape homes that are priced well move fast, but that is only choice homes that are priced aggressively compared to others.
There was one place that has been on the market for months and months - we loved it, even though it needed a lot of work. The owners paid cash for their new place. They want to double their money from what they paid 6 years ago and refuse to budge on price.
I can more understand people that bought recently and are trying, sometimes desperately to get their money back, but when you've been in the house years - where does this "price" that you're sticking to come from? Is it because they have all added up their cruises and RV's and everything else with the money they thought their house was worth?
I certainly see this in action where we are..... We have been house-hunting for over a year and in the last six months we narrowed our choices down....
We recently went for getting a new house built in a new subdivision because it was less expensive than these older houses we were looking at.
We've been under contract for about two months now but out of curiousity I drove around looking at the 6 or 7 houses that caught our interest before... NOT ONE has sold and NONE of them have dropped in price.
Simply put very FEW buyers are going to go for an older house that is more expensive over a less-expensive brand new house....
If they don't NEED to sell then fine, but I can also guarantee that they WON'T sell....
im trying to say all those sellers who bought back during the housing booms were told by real estate brokers aka mortgage brokers aka low life that they can get ARM rates cuz their house prices will always increase and dont worry about it that they will make lotsa $$$ when they sell it in a couple of years, then u have other sellers who took out home equity or refinance so they can buy an suv/boat/hummer to keep up with the joneses, then u have flippers, etc. THOSE sellers will have to sell or face foreclosures either walk cuz they can't afford their houses right now. those are the sellers im talking about...and there are lotsa of them in cali, florida, and midwest. those will have effect on the common folks who have 30 yrs fixed, didnt take any home equity to buy a boat, etc. this housing bubble will affect everyone.
So what you are saying is if someone has an ARM they will have to sell or if someone took out a HELOC they will have to sell.
Once again you are wrong on so many levels.
Also just so you know, AKA means, also known as, so when you say "real estate brokers aka mortgage brokers" you are making no sense at all.
Part of the problem that I see is that the media acts, as one wise real estate economist said, as if "The United States is made up of five states - and we're not one of them." However, the buyers EVERYWHERE read the papers and think that they've got the sellers on the ropes and they can demand to be sold a house, any house, for less than it's worth and the sellers will simply have to roll over and play dead. And those same buyers get outraged when a seller of a house that they have the RIGHT to buy for what they want to pay doesn't do that, because the paper SAID they would have to.
On the other hand, many sellers (note I didn't say "most") do not have to sell, and in many areas there is NOT a buyer's market and the sellers can look at the figures provided by their agent in terms of average days on market and inventory and know that they're not in a buyer's market, and they don't have to sell their home for less than it's worth.
And we end up with stalemate, as a result.
We just had a contract with a couple from TX who were like this (a navy commander and his wife). They made an offer about 10% under our asking price. We countered. We worked through the contingencies - ended up offering them 10% or so off the asking price and ~ $2500. We thought it was a done deal. They're living at the Navy lodge, and apparently it sucks, so they're rushing closing.
2 days before closing they tell us they want a $30K reduction in the price. We start screaming "but we have a contract!", etc. Nope. Turns out it was a ploy all along.
We don't have to move. Unfortunately, because of their scam I've already kicked my tenant out of my beach house. So, I tell them, "Hey - No hard feelings. If you're really tired of the Navy lodge I'll rent my beach house out to you while you make up your minds". Didn't go over too well
You really REALLY need to watch out for folks like these. They think they can just roll over you because you "have" to sell. They'll also do nearly ANYTHING to get you to roll over. Including vandalism.
So what you are saying is if someone has an ARM they will have to sell or if someone took out a HELOC they will have to sell.
yes if they can't afford it...tell me mr.real estate. why would someone take ARM/HELOC rate when 30 yrs or 15 yrs were just as low? was it because they didn't qualify in the first place and u have these real estate brokers that work with mortgage brokers aka low life that came up with a scheme aka sub prime loans which has driven up home prices to record high during the housing boom? most who took out ARM/HELOC didnt even put any down payment, bad credit, etc. what make u think they dont have to sell their houses now...mr. real estate who is living in florida?
They made an offer about 10% under our asking price. We countered. We worked through the contingencies - ended up offering them 10% or so off the asking price and ~ $2500. We thought it was a done deal. They're living at the Navy lodge, and apparently it sucks, so they're rushing closing.
2 days before closing they tell us they want a $30K reduction in the price. We start screaming "but we have a contract!", etc. Nope. Turns out it was a ploy all along.
I don't think it is fair to compare legitimate buyers who are going to negotiate for the best possible price with scheisters who pull last-minute shenanigans that go against the contract they agreed to.
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