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Old 02-02-2009, 09:07 AM
 
945 posts, read 1,730,755 times
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Quote:
Originally Posted by NatasNJ View Post
Sure there is affordable housing in Michigan and Texas and several other states. No argument there. But there are several states (NJ/CA/FL/NV/AZ/+++) that had way above normal increases in housing values that caused a price out of 1st time buyers, etc....
When house prices went up 100% - 200% over a 5 year stretch there is something out of line there. Some states that had those price jumps are correcting themselves quickly like AZ/CA/FL/NV. NJ and several NorthEast states have started to drop in price but not like the West Coast states with dramtic price drops. But prices are starting to drop here regardless of people saying they aren't. Just look at the listings and the prices are dropping. And with fewer sales and more foreclosures coming it will eventually gain some steam and correct itself.

There are people on both extremes on this board. But prices in many area (I speak primarily about NJ area) are still due for a major correction.
Agree, and have never argued this. In fact, have stated many times, that it is "rediculous" to compare these states to the rest of the nation and generalize that the RE market will be affected the same everywhere. I have mentioned these in my arguements, calling them the "famous 5" at times, asking all to consider that the rest of the nation did not experience this kind of market, ever, and should not be expected of the same in it's downfall.
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Old 02-02-2009, 09:23 AM
 
1,340 posts, read 3,218,907 times
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Quote:
Originally Posted by fairmarketvalue View Post
Agree, and have never argued this. In fact, have stated many times, that it is "rediculous" to compare these states to the rest of the nation and generalize that the RE market will be affected the same everywhere. I have mentioned these in my arguements, calling them the "famous 5" at times, asking all to consider that the rest of the nation did not experience this kind of market, ever, and should not be expected of the same in it's downfall.
Well there are some that even argue NJ as not part of any bubble since it did not have wild new construction loans as part of its rise in prices.
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Old 02-02-2009, 09:28 AM
 
Location: Central Texas
19,750 posts, read 36,159,339 times
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If something is "pretty cheap for X area", chances are good that it will have some issues and need some work - that's WHY it's cheap. This is a fact of life that a lot of folks are forgetting and thinking not only that a home should be affordable for a first time home buyer, but that it should be not a starter home but a second or third or fourth-time home buyer home for starter home prices. That's where a lot of the indignity comes in, I think, that they can't get the home that their parents worked up to over years right off the bat first time out of the box. It's a sense of entitlement that extends to a lot more than the housing market, in my observation.
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Old 02-02-2009, 09:41 AM
 
1,340 posts, read 3,218,907 times
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Quote:
Originally Posted by TexasHorseLady View Post
If something is "pretty cheap for X area", chances are good that it will have some issues and need some work - that's WHY it's cheap. This is a fact of life that a lot of folks are forgetting and thinking not only that a home should be affordable for a first time home buyer, but that it should be not a starter home but a second or third or fourth-time home buyer home for starter home prices. That's where a lot of the indignity comes in, I think, that they can't get the home that their parents worked up to over years right off the bat first time out of the box. It's a sense of entitlement that extends to a lot more than the housing market, in my observation.

I am really only arguing prices because of the insane increase from 2000-2006. 20%+ year over year increases on property is out of whack.
And when you compare rent to own ratios they are not inline where they should be. Has nothing to do with someone expecting a mansion on a 20k salary. It is there are no houses to own anymore even with a 50k salary.
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Old 02-02-2009, 09:43 AM
 
Location: Central Texas
19,750 posts, read 36,159,339 times
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I was speaking generally, from personal observation here and elsewhere, NatasNJ. A LOT of the people who are insisting that housing is still priced too high, when you ask them and it gets down to brass tacks, think that they should be able to buy a McMansion with all the bells and whistles for the price of a starter home rather than buying the starter home that they CAN afford, and if that's not the case, then housing prices are too high. Mostly, when I see them personally, these are the folks who've come here to Texas from out of state expecting us to be in the same mess as the place they came from and not being able to see that, no, we didn't do what they did there and thus aren't in the same mess. On here, it's more across the board, so to speak.
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Old 02-02-2009, 09:45 AM
 
945 posts, read 1,730,755 times
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Quote:
Originally Posted by TexasHorseLady View Post
If something is "pretty cheap for X area", chances are good that it will have some issues and need some work - that's WHY it's cheap. This is a fact of life that a lot of folks are forgetting and thinking not only that a home should be affordable for a first time home buyer, but that it should be not a starter home but a second or third or fourth-time home buyer home for starter home prices. That's where a lot of the indignity comes in, I think, that they can't get the home that their parents worked up to over years right off the bat first time out of the box. It's a sense of entitlement that extends to a lot more than the housing market, in my observation.
100% correct! Thank you. And this seems to be the misunderstanding and expectations of most negetive, data linking, chart graphing complainers on this forum. The bar was raised, way too high, in what one expects to get for practically nothing. And the foreclosure, misfortune of others that allows them to still "dive in" at these unrealistic prices just keeps them thinking that all housing of fancy proportions should be available to the first time, lower income buyer. And they accuse me of "not getting it?"
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Old 02-02-2009, 10:21 AM
 
Location: Halfway between Number 4 Privet Drive and Forks, WA
1,516 posts, read 4,112,549 times
Reputation: 650
Quote:
If something is "pretty cheap for X area", chances are good that it will have some issues and need some work - that's WHY it's cheap. This is a fact of life that a lot of folks are forgetting and thinking not only that a home should be affordable for a first time home buyer, but that it should be not a starter home but a second or third or fourth-time home buyer home for starter home prices. That's where a lot of the indignity comes in, I think, that they can't get the home that their parents worked up to over years right off the bat first time out of the box. It's a sense of entitlement that extends to a lot more than the housing market, in my observation.
You got that right.

Quote:
Originally Posted by TexasHorseLady View Post
I was speaking generally, from personal observation here and elsewhere, NatasNJ. A LOT of the people who are insisting that housing is still priced too high, when you ask them and it gets down to brass tacks, think that they should be able to buy a McMansion with all the bells and whistles for the price of a starter home rather than buying the starter home that they CAN afford, and if that's not the case, then housing prices are too high. Mostly, when I see them personally, these are the folks who've come here to Texas from out of state expecting us to be in the same mess as the place they came from and not being able to see that, no, we didn't do what they did there and thus aren't in the same mess. On here, it's more across the board, so to speak.
YES, YES, YES

(Thank you THL, tried to rep you but couldn't)
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Old 02-02-2009, 10:21 AM
 
3,490 posts, read 7,181,955 times
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Quote:
Originally Posted by fairmarketvalue View Post
100% correct! Thank you. And this seems to be the misunderstanding and expectations of most negetive, data linking, chart graphing complainers on this forum. The bar was raised, way too high, in what one expects to get for practically nothing. And the foreclosure, misfortune of others that allows them to still "dive in" at these unrealistic prices just keeps them thinking that all housing of fancy proportions should be available to the first time, lower income buyer. And they accuse me of "not getting it?"

Actually I don't think anyone here has said this, or indicated that they think this.
There are a lot of unrealistic sellers out there. A LOT. We saw a house last week that we really like. They have made no improvements to the house since they moved in, but think it has increased in value by almost $200,000 (20%) since 2006. We made an offer close (but slightly below) what they paid in 2006, and didn't even get a counter. The agent said, 'but that's close to what they paid'. I asked her how they felt they could justify a 200,000 increase in a totally stagnant market. She had no answer. She's one of the top agents in town.

The other house we like has been at the same price for the past 7 months now. They are the kind of people who will be offended by what you would call a 'low ball', and I would call a 'realistic offer'. So we wait, and hope that they reduce the price on their own eventually. They don't even live in the house any more. Haven't for a couple of months. Yet the price stays the same. It's just bizarre.

I am seeing a lot of this all over my area. We're at stalemate. Sellers won't reduce their prices, and buyers won't buy. Someone is going to have to give in at some point, and my guess is that it will be the sellers. We'll see - only time will tell.
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Old 02-02-2009, 10:34 AM
 
Location: Central Texas
19,750 posts, read 36,159,339 times
Reputation: 20825
Hoboken, what comps do you, and they, have to support your relative prices? What you, or they, individually think the house is worth is meaningless unless supported by sold comps. That's what will tell the true story.
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Old 02-02-2009, 10:42 AM
 
121 posts, read 352,395 times
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Quote:
Originally Posted by Hobokenkitchen View Post
They are the kind of people who will be offended by what you would call a 'low ball', and I would call a 'realistic offer'.
How on earth could you possible know this? Do you know the sellers?
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