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Old 04-13-2008, 02:30 AM
 
6 posts, read 7,357 times
Reputation: 10

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Quote:
Originally Posted by SLCPUNK View Post
The US, including Utah (no matter what others may say) is going through a credit/RE bubble. Right now we are are around the peak or ARMS resetting, which means we still have another 2-3 years left of these stinky subprime loans outstanding. We have record foreclosures right now, new home builders with excess inventory that can sell cheaper than resells per sq ft, and sellers desperate to unload before their rate resets. To top it all off the liquidity has all but dried up. This has significantly decreased the prospective buyers out of the market (no more 100% loans.)
I do accept your point that the credit crunch is indiscriminate and will hit Utah as hard as it will hit Florida. However, from research I've been doing, it doesn't look like foreclosures are hitting Salt Lake as badly as the rest of the country?

Utah Foreclosures Rates Far Below National Average BlueRoof Blog- BlueRoof360- Real Estate, Realtor Websites
Quote:
Originally Posted by SLCPUNK View Post
This is driving prices downward, and will continue to do so for some time. I do not agree with those who say "Now is a good time to buy." Quite the contrary, I think now is a horrible time to buy. We are nowhere near a bottom, and even when we do hit it (2-5 yrs, my guess) it will flatline, not zoom back up. (If an item is overvalued by about 25-30%, and you are able to obtain it for 10 % less than the year prior, you are still paying to much for it, while it simultaneously depreciates in value.)

If you are buying a home that you know you will live in for a long time, then perhaps negative equity is something you should not be concerned about. But if you are not sure, I'd recommend renting for a couple of years, finding out the area you like, then buy after the surplus of homes has cleared out (and they will move, it will just be an ugly process.)
Are prices in Salt Lake actually on the decline though? I've been talking to some Salt Lake folks, and they seemed to indicate that prices are still on the rise there.

Do you not see any value at all in Salt Lake? For example, I'm looking for a condo/small house close to downtown. I can see plenty on the market at around the $100,000 mark. If you were to rent a similar place, the rent would seem to cover paying a mortgage.
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Old 04-17-2008, 01:39 PM
 
Location: Imaginary Figment
11,356 posts, read 7,972,546 times
Reputation: 4591
Quote:
Originally Posted by NewToSLC View Post
I do accept your point that the credit crunch is indiscriminate and will hit Utah as hard as it will hit Florida. However, from research I've been doing, it doesn't look like foreclosures are hitting Salt Lake as badly as the rest of the country?
Time will tell, and we've got plenty of time to find out. Right now, in my opinion, houses are still overpriced and out of whack with fundamentals (house hold income vs what you can afford.) It's why so many people resorted to these stinky subprimes in the first place-they could not afford it otherwise.

Quote:
Originally Posted by NewToSLC View Post

Are prices in Salt Lake actually on the decline though? I've been talking to some Salt Lake folks, and they seemed to indicate that prices are still on the rise there.
I listen to economists, not mortgage brokers or realtor blogs. From what I gather, housing is due for a correction in Utah, just like everywhere else. People can price their homes anyway they would like, but that does not mean the value is higher. It just means they are asking more. Furthermore, a house can appraise at 300k, but only sell for 260 in this market. Which means the true value of the home is 260.

Quote:
Originally Posted by NewToSLC View Post
Do you not see any value at all in Salt Lake? For example, I'm looking for a condo/small house close to downtown. I can see plenty on the market at around the $100,000 mark. If you were to rent a similar place, the rent would seem to cover paying a mortgage.
A home is worth what you are willing to pay for it. It is not an investment, it is a liability. The goal is ownership, creating equity, and finally having a a true asset. If you buy now, you run the risk of being upside down on that home for a few years. This is irrelevant if you don't plan on moving anytime soon. You must weigh in HOA, maintenance of the home, and insurance when comparing it to a rental price.

Personally I would rent and let prices fall/stablize, then buy. But that's just me. Prices certainly aren't going to go back up anytime soon, and not at that pace. Only you can decide what is best for you. If the numbers are good, then go for it. But they numbers could be even better in a couple more years.

Last edited by SLCPUNK; 04-17-2008 at 01:47 PM..
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Old 04-18-2008, 02:48 PM
 
Location: Outside Newcastle
281 posts, read 795,358 times
Reputation: 96
I agree with SLC. Keep that money you have and wait. What cash lenders have now is being guarded closely. I think even the largest mortgage outfits have been lending money out so easily for so long many of them don't even know how to do it the way it was before. That being a credit score of 700 or better, 10-20% down, income you can prove and having the disposable income after expenses to make the payment. In other words even lenders don't know what to do. I also agree that we haven't seen the end of this by a long shot. Couple that with gas prices and $300-400 billion a month for the war and we've got problems. I get a comfortable little apartment, sign a 6 month lease and sit it out.
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Old 04-23-2008, 01:45 AM
 
5 posts, read 5,732 times
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I disagree. I think that now is a great time to buy. I feel people are mostly reactionary and everything will workout in the near future 1-2 yrs. Right now the people that need to sell because they could not afford the house to begin with are selling short.

The bigger question is: Do you want to live in SLC for more than 2-3 yrs?
If the answer is no, don't buy. If the answer is yes then consider it. Really if your employer is not offering a home ownership incentive, or will not relo you when you move out of SLC then you should have a minimum of a 2-3 yr time horizon on staying in SLC to buy.
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Old 04-23-2008, 08:16 AM
 
Location: Slc
55 posts, read 156,250 times
Reputation: 23
Default Buy now

I agree with toyduck!! Buy now, home prices are not going to get any lower and if they do it won't be much. If anything due to the time of year they will stabalize or go up a little.
There are still good loan options right now. It really just depends on what price range your looking in. If you look in the $200,000 range, because what you've said is basically that you have 10% down, Wells Fargo is offering good loans if your credit is at least 700 and you have 10% down. They also have a few more really good offers like that too. I just did some research on this because I work in the bussiness. There's plenty of good deals, I have been looking. Let me know if you have anymore questions.
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Old 04-25-2008, 05:16 PM
 
Location: Imaginary Figment
11,356 posts, read 7,972,546 times
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Quote:
Originally Posted by snowstorm View Post
I agree with toyduck!! Buy now, home prices are not going to get any lower and if they do it won't be much. If anything due to the time of year they will stabalize or go up a little.
Absolute non sense.

All data points to prices going down, not up anytime soon.

No way in hell are they going to start heading back up either. Not for a LONG TIME.
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Old 04-27-2008, 06:22 PM
 
74 posts, read 134,522 times
Reputation: 47
Default If you can afford the payments

Quote:
Originally Posted by SLCPUNK View Post
Absolute non sense.

All data points to prices going down, not up anytime soon.

No way in hell are they going to start heading back up either. Not for a LONG TIME.

You have to live somewhere. One day I want to be able to say I am financing a house and building equity instead of renting. The NAR has got it right when they say I am on a fence. I just don't want to be suckered into a payment plan that I can get in on at a lower price tier if I wait a few more years. Unless money stays cheap to borrow because commerce dries up, I think the market will force interest rates up on home loans in the years to come. In that time, I will save up for a bigger down payment and maybe house prices to come down another 10% or more. I am in no hurry to take on another obstacle course trial of running a house and the cost overheads of maintenance,etc.
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