Housing Market on LI (short sales, real estate, renting)

[glags11]

Update: So where do we see the LI Housing market going over the next 6-12 months? I feel like home prices are not dropping anymore and if they are, not by much....It's still amazing to me how overpriced homes still are...I guess LI is going to stand up to this national housing adjustment...Thoughts?

[ClarkStreetKid]

There's another wave of mortgage adjustments coming in the fall, we'll see what's up then.

[LongIslandCitizen]

I used to be all about the market going down and I was correct predicting the deflation of the bubble but since I swiped a short sale and became a homeowner...(practically stole it), I am all about the market going back up....go go market!!

btw thanks Obama I didn't vote for you, never will but that check for 8,063.00 was the bomb (63.00 interest)

ps- seriously....thanks for the 4500.00 for the new new car. That 89 Jeep was on it's last legs.

no joke guys...12,563.00 in one week.

[zulu400]

Originally Posted by LongIslandCitizen

I used to be all about the market going down and I was correct predicting the deflation of the bubble but since I swiped a short sale and became a homeowner...(practically stole it), I am all about the market going back up....go go market!!

btw thanks Obama I didn't vote for you, never will but that check for 8,063.00 was the bomb (63.00 interest)

ps- seriously....thanks for the 4500.00 for the new new car. That 89 Jeep was on it's last legs.

no joke guys...12,563.00 in one week.

You have summed up the sentiment well here.... as soon as you get to the other side you want your house to appreciate.... and just a few months back you wanted them to depreciate....
this is quite normal ! Congrats on your new home.

[LongIslandCitizen]

Originally Posted by zulu400

You have summed up the sentiment well here.... as soon as you get to the other side you want your house to appreciate.... and just a few months back you wanted them to depreciate....
this is quite normal ! Congrats on your new home.

Thanks bro. I have been berating the market to death since 2005 and rightfully so. Now of course I want it to recover but the truth is that once the fall season arrives it will continue to slide. That being said I bought my new home for 220,000 less that the former owner paid for it approx 2-3 years ago. A newly built victorian with 4 beds,21/2 bath,Beautiful finished basement with OSE,central air ,gas heat,city sewers,inground sprinklers,new bamboo floors, 2 car garage and backs into a preserve and got a 5% fixed rate. Got it appraised at approx 100,000 over what I paid for it...I don't take appraisals too seriously but it is a bit of a buffer for the declining market and I plan to stay for a long time...the school district is mint in my opinion and so is the neighborhood, my wife said it reminded her of Wysteria lane.

Listen up folks I had to make a move from renting a condo because my family was growing. I waited, watched, and made a move out of necessity.

If you don't have to buy now, wait...real estate is still spiraling and patience pays off.really pays off. Short sales are worth it. My home hardly needed any work. It was basically a new construction.

We saw the house and knew it would be a home. We contacted the sellers agent via my buyers agent after we got a pre approval.

contacted an attorney. put money down.

then you wait. submit papers as they are requested. and never took any potential bumps in the road seriously. Give it time. As the days passed I didn't think about it at all...just returned calls as necessary and stayed abreast through my broker of mortgage rates and when to lock.

there were ups and downs but that goes with the game if you want to play.

took 4 months and it was worth it. Don't settle for sub standard and so called fixer uppers. These sellers that were caught up in the bubble and still expect bubble bucks, bless their hearts but they can pound salt. I have preached over and over to be prudent and stand your ground.

Guess what...I paid just under 4 for it. It was listed for a bit above 450,000. It was everything we were looking for and I didn't compromise for a sub par community. I was told in the past few years that I would have to make concessions on Long Island...guess what...none.

So to all of you waiting to pull the trigger, stand fast. My stance was while I wait I save and while I save the market keeps plunging. In this scenario your buying power gets stronger while your opposition...the seller, gets weaker.

As we say in the Army
HOOAH

[marsui]

I think the housing market in general still has more room to fall. Even if it doesn't and we're at the bottom now I don't foresee a V shaped recovery at all. I think at best the next few years will see a stagnation in prices at this level. This opinion strongly influences all the other comments I'll make.

Even if housing prices go up in the next 4 years the appreciation will have to be enough to cover the downward pressure from rising interest rates. This is why I don't think low interest rates are a real benefit to the buyer unless you're planning on staying in the house for a lot longer than 5 years. In fact they're a detriment to you because they're keeping housing prices propped up. If interest rates were 10% right now houses would be cheaper and you'd have the possibility of refinancing in the future. You won't be refinancing a 5% rate.

[rocafeller05]

LongIslandcitizen Congrats on your home!!!....if you dont mind me asking...where did you buy at?
(PM me if you want)

[zulu400]

Originally Posted by marsui

I think the housing market in general still has more room to fall. Even if it doesn't and we're at the bottom now I don't foresee a V shaped recovery at all. I think at best the next few years will see a stagnation in prices at this level. This opinion strongly influences all the other comments I'll make.

Even if housing prices go up in the next 4 years the appreciation will have to be enough to cover the downward pressure from rising interest rates. This is why I don't think low interest rates are a real benefit to the buyer unless you're planning on staying in the house for a lot longer than 5 years. In fact they're a detriment to you because they're keeping housing prices propped up. If interest rates were 10% right now houses would be cheaper and you'd have the possibility of refinancing in the future. You won't be refinancing a 5% rate.

For people who can afford atleast a 20% downpayment, its better to buy at higher interest rates as the houses are cheaper and you are taking a less loan (means less principal). For people who are putting just 3.5 down or less (FHA or otherwise).... usually they are able to buy when the interest rates are low because they can get easily maxed out by a 2% increase in the rates.

[rocafeller05]

^^Zulu....Who is being allowed to put down 3.5%? Is this a subsidized loan?

[zulu400]

Originally Posted by rocafeller05

^^Zulu....Who is being allowed to put down 3.5%? Is this a subsidized loan?

FHA is just a 3.5 down requirement (even that can be a gift from a family member or friend ). VA, probably even less, not sure.