Are house prices really dropping? (foreclose, renting, crime rate)

[doubbltunman]

My sister bought a nice house in Annapolis, Md in Aug. of 2007, the house sat for over a year, and the builder had to unload. The starting price was over $900k when it first went on the market, and was at $780k when she started to negotiate in Feb. of '07. She finally "stole" it for $680k!! The house across the street that doesn't have half of the upgrades she's got, nor a finished basement sold for $760k last month!!! I suggest to anyone renting-keep on renting and if your really ready, hammer them all the way down as far as you can get! Lay your final offer on the table and walk away, trust me the phone will ring with a disappointed voice on the other end accepting your steal!! A even better scenario is that everyone not ready to buy hold off, the more houses sitting, the more they will depreciate, and the better the bottom will be. I almost feel sorry for anyone who has bought a home in the last 3 years that didn't get a steal, I couldn't imagine being upside down $50+k on a house. I wouldn't buy yet either-I think it's going to be a huge bottom, and I can't wait to sink my teeth in at that point.

[lscalder]

Your thinking is the reason why America is about to hit recession. People need to understand that buying is what keeps our economy floating. When people rent and not buy we have less and less money cycle. The 2 source of income for America eonomy is the Stock market and Real Estate market when either one crash especailly real Estate the American economy stay still or decline even more. If people really stop buying houses we might as well all move out the country and move to either britain,China or India. People do not get it continue buying because if you think it worst now you have no idea whats coming to this country. If you think foreclosure is high now wait until everyone starts renting and stop buying. Here is what will happen if people do not start buying:

1. Higher foreclosure
2. No more middle class, just rich and poor
3. unemployment rate will increase due to company not making a profit so they out source to other countries.
4. People loosing their jobs left and right
5. Crime rate will tripe in every state,county and city due to having plenty of vacant properties, which is already an issue right now.
6. American dollar will continue to decrease
7. Countries will stop trading in dollars because the dollar is too weak so now we will pay double or triple for everything we purchase because the world will trade in Euros.
8. very very low education system due to foreclosures less people payinf property tax which goes toward education.
9.All industry in America will disappear no money floating around so why stay or invest in a country with no money which is happening right now.



These are issues I think about every day. It seems most people only think about them self vs the bigger picture. America finance is very delicate right now and we need to start buying again because if you like your life right now, you might not in the next 2 yrs if the economy does not get any better. The only way to make it better is to invest in real estate not renting.

[cutgarden]

You're right!! I love my farm in Carroll County, but I think I'll sell it, and then buy a "fixer upper" in a neighborhood that, while not exactly safe or anything, is sure to improve sometime in the next 30 years.

[lscalder]

If the market continue to decline like the way it is there will be no safe neighborhood due to the high foreclosure rate which is hurting middle class and upper class communities the most.

[doubbltunman]

Originally Posted by lscalder

Your thinking is the reason why America is about to hit recession. People need to understand that buying is what keeps our economy floating. When people rent and not buy we have less and less money cycle. The 2 source of income for America eonomy is the Stock market and Real Estate market when either one crash especailly real Estate the American economy stay still or decline even more. If people really stop buying houses we might as well all move out the country and move to either britain,China or India. People do not get it continue buying because if you think it worst now you have no idea whats coming to this country. If you think foreclosure is high now wait until everyone starts renting and stop buying. Here is what will happen if people do not start buying:

1. Higher foreclosure
2. No more middle class, just rich and poor
3. unemployment rate will increase due to company not making a profit so they out source to other countries.
4. People loosing their jobs left and right
5. Crime rate will tripe in every state,county and city due to having plenty of vacant properties, which is already an issue right now.
6. American dollar will continue to decrease
7. Countries will stop trading in dollars because the dollar is too weak so now we will pay double or triple for everything we purchase because the world will trade in Euros.
8. very very low education system due to foreclosures less people payinf property tax which goes toward education.
9.All industry in America will disappear no money floating around so why stay or invest in a country with no money which is happening right now.



These are issues I think about every day. It seems most people only think about them self vs the bigger picture. America finance is very delicate right now and we need to start buying again because if you like your life right now, you might not in the next 2 yrs if the economy does not get any better. The only way to make it better is to invest in real estate not renting.

You must sell real estate? Right? And I know I'll take a few from homeowners biting their nails.LOL-You gotta be in real estate.

[Merlander]

New homes and existing homes are slightly different markets.

There have been some huge price declines for new homes, not just in MD, but across the country. Nat'l homebuilders overbuilt, and now they're paying the price. It's hard to have any sympathy for them - do you think they would "cut you a break" if they didn't have to?

Existing homes are holding up better, but it depends on the home. If you have a really desirable home, it'll sell. For a bit less, but it'll sell. If your home isn't as desirable [bad location, bad construction, etc] you'll have to drop the price. That's just the market reality.

[TuborgP]

Originally Posted by doubbltunman

You must sell real estate? Right? And I know I'll take a few from homeowners biting their nails.LOL-You gotta be in real estate.

I think she bought an expensive home a year or so ago and knows she will be bottom up very soon if not already. We got into this mess because of the call to buy, buy, buy after 9/11 what about pay back, pay back, pay back isn't that the way to get out of bad debt?

[bande1102]

I'm not in the real estate business so I may be overly simplistic, but those of us who live in older, more desirable neighborhoods are simply waiting it out. For example, in my neighborhood, there are far fewer homes for sale than even a year ago. And the ones that are for sale may be lower-priced, but they look like the owner priced low to compensate for the need for improvements. Sorta like they know they're gonna take a hit so they can't afford to/don't want to risk spending money in upgrades that they might not recoup when they sell. Especially b/c homeowners can't borrow against their house like they could before and this absolutely affects their ability to upgrade or even keep up with repairs. Everybody keeps talking about foreclosures and falling prices. But what condition are these houses in? I mean, if I can't make my mortgage I'm definitely not worrying about keeping up with repairs or anything remotely cosmetic.

When the market was hot, everybody and their brother was taking money out against the house for improvements. It was sooo easy. That coupled with all the HGTV shows really raised buyer expectations.

I gotta tell you, as a homeowner, I am definitely not taking out loans for upgrades. And in talking to my neighbors they feel as I do. We're doing the necessary repairs, but we sure aren't planning to dump more money into upgrades unless we're absolutely certain that we're getting it back in resale. Now, we're not so sure. The market will determine the price. In other words if I live in a neighborhood where buyers are only paying $400,000 that's all my house will be worth. I'll make sure my house meets the minimum upgrades in the neighborhood, but that is all. I'll never risk being the fanciest house on my street that's for sure.

How all of this affects new housing--I dunno. We have "luxury" homes starting at $800,000 that are still going up down the street from me and I'm seeing sold signs in the yards. Did they sell for that? I dunno. But they're still building.

[pythagras]

Originally Posted by lscalder

4. People loosing their jobs left and right
.

Unemployement is at historic lows. I can't think of many places around here who can't seem to get enough employees. It seems every place is understaffed these days.

[Lance214]

Prices are dropping just a bit but in most cases they are stableizing. That I know for sure I work in Real Estate in Md. What you have to keep in mind is what intrest rates will do. If they keep inching up just a bit and prices drop just a bit your still in the same position. My advise is if your waiting for them to drop I wouldn't but you don't have to worry about them going up for now.