Real Estate Upturn?

[immigrant]

single family homes , townhouses and condos drop at least 15% in the last year and a half

That's great but there's still room for about 35% more.

[Ga.Peach]

Originally Posted by Chelito23

I agree that the market is way overpriced...but people pay the big bucks to live in LA's horrible areas...and I see the same here. I wish prices would come back, but too many people have bought into the Miami dream...and try telling anyone here their 1950s 2 bedroom ranch home is worth 100K. Nobody will accespt what the REAL value is anymore, the prices were inflated way too much.

There is just too much speculation and money pouring in from other productive economies...and many people view this as paradise and will pay the ludicrous prices. I hope they come down, but as Tallrick has said before, short of a Cat 5, I don't see that happening.

Miami hasn't been considered paradise since the 1970s . It is crime infested , third world ghetto ,imo . I was there last year and it is even worse than New Orleans . After surviving the near fatal accident by a non english speaking drunk that hit five cars sitting still at traffic light , then ran ,I will never go back to any city south of Ocala .

I did read today that a lot of real estate is being bought up there by N.Koreans [msnnews.com] . Talking about justice, just think if the koreans move in and make the other non assimilaters speak 'korean'! At least the koreas will be flying in and be legal .

[tokay57]

Are you serious, you mean to tell me that only non english speaking immigrants are drunk drivers? Please cite were you got that Miami is not considered a paradise since the 70's? Crime infested? anything happened tto you?

[tokay57]

I didn't know we had so many real estate gurus in this forum, I bet none homeowners.

[Wild Style]

Originally Posted by tokay57

I didn't know we had so many real estate gurus in this forum, I bet none homeowners.

real estate agents mean nothing in this equation. This is actually a issue of economics not real estate guruism. All one has to do is research from enough sources to see what is happening and going to happen. As bale, tallrick, CJFlorida have said time and time again people have predicted what is happening right now back in 2003/2004. I knew about this in 2003 and that was from listening to economist on NPR back in those days. People should really, really start doing research into the intricacies of this matter instead of dismissing whats being said, simply because it doesn't jibe with one's personal opinions. Personally, I am worried about myself and family, so not to worried what others think or believe. With that said, I still urge others to look into all the issues at hand.

[CJFlorida]

Originally Posted by tokay57

I didn't know we had so many real estate gurus in this forum, I bet none homeowners.

Here is my experience, you can call it guru, not guru, whatever.

We purchased in Jupiter Farms in 2003 after reading the housing bubble blogs for 1 year. They outlined how prices had escalated and the pace of price increase would accelerate. We purchased for $325,000.

We kept reading the housing blogs for the next 2 years. As they outlined, our house kept increasing. When they said the peak was around the corner, we sold for $550,000 in April 2005. We took the profits and put them into a 6% CD and waited.

We rented a house even better than the one we sold. Our rents have gone down, down, down as the inventory has gone up. We now rent for less than half of what it would cost to own.

Houses like the one we sold are now below the price we sold at, and dropping fast. We will wait until the prices make sense again based on fundamentals.

Our goal was to buy at $325,000, sell at $550,000, and buy a similar house back for $325,000 or less.

I may not be a "guru" but I sure thank the gurus at the housing bubble blog who allowed my family and I to make some money, save money by renting for a few years, and then buy back in as prices return to normal.

Those folks where right all along, unlike most of the main stream media and real estate pros.

[Hero]

Originally Posted by CJFlorida

Wow, we are in the very beginning of a long, long housing bust and there are still folks who don't see it. You can rent for half or less than half of the cost of owning. That is in no way, shape, or form an indicator that it is even close to the time to buy.

Lets talk again in a few years about when the time to buy is.

Come on CJ, it'll be a new year soon, have an optimistic outlook!

In the year 2008:
1. More and more buyers will realize the market is overpriced.
2. Tighter lending practices will further decrease the pool of buyers.
3. Foreclosures will continue to rise but overvalued is overvalued and more buyers are realizing that. (Mod Deleted)
4. Sellers in denial with the help of falling comps due to foreclosures and huge inventory will either pull out of the market or lower their prices.

The time to buy is when the price is right and hopefully in 2008, more properties will drop to affordable levels.

[grove_nurse]

Here is my 2 cents...
I bought my house in Miami in '87 for 62K cash as an investment, since I did not live in the US back then, and rented it out for several years. Over time, especially in the last 10 years or so, I have seen the prices go higher and higher for houses that in my opinion are not worth it, and I stayed put. At some point I saw 1500 sq feet 1950's homes in 5000 sq lots being sold for over 1/2 a million and thought to myself "what the heck are these people thinking?.. " Now that the so called bubble has bursted and people are out there up in arms about their loses I can't help but to think that at some point, before buying, it would have been helpful to look at the prices from a historical perspective along with an idea of what the job market is in the area, and perhaps they would had thought about it twice. As of now, I am still staying put.
On another note, I believe that mortgage companies helped a great deal in creating this situation, as it was not hard to see 2-3 years ago how many people were able to qualify for a loan, lets say for 300k, solely by lying about their income, which in reality was no more that $12/hr. Sad but true. Many people that were uneducated about real estate joined the rat race, thinking that they could probably make 100K out of that house in 1 year (like many savvy 'flippers' did), and are now joining the many people losing their houses to the bank.

[joe33141]

We're selling. We have a family emergency and we have to take the hit. No children, a dying father, so it's a pretty easy decision to make. Plus, we're moving back to Portland, OR. We'll stay with my sister and we should make back our loss in a year.

Here's the listing on craiglist: https://accounts.craigslist.org/post/shwpst?pii=525732116&db=lv (broken link)