Update on Market (or is it so bad we just don't discuss it now?) (Lakeville: for sale, real estate market) - Minnesota (MN) - City-Data Forum

sat832 · 04-17-2008, 08:17 PM

Hi everyone, I haven't seen an update on real estate market for some time. I'm guessing it's just that bad and it's not easy to talk about.

I'm wondering though if any experts have some insights. I'm in a new development in Lakeville and it seems like the builder has had a ton more traffic at the model than last year at this time. I'm wondering if it's a possible sign of light at the end of the tunnel?????? Are things picking up at all or is there an idea of when it will hit the magical "bottom."

We are in a new home bought two years ago for short term living. We were totally stupid and didn't see the burst of the bubble coming. We wanted to relocate out of state in another year or so. We bought what we thought would be a comfortable home for us short term and then a good resale (put so much down on the house.) Now we just keep watching our home value drop and drop with every new home the builder "gives away."

Are the foreclosures predicted to continue? I saw another thread about Lakeville, etc. that mentioned the fact that the development that is still happening will hurt existing house sales. What do you guys think?

I thought we were fairly smart people until we bought this house and now, boy, do I feel dumb!

thanks

MNNative · 04-18-2008, 07:31 AM

I'm not an expert, but I've been hearing different point of views from different people. The 2 most popular:
1. Prices have not hit rock bottom yet.
2. The market is starting to pick up and it could be 2 months, 6 months, who knows, but it is showing signs of improvement.

Not very helpful, huh?

We are currently in the process of house hunting and our agents (30+ years experience) have told us on numerous occasions that this is STILL a great time to buy. There's no doubt about that. (And they're not just telling us that so they can get paid...honestly).

Advice? Since I'm not an expert on this topic I can only give you the advice that I've been hearing:
Regardless whether prices are still to reach bottom, if you do purchase a home in this market, make sure you've done enough homework and plan to live there for a while. Make sure you leave room for depreciation i.e. don't offer more than list price!

I can't tell you much about how new developments will affect house sales...

I've heard foreclosures could continue due to more arms expiring in the next couple years...

I am convinced NO ONE knows anything conclusive about the market and therefore run the risk of scaring more people off from buying (which only hurts the market more) if they broadcast any real estate updates.

Our agents have been working closely with us (and I have been doing TONS of research!) to ensure that wherever we buy a home, if we do choose to upgrade in 5-years or so we will be able to do so comfortably. <~Makes me think that they see the market having improved by then at least. We are also looking at properties that offer the comfort we need for our family of 4 but that we can grow into should we find ourselves needing to stay.

Sorry I couldn't be of more help to your particular situation.

MNNative · 04-18-2008, 08:51 AM

Is-It-Time-to-Buy-Real-Estate: Personal Finance News from Yahoo! Finance

moving123456 · 04-18-2008, 12:20 PM

Quote:

Originally Posted by kim825

We were totally stupid and didn't see the burst of the bubble coming.

I thought we were fairly smart people until we bought this house and now, boy, do I feel dumb!

thanks

Anyone that didn't see the end of that coming must have had their eyes closed and fingers in their ears while yelling "LALALALALALALALALA!!!!!".

sat832 · 04-18-2008, 01:06 PM

Quote:

Originally Posted by moving123456

Anyone that didn't see the end of that coming must have had their eyes closed and fingers in their ears while yelling "LALALALALALALALALA!!!!!".

ya, I guess we saw it coming, just not this bad (i.e. foreclosure issues too).... i think we were sleep deprived having just had multiples, etc. and really wish someone would have slapped us silly before we signed purchase agreement!!!! Boy what we've learned.

ozzie679 · 04-18-2008, 04:41 PM

Homes lost an average of $20,000 in St Cloud last year. My business partner and wife have had their house on the market for one year. They started at $349,900 and they are now at $274,900. They have had one offer for $210,000!!

Talk about an insulting offer. They countered at $274,000 (just to say *********)

Also, Let me ad that small businesses are hurting BIG TIME!

moving123456 · 04-18-2008, 05:50 PM

Quote:

Originally Posted by ozzie679

Homes lost an average of $20,000 in St Cloud last year. My business partner and wife have had their house on the market for one year. They started at $349,900 and they are now at $274,900. They have had one offer for $210,000!! Talk about an insulting offer. They countered at $274,000 (just to say *********)

Also, Let me ad that small businesses are hurting BIG TIME!

Their house probably wasn't even worth that $210,000 before this last ridiculous bubble.

I have been watching other houses just sit on the market for over a year, many probably owned by sellers with the same "my house is worth this much and I am not selling for less!" attitude.

nick is rulz · 04-19-2008, 01:02 AM

Quote:

Originally Posted by MNNative

We are currently in the process of house hunting and our agents (30+ years experience) have told us on numerous occasions that this is STILL a great time to buy. There's no doubt about that. (And they're not just telling us that so they can get paid...honestly).

Um but they kind of are. The whole cheerleading "its never been a better time to buy" mantra is really just basing it on the 2004-2005 numbers. So prices dropped several thousands, but are still far too high...that doesnt mean that its a great deal. If people actually start falling for this, I will be sure to offer my car for sale used for $15,000, wait about three months, and drop it to $8,000 and advertise what a great deal they are getting on it...even though it books at $6,000.

Quote:

Originally Posted by ozzie679

Homes lost an average of $20,000 in St Cloud last year. My business partner and wife have had their house on the market for one year. They started at $349,900 and they are now at $274,900. They have had one offer for $210,000!!

Talk about an insulting offer. They countered at $274,000 (just to say *********)

Also, Let me ad that small businesses are hurting BIG TIME!

They probably should have taken it. Odds are it'll sit on the market another year and eventually that $210k will sound generous.

MNNative · 04-19-2008, 01:24 PM

Quote:

Originally Posted by nick is rulz

Um but they kind of are. The whole cheerleading "its never been a better time to buy" mantra is really just basing it on the 2004-2005 numbers. So prices dropped several thousands, but are still far too high...that doesnt mean that its a great deal. If people actually start falling for this, I will be sure to offer my car for sale used for $15,000, wait about three months, and drop it to $8,000 and advertise what a great deal they are getting on it...even though it books at $6,000.

They probably should have taken it. Odds are it'll sit on the market another year and eventually that $210k will sound generous.

I think maybe what I should have said is that they say it's the right time to buy for particular buyers. (I don't think I said there has never been a better time...) When you are dealing with foreclosures for instance, you would not have been able to do the kinds of negotiating that is taking place now, say, 4 years ago. What they were getting at is that there are many more possibilities available than there typically are...making this a more appealing time to purchase a home. Mind you, because things are "on sale" does not always make them the best purchases.

I definitely agree with you Nick...even about your second comment (that was most likely a fair offer).

ozzie679 · 04-19-2008, 02:49 PM

Quote:

Originally Posted by moving123456

Their house probably wasn't even worth that $210,000 before this last ridiculous bubble.

I have been watching other houses just sit on the market for over a year, many probably owned by sellers with the same "my house is worth this much and I am not selling for less!" attitude.

Oh yes it was. They have it on the market for less than the value when it was at $329. You have no idea where the house is or how large the house is. This particular buyer has done this four times. Their name is becoming know in realtor circles for their insane offers.