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Old 06-21-2006, 04:28 PM
 
1,035 posts, read 2,906,385 times
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The stock market doesn't want to see optimism from home builders right now.

Increased inventories during a period of slack demand means lower prices and declining margins and profits.

MSN MOney has the full story - makes you wonder when is the "right" time. Or will the drop in prices make more of a market down in NC??
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Old 06-21-2006, 05:09 PM
 
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WenIs02,

Hello, did you see my post under Charlotte Real Estate Market today?
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Old 06-21-2006, 05:40 PM
 
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Now I did, that effect may be occurring, that also with the increase in mortgage rates...it is also harder to re-sell a used (for lack of a better word) house when one can buy new, but if these contractors down offer incentives, they are heading for disaster...if you read the full article is also notes that leave home builders are also in a lot of debt... it will be interesting to see where the market goes over the next few years.
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Old 06-21-2006, 06:17 PM
 
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Default housing troubles

Could you PM the link to the MSN article? I couldn't locate it when I searched w/ google?
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Old 06-21-2006, 06:25 PM
 
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Default msn article

I copied and pasted it to you in two parts - let me know your thoughts, pm - if you wish - may be better to wait till it hits bottom in the next 6 mos to a yr and then buy - HMMM
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Old 06-21-2006, 06:35 PM
 
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Default housing troubles

Thanks for the information. My plans were to wait at least 6 months before I buy anything. I'm in no rush. I decided to rent a house and get to know the area better.
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Old 06-21-2006, 06:37 PM
 
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If you're paying cash it may be a good idea to wait. But if you are going to finance the interest rates are not getting any lower and it may become more expensive 6 months from now if there isn't a significant price drop.
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Old 06-21-2006, 06:38 PM
 
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grass - well here in ny as interest rates rose, houses dropped, there are so many variables
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Old 08-11-2007, 09:28 AM
 
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Rather than wait to buy, you can negotiate a larger drop in prices with some builders than you would think possible. The only reason some builders are holding back in major price reductions is the effect the reductions will have on appraisals of their other unsold new homes. Some builders are now in the survival mode and will look beyond the appraisal problem and consider what is happening a paradigm shift and return to affordability. They may not advertise a major price reduction but the combination of incentives and acceptance of lower offers is happening right now and some of the best buys are being made now. When some of the builder's inventory is reduced and they can meet their bank interest payments without strain then the prices will start firming up again and the lucrative buyer incentives will evaporate. The time to negotiate a deal is now and just keep offering that ridiculous price but be prepared for one to be accepted.
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