What's going on with the housing market?

[Dee2e]

Wall Street is reacting to the sell out that passed both the House and Senate last week. I guess they don't think it's a good plan either!

Aneftp, see a reputable agent. Your price offer should not be relative to what the sellers are getting from an employer, what they paid for the property or owe on the property but based solely on what the recent sales data suggests.

Our property values went up too fast for a few years and that false growth is simply not sustainable.

[GregTraub]

Originally Posted by Parrotrosie

Why would one regret buying a relatively newer home at this time? We are currently checking out the possiblity...what should I be looking out for?

The only reason you would regret buying ANY home at this time is overpaying for it, nothing specifically dealing with newer homes, just ALL homes, foreclosure, short sale, estate sale, builder, you name it. If your actualy looking to LIVE IN the home for at least the next 5++ years then you won't necessarily have to worry about losing money down the road, But if your just looking for a short term place to live and think of it as more of an "investment" then you should be VERY wary about what house you buy, where you buy it, and for how much. (not that you shouldn't be wary even if it's not a pure investment)

As far as right-here-i-say's comments on where prices will end up. Many people use the "what year will prices be normal" method...not exactly scientific but many people seem to see that way of thinking the easiest to rationalize things in their head. Depending on price range, location, condition and motivation will help you see what a house is worth now....and only local supply and demand factors can give you any hint as to whether prices will return to "2001" levels or to "1989" levels. Prices will continue to fall to below any year's level in area's with little demand and high supply, while other area's tht are still in high demand with little inventory will hold steady or even rise!

As far as using a lawyer who "specializes in foreclosures" for the investor that knows how to find their own deals, and knows local value's, this can be a good course of action (it's arguable whom would negotiate a better deal..the attorney or a Realtor that specializes in foreclosure). However to the average homebuyer just looking for a place to live, using an attorney exlusively is a terrible idea...they practice law, not real estate; so they will have no clue about values of particular homes, nor (in my opinion) will be in anyway able to negotiate better than a competent agent.

[beckycat]

I was hoping with the bill they passed, banks would be lending more money. In turn, more buyers would be out there. I don't know what to think at this point. Maybe sell low, buy low?

[Dee2e]

Originally Posted by beckycat

I was hoping with the bill they passed, banks would be lending more money. In turn, more buyers would be out there. I don't know what to think at this point. Maybe sell low, buy low?

Most of this money will buy out bad debt that is over the global market. It will be a very long time before the average person in the US sees the benefit of this bill. If you disagree, just look at what is happening on Wall Street today! Investors know the short term sell out is exactly that and not a long term solution to this mess.

Additionally, history has shown that once we "bailout", we "bailout" again, which is why I call this bill a sell out...We've been sold out!

[beckycat]

Originally Posted by Dee2e

Most of this money will buy out bad debt that is over the global market. It will be a very long time before the average person in the US sees the benefit of this bill. If you disagree, just look at what is happening on Wall Street today! Investors know the short term sell out is exactly that and not a long term solution to this mess.

Additionally, history has shown that once we "bailout", we "bailout" again, which is why I call this bill a sell out...We've been sold out!

I was afraid of that. I think that we're in big trouble.

[Dee2e]

Beckycat, The FHA bill that passed in July was designed to help homeowners keep the home they lived in, not investments. It would do an FHA loan at 90% of today's appraised value, regardless of the original loan amount or purchase price. Sounds good, right? The challenge is to find a lender that will take the deal. I have talked to many, not one of those I spoke with are offering the loans! They are waiting for the sell out program to bail them out for their bad loan making! So much for the summer rescue plan for owner occupied residents!