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I just had an appraisal done and while talking with the appraiser he said that over the last month or two he's been seeing values retreat a bit and quit pushing over the comps like they were a few months ago. He thinks we hit a plateau for now.
That doesn't mean things aren't selling briskly, they are (in our area of the west valley) it's just they're not jumping in price...
Single story homes out here are flying off the market, my neighbor got a phone call 3 weeks ago asking him if he was interested in selling for 3x what he paid in 2010. He closed 2 weeks later, all cash deal.
DAMN, I knew we should have bought 4-5 houses back then when I had the chance and the $$$. Wife didn't want to be a landlord...
I just had an appraisal done and while talking with the appraiser he said that over the last month or two he's been seeing values retreat a bit and quit pushing over the comps like they were a few months ago. He thinks we hit a plateau for now.
That doesn't mean things aren't selling briskly, they are (in our area of the west valley) it's just they're not jumping in price...
Single story homes out here are flying off the market, my neighbor got a phone call 3 weeks ago asking him if he was interested in selling for 3x what he paid in 2010. He closed 2 weeks later, all cash deal. DAMN, I knew we should have bought 4-5 houses back then when I had the chance and the $$$. Wife didn't want to be a landlord...
Back in 2010, it was a radically different economic climate. Over the years, I have bought and sold about 16 properties for investment purposes. I too wanted to buy more places but there were more than a few rational articles that promised very small growth for years. In 2005, I was convinced a bubble was going to pop and got rid of my final investment property. I never guessed the magnitude of the PHX downturn nor what I was more familiar with, MN lake home areas. from 2001 till now, I don't think many people predicted it to turn as quick as it did. Well, unless they took a guess and didn't research what the supposed "smart" people thought. But still unlike some other areas of the country, we are still a ways off of peak 2006 market.
What's the saying; "could-have-would-have-should-have". Cut, paste, repeat on putting funds in the stock market in 2009 or more specifically, buying Amazon stock in 2009 at $55/share (now it is over $950/share). Ka-ching!
Back in 2010, it was a radically different economic climate. Over the years, I have bought and sold about 16 properties for investment purposes. I too wanted to buy more places but there were more than a few rational articles that promised very small growth for years. In 2005, I was convinced a bubble was going to pop and got rid of my final investment property. I never guessed the magnitude of the PHX downturn nor what I was more familiar with, MN lake home areas. from 2001 till now, I don't think many people predicted it to turn as quick as it did. Well, unless they took a guess and didn't research what the supposed "smart" people thought. But still unlike some other areas of the country, we are still a ways off of peak 2006 market.
What's the saying; "could-have-would-have-should-have". Cut, paste, repeat on putting funds in the stock market in 2009 or more specifically, buying Amazon stock in 2009 at $55/share (now it is over $950/share). Ka-ching!
True. For those that get the timing right they are looked at as gurus. Funny how sometimes the gurus get bit. Had a co-worker that bought his first home in 2000. It was a new home and before it was finished the developer had sold him another one. Between 2000 and 2006 he ended up with 10 rental homes. Prices kept going up. Him and his wife were borrowing on the homes. He bought a new Acura and his wife bought a new Lexus. They looked like the money was rolling in. The funny thing was this guy barely was making $50,000 a year and his wife was making maybe $70,000. Everything that they had was leveraged to the hilt. People would ask him for advice on real estate, making money, all kinds of things. He looked like he had the world by the tail.
Almost everyone of his mortgages were ARM's. Between 2007 and 2010 he ended up losing every home he had. He knew we wanted to buy at the time and asked me if I would take over one of his homes. I looked at it but it was not what we were looking for. Because of his money troubles he was spending so much time trying to right a sinking ship that his manager ended up letting him go. In the end his daughter and son in law picked up one of the homes as a foreclosed bank owned home and they ended up moving in with them. Sad story. The sad part is that if he had just bought the one home chances are they would have still been in it today.
True. For those that get the timing right they are looked at as gurus. Funny how sometimes the gurus get bit. Had a co-worker that bought his first home in 2000. It was a new home and before it was finished the developer had sold him another one. Between 2000 and 2006 he ended up with 10 rental homes. Prices kept going up. Him and his wife were borrowing on the homes. He bought a new Acura and his wife bought a new Lexus. They looked like the money was rolling in. The funny thing was this guy barely was making $50,000 a year and his wife was making maybe $70,000. Everything that they had was leveraged to the hilt. People would ask him for advice on real estate, making money, all kinds of things. He looked like he had the world by the tail.
Almost everyone of his mortgages were ARM's. Between 2007 and 2010 he ended up losing every home he had. He knew we wanted to buy at the time and asked me if I would take over one of his homes. I looked at it but it was not what we were looking for. Because of his money troubles he was spending so much time trying to right a sinking ship that his manager ended up letting him go. In the end his daughter and son in law picked up one of the homes as a foreclosed bank owned home and they ended up moving in with them. Sad story. The sad part is that if he had just bought the one home chances are they would have still been in it today.
I know that type. IMHO, when you are making bank, that's the time to live extra conservative and bank $$'s for a rainy day.
Back in 2010, it was a radically different economic climate. Over the years, I have bought and sold about 16 properties for investment purposes. I too wanted to buy more places but there were more than a few rational articles that promised very small growth for years. In 2005, I was convinced a bubble was going to pop and got rid of my final investment property. I never guessed the magnitude of the PHX downturn nor what I was more familiar with, MN lake home areas. from 2001 till now, I don't think many people predicted it to turn as quick as it did. Well, unless they took a guess and didn't research what the supposed "smart" people thought. But still unlike some other areas of the country, we are still a ways off of peak 2006 market.
What's the saying; "could-have-would-have-should-have". Cut, paste, repeat on putting funds in the stock market in 2009 or more specifically, buying Amazon stock in 2009 at $55/share (now it is over $950/share). Ka-ching!
I've got a better one for you, my son (in his teens) repeatedly told me to buy Apple when it dropped to $9 per share and looked like it was going to go belly up. I STUPIDLY didn't because I thought it wouldn't ever come back up and was headed to the dust bin.
I just had an appraisal done and while talking with the appraiser he said that over the last month or two he's been seeing values retreat a bit and quit pushing over the comps like they were a few months ago. He thinks we hit a plateau for now.
That doesn't mean things aren't selling briskly, they are (in our area of the west valley) it's just they're not jumping in price...
Single story homes out here are flying off the market, my neighbor got a phone call 3 weeks ago asking him if he was interested in selling for 3x what he paid in 2010. He closed 2 weeks later, all cash deal.
DAMN, I knew we should have bought 4-5 houses back then when I had the chance and the $$$. Wife didn't want to be a landlord...
A slight pullback or plateau in prices at this time of year is common. It's part of the seasonality of the market, with about now through December being about the slowest times in the resale market, with the exception of active adult when it starts ramping up again in late October to early November as the snowbirds return. Look at each month or quarter year over year and the market is still quite strong. Prices will pick up again in the early part of next year as they always do from February through May.
I've got a better one for you, my son (in his teens) repeatedly told me to buy Apple when it dropped to $9 per share and looked like it was going to go belly up. I STUPIDLY didn't because I thought it wouldn't ever come back up and was headed to the dust bin.
The one that got away.
A friend wanted to put his money in HOG stock (Harley Davidson) back in the late 80's. It was under $5 a share back then. His wife wanted to put the money (about $20,000) into her companies stock, a local bank. Today HOG is at $46 and change and going up a little. It had been at $67 back in march and this after numerous splits in the stock. They had five 2 for 1 splits between 1990 and 2000.
The bank stock? Nothing happened with it. Very little movement with the stock.
This thread gets better and better. Kudos to all! Often, a thread like this ends up in a bragging fest. "I bought at the exact bottom and sold at the exact top. I'm such a genius." Instead, we share what we did wrong and this is what we can learn from most. We bought our home in December 2009. I was so sure that the bottom was in plus thought I was was so smart to get the first-time buyer tax credit. However, the same house in our neighborhood and in similar condition (semi-wrecked) sold for 20% less at the bottom in 2011. So we could have saved tens of thousands of $. I guess I'm often too early and this still stings me sometimes. I also had no idea how to negotiate a RE deal and relied too much on the realtor.
This thread gets better and better. Kudos to all! Often, a thread like this ends up in a bragging fest. "I bought at the exact bottom and sold at the exact top. I'm such a genius." Instead, we share what we did wrong and this is what we can learn from most. We bought our home in December 2009. I was so sure that the bottom was in plus thought I was was so smart to get the first-time buyer tax credit. However, the same house in our neighborhood and in similar condition (semi-wrecked) sold for 20% less at the bottom in 2011. So we could have saved tens of thousands of $. I guess I'm often too early and this still stings me sometimes. I also had no idea how to negotiate a RE deal and relied too much on the realtor.
My stupidity has cost me plenty of deals over the years. More like fear of the unknown I think. Maybe a lack of experience.
1. A brand new condo association was having problems selling some 1 bedroom condos. At the time I was living in a 1 bedroom apartment. My rent back then was $610 a month. I could have picked up the condo with zero down. They had several units in the $69,000 range. Interest rates at the time were around 6.5% I figure after all costs I would have been spending about the same as my rent, maybe more. I can't remember the total specifics of the deal. I have heard that some people turned them into rentals. I could have at least done that.
2. I was working for a full service locksmith shop back in the early 1990's. A woman in her late 80's owned a beautiful Victorian style home. On the same street, just next door she owned a couple 4 unit apartment buildings. She was telling me that she was too old to maintain the buildings anymore and wanted to sell one of them. On the spot she is interested in selling to me. Tells me how she will hold the note on the place. Tells me that three of the units can cover the cost for all four and that it would be like having free rent. Back then I was so inexperienced in anything like that, it did not make sense to me.
3. A realtor that I was working with on a 10 unit bank owned deal asked me if I wanted to take over the building. He tells me that this bank will work with me on the specifics. They want to move the property as fast as they can. It was fully rented at the time. The debt number was what turned me away. I had so little experience I did not know or understand the kind of numbers that he was tossing at me. I wish I had asked more questions.
A year later I am reading about real estate investment and it hit me that I lost out on two very attractive deals.
This thread gets better and better. Kudos to all! Often, a thread like this ends up in a bragging fest. "I bought at the exact bottom and sold at the exact top. I'm such a genius." Instead, we share what we did wrong and this is what we can learn from most. We bought our home in December 2009. I was so sure that the bottom was in plus thought I was was so smart to get the first-time buyer tax credit. However, the same house in our neighborhood and in similar condition (semi-wrecked) sold for 20% less at the bottom in 2011. So we could have saved tens of thousands of $. I guess I'm often too early and this still stings me sometimes. I also had no idea how to negotiate a RE deal and relied too much on the realtor.
The tax credit created a frenzy unlike any I've ever seen. My favorite house during the crash had a empty pool in horrible shape in the back yard & the yard backed up to an electrical substation.. literally a 12-foot block wall in the yard & you could hear the "BZZZZ" sound from the front yard.. active termite tubes on three sides of the house & looked like a meth-den inside... cars parked several houses down on *both* sides of the street with lookers coming to see it.
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