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Mad man, of course it would freaking sell at 10,000 but that`s not the point... No one is going to sell a 400,000 house at 100,000.They might as well just foreclose if they sell it at that price. You don`t know even know what you are talking about.
Even with consumer confidence at all time low, there are always buyers and sellers in all regions, however, OP may be competing with many newer homes and/or others that are priced at or below theirs. I agree with OP, homes in this price range are probably moving slower than most in their local market. If OP is not pressed for time and/or money and don’t have to move, riding it out is an option and/or they could take the home off the market for a while,thus bring it back as a fresh listing for a new set of buyers in the spring and if possible, make price adjustments accordingly.
This is true also. I was just talking to a realitor and she told me that the majority of houses that are selling right now are 200,000 and under. The problem is that the 200,000 and under homes are not in the greatest areas.Nor will the house be necessarliy that nice either.
People get money from savings, from cashing out of other houses. We just cashed out $200K from our previous house and $100K from our savings to buy our house.
...
I don't know how old you are, but I will be 45 tomorrow. I have seen real estate cycles before. There are boom and bust years. If the government will just let the prices fall where they may the mess will clear. It may take years to clear but it will clear.
We're about the same age... You've highlighted how the current prices are being fed - "cashing out houses" and "savings". Neither is being sustained in this current economy and that's the main issue. The amount of qualified buyers to the available inventory is way out of whack.
I disagree with this being a cycle, but it is what it is... In the end if you're comfortable making whatever payment you're left with, that's all that really matters.
Mad man, of course it would freaking sell at 10,000 but that`s not the point... No one is going to sell a 400,000 house at 100,000.They might as well just foreclose if they sell it at that price. You don`t know even know what you are talking about.
Whooooosh
(That's the sound of the point I was making going over your head.)
We're about the same age... You've highlighted how the current prices are being fed - "cashing out houses" and "savings". Neither is being sustained in this current economy and that's the main issue. The amount of qualified buyers to the available inventory is way out of whack.
The number of qualified buyers is certainly out of whack with available inventory. But that's not because people are taking their equity out of their existing homes, nor it is because people have saved large down payments.
IMO what is not sustainable is people taking out FHA loans with 3.5% down payments.
Quote:
Originally Posted by MikeyKid
I disagree with this being a cycle, but it is what it is... In the end if you're comfortable making whatever payment you're left with, that's all that really matters.
If it's not a cycle then what is it? Nothing goes up forever and nothing goes down forever.
Well, I had no idea I was going to start such a lively discussion!! However I do agree that we started our price out too high - you know, hindsight is always 20/20. But at the time, that is what our house actually appraised for. We had been in it for several years, hadn't paid too much and felt we had a good shot at selling it for that or near that price. However, we quickly found that we were dealing with a public that wanted in our older home what was available in MUCH more expensive, newer homes - giant bathrooms with giant kitchens tricked out with the latest in appliances - you get the idea. Our home is warm and wonderful - and we do have a nice kitchen with stainless steel stuff in it! But our neighborhood is surrounded by older homes that have been torn down and giant homes have been put up on the lots - leaving virtually no yard at all. Don't get me wrong, they are beautiful homes. And, there are now several homes in my neighborhood - walking distance of me - priced around my price range, that are on the market. They seem to be popping up like wild fire! My RE agent has told me that houses in my price range are not moving at all. I think I may have to BWIAP - Bloom Where I Am Planted!
The number of qualified buyers is certainly out of whack with available inventory. But that's not because people are taking their equity out of their existing homes, nor it is because people have saved large down payments.
IMO what is not sustainable is people taking out FHA loans with 3.5% down payments.
Well considering some reports have those FHA loans being the vast majority of funding, you get an idea of my concerns. Credit has not tightened, homes are as easy to get as ever, and interest rates will get no better. It should be a booming seller's market like never seen in history. Yet, it's not. Once you can answer why it isn't then you'll begin to see the picture.
Quote:
If it's not a cycle then what is it? Nothing goes up forever and nothing goes down forever.
It's funny you should say that because The Federal Reserve of your US of A completely disagrees with you... They believe things can go up forever and they're pushing all the buttons that the books say should make things continue up. Yet, they're not.
From a "cycle" perspective, nothing like this has happened in our lifetime. In the end, you're right. It will pop eventually.
Memphis Mom,
I hope you or your realtor have checked out what all the homes in your neighborhood, new and older, have sold for in the last year. Whatever they sold for, price yours lower, and it should sell. On the other hand, if you have a "bottom line" not to go below, and don't care if you move or stay, then I think if you could ask your realtor to update your ad for the home so that it does not disappoint the buyers who can get new home for same price... for example, I had a house that had a barnwood den and old woodstove in it, which the place was sort of worn out and thus rejected for a while, but by adding that barnwood den in the ad, we had an offer almost immediately becuz the folks who came WANTED a rustic home and told us so. One more point, if you can stand it, you have the price reduced now at $369,000, so I think I'd try the $349,000 range to get in a new collection of buyers who are looking in the $300-$350 range, but don't do it unless you're prepared to get rather less than even that reduction.
GG
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