Sellers are DELUSIONAL!!!! (countertop, foreclosure, condo, percent)

[Mike1306]

Originally Posted by AsherLevi

So I would say to the question above, Yes - (on national average) if you were one of these homeowners then it will be impossible to sell your house for a profit..

National averages do not buy homes so this is just another vague statement.

I have sold homes and land within the last year that was bought within the last 2 years and each was sold for a profit.

I would say that right there disproves your statement.

[kinkytoes]

Originally Posted by PotterGeek

LOL, I'm neither of these...but I can still tell you're not a happy camper that prices haven't fallen to where you think they should be. Why not look into a more affordable area?

Why? I think the area he's looking at will be affordable soon. Just wait a year or so.

Yes, prices may have "fallen" but sellers and banks want to sell the houses for $300K and up? UM, that is not enough of a drop. My company has has layoffs, and several "good" local companies have just laid off HUNDREDS (if not thousands) of people. The positions I am aware of of probably paid high salaries, and I bet at least some of those workers have substantial mortgages to pay for. . . Their homes that may be on the market soon to help lower prices up here, too.

Hopefully the average house price will fall to the 70-200K for a 3BR2BA. AND NO that's not low, that's what they cost in 2000, and those prices weren't cheap back then and they will not be cheap now. Even if the household income is 100K, 200K is the MAXIMUM a family can afford and still live, save and enjoy life. Period.

So if a 300K house in MD is expensive, then in Florida, it's bleeping* INSANE

Do any of you guys remember the "old" days. I have seen prices for HUGE, well-built, beautiful houses sink to SINGLE and DOUBLE digits. And that wasn't too long ago. But in my area, sellers still want to sell cheaply-made 2-room shacks in the woods for 350K, and fixer-upper brownstones in iffy urban areas for the same price. Are they living in dreamland? Those houses will BANKRUPT any normal person.

(Sigh. I have to breathe now. I am calm.)

Sellers and banks have BIG liabilites now if they "financed" houses for 500K in 2005.

So now, they want to try to sell the same house to a prudent person for 375? Just because THEY overpaid? No bleeping* way. There are plenty of places to rent, and with a weak job market, MASSIVE cash losses and fines for abandoned houses, increasing taxes, increasing insurance etc, the prices WILL come down to a real level.

Florida to my knowledge has some extremely rich people. So Thalia and Tommy Mottola can continue to pay millions for their homes. But for the people who have to work for normal salaries, Florida should be reasonably priced. The job market and job security are LOW and the insurance and taxes are HIGH. A house in Florida should cost a dollar, not ALMOST HALF A MILLION bleeping* dollars!!!

OP I will hope that the prices go down so you can own a nice home that you, as a prudent and thoughtful buyer deserve.

Pls don't think that I am against the sellers. Some of them were greedy and overly-optimistic, but there IS bankrupcy protection if they can't pay their mortgages. They can rebound from that in 3-10 years. In the meantime, they can also RENT(gasp and swoon) a place, so it's not like they're going to be HOMELESS.

Actually, some of them probably paid less for their PALACES next to the golf course than I paid for my TINY place because they only paid the INTEREST for 5 years. Many sellers danced the dance, now it's time to pay the Piper. . . But there are worse things that could happen than losing your shirt once on a house purchase. It's called bankruptcy "protection" for a reason.

(*Thanks the Ill. Mayor, who has put bleeping uncontrollably within everyone's reach )

[trishguard]

Originally Posted by Mike Peterson

National averages do not buy homes so this is just another vague statement.

I have sold homes and land within the last year that was bought within the last 2 years and each was sold for a profit.

I would say that right there disproves your statement.

What about within the last month?

[KCfromNC]

Originally Posted by PotterGeek

I came up with about 3.19% appreciation per year with that info for Tampa, KC. Please show me your formula you are using to find the historicals...I may be figuring it wrong. I used the 10 year span from 1990-2000. That is prebubble and post S&L. Should be a pretty level era...

I get a bit about 2.85% for 1990 through 2000 growth - Q1 1990 = 95.12, Q4 1999 = 125.94 -> 32.4% total appreciation. 1.324^(1/10) = 1.028464 = 2.85% annual compounded growth rate. If you go through the end of 2000, I get a 3.5% compounded annual gain (46.69% total appreciation), which is telling you that last year is definitely way above normal to move the average by that much by adding just 1 extra year. But at that point annual appreciation was running at over 10% a year, so it was obviously bubble territory.

I used 1988 through 1998 to avoid the start of the bubble, which showed 2% appreciation. You could go back further and adjust the late 70s-early 80s prices for inflation to get a more interesting picture, but that's a lot of work for past 10PM on a Saturday...

It's also interesting to fit a log curve to the data ending at various points in time. As you start to get past 1998, you'll see worse and worse fits. This to me says that the market was moving away from a steady relatively consistent gain and into bubble behavior.

[Mike1306]

Originally Posted by trishguard

What about within the last month?

Bought?
Sold?
What within the last month?

[HappyTexan]

Originally Posted by Mike Peterson

Bought?
Sold?
What within the last month?

I think in reference to your sentence:

"I have sold homes and land within the last year that was bought within the last 2 years and each was sold for a profit."

You said sold within the last year.
Question is asking you about the last month.

So, have you sold anything within the last month that brought in a profit ?

[Mike1306]

Originally Posted by HappyTexan

I think in reference to your sentence:

"I have sold homes and land within the last year that was bought within the last 2 years and each was sold for a profit."

You said sold within the last year.
Question is asking you about the last month.

So, have you sold anything within the last month that brought in a profit ?

Yes and it was on something bought 5 months ago

[HappyTexan]

I don't think sellers are delusional. There's so much conflicting news stories it's hard to really say how bad or how good an area is. No one wants to lose money.

If they bought a home at bubble prices, it's very hard to see all that value going down and/or disappear. Some areas are more hard hit than others so you have to keep that in mind when looking at properties.

Buyers..if you feel prices are too high..then rent and wait and watch the listings.
Don't get upset if you put in an offer and it gets refused. Move on..there's other inventory.

[HappyTexan]

Originally Posted by Mike Peterson

Yes and it was on something bought 5 months ago

I see your location is Florida. Are you seeing a bottom there ?

[TampaKaren]

South Tampa remains one of the most desirable areas to purchase and as it is, commands a much higher sales price. Well-priced property often goes under contract the same day it's placed on the market. You can either pay, be prepared to act on a moment's notice, or buy somewhere else. Sorry to be so harsh, but this is how it is with that part of the Tampa market.

P.S. I just responded to a similar thread in the Tampa Forum, so this may be a duplicate.