home prices to drop another 25 percent? (Sarasota: short sales, real estate, foreclosure)

[tewas]

Declining prices are bad for sellers. They and they alone have issue with this. I don't know if its the way i was raised, but my parents thought me that you buy a house to LIVE, not to stay for few years and sell it, then buy another on another block. If your morgage is affordable, as chi_tino said, then it does not matter how much the house is worth because it's your home.

I have no symphaty for people who buy, stay for a year and the sell for higher price without any additions. They are hurting in declining price market and i don't care.

[Wwanderer]

The problem is that people can't sell their houses. Many are way underwater now, so they are stuck trying to pay their huge mortgages and praying things will get better. Many of these no real equity left in their homes at all.

One big problem I see is that this makes mobility around the country difficult. Which adversely affects people's ability to be flexible about where they work and live, which affects the economy.

Great for first time buyers, great for foreign snowbirds like me, but not great for just about anybody else.

[bentlebee]

Most sellers are asking prices that are way too high.

[tewas]

Originally Posted by Wwanderer

The problem is that people can't sell their houses. Many are way underwater now, so they are stuck trying to pay their huge mortgages and praying things will get better. Many of these no real equity left in their homes at all.

One big problem I see is that this makes mobility around the country difficult. Which adversely affects people's ability to be flexible about where they work and live, which affects the economy.

Great for first time buyers, great for foreign snowbirds like me, but not great for just about anybody else.

Most of the people did not know what they can afford and still bought it. If you can afford used honda, don't go and buy new lexus or BMW. If people can't plan their finances, then they deserve to be stuck in that situation. Yes i know things happen, but praying won't help here, updating resume and looking for a job might.

[naughtia76]

Glad we held out! We were going to purchase a home in 06 after selling some bay front property and decided to wait until our last child was grown. We can now spend 1/3 less than we would have 5 years ago. Or, buy a house worth 3 times more than we pay for it.

[chi_tino]

Originally Posted by Wwanderer

The problem is that people can't sell their houses. Many are way underwater now, so they are stuck trying to pay their huge mortgages and praying things will get better.

I have to call you out on this term: why would someone have an unreasonably large mortgage unless they intentionally put themselves in that situation?

That makes as much sense as saying people are victims because they have a huge car payment.

With the drastic fall in property taxes, my monthly housing payments have dropped dramatically over the past two years, so unless you became unemployed (which would cause a problem no matter WHAT your house was worth), again I have to question that term. Most people's monthly housing payments (mortgage + property taxes) are falling.

[bentlebee]

Originally Posted by tewas

Most of the people did not know what they can afford and still bought it. If you can afford used honda, don't go and buy new lexus or BMW. If people can't plan their finances, then they deserve to be stuck in that situation. Yes i know things happen, but praying won't help here, updating resume and looking for a job might.

I think they knew but put that part in the back of their mind and just wanted to show off to their neighbors who also couldn't afford it...many took an additional line of credit for vacations, plastic surgery, a 3rd or 4th car, etc...

Now the same people are whining and blaming others...

[bentlebee]

Originally Posted by chi_tino

I have to call you out on this term: why would someone have an unreasonably large mortgage unless they intentionally put themselves in that situation?

That makes as much sense as saying people are victims because they have a huge car payment.

With the drastic fall in property taxes, my monthly housing payments have dropped dramatically over the past two years, so unless you became unemployed (which would cause a problem no matter WHAT your house was worth), again I have to question that term. Most people's monthly housing payments (mortgage + property taxes) are falling.

You nailed it...and on top of that nobody lost anything....only on paper, unless you sold your home!

It still amazes me how people whine about losing value when they didn't pay a dime down! What did they loose...their dream and bubble of owning a home that was paid by some one else and they basically paid rent for...

Owning something means you paid it off....

[Bideshi]

Originally Posted by bentlebee

Most sellers are asking prices that are way too high.

Which is why their houses are still unsold. It's a stand off of unreasonable expectations vs market reality. They will finally have to bite the bullet and lower their asking prices. It's hard to admit that you made a foolish and costly decision.

[dlhanson]

Originally Posted by Bideshi

Which is why their houses are still unsold. It's a stand off of unreasonable expectations vs market reality. They will finally have to bite the bullet and lower their asking prices. It's hard to admit that you made a foolish and costly decision.

As I tell my DW, I wouldn't call it a "foolish and costly decision". Most of these potential sellers bought their homes for what the market was charging at the time. If they wanted to buy a home in 2005 or 2006 (and to some extent a few years later and earlier), then they had to pay the bubble prices.

I do agree that many of these potential sellers (even those without a mortgage) have unreasonable expectations. And others would like to sell but are keeping their homes off the market because they are hoping that prices will rise significantly over the next few years.

We are planning to purchase a home in Sun City Center this summer. We had an offer on our South Carolina home last night after just three weeks on the market. We told the selling agent we wanted it priced to sell.