Incoming!!!!! The collapse of the DMV Real Estate market (future)

[mwruckman]

The DC, MD, NOVA region was not hurt as much by the Great Recession since unemployment rates never got much above 6-7% in the suburban counties like Montgomery, Faifax or Loudon. . DC is a funny place with half of the city quite prosperous and the other half with an unemployment rate of 20-30% with youth unemployment being closer to 50% (Wards, 8 and 9)). Wards 8 and 9 werte like that before the Great Recession so this is nothing new. Now looking at the Washigton Post and articles they have done on the Real Estate market areas that saw a lot of building in the last 10-15 years like Germantown MD, parts of Prince Georges County MD or Prince William County in VA are hot spots for foreclosures and bankruptcies because people had to buy into a inflated housing market and bought in on those silly types of subprime or Jumbo mortgages that have now blown up in their faces. In those areas the housing market is a mess with a lot of ticky-tacky little boxes (town houses (running at 300-400K before the bubble poped)and tract mansions( 500K and more ) cloging up the market. Some properties in these areas have lost at least half of their value!In my case I bought a condo in Gaithersburg for 65K in (2000), its assessment reached 220 K in 2007 before the bubble popped and its current assessment is now 110 K (2012)!I was making enough to retire the mortgage in 2005 so I fully own it and am still ahead of the game. I wouldn't be so well off if I had bought it in 2007!

[airymind]

Any people bought a home in 2003-2010 are suffering the house bubble.

[bornindc]

Originally Posted by airymind

Any people bought a home in 2003-2010 are suffering the house bubble.

This is an over-broad statement. I bought a property in 2004 and sold it for $5k more in 2008, enabling me to move up to a bigger house at that time (which is now worth at least $30-40k more than what I paid in 2008). This was in Fairfax County, not Maryland though. I'm certain there are plenty of people that bought property in suburban MD and elsewhere in our area between 2003 and 2010 that are doing just fine and not "suffering the house bubble" as you call it.

Not that there aren't people who paid too much for a house then but it surely wasn't everyone who bought between 2003-2010!

[RamblingMan]

Originally Posted by airymind

Any people bought a home in 2003-2010 are suffering the house bubble.

I bought in 2010 and feel like I benefited from the low prices that were created when the bubble burst.

[molukai]

Keep prices low, I can do without being taxed out of house and home because of runaway Maryland/PG County property taxation.

[airymind]

Originally Posted by bornindc

This is an over-broad statement. I bought a property in 2004 and sold it for $5k more in 2008, enabling me to move up to a bigger house at that time (which is now worth at least $30-40k more than what I paid in 2008). This was in Fairfax County, not Maryland though. I'm certain there are plenty of people that bought property in suburban MD and elsewhere in our area between 2003 and 2010 that are doing just fine and not "suffering the house bubble" as you call it.

Not that there aren't people who paid too much for a house then but it surely wasn't everyone who bought between 2003-2010!

Yes. from your posting, what I said is over-board. For Fort Washington, prices in 2012 year Spring were less 50K-100K than in 2010 year.

[bonnielisabeth]

Originally Posted by bornindc

This was in Fairfax County, not Maryland though. I'm certain there are plenty of people that bought property in suburban MD and elsewhere in our area between 2003 and 2010 that are doing just fine and not "suffering the house bubble" as you call it.

Yes, if you live in Fairfax! Not so much in surburban Maryland, unless you live in Bethesda. Prices in my neighborhood in Silver Spring are still going down down down.

[bornindc]

Originally Posted by airymind

Yes. from your posting, what I said is over-board. For Fort Washington, prices in 2012 year Spring were less 50K-100K than in 2010 year.

Over-board if you prefer but certainly the statement was over-broad...

I'm sorry to hear that Silver Spring and Fort Washington don't seem to be increasing in value, I would expect increases in these areas. As others have posted, there must be some great deals out there right now.

[wisedisguise]

I bought my house in Camp Springs for $82K in 1982. It was paid for in 10 years. My next door neighbors' paid $350K-$400K for their houses, as did anyone else 5 years ago, and realize they are going to live in those houses until they build equity in them. I can sell mine for $225K - all profit - and pick up one of my GF's houses in FT Washington that abut the country club rather cheaply. I like my proximity to the beltway and points west and north so I will stay put. I already enjoy the amenities over there as it is.

[davecj]

Originally Posted by PBSG

I'm not posting this to tell smart people what they already know. I'm posting this so when you hit the summer Open Houses and hear the "It's a great time to buy" line you may think twice. RE Agents are no different than a car salesman. Walk into a Mercedes or a Ford dealership any day of the week and ask "Is this a good time to buy a car", and what do you think they are going to say? RE agent do not care about the customer, they care about the amount of transactions they will receive. They are not your mortgage broker, banker, contractor, investment banker....they are there for the commission and nothing more.

All of those people work on commission

Do you have any clue how many people are living paycheck to paycheck in their 500K house that they bought in 2007 when the RE agent said THAT was a good time to buy? Their house is now worth 70 percent of the value, and they are looking to get out? Or they have already stopped making payments on that house and are squatting? Have you ever heard of the 'Shadow Inventory' in the RE market? The foreclosures which are very soon to hit the market but take their sweet time since you can't dump a bunch of houses on the market at one time? Imagine that nice neighborhood in Falls Church, the one that you've been looking for with the 3/2/2 SFH. It has two houses for sale, right? Well, imagine that all the banks at one time took all of their foreclosures and put them on the market - those two houses would turn into twelve. Prices would plummet in a race to the bottom to grab as much money as possible. Did you know that when banks and RE agent do their "Comps" of recent houses sold in the area that they delete the bank owned/short sale houses in the area?. This keeps the price per square foot up, and props other houses in the area up.

Were those people living paycheck to paycheck when they purchased the home? Is the RE agent expected to have a crystal ball when someone purchases a home? Nevermind the fact that RE agents are there to facilitate the transaction. No one is forced to purchase a home.

This was an entire post of mouth garbage with zero actual facts to back anything up.