bassmonkey
Well-known member
Getting word from a few message groups I subscribe to that US property is in freefall. Is this true or just hype? What is the word on the street? How is this story(non-story?) being spun by the US media?
- Thread starter bassmonkey
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Supanamu
Well-known member
All I know is that a $600,000 home in my neighborhood just sold for $450,000.
I believe that has more to do with the fact that our city government saw fit to allow several different builders to build thousands of new homes in our city over the last three years rather than the general housing slump the U.S. has been experiencing. We have thirty six homes for sale in our fairly new (4-6 years old) neighborhood and none of them are asking for much.
Our own home was appraised at $535,000 last year and this year I bet we couldn't even get nibbles at $400,000. There are brand new homes the same size as mine, standing empty all around our city - why would people buy my home when they could pay the same price or *cheaper* and get a brand new one?
Sigh. Bad city officials. :/
I believe that has more to do with the fact that our city government saw fit to allow several different builders to build thousands of new homes in our city over the last three years rather than the general housing slump the U.S. has been experiencing. We have thirty six homes for sale in our fairly new (4-6 years old) neighborhood and none of them are asking for much.
Our own home was appraised at $535,000 last year and this year I bet we couldn't even get nibbles at $400,000. There are brand new homes the same size as mine, standing empty all around our city - why would people buy my home when they could pay the same price or *cheaper* and get a brand new one?
Sigh. Bad city officials. :/
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bovinehost
Administrator
I'd say someone needs to tell my tax assessor's office.
My house has appreciated almost 1/3 in the last two years.
My house has appreciated almost 1/3 in the last two years.
Psycho Ward
Well-known member
Both my houses went up in value and the field next to where the "Party Barn" is being built is thru the roof. I need that field for parking and blowing stuff up.
fly
Well-known member
i'm up here in Canada and my property has doubled in the last 2 years...........
maybe i should sell the farm and buy some more Sterlings.............
maybe i should sell the farm and buy some more Sterlings.............
Double Agent
Well-known member
I would say mostly hype....
There was a bit of a boom a couple years ago in certain parts of the country, things got overinflated and banks went nuts giving out money to people who probably didn't qualify for it. Now, its time to pay the piper and things are going the other way to normal out. Property values will still be higher in 5 years than they are today, but appreciation will likely slow down from the pace it was on from about 2003-2006.
There was a bit of a boom a couple years ago in certain parts of the country, things got overinflated and banks went nuts giving out money to people who probably didn't qualify for it. Now, its time to pay the piper and things are going the other way to normal out. Property values will still be higher in 5 years than they are today, but appreciation will likely slow down from the pace it was on from about 2003-2006.
Caca de Kick
Well-known member
Supanamu said:
My folks live in Lompoc and it's the same way as you in Santa Maria (basically same area). Nobody there can get anywhere close to what houses were getting a couple years ago, and lots of new houses selling (relatively) cheap. My Aunt in Anaheim just sold her house, she held out too long thinking she'd get a better deal. Ends up she could have got 90,000 more a year ago.
It must only be in California, because that really isn't happening here either. Here, the Seattle area barely slowed a little bit, but eastern WA is booming big time.
Yeah the big California real estate balloon burst. The really great thing is that it is a completely saturated market over here, definitely a buyer's dream. Bassmonkey, you gonna invest? 
In the country club I live in, condos that have another bedroom and a patio that backs up to the fairway are going for the same amount or less than what I bought mine at in August of '05. Boooo laaaame. Just have to wait out this one for a while.
In the country club I live in, condos that have another bedroom and a patio that backs up to the fairway are going for the same amount or less than what I bought mine at in August of '05. Boooo laaaame. Just have to wait out this one for a while.
AnthonyD
Well-known member
Free fall? Nah... Market correction? Sure...
What goes up, must come down...
What goes up, must come down...
Randracula
Well-known member
I've seen a slight drop(mabye 40 to $50,000) in my neighborhood over the last year but my house is still worth twice what I paid for it 4 years ago so i'm not complaining......It seems to me that the more expensive the house is the bigger the drop in price will be.There are houses a couple miles north of me that were selling for 1.2 million 6 months ago and are now in the 900,000's.
Jason Hebert
Well-known member
I'm in Baton Rouge, and the value of mine has almost doubled in 4 years.
leftymike
Well-known member
I just bought a house here in Austin and there is definitely no "freefall"! Every single home I put an offer on was on the market less than 48 hours and all went for several thousand above list. I finally got lucky and only had to pay $2000 above list for the one I got (close on Aug 6th).
(I think all of the Californians are moving here)
(I think all of the Californians are moving here)
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SteveB
Well-known member
It depends on the area, but I don't really see any 'freefall' trends anywhere. Some areas are seeing market corrections.. it happened here in western Pennsylvania for the last two years.. and now things are moving for higher prices again.
The hot spots like Phoenix and Southern California have slowed from the dizzying pace that they enjoyed for the last several years, but they're still on an uptick.
I do residential real estate-related business in all 50 states, but our core focus is in 18 states where we're licensed to write title insurance policies.
I can tell you that foreclosure activity is high nationwide, and while that used to generally translate into good deals on property, these days a lot of folks have their homes mortgaged way beyond what they're worth. So even foreclosure properties aren't always selling for below-market prices!
The hot spots like Phoenix and Southern California have slowed from the dizzying pace that they enjoyed for the last several years, but they're still on an uptick.
I do residential real estate-related business in all 50 states, but our core focus is in 18 states where we're licensed to write title insurance policies.
I can tell you that foreclosure activity is high nationwide, and while that used to generally translate into good deals on property, these days a lot of folks have their homes mortgaged way beyond what they're worth. So even foreclosure properties aren't always selling for below-market prices!
Alz®
Well-known member
Congratulations Mike, hope you have a good time in your new home.
bovinehost
Administrator
But the economy is in such GREAT shape! How can that be?
(Sorry...I'm trying to remain non-political here.)
Seems to me that in some already highly over-priced markets (California, the Washington DC area, etc), the prices are trying to correct themselves. I was considering moving to the DC area at one point, but this same house would cost me close to a million dollars.
Eh, no thanks.
mynan
Well-known member
Here in Michigan I've heard that our great state has been given the distinct honor of being ranked 50th in the nation economically and although the market is saturated with houses for sale, making it a buyers market, there is definitely not a freefall.
leftymike
Well-known member
SteveB
Well-known member
I actually blame greed and apathy more than the economy in general.
Greed on the part of certain unscrupulous mortgage brokers who approved homebuyers for loans they could never afford (especially adjustable-rate mortgages that were perhaps 'affordable' in the early years of the loan). Greed on the part of certain real estate brokers and agents who like to get their noses in many aspects of the transaction which are none of their business, yet turn a blind eye to people buying houses they'll never afford long-term. Greed on the part of certain companies in my own industry (title and closing), because most of them are owned by real estate brokers by way of 'joint ventures' and are probably illegal under RESPA. Greed on the part of certain buyers who are in business of flipping (buying a house and immediately selling it for a profit), many of whom are crying now because they got caught holding a property that they can't sell for a profit or even what they paid.
Apathy on the part of the American home buyers, who steadfastly refuse to educate themselves on the many aspects of home buying, even though it's the largest purchase they're likely to make. You can bet they'll research televisions, cell phones, mp3 players.. but not appraisal fees, broker fees, title companies, prevailing interest rates.
Pardon the rant, but I've been in this business for 18 years now and the last 5 years have probably been the ugliest in terms of any signs of ethics in the various parts of the industry. Certainly there are good and respectable folks performing all of the functions that I mentioned above, and hopefully they'll be the ones left standing when the market corrects itself and many snake-oil salesmen are ejected from the industry.
Meanwhile, would-be homeowners need to do their homework to avoid becoming a foreclosure statistic, or being saddled long-term with a mortgage that is too much of a financial burden.
Wow.. did I really just type all of that?
