What's new

The Housing Market...

Well if it is on the Today Show, then it's official...the housing may be softening across the nation....

what is it like in your area ? Are you selling now ? Having trouble ? Are they doing anything unique to attract the buyers ? Free trips and so on ?

Just a thought...

mark the shoeshine boy
 
Mark, are you looking for a house with a shave den? The wife kick you and your products out of your bath? :lol:
 
Clearly much less a sellers market than just a few years ago; commercial real estate especially so--lots of extra/vacant office space out there. Still appreciating and selling but those who based their livelihoods as real estate speculators are going to see a real slow down or being very disppointed if they are just jumping in now. Mark my words the diversification investment place to be right now--natural resources especially natural gas and to lesser extent lumber and farming. That being said, I'm an admitted idiot when it comes to investing so I'm probably wrong--but also--someone who is smarter than me hooked me into the natural resources thing so it's not really my words!

MJB
 
DC area market is a pain in the rear! You basically have to have a 6+ figure income to even afford the most basic starter... Well, unless you are low income and can get one of local loan for low income housing subsidization. So basically the middle class is basically SOL on affording a house around here at the current time.

They say it is softening a bit here, but not much. There are still plenty of 300+ thousand dollar condos going up. And those are the low end units. Grr. I won't be able to afford anything for a long time. Practically have to be married/dual income to afford one.
 
I've been looking to buy a loft in a very big complex that was being rebuild out of an old factury next to a big canal here in Belgium but the uncertainty of the neighborhood made me drop off. Even though I could spend part of the money out of my own account and together with a loan from the bank I had more than sufficient to buy something and finish it with my own (rather expensive) taste, I decided not to go for it. I maybe regret that later but anyway: when it comes to spending large sums of money, you better take more calculate steps and stay safe instead of jumping in the void. Of course it are the risk takers that eventually grow higher but you can only do that by not burning all your money should something go wrong.

There was a 15 year plan developed for that neighboorhoud to increase the "living" atmoshphere by creating hotels and big shopping centers etc but I prefer to live somewhere where it's rather quiet. And it's not because they make promises and make people warm for buying a loft or appartment because in the future the market value will go up, that those plans will eventually continue.

We have also bought some ground in the area approx 7years ago for 100.000EUR. Last year we could sell it easily for 150% of the original price but we didn't do it. This year it's value is even higher.

In the major cities here in Belgium prices have risen astronomically to levels you could only dream of 10 years ago. People that made real estate investments at that time can only enjoy the prices we have now.

As mentioned by Adam, the majority of the people have to have a dual income or get married in order to afford an average home here in Belgium.

I'm convinced that at this time we're in a "bubble" state and will soon collapse although that's something people have been saying for multiple years already. I thought in the US bubbles are already exploding but I could be wrong.

The government and communities are investing much more in their cities and villages making the overral "appearance and cultural value" of the community and its real estate value go up quickly. Maybe within 20 to 30 years the prices that we pay right now will be low but I'm no expert.
 

ouch

Stjynnkii membörd dummpsjterd
You don't really make or lose money on the house you live in. It's the investment properties that take the hit.

Example- you bought a house for 300K. It's now worth 600. If you sell it, you still have to live somewhere, and a comparable house will run you 600. You didn't make a dime. Conversely, if the bottom drops out and that 300K house is only worth half, you can still buy a comparable house for that lower amount.
 
Every bubble, while triggered by speculation, is fed and ultimately created by readily available, cheap credit. Real estate markets are almost entirely local. While there have brief examples of an emerging national real estate market in the past there really wasn't one of consequence before 2001. Historically low mortgage rates; cheap, readily available credit. I for one have found the last few years absolutely fascinating. When my kids go to college they will like take an economics class. Right after they learn about the fed and realize that they can use bank float to finance their spring break they will learn about the current real estate market.

Here in Phoenix we are really seeing it all: 55% annual residential housing appreciation, REITS earning 30% annual returns, rampant residential and commercial sprawling, kids dropping out of college and making six figures as a RE agent (same kids are now selling cell phones at the mall), enourmous mixed use projects in every municipality financed with public funding, and despite the recent explosion in home prices we continue to see an exploding population. We led the nation last year in residential home price appreciation. That just brought the median price up to the national average.

Currently, new home builders are panicking as canceled orders mount and units begin to sit. Builders are leveraged to the hilt and can go BK in a few short months. Some have. Existing home sales have stalled. Inventory is building and it is taking a long time to sell homes. There is a favorite saying among real estate agents: Houses never go down in value, they just take longer to sell". Well, if you are getting transfered, divorced, or just can't take the AZ heat you are about to take a big loss. People who need quick sales are listing at as much as 25% below appraised value. Families who just upgraded to bigger homes cannot sell their old homes and are paying double mortgage payments. These poor people are bing crushed by gas prices also since their new homes are 50 miles away from where they work. This is a small percentage of the overall seller group though. Most of us are just sitting on what we have after refinancing at obscenely low rates. What I am paying close attention to is the number of people who cashed out the equity in their homes to buy Escalades. Their interest only variable rate mortgage payments will double in the next few years. Again, this isn't a large number of people but there will be bargains to be had as these people sell and move back into apartments. Apartments are being built at an incredible rate and the rental amounts are still very low compared to buying.

Commercial RE has slowed down but is still doing very well. Our economy is strong and more people are moving here for better jobs every day. The REITs are not going to enjoy the returns they have in the past but commercial RE has not been harmed in any meaningful way here.

Ultimately all things experience mean revert. Home prices here will continue to appreciate at the rate of inflation or slightly higher. It will take longer to sell a home though. We shouldn't get hurt too bad even if things go South.
I think this story is only about half told at this point. This thread or one like it will still be active in 2010.
Cheers,
Jeff

PS Mark: you have asked some really good questions over the last few months. Good job keeping this an interesting forum, it is now the one I check first.
 
fuerein said:
DC area market is a pain in the rear! You basically have to have a 6+ figure income to even afford the most basic starter...

The Baltimore area is just as bad. We're starting to look up near Pennsylvania. :frown:
 
majkeli said:
The Baltimore area is just as bad. We're starting to look up near Pennsylvania. :frown:

I looked at our old 1120 square foot town house in Elkridge and it's now worth MORE than the 2500 square foot house we own in Virginia! WOW!!
 
It's a 'buyer's market' where I live. Housing is not appreciating as it was a few years ago. My daughter, who is an Underwriter is seeing an increase of home owners selling at equal to or less than the home was originally purchased for.
Sue
 
good comments...

I know Phoenix is probably the fastest growing city in the nation...by boss's brother lives there....

Sue lives about 2 hours away from me. (still have electric sue ?)

In my subdivision, there are about 12 homes for sale....now a couple are divorced cases, so I throw them out, but still that is a large number for around here and i don;t see them moving too fast about it either.

this will be interesting to watch for the next few months....

what about you other guys...

and gals,


mark the shoeshine boy
 
Interesting stuff.

My gf is from North San Diego area, so I have found it interesting observing the market there. I do not think it has started to soften really, maybe just level a little... It still amazes me (being from backwoods VA) that even a basic lot there costs over $1m. Which then inevitably gets a 10,000 sq foot house built on it that some trust funded couple with no kids feels necessary.... The neighborhood has basicaly gone to hell. 20 years ago there were actually ranchers.

Now living in NYC, where the market is definitely not softening, at least for rentals. Up about 10%, it seems from a year ago, as I am finding, having been screwed by my landlord. They sent me a renewal offer two months before my lease was up, raising the rent, and asking for even more security (they already had two months worth, and there has been no damage to the place). I was not able to respond to the offer in the time alloted, because it was about two days, and the gf was out of town. Then, a week later, I get a call at 7:30PM announcing that they are going to show my place the next day. WAIT, HOLD, TIME OUT. You can't do that - I don't want anyone in my place without me there - and I deserve a hell of a lot more notice than that. I tell them that, and that I am still interested in renewing. They say it is now going to be $200 more than their last offer, and I say I want to think about it, I don't see why they will not extend the same offer they were willing to a week before. This is on a Friday, and the woman on the other end says to think about it, but they need to know by monday. On Monday I call, and am told that they have already signed a lease with someone else, "because you didn't want to pay the rent we were asking." ARRRGHH!!! :mad:

Sorry about the rant - I am just in a nasty mood about this.
 
moses said:
Interesting stuff.

My gf is from North San Diego area, so I have found it interesting observing the market there. I do not think it has started to soften really, maybe just level a little... It still amazes me (being from backwoods VA) that even a basic lot there costs over $1m. Which then inevitably gets a 10,000 sq foot house built on it that some trust funded couple with no kids feels necessary.... The neighborhood has basicaly gone to hell. 20 years ago there were actually ranchers.

Now living in NYC, where the market is definitely not softening, at least for rentals. Up about 10%, it seems from a year ago, as I am finding, having been screwed by my landlord. They sent me a renewal offer two months before my lease was up, raising the rent, and asking for even more security (they already had two months worth, and there has been no damage to the place). I was not able to respond to the offer in the time alloted, because it was about two days, and the gf was out of town. Then, a week later, I get a call at 7:30PM announcing that they are going to show my place the next day. WAIT, HOLD, TIME OUT. You can't do that - I don't want anyone in my place without me there - and I deserve a hell of a lot more notice than that. I tell them that, and that I am still interested in renewing. They say it is now going to be $200 more than their last offer, and I say I want to think about it, I don't see why they will not extend the same offer they were willing to a week before. This is on a Friday, and the woman on the other end says to think about it, but they need to know by monday. On Monday I call, and am told that they have already signed a lease with someone else, "because you didn't want to pay the rent we were asking." ARRRGHH!!! :mad:

Sorry about the rant - I am just in a nasty mood about this.

Incredible. Did you look over your lease? You may have some recourse here, I would consult an attorney if possible. There are provisions that protect a tenant in cases like this. Not to mention, I thought that NYC had imposed ceilings on rental rates?
 
When we moved here from Wisconsin in 1979, St. Charles county was mostly farm land. The bridges across the rivers were small with reversible lanes and no one would deal with the traffic to work in St. Louis county. We really bought at the right time. New bridges brought a huge growth pattern to this side of the rivers.

I don't know how many of the younger couples can afford housing. There are many homes for sale in my subdivision and they aren't moving. They aren't overpriced.

Mark, I do have power but many near are without. Those were some nasty storms. I need a new roof on my 6 year old home from the last one. I'm thinking of waiting until this heat is over that always brings the storms. I'd hate to have to replace it twice in a row. I know the insurance company is already going to ding me for the next couple of years with a premium increase.

Sue
 
Joe,

Thanks for the sympathy. Unfortunately, I don't think an attorney will help any. (Actually, I practically am one - although landlord/tenant isn't my thing). Anyway, NYC only has rent control/stabilization on certain buildings. Mine isn't one of them. Which means that the landlord can set any rent they feel like, and raise it any amount they want. Further, they have the right to not renew with me for any reason they feel like, or no reason at all. Sometimes being a tenant is not the best.... In law school I used to rent from individuals who owned a backyard apartment, or one house as an investment. That was SO MUCH better.

Shane
 
I can sympathize with you Shane being a fellow New Yorker, I am in Queens and in 2000 when I bought our home there was no inventory at all houses where not being listed but brokered from buyers lists in the real estate office, brokers where being paid by buyers "finders fees" it was a fiasco.The last 5 years housing prices here have doubled but now inventory of houses for sale have risen and there are many homes not selling for 90+ days with price reductions! So I am sure that we are at the least leveling off if not slipping back and cooling.

Good luck Shane with your apartment search on the "Island".
 
We lived in rural Connecticut a few years back and could only afford a town home--900 SF, 2 attached units per building--over 100K at the time and not well made--lots of building flaws, but all we could afford--or was even available.

Moved to mid-Michigan and bought a 2100 SF home that would have run around 400K in CT, for about half that. Large corner fenced in lot, big back deck, beautiful neighborhood.

Although we loved living in New England, we can live "better" in the MidWest.
 
Although we loved living in New England, we can live "better" in the MidWest
Apologies for being off topic- Is it just me or does anyone else feel ill at ease when they are landlocked?
I have always lived near or on the water and when I am landlocked I am constantly eying which way is the coast!
 
Top Bottom