Wow Prices really are now skidding.

[dumpster56]

$399,900
4 Bed, 2.5 Bath
0.29 Acres


This house was listed at 509 a year ago. In New Jersey it is in very nice shape 10 years old in my old neighborhood. Whoa, I got 520 for the same house 17 months ago, just around the block.

 

[Moemg]

Yes ,if you sell you'll get less for your house but you'll also pay less for another house so it balances out .

 

[FinanceDude]

Yes ,if you sell you'll get less for your house but you'll also pay less for another house so it balances out .

Touche'

 

[Webzter]

Yes ,if you sell you'll get less for your house but you'll also pay less for another house so it balances out .

Depending on which way you're going and assuming a simple model, you could actually come out ahead if you're buying in a down market.

For example, say that you want to move out of your $200k townhouse and into a $600k McMansion (pre-market adjustment). Assuming a 10% drop in price across the board, you're losing $20k on your house but the other seller is losing $60k on their house. So, you've essentially saved $40k.

Obviously, I'm ignoring a lot of factors, but it's illustrative.

Now, the real issue is if you've financed your consumer spending habits with a home equity loan or have an ARM that's coming due. People that were doing 100% interest loans come to mind... betting on rising home prices to get out when they needed to. I'm sure situations like that are a small percentage of loans, but they're still not a percentage that I'd want to be part of right now.

 

[me_no_boss]

I think we have entered the panic phase of the cycle.
Beazer stock lost 40% today, but recovered some now.
Of course real estate is local, here in Centray Valley N. Ca is not good. Runaway foreclosure trend, 11 months inventory are giving home prices the double whammy.
But then, in Cupertino CA, take newguy's home picture and chop it in half would be a bargain for $399K.

 

[CuppaJoe]

$399,900
4 Bed, 2.5 Bath
0.29 Acres


This house was listed at 509 a year ago. In New Jersey it is in very nice shape 10 years old in my old neighborhood. Whoa, I got 520 for the same house 17 months ago, just around the block.

Yeah, prices are coming down a bit in my neighborhood also. The 2 bedroom condo across the street started out for sale at $2,225,000, was reduced to $1,999,999, now you can have it for $1,999,000. Still no "sale pending" sign.

 

[cantlogin]

There are no buyers for my neighbors property at $1,955,000.