Join Early Retirement Today
Thread Tools Display Modes
Old 04-22-2008, 09:05 AM   #21
Recycles dryer sheets
Join Date: Mar 2008
Location: Washington, DC
Posts: 75
Also, some economists say the mortgage bailout plan in Congress will just make things worse.
Many Problems with Mortgage Bailouts

"Critics, including some in Congress, say the rescue plan rewards reckless behavior and transfers risk to homeowners and lenders who were responsible during the housing boom."
sarahsays is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-22-2008, 09:29 AM   #22
gone traveling
Join Date: May 2006
Posts: 1,036
Originally Posted by fmhealth View Post
In the past week, the following has happened:

1- My brother sold his home on LI after being on the market for 11 months.

2- My friend sold their home after 5 months on the market.

3- My daughter sold her home, now listen to this. In CLEVELAND ( the epicenter of real estate devastation !). House went up in August of '07.

All went for prices far below the original asking price. But they all sold. Now this obviously is not a representative sample. Although I'd be hard-pressed to remember when three houses owned by folks I know have sold in rapid succession. Simply some andecdotal observations that may possibly be the harbinger of the easing in the R/E market.

I certainly hope that this is the case!

fmhealth I'll have to give you credit for calling the return of the RE market!! Goodtimes for everybody.


Office of Federal Housing Enterprise Oversight
honobob is offline   Reply With Quote
Old 04-22-2008, 09:55 AM   #23
gone traveling
Join Date: May 2006
Posts: 1,036
In addition to the surf report:

The price of condominiums on Maui rose in the first quarter of 2008, according to a new report from Prudential Locations.
The median price of condominiums rose 6.2 percent to $587,000 in the first quarter of 2008, Prudential Locations said Monday. Most sales took place in the Wailea/Makena and Kihei areas. Prices in those communities appreciated 56.4 percent and 21.7 percent, respectively.
Condo sales were down 0.7 percent, with 276 sales in the first quarter of 2008, compared with 278 in the same period a year ago.

Sales down though, two less than last year. The horror!

Maybe we could have a benefit luau?
honobob is offline   Reply With Quote
Old 04-22-2008, 04:50 PM   #24
Thinks s/he gets paid by the post
tryan's Avatar
Join Date: Mar 2005
Posts: 2,590

The number of California homes lost to foreclosure in the first quarter surged 327% from year-ago levels -- reaching an average of more than 500 foreclosures per day --
The foreclosure rate should crest in about a year ... then the real fun begins. As bank REOs attempt to fetch what's left from very tired buyers in an economy with much less liquidity.

L.A. Land : Los Angeles Times : California foreclosure "surge": Up 327% from '07 levels
FIRE'd since 2005
tryan is offline   Reply With Quote
Old 04-22-2008, 05:34 PM   #25
Thinks s/he gets paid by the post
Rambler's Avatar
Join Date: Jul 2007
Posts: 2,487
At the peak in about spring of last year, the value of the home we will sell had grown at a CAGR of 8.25% for 13.5 years. As it stands today, the CAGR would be about 7% at 14.5 years. I don't expect the prices to drop much more, and we won't be selling for at least 4 more years. I paid it off about 3 years after purchase by LBYM lifestyle when I sold some other real estate. If I sold it today, it would still be a respectable if not fantastic return...and that is on an investment that you can also live in. So, I'm not in crisis mode.

The folks who are in crisis mode are those who bought in 2005-2006 (and perhaps as early as 2004) at inflated prices and subprime rates that are now inflating, and who must sell. Others in crisis mode may be those who bought earlier, but refi'd and pulled out equity with a subprime. Some of this is stupidity, and some of this is gullibility on the part of the homeowner, and some of this is what I would consider to be predatory business practices by some of our banks and lenders.

Best advice, I think for most people, would be to just hunker down and ride out the storm. Sunny skies will come again, but I hope our regulators don't allow stupidity in lending to prevail again.

Rambler is offline   Reply With Quote
Old 04-22-2008, 05:39 PM   #26
Thinks s/he gets paid by the post
Join Date: Jan 2004
Posts: 2,049
Originally Posted by honobob View Post

Office of Federal Housing Enterprise Oversight
Read past the headline.
eridanus is offline   Reply With Quote
Old 04-22-2008, 05:41 PM   #27
Thinks s/he gets paid by the post
Join Date: Jul 2004
Posts: 1,555
Well, our house is going on the market here in a couple of weeks to a month - we live in northern CA. However, I bought in 2000 and frankly even with the lower prices now, I will have made a nice, tidy profit if/when it sells. I'm not greedy and laughed at some of the prices around me last year and the year before. Rambler is right - if one bought in 2005-2007, they will be in a world of hurt.
Deserat aka Bridget
“We sleep soundly in our beds because rough men stand ready in the night to visit violence on those who would do us harm.”
deserat is offline   Reply With Quote
Old 04-22-2008, 06:10 PM   #28
Moderator Emeritus
Bestwifeever's Avatar
Join Date: Sep 2007
Posts: 17,772
I just heard last week on some radio talk show a university professor who teaches "emotional finance" discussing that in a sellers' market, houses are priced a few percentage points over what the sellers hope to make, because they know there could be a bidding war. But in a buyers' market, sellers tend to price their house much HIGHER to allow room to come down a lot. Then the houses sit on the market because buyers prefer not to bid as low as those houses are actually worth.
Bestwifeever is offline   Reply With Quote
Old 04-22-2008, 08:51 PM   #29
Thinks s/he gets paid by the post
growing_older's Avatar
Join Date: Jun 2007
Posts: 2,657
Some real estate guys are trying to talk me into buying properties. Prices have dropped but are now stabilizing. That may be, but it looks to me that inventory is growing rapidly at these new stable prices. Either buyers start to come back since prices are holding or sellers are going to have to drop prices again if they want anything to move. I can drive down streets with for sale signs on every block (often multiples). I have no idea what might happen next, but I don't feel comfortable betting much on it.
growing_older is offline   Reply With Quote
Old 04-22-2008, 10:23 PM   #30
Recycles dryer sheets
Join Date: Jan 2005
Posts: 445
Housing Woes Force Some Families to Split Up : NPR
Foreclosures Keep Locksmiths in High Demand : NPR
P.S. is offline   Reply With Quote

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Similar Threads
Thread Thread Starter Forum Replies Last Post
Marine LtCol Nearing retirement Buku Hi, I am... 2 01-17-2008 09:48 AM
Mortage Crisis? eudaimoniac FIRE and Money 17 12-15-2007 01:09 PM
Nearing the FIRE... ajs56 Hi, I am... 9 08-10-2007 08:23 PM
Who drives the END of their dead end street? thefed Other topics 17 06-13-2006 03:01 PM
Wal-mart wants to help end the health insurance crisis! maddythebeagle FIRE and Money 2 04-20-2006 07:16 AM

» Quick Links

All times are GMT -6. The time now is 11:17 PM.
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.