House prices to drop much lower: Greenspan

[bright eyed]

Quote:

Originally Posted by FinanceGeek So riddle me this, why are is there so much new construction going on in so many of these sun-belt locales given the impending decline? It seems no matter where I travel I see tons of new cookie cutter communities springing up.

i'm guessing the plans were drafted, approved etc. during the peak...that happened around here... a new housing dvmt (in the last patch of land left) was planned during the boom and is nearing completion...i think they expected it to sell out right away...but the sales on the townhouses are lagging (although i think they are still trying to hold on to the asking price)...further out from LA into riverside and beyond where the housing tracks have been going up at crazy rates - i'm starting to see tons of ads for free upgrades, below builder cost etc. to keep the sales going.

maybe one day i can actually afford a house around here!

[haha]

Quick note from what may be the last housing market still charging ahead. 2 friends last week bought a 1100 sq ft co-op apt in an old building, no provided parking, in a good central residential neighborhood of Seattle. Paid $390,000, which was $20,000 above the asking price. That's right, a bidding war among 3 buyers!

Ha

[Spanky]

Good luck to the one who won the bid.

[chinaco]

We are intending to downsize in 4 years when I ER. Sounds like we are downsizing and didn't even move yet. But not in the way we were hoping to downsize.


Housing looked like a bubble, I believe it is correcting itself.

Dirt Cheap interest rates are not good for an established economy. Especially for the long haul. I hope Ben B doesn't go too low. Unfortunately, everything is interconnected. The $ is in the toilet. I am confident that we can turn things around. An administration change will probably help.

[HFWR]

Quote:

Originally Posted by dex I'm noticing a lot of empty store in strip malls in the Atlanta area. And a lot of strip malls being built. Anyone else notice this?

The North Dallas Tollway corridor looks the same to me...

[ShokWaveRider]

I have to agree also. The same old adage, If we/CNN talk about something for long enough, it WILL happen. This has been talked about since 2004. It IS happening and IMHO will continue for up to 36 more months.

I am currently a cash buyer in NE Florida at 25% less than most folk are asking. (Homes priced in the $600 - $800k range) If they do not take it, I walk. I have another very comfortable place to live.

People here are still asking 2005 prices. I find the estimates for tax purposes by the county on the appraisers web site are closer in line with reality.

SWR

[chinaco]

Quote:

Originally Posted by ShokWaveRider I have to agree also. The same old adage, If we/CNN talk about something for long enough, it WILL happen. This has been talked about since 2004. It IS happening and IMHO will continue for up to 36 more months. I am currently a cash buyer in NE Florida at 25% less than most folk are asking. (Homes priced in the $600 - $800k range) If they do not take it, I walk. I have another very comfortable place to live. People here are still asking 2005 prices. I find the estimates for tax purposes by the county on the appraisers web site are closer in line with reality. SWR

Self-fulfilling Prophecy! Perhaps.

[Spanky]

Quote:

Originally Posted by ShokWaveRider I am currently a cash buyer in NE Florida at 25% less than most folk are asking. (Homes priced in the $600 - $800k range) If they do not take it, I walk. I have another very comfortable place to live. SWR

What is your hit rate so far? That is, how many houses from which you have walked away and vice versa?

[Fred333]

They markets like this all over where it seems they are still stuck in the early eighties. The key is finding them and seeing the potential in them.

[ShokWaveRider]

Currently I have not. Whenever I see a seller asking more than what the peak was in 2005 (When a lot of them purchased) I do not bother making an offer. I do not have an impending event. I will just keep looking until I find the place I want. I am comfortable where we are. (Renting 3 bed 3 bath 1750sqft on Tidal River for $800pm). I have been renting this place since 2005 because of prices.

I did nearly go for one and probably would have got it, but it was removed from the market before I had a chance. The owners tried to auction it but it did not even sell there so they pulled it. They had 2 homes, and sold the other at auction (20% less than the listing price).

so I just keep looking.

Quote:

Originally Posted by Spanky What is your hit rate so far? That is, how many houses from which you have walked away and vice versa?

[honobob]

Well if prices are rising in Houston and Seattle and nobody here has completed a purchase on a "steal" what are we talking about?


Houston and national housing markets don't fit in same basket - Houston Business Journal:

[Jay_Gatsby]

Quote:

Originally Posted by ShokWaveRider I am currently a cash buyer in NE Florida at 25% less than most folk are asking. (Homes priced in the $600 - $800k range) If they do not take it, I walk. I have another very comfortable place to live. People here are still asking 2005 prices. I find the estimates for tax purposes by the county on the appraisers web site are closer in line with reality. SWR

I'm finding the same thing around here in the DC suburbs in Maryland. Many folks are still desperately trying to find a sucker buyer that will pay what WAS the going rate in early-to-mid-2006. This smacks of pure GREED in my book. The vast majority of homes being sold in the neighborhoods where my wife and I are looking haven't been updated since the late-1970s or early-1980s (old appliances, water-heater, HVAC unit, kitchen, faux wood paneling, shag carpet, etc...), and need maintenance beyond mere renovations (old roofs, rotting decks, decrepit/dead trees, etc...). The asking price of such homes is quadruple what many (of the Baby Boomer occupants) paid when they bought their houses, and yet they quibble over a 5-10% reduction in the asking price. Their real estate agents won't listen to reason, since they are paid 3% of the selling price and want to keep it as high as possible (funny, I always thought 3% of nothing still equals nothing).

My wife and I are in no real hurry, although we would like to own a house and cut our commutes by moving closer to our jobs. Such desires are not worth paying $50k+ more than we should.

[haha]

I saw a house for sale yesterday-1800 sq feet on 2 floors, moderately run down, on a heavily traveled street with little setback. 3 bedrooms and 1 bath, $749,500. Neighborhood mostly renters, but basically safe and quite convenient. No garage, but parking pad in front yard.

The sign said, "Charming turn of century house, built 1903, fully remodeled in 1929....".

Well, in that case, I think I will buy it.

Ha

[W2R]

Quote:

Originally Posted by haha I saw a house for sale yesterday-1800 sq feet on 2 floors, moderately run down, on a heavily traveled street with little setback. 3 bedrooms and 1 bath, $749,500. Neighborhood mostly renters, but basically safe and quite convenient. No garage, but parking pad in front yard. The sign said, "Charming turn of century house, built 1903, fully remodeled in 1929....". Well, in that case, I think I will buy it.

And, I suppose that implies that nobody has done a thing to it in the past 78 years, too! Now THERE's a desirable house.

[honobob]

Quote:

Originally Posted by Jay_Gatsby I'm finding the same thing around here in the DC suburbs in Maryland. My wife and I are in no real hurry, although we would like to own a house and cut our commutes by moving closer to our jobs. Such desires are not worth paying $50k+ more than we should.

Sounds like prices aren't going down near DC. Wait too long and you might be looking at "affordable housing".

Despite downturn, Loudoun remains pricey for many - Washington Business Journal:

[honobob]

Quote:

Originally Posted by Want2retire And, I suppose that implies that nobody has done a thing to it in the past 78 years, too! Now THERE's a desirable house.

I think they're saying the house is more valuable since it hasn't been destroyed by a 1960's or 1980's remodel that usually removes all the "Charm".

[FinanceDude]

On a different note, how come Greenspan has all these things to say AFTER he's no longer Fed Chair

[73ss454]

Quote:

Originally Posted by FinanceDude On a different note, how come Greenspan has all these things to say AFTER he's no longer Fed Chair

Because he's making a lot more money now.

[brewer12345]

Quote:

Originally Posted by FinanceDude On a different note, how come Greenspan has all these things to say AFTER he's no longer Fed Chair

Because he has a book to flog?

[haha]

Because he has a new pimp.