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~Colleen~
my loves...
Member since 5/05 9129 total posts
Name:
guess
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Re: Realtors: Home sales now a 'buyer's market'
Posted by Meaghan729
Parts of Suffolk.
Well that narrowed it down 
Nevermind.
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Posted 7/25/06 5:05 PM  |
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Prudential Douglas Elliman Real Estate
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~Colleen~
my loves...
Member since 5/05 9129 total posts
Name:
guess
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Re: Realtors: Home sales now a 'buyer's market'
Posted by Beth1210
Dad's House
Here is the link to my Dad's house- quite a deal at $550K
Is it on Lower Sheep Pasture or is MLSLI off?
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| Posted 7/25/06 5:07 PM |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: Realtors: Home sales now a 'buyer's market'
Posted by Beth1210
Dad's House
Here is the link to my Dad's house- quite a deal at $550K
I agree - I have seen pics of your Dad's house before, and it looks very nice. I personally dont understand either why it hasnt sold...... but i am just remarking that it is strange that even in this market, your dad has suffered such a decline....
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| Posted 7/25/06 5:07 PM |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: Realtors: Home sales now a 'buyer's market'
Posted by Meaghan729
Posted by lululu
I think that we are all talking about different things - I am sure plenty of homes have dropped their asking price 20% in the past 6 months - but i dont think that any particular home that sold for X amount last year won't even generate interest at 20% less than that price this year. For example - if i bought a house last year for 400k - I think that if i went to sell that same house for $320k this year - a lot of people would try to buy that house.
30 year Mortgage rates are also up about 1% since last year, decreasing affordability.
The monthly payment on a $300K mortgage at 5.5% is $1719, and at 6.5% is $1915.
Using the good old 28% rule, you would have to make $6,839 per month to afford a payment of $1915, but only $6,139 to afford $1719.
I understand what mortgage rates have done to affordability - however i dont think that a 1% mortgage rate increase would explain a 20% decline in the market.....
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| Posted 7/25/06 5:08 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Realtors: Home sales now a 'buyer's market'
Posted by Colleen9304
Posted by Meaghan729
Parts of Suffolk.
Well that narrowed it down
Nevermind.
you have FM
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| Posted 7/25/06 5:08 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Realtors: Home sales now a 'buyer's market'
Posted by Colleen9304
Posted by Beth1210
Dad's House
Here is the link to my Dad's house- quite a deal at $550K
Is it on Lower Sheep Pasture or is MLSLI off?
yes it's lower sheep pasture road-
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| Posted 7/25/06 5:10 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Realtors: Home sales now a 'buyer's market'
Posted by lululu
Posted by Meaghan729
Posted by lululu
I think that we are all talking about different things - I am sure plenty of homes have dropped their asking price 20% in the past 6 months - but i dont think that any particular home that sold for X amount last year won't even generate interest at 20% less than that price this year. For example - if i bought a house last year for 400k - I think that if i went to sell that same house for $320k this year - a lot of people would try to buy that house.
30 year Mortgage rates are also up about 1% since last year, decreasing affordability.
The monthly payment on a $300K mortgage at 5.5% is $1719, and at 6.5% is $1915.
Using the good old 28% rule, you would have to make $6,839 per month to afford a payment of $1915, but only $6,139 to afford $1719.
I understand what mortgage rates have done to affordability - however i dont think that a 1% mortgage rate increase would explain a 20% decline in the market.....
look at the 1% decline in affordability - it went from someone making $73K being able to afford a house to now having to make $83K to afford the same house.
eta: So if you make $73K, at 5.5% you could afford a $300K mortgage. At 6.5%, someone making $73K can only afford a $270K mortgage. That is an 11% decrease in affordability.
Message edited 7/25/2006 5:22:15 PM.
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| Posted 7/25/06 5:12 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Realtors: Home sales now a 'buyer's market'
Posted by lululu
The problem is comparing the original asking price to what it is listed at now. A lot of sellers thought that the market would have another 20% increase this year and priced accordingly. When they found out they were sorely mistaken, they needed to lower the price back down to something comparable to what they would have gotten last year. this is different than a 20% decline over the past two years. Beth said her dad could have gotten 700k two years ago for his home, and now there is no interest at 550. That was what i was having trouble finding realistic. If someone told me that they listed a house at 700 and now it has dropped to 550 - well not so unrealistic because the starting point may have been off to begin with. I'm not sure if i am expressing this correctly....
he dropped it to $550K yesterday to create interest
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| Posted 7/25/06 5:30 PM |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: Realtors: Home sales now a 'buyer's market'
Posted by Beth1210
Posted by lululu
The problem is comparing the original asking price to what it is listed at now. A lot of sellers thought that the market would have another 20% increase this year and priced accordingly. When they found out they were sorely mistaken, they needed to lower the price back down to something comparable to what they would have gotten last year. this is different than a 20% decline over the past two years. Beth said her dad could have gotten 700k two years ago for his home, and now there is no interest at 550. That was what i was having trouble finding realistic. If someone told me that they listed a house at 700 and now it has dropped to 550 - well not so unrealistic because the starting point may have been off to begin with. I'm not sure if i am expressing this correctly....
he dropped it to $550K yesterday to create interest
I am sure that he will get a lot of interest after the drop. right now i think that buyers are just waiting for the decrease and then they are like vultures. good luck - hopefully he gets some good hits this weekend.
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| Posted 7/25/06 5:37 PM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: Realtors: Home sales now a 'buyer's market'
Posted by lululu
Posted by Meaghan729
Posted by lululu
I think that we are all talking about different things - I am sure plenty of homes have dropped their asking price 20% in the past 6 months - but i dont think that any particular home that sold for X amount last year won't even generate interest at 20% less than that price this year. For example - if i bought a house last year for 400k - I think that if i went to sell that same house for $320k this year - a lot of people would try to buy that house.
30 year Mortgage rates are also up about 1% since last year, decreasing affordability.
The monthly payment on a $300K mortgage at 5.5% is $1719, and at 6.5% is $1915.
Using the good old 28% rule, you would have to make $6,839 per month to afford a payment of $1915, but only $6,139 to afford $1719.
I understand what mortgage rates have done to affordability - however i dont think that a 1% mortgage rate increase would explain a 20% decline in the market.....
well add in the fact that there is more than double the inventory of houses for sale than there was last year at this time
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| Posted 7/25/06 6:00 PM |
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