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House Hunters....do you think houses prices will drop even further?
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leese
Sarge!
Member since 5/05 1965 total posts
Name:
Leese
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Re: House Hunters....do you think houses prices will drop even further?
I also think there is another side to this.
First, for the most part we here are talking about the NY Metro area. Yes, there are decreases in home prices but its nothing on the scale of other parts of the country.
What I am seeing/hearing is that people who were in smaller houses in my town are putting them up on the market --- and I tend to think its because they are trading up because they are getting great deals on bigger homes or in different areas. Losing on one side but gaining big on the other.
I am also hearing/seeing that people who had investment properties are now turning towards renting them out instead of trying to sell.
Also, it's not as easy to get a mortgage nowadays as it was a year ago. I know that when we went through our recent process various lenders were discontinuing the 100% financing and increasing their review of your financial records. So, there will likely be more houses for people with great credit who can get a good mortgage.
I still think that if you see a house you love, that will appreciate well in the future - you should go for it. But otherwise, don't jump like some of us did 2-3 years ago...you can actually be more choosey this time around.
Overall, this is your home and you have to love it. And, unless you are looking to flip it ... I would look at this purchase in the long-term.
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Posted 11/30/07 12:02 PM  |
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Beth
The Key to your new home....
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Beth
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Re: House Hunters....do you think houses prices will drop even further?
Posted by Meaghan729
Posted by KellyFG
IMO prices will continue to decline & inventory will increase. The mortgage fiasco hasn't even begun to rear its ugly head yet, 08 will be painful.
I see the earliest glimmer of hope being after January 09 depending on the election & who is sitting in the white house. That's when the true financial ramifications of the war will become a national issue.
I disagree with this - I think the major players in the mortgage fiasco have written off what they needed to and have improved their credit policies.
I think what Kelly is refering to is that this was just the begining of the adjustable rates adjusting- so people that rate adjusts too high and now then can't get another fixed rate loan b/c there loan was subprime to begin with are going to lose there home
you can't deny that foreclosures are up and they are going to sky rocket in the next 4 years b/c of this
Message edited 11/30/2007 12:13:54 PM.
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| Posted 11/30/07 12:13 PM |
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Samson7256
LIF Infant
Member since 5/06 93 total posts
Name:
John
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Re: House Hunters....do you think houses prices will drop even further?
CNN is predicting a 6.9% decrease for Nassua & Suffolk in 2008 and an additional 1.2% decrease in 2009 - When you factor in 3% inflation..that's really like 10% and 4% reductions..or a total of 14% decrease over the next two years
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| Posted 12/2/07 5:37 PM |
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sunnyplus3
:)
Member since 11/05 8749 total posts
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Re: House Hunters....do you think houses prices will drop even further?
Posted by Meaghan729
Posted by KellyFG
IMO prices will continue to decline & inventory will increase. The mortgage fiasco hasn't even begun to rear its ugly head yet, 08 will be painful.
I see the earliest glimmer of hope being after January 09 depending on the election & who is sitting in the white house. That's when the true financial ramifications of the war will become a national issue.
I disagree with this - I think the major players in the mortgage fiasco have written off what they needed to and have improved their credit policies.
If we are just talking about LI - existing home prices for the 3rd quarter decreased in Nassau/Suffolk a half a percent. On the median home price in Suffolk, (approx $400M) that is only a $2M difference.
I also don't think it matters who is in the white house- it matters who is in charge of the fed.
I disagree, the major players have LIED about what they needed to write off & everyone in the know will tell you the real numbers are 3 to 4 times what they've admitted to. Citibank needs about triple what they are getting from
abu dhabi to even try to get straight. The card houses will fall in 08. I was talking about the rest of the ARMs resetting in 08 as well which is just another huge hassle as far as property values go. Every time a house forecloses in a neighborhood it takes a little bite out of the home values.
This presidential election will be historic in more ways than one and there has been a long time historical pattern between the end of a war & recession.
People that are buying their long term primary residence should not get too crazy trying to follow all of this. Its simple, buy only what you can afford, take a conventional loan & put some money down & you won't loose.
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| Posted 12/2/07 6:54 PM |
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Salason
♥
Member since 6/05 9878 total posts
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Re: House Hunters....do you think houses prices will drop even further?
Posted by Meaghan729
Posted by KellyFG
IMO prices will continue to decline & inventory will increase. The mortgage fiasco hasn't even begun to rear its ugly head yet, 08 will be painful.
I see the earliest glimmer of hope being after January 09 depending on the election & who is sitting in the white house. That's when the true financial ramifications of the war will become a national issue.
I disagree with this - I think the major players in the mortgage fiasco have written off what they needed to and have improved their credit policies.
QUOTE]
I agree with 2008 being painful and disagree about the major players writing off what they need to. The reason people like Merrill came out in July and said they had little subprime exposure was because they didnt really KNOW the extent of their exposure (through CDO equity holdings and negative basis trades). I think they have only begun to scratch the surface in realizing their pain. And the ARM resets are going to make things THAT much more painful in 2008, when all the poorly underwritten '06 loans start resetting. Improving their credit policies came too late...
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| Posted 12/2/07 9:52 PM |
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| Pages: 1 [2] |
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