Home Prices

Does any one see the market rebounding to previous highs like we had in 2005? just curious on your opinions

Re: Home Prices

eventually. It is a cycle I think. JMO. DOnt know when though. We just bought and we staying planted for a long time....

Re: Home Prices

real estate works on a cycle. typically its 7 years up of high prices and then 1-2 years down of low prices where it turns into a buyers market. this is that time now. it'll definitely go back up.

Re: Home Prices

They'll always go up, if not for the cycle, for general inflation. But in the long term a home is always a good investment because the market cycles.

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I don't think that I will see the type of appreciation my parents saw in 30 years with their home. I'd love it, don't get me wrong, but I doubt it.

However, I do think that houses will appreciate and also think the media places a role in hyper-inflating the issues surrounding the subprime.

That said, I think lending will remain strict and that's a good thing.

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IMO, cycles have nothing to do with it this time around.

the whole sub-prime mortgage mess was a huge part of the latest housing boom. lenders were giving mortgages to people who had no buisiness buying a house. and many brokers were lying about their clients incomes and borrowing from 2 different banks for 1 client to get approvals

I think it will be a long time before the market recovers b/c of the fallout and foreclosures. it's really terrible!

Re: Home Prices

The prices by me in South Huntington seem to be going up. One house about six houses away was on the market at $579k after being on the market for quite a awhile lowering to $539k. Then they rented it now its back up for sale $598k.
All the other homes on New York Ave by me start at $539k and go up to $699k. I'm starting to wonder if mine up for sale at $479k people might be wondering whats wrong with it. 2 other homes similar to mine only a one car 1/2 the house no amenities and in half the condition of my home are listed for $489k... I am also seeing homes coming on the market now for the first time coming on higher then they should.

Re: Home Prices

Posted by SweetestOfPeas

IMO, cycles have nothing to do with it this time around.

the whole sub-prime mortgage mess was a huge part of the latest housing boom. lenders were giving mortgages to people who had no buisiness buying a house. and many brokers were lying about their clients incomes and borrowing from 2 different banks for 1 client to get approvals

I think it will be a long time before the market recovers b/c of the fallout and foreclosures. it's really terrible!

Re: Home Prices

Re: Home Prices

if interest rates stay low or reasonably low the market will pick up. there will be processes put in place to help people that have taken on mortgages that were not right for them. Lenders will be watched very closely and some will suffer penalties.

Lending in general will be much stricter but that is how it was always before the creative mortgages came about. Those are going to go away.

The housing market will recover in time. It may take a few years, but it will. In the 1980s the market su cked, interest rates were at 18% and people couldn't sell their homes because no one wanted to pay 18% for a mortgage although there were plenty of people that did. That was one incident where unbelievable inflation took hold. It was a pretty screwed up time econonically for the US.

The market recovered and so did the housing market..it was slow, but it made a recovery in normal numbers.

It is all cyclical. It will always be that way. Nothing stays static, it will always change.

Re: Home Prices

Beth 1210 I couldn't agree with you more on the mortgage lenders having to tighten up and its hard to get a mortgage in which the buyer is looking to get.. I know I had some buyers and our home would of been sold, they are sure digging into the buyers closets now. I am just telling you whats happening around me. I don't know if their is rhyme or reason to it.