Housing Bubble?

Discussion in 'Politics & Religion' started by ferret77, Mar 19, 2007.

  1. #1
    Are home prices crashing were you live?

    Where I live the listing prices on real estate are dropping like crazy, like 10-25% over the last 6 months or so.
     
    ferret77, Mar 19, 2007 IP
  2. sachin410

    sachin410 Illustrious Member

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    #2
    and where is that? :).

    In India property prices are going through the roof. It is so difficult to buy good property in the bigger cities.
     
    sachin410, Mar 19, 2007 IP
  3. ferret77

    ferret77 Heretic

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    #3
    Florida, United States

    I was reading in WSJ an article about how real estate is skyrocketing in India cities right now, It good I guess if you already own the properties.
     
    ferret77, Mar 19, 2007 IP
  4. ahkip

    ahkip Prominent Member

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    #4
    NY is still the same. A 2 family house next to my aunt house sold for a million. (She lives in Bayside, which is around 30 minute of driving to Manhattan).

    And the area i live is crazy too. A 2 room apartment can go over 2500 dollar a month.
     
    ahkip, Mar 19, 2007 IP
  5. Mr Skyline

    Mr Skyline Peon

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    #5
    The house prices over here in the UK seem to be consistently on the rise ... they've been saying for years this can't go on but they still keep rising thankfully.
     
    Mr Skyline, Mar 19, 2007 IP
  6. ferret77

    ferret77 Heretic

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    #6
    NYC, Hong Kong, London were also mentioned in the article about India's prices as places that keep getting more expenisive, due to super rich global business people.

    my apartment rents for 2k a month, but its back yard is the ocean

    What part of NYC do you live? I used to live in White plains and lived for awhile in the village.
     
    ferret77, Mar 19, 2007 IP
  7. cormac

    cormac Peon

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    #7
    Its the exact same in Ireland, North & South of the border. You'd be lucky to find a house these days for under 125K.

    People are making a killing from buying up homes and selling up a year later.
     
    cormac, Mar 19, 2007 IP
  8. ahkip

    ahkip Prominent Member

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    #8
    I live in park slope. Manhattan is expensive and i don't think it will fall.

    Those Chinese in NY are crazy about real estate. A few neighborhood like flushing, forest hill and 8 Ave in Brooklyn becomes the new Chinatown.
     
    ahkip, Mar 19, 2007 IP
  9. ferret77

    ferret77 Heretic

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    #9
    yeah manhatten will never will be cheap, its the worldwide hub of money

    last time I was in NYC I couldn't beleive how much it changed Harlam used to like war zone
     
    ferret77, Mar 19, 2007 IP
  10. lorien1973

    lorien1973 Notable Member

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    #10
    Prices are down a little here too. Whenever I take the dogs for a walk, I pull all the new "for sale"s slips outside peoples' homes. A house of my size was going for 330k last year, this week I found one for 295k (without a pool though, on a smaller lot) so it's definitely down a little, at least.

    I'd expect the condo market to crash the fastest and deepest. they are just glorified apartments, really.

    Not sure where in Florida you live. They had to come down though, the prices were going up too high, it pricing everyone out of the market. Everyone knew sanity had to take hold at some point.

    A housing bubble doesn't really affect anyone who is living in their home. It affects real estate speculators mainly and also sellers (but its great for buyers), who have tied up a ton of money into a bunch of houses hoping to turn them over in a year. I know of more than a few housing communities that are totally empty, but all the houses are sold. Speculators bought all the houses and are not living in them. Waiting a year or two, hoping to get the 20-30% profit. It's crazy.

    Home building has greatly outpaced sales for 2 years now too. There was a story about that late last year. Supply/demand - miraculously it fixes things every time.
     
    lorien1973, Mar 19, 2007 IP
  11. ferret77

    ferret77 Heretic

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    #11
    all a condo is an apartment owned by individual, isn't it?

    I think condos have decreased the most around here, I live in Key West which I think has one of the highest average home price in the US. But prices are tanking quickly, when my and my girlfriend were looking for a place here the cheapest condos were like 450k , but how there are ones in mid to low 300s.

    Which is still crazy expenisive in my opinion.
     
    ferret77, Mar 19, 2007 IP
  12. earlpearl

    earlpearl Well-Known Member

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    #12
    The housing market in the states is going through a cyclical bust. These things always happen. The most probable causes were the boom fueled by investors and high risk mortgages with adjustable terms and higher interest rates.
     
    earlpearl, Mar 19, 2007 IP
  13. lorien1973

    lorien1973 Notable Member

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    #13
    usually. sometimes you get a small backyard that is owned by the community or something. but you always share at least 1 wall with someone. that says "apt" to me :)

    If I lived in KW, I'd live on one of those boats. I went there last summer and saw all the people living out there. That seems like it'd be kinda cool - for a while, at least. I saw they were building these huge mansions out there too. Dunno why anyone would build a mansion on KW - its just asking to be blown away one summer.

    Yeah. I don't get why people would live there anyways. Roads are cramped. tourists everywhere. Can't go anywhere unless you want to drive 100 miles. Everything is expensive. Not to mention that the city (or state, whoever is responsible) doesn't seem to be repairing the roads between the hurricanes. Some of them look like they are gonna just wash away next time. When I went this past summer, I kept thinking; who upkeeps this place (the whole keys, really - past marathon). It looks like a wreck.
     
    lorien1973, Mar 19, 2007 IP
  14. ferret77

    ferret77 Heretic

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    #14
    yeah boats are good, for one hurricane

    I thought about buying a waterfront lot and just putting a trailer on it, and just get another one when it blows away. Way cheaper then insurance.

    Apparently a lot people like it, which is maybe why its so expensive. It has the best fishing and diving in the country. Deserted tropical islands, coral reefs, are far more intereresting to me then malls and shopping centers.

    Tourists are only here for less then half the year

    The roads around marathon do wash out sometimes they washed out like a year and half ago.
     
    ferret77, Mar 19, 2007 IP
  15. debunked

    debunked Prominent Member

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    #15
    Prices in southern Oregon have dropped as much as 30% from their appraised values.

    The other problem with the huge increases we had were people borrowing against their house and now they owe more than the house can sell for. Add to that many are on adjustable mortgages and have had their payments jump too high. So they can't afford the payment, but can't sell for what they even owe.

    Houses are still being built around here, some new subdivisions, etc.. just not at the rate they were 2 years ago. Which is good.
     
    debunked, Mar 19, 2007 IP
  16. ferret77

    ferret77 Heretic

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    #16
    That and maybe everyone being able to get a mortgage no matter how broke they are.

    The people who bought my girlfriends condo in miami , I think had 100% financing, they had to put the closing costs in the loan, and then everytime there was something like an inspection that cost a few bucks, they would scurry around for a few weeks trying to get the cash to pay for it.

    They had about zero dollars saved but they were buying a place anyway.
     
    ferret77, Mar 19, 2007 IP
  17. debunked

    debunked Prominent Member

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    #17
    And now they are probably negative in ownership of that condo.
    That would suck... the best they have is to hope that property values increase.
    and how are the values going to increase in Florida where Gore's global warming® will literally FRY the housing market. Either 110F or class 5 hurricanes!
     
    debunked, Mar 19, 2007 IP
  18. d16man

    d16man Well-Known Member

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    #18
    I wouldn't say they are "crashing" 10-25%, but they are going down. This is a wave that started back in December with mortgage companies forclosing on more houses than usual...I think it is a commonality of a good economy...The economy is doing well, things are looking good. People are buying bigger houses, investing more, etc...all it takes is one little thing to happen (say the housing market cooling in the 4th quarter of last year), and it is a ripple effect....I think it will cool slightly (great for me as I am getting ready to move and buy a new house), then we will see it go back up again.
     
    d16man, Mar 19, 2007 IP
  19. earlpearl

    earlpearl Well-Known Member

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    #19
    real estate is incredibly cyclical. It has been this way for decades. I've been through a few boom/bust periods.

    when things start getting wierd or unusual...then sooner or later it will bust again. I think, that this time it was the huge amount of high risk mortgages and the 0 down mortgages.

    I think the thing is when it starts getting hot....one buys into it...and cashes out relatively quickly. Cash out and get the money.

    The darned thing is that nobody can foretell when it goes bust.

    when its dropping its a good time to buy...the only thing is ...its impossible to tell how low it will go.
     
    earlpearl, Mar 19, 2007 IP
  20. d16man

    d16man Well-Known Member

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    #20
    much can be said of the car market as well....0% financing, then it creeps up again....I just saw a commercial today for 0% again...very circular...
     
    d16man, Mar 19, 2007 IP