Home Values

Just curious as to what everyone thinks will happen with the current values of homes. How much of an increase (or decrease) are the experts predicting over the next few years. Do they think values (and I am speaking of LI, not the country on a whole) are going to steadily climb? Decrease? Do they think prices will ever reach what they were a few years ago (the high point)? TIA

Re: Home Values

i recently read about (and confirmed with 2 REA and 2 RE attorneys at my closing yesterday) that values are expected to drop another 20% possibly. there is a saturation and MANY foreclosures still loom, banks havent even really scratched the surface on foreclosures.

Its really tough to say and every area is so different. I can tell you that if a house is priced right and if it is in GOOD condition, it will move!

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I've heard that they'll probably drop a bit more. And interest rates have dropped recently as well... I think from 4.75 to 4.375.

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I actually don't think they'll drop too much more. We are seeing a lot of investors/all cash buyers out right now, and that is usually a sign that the market has pretty much bottomed out, but who really knows?

It will probably take another couple of years to really get through the short sales and foreclosures that have become so prevalent, but they are much less prevalent around here than in other parts of the country. Yet, they've definitely affected the home values. Bank appraisers used to pretty much ignore the short sales and foreclosures when reviewing comps for a sale, but because of the sheer volume of them, they are now treated as any other comparable sale.

However, I think the impact on prices will continue to lessen because banks are now giving loan modifications and taking other steps to help people stay in their homes. Also, they are really tightening the criteria on short sales (not so readily approving them) AND they are demanding more money for short sales. It's not as if a short sale is even such a great deal for a buyer anymore, because the prices aren't really lower, in many cases, than a traditional sale. So with the higher short sale prices, they are not driving the home prices down as much.

I think home prices will start to rise in the near future, but will never get to the levels they were at during the peak of the market (e.g., 2005 time frame). Everyone I know who has been in real estate for years says that was a total artificial bubble.

Interest rates are fluctuating, and while they are still low (they had actually gone up a bit and then went back down), the mortgage people I deal with regularly say they are going to go up soon. So buyers who are thinking they can wait are going to be sorry if they miss the boat with these artificially low rates, which are really making homes affordable. How low of a rate an individual buyer can get obviously depends on their financial qualifications and the type of loan they are getting -- so there is no "one" rate. FHA rates are actually lower, but given that borrowers need to pay mortgage insurance with an FHA loan, that kind of cancels out the effect of the lower rate compared to a conventional loan (if you have the 20% down).

But it will definitely be interesting to see how everything pans out.

Re: Home Values

def decrease. I bought in Nov 2010 and looking around the nabe soooooooooo many older people 65+. when they start selling things will bottom out on LI

I feel prices will not reach what they were for at least 10-15 years

our int rate is 3.875 great but there is a house on the block for 80K less than what we bought for better off w higher rate and cheaper house

Message edited 7/17/2011 10:32:46 AM.

Re: Home Values

Re: Home Values

In my opinion the answer to this question depends on the particular town and price range. In the area we are buying things have definitely gone up since last year and, seem to be continuing. Last year, open houses were empty - now they are swarming and the good houses that are priced in the right ball park are gone within days. THere are often several offers and many of them are all cash. Most of the homes I have seen lilsted since March are gone and many from last year are now gone as well. So, I DEFINITELY don't see housing prices going down in my area anyway.

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I think it depends on the town. There was an article in our town paper recently that the market was looking up and that people who were trying to pay less than market value were getting shut out by people who are willing to pay more. So I think it depends on where you are looking.

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I don't think the market on Long Island is reflective of the market as a whole. Having said that.. even if there was a drop coming I can't see it being as much as 20% more than what we've already seen... that's a tremendous amount of money. Maybe another 5% in some areas.. BUT I am no investor or expert!

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It all depends on where the house is and what other homes are for sale around it.

I think we are close to bottom.

I wish I had a crystal ball.

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I was just looking at area sales in my neighborhood and they are SO scattered! I keep hearing that it will go down a bit more, but some houses are selling for good prices...some are not.

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my mortgage broker said it takes between 3-5 years for the banks to start working on the foreclosures. so there are many out there still pending. i think its gonna keep dropping.

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i think it depends. my block is at its lowest unless something drastic happens. people are starting to fix up a bit more which never happened.

a house just went for like 340K around the block from me which is the most in a while a house has gone in my 5 block radius. We have seen mostly lower to mod 200s.

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I am so confused when it comes to home values. I know that websites like Zillow and cyberhomes.com are not "accurate" but only give a guesstimate what homes "MIGHT" be valued at. That being said, we bought our house in Massachusetts in Aug. 08 for 185,000. A few months ago Zillow was showing the house as being valued at 195,000, (again I understand that this is just a guesstimate at best). Today they are showing the house valuing at $154,000...WHAT???!!

Who decides these things, how would I get better idea of what the house might be worth today, without getting a full appraisal done?