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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: another article buyers will like
Posted by Ricki
I guess I'm the only optimist here and sees the list saying that there is a 41% chance of homes in LI going up!!!  
In all seriousness...it's cyclical and as long as you can wait out the cycle and have it go back up, even most people with ARMs will be fine.
Money and Fortune rated LI as going up in the next year too!
intrerest rates have gone up 3x in 3 weeks and they're going to keep going up. when rates go up, prices come down. if that didn't happen, it would be the 1st time in history.
ETA: DH and I have been looking/keeping an eye on the market since January and we've seen plenty of properties go down. I have also seen comps, so I know what they sold for. in many cases, well under asking!
Message edited 6/29/2006 2:35:42 PM.
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Posted 6/29/06 2:34 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: another article buyers will like
the prices are dropping- open newsday and count how many "just reduced" flags across the tops of the pictures
everything is the same now as it was the last time the market corrected it self
1. a bush in office
2. a war in the middle east
3. rising interest rates
there were more signs Jake told me- but I forgot
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| Posted 6/29/06 2:39 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: another article buyers will like
Posted by Beth1210
the prices are dropping- open newsday and count how many "just reduced" flags across the tops of the pictures
everything is the same now as it was the last time the market corrected it self
1. a bush in office
2. a war in the middle east
3. rising interest rates
there were more signs Jake told me- but I forgot
wow thats interesting!
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| Posted 6/29/06 2:45 PM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: another article buyers will like
Posted by Beth1210
everything is the same now as it was the last time the market corrected it self
1. a bush in office
2. a war in the middle east
3. rising interest rates
there were more signs Jake told me- but I forgot
 WOW
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| Posted 6/29/06 2:51 PM |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: another article buyers will like
Posted by Beth1210
the prices are dropping- open newsday and count how many "just reduced" flags across the tops of the pictures
everything is the same now as it was the last time the market corrected it self
1. a bush in office
2. a war in the middle east
3. rising interest rates
there were more signs Jake told me- but I forgot
There tends to be excessive inflation when a country is at war for extended periods. When this happens the government raises interest rates to curb inflation. When interest rates rise, the price of everything, not just houses, declines. I dont know if i would call these things signs or some big coincidence - its basic economics. They all go hand in hand. The fact that we are at war while the bush family is in office, well that's another topic altogether.
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| Posted 6/29/06 3:27 PM |
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Freddie
LIF Adult
Member since 3/06 1162 total posts
Name:
Freddie
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Re: another article buyers will like
Posted by SweetestOfPeas
ETA: DH and I have been looking/keeping an eye on the market since January and we've seen plenty of properties go down. I have also seen comps, so I know what they sold for. in many cases, well under asking!
I think that is deceiving. My neighbor listed their house for 25% more than I paid 18 months ago! thats the problem. people are listing too high, b/c that was the trend since 2000. They have reduced, but still at 15% more than I paid. Heck if they get 5% more than I paid, it's still an increase to me!
Again - just the optimist in me...and I was able to write off my interest and didn't have to pay rent.
Personally, I think all of this talk is mostly for the investor. When the stock market bubble burst, people turned to real estate to invest in. Now that this bubble is "bursting" they are going back to stocks.
We had a friend in 2003 warn us about the bubble when we first started looking. While he was essentially right - about a slow-down - I am very glad we didn't listen to him as we made a nice profit on our first house. Housing that you live in, isn't really the same as investing in real estate.
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| Posted 6/29/06 3:34 PM |
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~Colleen~
my loves...
Member since 5/05 9129 total posts
Name:
guess
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Re: another article buyers will like
I could not agree more with you lulu wrt the logistics of basic economics. But then again, I'm not one to feed into "signs" or things like that.
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| Posted 6/29/06 3:37 PM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: another article buyers will like
Posted by Ricki
We had a friend in 2003 warn us about the bubble when we first started looking. While he was essentially right - about a slow-down - I am very glad we didn't listen to him as we made a nice profit on our first house. Housing that you live in, isn't really the same as investing in real estate.
I agree, a house should not be looked upon strictly as an investment. it's a place to live.
however, DH and I have no interest in buying when the market is peaking in price, or right afterwards (which I believe is now). No one wants negative equity.
example... we put a bid on a townhouse in Feb for $330K, asking was $349K. he would only come down to $347K, we ended up walking away from the deal. it's STILL on the market (since January) and now it's down to $329K. that's just 1 example.
had we bought it, we would have negative equity. it's not worth $347K today.
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| Posted 6/29/06 3:42 PM |
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Hi-Fi55
12 years...wow....
Member since 2/06 2984 total posts
Name:
Dianne
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Re: another article buyers will like
Posted by SweetestOfPeas
Posted by Ricki
We had a friend in 2003 warn us about the bubble when we first started looking. While he was essentially right - about a slow-down - I am very glad we didn't listen to him as we made a nice profit on our first house. Housing that you live in, isn't really the same as investing in real estate.
I agree, a house should not be looked upon strictly as an investment. it's a place to live.
however, DH and I have no interest in buying when the market is peaking in price, or right afterwards (which I believe is now). No one wants negative equity.
example... we put a bid on a townhouse in Feb for $330K, asking was $349K. he would only come down to $347K, we ended up walking away from the deal. it's STILL on the market (since January) and now it's down to $329K. that's just 1 example.
had we bought it, we would have negative equity. it's not worth $347K today.
It would only be negative equity if it didn't appraise for the $347. The problem with sooo many sellers are that they are listing their homes so high and then later only having to reduce them.
Spring/Summer is peak for home listings. There are so many homes on the market right now. I don't think there is going to be a major decline where you are going to be value in homes decrease. You will see sales prices decrease but not value.
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| Posted 6/29/06 4:35 PM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: another article buyers will like
Posted by Hi-Fi55
Posted by SweetestOfPeas
Posted by Ricki
We had a friend in 2003 warn us about the bubble when we first started looking. While he was essentially right - about a slow-down - I am very glad we didn't listen to him as we made a nice profit on our first house. Housing that you live in, isn't really the same as investing in real estate.
I agree, a house should not be looked upon strictly as an investment. it's a place to live.
however, DH and I have no interest in buying when the market is peaking in price, or right afterwards (which I believe is now). No one wants negative equity.
example... we put a bid on a townhouse in Feb for $330K, asking was $349K. he would only come down to $347K, we ended up walking away from the deal. it's STILL on the market (since January) and now it's down to $329K. that's just 1 example.
had we bought it, we would have negative equity. it's not worth $347K today.
It would only be negative equity if it didn't appraise for the $347. The problem with sooo many sellers are that they are listing their homes so high and then later only having to reduce them.
Spring/Summer is peak for home listings. There are so many homes on the market right now. I don't think there is going to be a major decline where you are going to be value in homes decrease. You will see sales prices decrease but not value.
actually, according to many articles I have seen on CNN Money, Nassau and Suffolk is over-valued by 44%. now I don't know about it being THAT over valued, but IMO, it is definitely not a good value to buy right now.
we'll see what happens in the Fall, when a lot of these homes are still for sale
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| Posted 6/29/06 4:40 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: another article buyers will like
what your house apprasies for and what it's worth are 2 completely different things
I know apprasiers that can get a shack to apprasie for $1million- it's it meaningless
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| Posted 6/29/06 4:44 PM |
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~Colleen~
my loves...
Member since 5/05 9129 total posts
Name:
guess
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Re: another article buyers will like
You don't expect houses to go back down to what they were 5 years ago, do you? Back down to the $200's? I honestly don't see that happening.
Housing prices may not increase at the 12-20% rate we've been seeing...but they're not suddenly going to drop 44%. That would be catastrophic to our economy. If they rise 2% - it's still a rise. RE is based on local economics and supply & demand. You can't call it a bubble for something local, as opposed to the stock market. Just doesn't make sense.
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| Posted 6/29/06 4:52 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: another article buyers will like
Posted by Colleen9304
You don't expect houses to go back down to what they were 5 years ago, do you? Back down to the $200's? I honestly don't see that happening.
Housing prices may not increase at the 12-20% rate we've been seeing...but they're not suddenly going to drop 44%. That would be catastrophic to our economy. If they rise 2% - it's still a rise. RE is based on local economics and supply & demand. You can't call it a bubble for something local, as opposed to the stock market. Just doesn't make sense.
I don't but some of the gains made will be given back - that is the def of a market corection- it happened with the stock market- and it will happen with the real estate market-
this is not just going on on LI- this is a national issue
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| Posted 6/29/06 4:55 PM |
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~Colleen~
my loves...
Member since 5/05 9129 total posts
Name:
guess
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Re: another article buyers will like
It's happening nationally - only selectively...unlike the stock market which will affect all of us nationally. What is affecting NY & CA is not affecting North Carolina or Georgia. You can't consider the RE market a national entity - it's all dependent on the local economics.
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| Posted 6/29/06 5:02 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: another article buyers will like
Posted by Colleen9304
It's happening nationally - only selectively...unlike the stock market which will affect all of us nationally. What is affecting NY & CA is not affecting North Carolina or Georgia. You can't consider the RE market a national entity - it's all dependent on the local economics.
yet- and what happens in New York and Cali play a role in what happens across the country
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| Posted 6/29/06 5:04 PM |
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Eva Luna
Be kind...life's hard!
Member since 8/05 4750 total posts
Name:
God, bless & heal my DH, JenG's DH Rob & DebG
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Re: another article buyers will like
Posted by Colleen9304
It's happening nationally - only selectively...unlike the stock market which will affect all of us nationally. What is affecting NY & CA is not affecting North Carolina or Georgia. You can't consider the RE market a national entity - it's all dependent on the local economics.
Georgia has cooled...but yes, it's still booming...and thank God because my family's livelihood is in this market! 
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| Posted 6/29/06 5:08 PM |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: another article buyers will like
Posted by Beth1210
Posted by Colleen9304
It's happening nationally - only selectively...unlike the stock market which will affect all of us nationally. What is affecting NY & CA is not affecting North Carolina or Georgia. You can't consider the RE market a national entity - it's all dependent on the local economics.
yet- and what happens in New York and Cali play a role in what happens across the country
i dont really know that New york and Cali play a roll in what happens in the rest of the country. There are basic economics at work here - interest rates are rising and so when looking at national averages you may see a decline in home prices. However, a bubble can burst in one market, but another market can remain completely stable. In fact - when Fannie Mae and Freddie Mac bundle mortgages often times california mortgages are bundled on their own entirely for that reason. California is like it's own seperate monster - just like the crash in the 80s affected them more than anyone else.
Message edited 6/29/2006 5:16:43 PM.
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| Posted 6/29/06 5:15 PM |
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Tah-wee-ZAH
Kisses
Member since 5/05 15952 total posts
Name:
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Re: another article buyers will like
Posted by lululu
Posted by Beth1210
Posted by Colleen9304
It's happening nationally - only selectively...unlike the stock market which will affect all of us nationally. What is affecting NY & CA is not affecting North Carolina or Georgia. You can't consider the RE market a national entity - it's all dependent on the local economics.
yet- and what happens in New York and Cali play a role in what happens across the country
i dont really know that New york and Cali play a roll in what happens in the rest of the country. There are basic economics at work here - interest rates are rising and so when looking at national averages you may see a decline in home prices. However, a bubble can burst in one market, but another market can remain completely stable. In fact - when Fannie Mae and Freddie Mac bundle mortgages often times california mortgages are bundled on their own entirely for that reason. California is like it's own seperate monster - just like the crash in the 80s affected them more than anyone else.
Lulu, in my experience you are 100% correct. As national as our market is, RE still has local influences for various reasons... surrounding businesses, climate, etc.
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| Posted 6/29/06 5:18 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: another article buyers will like
Posted by Hi-Fi55
Posted by SweetestOfPeas
Posted by Ricki
We had a friend in 2003 warn us about the bubble when we first started looking. While he was essentially right - about a slow-down - I am very glad we didn't listen to him as we made a nice profit on our first house. Housing that you live in, isn't really the same as investing in real estate.
I agree, a house should not be looked upon strictly as an investment. it's a place to live.
however, DH and I have no interest in buying when the market is peaking in price, or right afterwards (which I believe is now). No one wants negative equity.
example... we put a bid on a townhouse in Feb for $330K, asking was $349K. he would only come down to $347K, we ended up walking away from the deal. it's STILL on the market (since January) and now it's down to $329K. that's just 1 example.
had we bought it, we would have negative equity. it's not worth $347K today.
It would only be negative equity if it didn't appraise for the $347. The problem with sooo many sellers are that they are listing their homes so high and then later only having to reduce them.
Spring/Summer is peak for home listings. There are so many homes on the market right now. I don't think there is going to be a major decline where you are going to be value in homes decrease. You will see sales prices decrease but not value.
whats the difference between sales price and value?
The value of a home, imo, is the price someone is willing to pay for it.
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| Posted 6/29/06 5:18 PM |
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Hi-Fi55
12 years...wow....
Member since 2/06 2984 total posts
Name:
Dianne
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Re: another article buyers will like
I'm just sick of the quote things 
Sales price of a home is whatever # a seller sticks on the house. A seller doesn't need anyone to come up with that figure. I could say my house is worth 2mil. Doesn't mean it is.
The value of a home is what it is actually is worth. (Yes I know most appraisers can fudge the figures if they wanted to), but an appraisal report determines the value of your home. IMO
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| Posted 6/29/06 5:23 PM |
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lululu
LIF Adult
Member since 7/05 9511 total posts
Name:
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Re: another article buyers will like
I think that the confusion is that what a person lists a home at is actually the asking price not the sales price. The sales price is what the person actually sells the house for. If a house sells at a certain price, you could conclude that that is it's value since that is what someone is willing to pay for it.
Message edited 6/29/2006 5:28:27 PM.
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| Posted 6/29/06 5:27 PM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: another article buyers will like
Posted by Hi-Fi55
The value of a home is what it is actually is worth. (Yes I know most appraisers can fudge the figures if they wanted to), but an appraisal report determines the value of your home. IMO
so if your house got appraised for $500K (for example) and you put it on the market for that much, and then the highest offer you get is $420K, is it still worth $500K? 
for a HELOC or insurance purpose, it would be still worth $500K, but the buyer determines the market.
Message edited 6/29/2006 5:34:50 PM.
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| Posted 6/29/06 5:33 PM |
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Hi-Fi55
12 years...wow....
Member since 2/06 2984 total posts
Name:
Dianne
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Re: another article buyers will like
Posted by SweetestOfPeas
Posted by Hi-Fi55
The value of a home is what it is actually is worth. (Yes I know most appraisers can fudge the figures if they wanted to), but an appraisal report determines the value of your home. IMO
so if your house got appraised for $500K (for example) and you put it on the market for that much, and then the highest offer you get is $420K, is it still worth $500K?
for a HELOC or insurance purpose, it would be still worth $500K, but the buyer determines the market.
Technically, if it was a seller's market you would be able to get that 500k. But right now, it's a buyer's market so that is why you aren't getting full value. That's why people are see that flux with pricing. When they list with brokers and brokers get the comps, sellers list high. Why not, prices for homes have been high for years. But right now we are sitting in a buyers market, no longer a seller's market, so the prices of homes are going down. Eventually you will see the value. But slightly.
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| Posted 6/29/06 5:46 PM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: another article buyers will like
Posted by Hi-Fi55
Posted by SweetestOfPeas
Posted by Hi-Fi55
The value of a home is what it is actually is worth. (Yes I know most appraisers can fudge the figures if they wanted to), but an appraisal report determines the value of your home. IMO
so if your house got appraised for $500K (for example) and you put it on the market for that much, and then the highest offer you get is $420K, is it still worth $500K?
for a HELOC or insurance purpose, it would be still worth $500K, but the buyer determines the market.
Technically, if it was a seller's market you would be able to get that 500k. But right now, it's a buyer's market so that is why you aren't getting full value. That's why people are see that flux with pricing. When they list with brokers and brokers get the comps, sellers list high. Why not, prices for homes have been high for years. But right now we are sitting in a buyers market, no longer a seller's market, so the prices of homes are going down. Eventually you will see the value. But slightly.
but you said "an appraisal report determines the value of your home."
even in a sellers market, the buyer would still determine the value. remember bidding wars? houses were selling for above asking price, because the buyers felt the houses were worth more.
Message edited 6/29/2006 6:04:35 PM.
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| Posted 6/29/06 6:03 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: another article buyers will like
ok I see - were talking about the same thing, i dont count what people think the value of their home is.
to me the value is what someone will pay for it too.
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| Posted 6/29/06 6:04 PM |
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