RoadToRiches
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Post by RoadToRiches on Mar 15, 2011 12:39:04 GMT -5
I get so freaking bummed out when I look at the homes everywhere. So many of them, for 180-220k on sale now when they were going at 400-500k in 2006.
Do you guys think this will last long? I feel like I will miss out big time while I am doing my debt pay off plan.
Some of these homes are really amazing for the price. Few years ago, I wouldn't even look at them. Now, all I do is look and think how NOT out of reach these are right now. (if I had no debt)
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Deleted
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Post by Deleted on Mar 15, 2011 12:40:15 GMT -5
I think we have at least a few more years to go until the housing market heats up again.
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Gardening Grandma
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Post by Gardening Grandma on Mar 15, 2011 12:43:14 GMT -5
OP I share your frustration. I would really like to buy a second rental house. We could refi our rental to pay cash for a second one. But DH doesn't want to take on more debt (we have a mortgage on our residence).
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RoadToRiches
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Post by RoadToRiches on Mar 15, 2011 12:55:03 GMT -5
Do you guys think it will go even lower than what it is now?
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jk70
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Post by jk70 on Mar 15, 2011 12:58:59 GMT -5
i don't think you need to worry too much. If this is the low I do NOT think it will suddenly crank up immediately. that 180k home today won't suddenly be at 400k in the next year or 2 but it may be higher than the 180k price.
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Plain Old Petunia
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bloom where you are planted
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Post by Plain Old Petunia on Mar 15, 2011 13:12:42 GMT -5
You have time, InDebt. Real estate markets do not change momentum on a dime. You are not in danger of missing low prices. Pay off your debt, save a little money, then find yourself a great deal.
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reader79
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Post by reader79 on Mar 15, 2011 13:34:16 GMT -5
InDebt, I started thinking the same way when I found out that my neighbor was thinking about selling his house. I love that property, and the thought of that house going to someone else really brought it home that I need to make a change. He has recently said that he will probably renovate and rent it out, and see if he can time the sale in four years when his oldest goes to college and hopefully the market has improved a bit.
If I didn't owe what I do now, I could have made him an offer at least. I don't think that prices will go back to the crazy unsustainable levels that they hit in 2006-07, but they will go up a bit. I have to believe that my situation will improve along those lines as well, putting me in a place where I would feel comfortable buying.
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souldoubt
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Post by souldoubt on Mar 15, 2011 13:36:25 GMT -5
I'm definitely not a real estate expert but I don't think it's a secret that there are millions of homes that are in danger of being foreclosed on. Even if just a fraction of them are foreclosed on that adds to the number of houses available on the market. Add in fears about the economy, the job market and so on and I don't thing we'll see some big turn around any time soon. Obviously location plays a factor but I live in SoCal where prices more than doubled from 2000-2005 and I think they could still see another slight decline but who knows. A lot of places I've simply browsed by looking online have been on the market for quite a while and the prices keep getting dropped.
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Post by Savoir Faire-Demogague in NJ on Mar 15, 2011 13:46:42 GMT -5
There is also a shadow inventory of approximately two years worth of homes that are being withheld from the market.
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zibazinski
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Post by zibazinski on Mar 15, 2011 14:06:32 GMT -5
There are areas that still aren't budging regardless. Which annoys the hell out of me and DF who are house hunting. I'd like to rent for at least another year up there and not just buy because that is how you end up with a house you don't like so much.
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Plain Old Petunia
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Post by Plain Old Petunia on Mar 15, 2011 16:41:59 GMT -5
There is also a shadow inventory of approximately two years worth of homes that are being withheld from the market. I think so too. You can see them, if you are paying attention.
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souldoubt
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Post by souldoubt on Mar 15, 2011 17:07:52 GMT -5
I've heard about the shadow inventory for over a year now. I don't doubt it but I have no idea how that will unfold or rather how fast it will unfold. Regardless I can't see it helping home prices. I'm about 15 months away from being in a position to buy and I hope/expect prices to decline 3-5% at least in my area by then.
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azphx1972
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Post by azphx1972 on Mar 15, 2011 17:27:17 GMT -5
I don't foresee home prices going up significantly until unemployment falls and incomes start rising. The housing market is normally driving by supply/demand, not speculation of recent years past. Even if interest rates start rising, but incomes stay flat, home prices will have to come down in order for buyers to afford the monthly payment. Just look at Japan, they still haven't recovered from their bubble in the 90s.
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Gardening Grandma
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Post by Gardening Grandma on Mar 15, 2011 18:57:57 GMT -5
There is also a shadow inventory of approximately two years worth of homes that are being withheld from the market. SF This intrigues me. Can you explain please?
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RoadToRiches
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Post by RoadToRiches on Mar 15, 2011 19:02:38 GMT -5
There is also a shadow inventory of approximately two years worth of homes that are being withheld from the market. What is "shadow inventory"?
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azphx1972
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Post by azphx1972 on Mar 15, 2011 19:07:25 GMT -5
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RoadToRiches
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Post by RoadToRiches on Mar 15, 2011 19:15:27 GMT -5
Ahh makes sense...
Where do you guys look for those FC homes? I know I can go to the bank and request listings but is there a FREE website that I can search on? Something like realtor.com but for forclosures?
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azphx1972
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Post by azphx1972 on Mar 15, 2011 19:24:04 GMT -5
I don't think they're easy to find, unless you have an inside source at the bank. www.ehow.com/info_7893077_shadow-inventory-foreclosed-homes.html"Measuring the size of the shadow inventory is an inexact science. For one thing, lenders don't usually announce how many foreclosed properties they have on their hands, and they don't put them on the market all at once. That's because doing so not only could depress prices too much, but also alarm the bank's own investors if a lot of loans are going bad. Further, different organizations and institutions have different definitions of shadow inventory. Some might use the term to mean a house in any stage of the foreclosure process; others might use it only to refer to completed foreclosures in which the only thing left to do is sell the house; still others might pick a point somewhere in between."
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Plain Old Petunia
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Post by Plain Old Petunia on Mar 15, 2011 19:48:07 GMT -5
InDebt, try ziprealty.com. It has an advanced search feature which sorts by type of property, so you can specify everything but foreclosed to be excluded.
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Plain Old Petunia
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Post by Plain Old Petunia on Mar 15, 2011 19:51:19 GMT -5
I don't think they're easy to find, unless you have an inside source at the bank. Oh, I meant "see them" as in, I can observe several in my own neighborhood. I didn't mean "see them" as in, a realtor will show them to me if I ask.
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