Homeowners react to falling real estate values

I believe @ least in my area, the market just about has bottomed out. Values are pretty steady, and it's actually taking less time to sell a home on the current market conditions, which is one indication that the market will be in UPSWING mode sooner than most people think. You need to see if what you read is true for your area, cause thats what matters, compare how long it takes to sell a home between now (this month) and 6-12 months ago, where is the trend headed? also, have you been paying attention to interest rates? what has been the trend there, are they up or down? if you don't know rates are pretty low right now, which means, what? (upswing, right?), and of course thiers other factors too, read the book some more....YOUR HERO,SULLY.

the prices in my area are done going down! and the prices didnt even go down that much...

I disagree Sully, The whole U.S has bottomed out. How can you say "values are pretty steady" I am not getting frisky or anything but your area is no better than anyone elses in the U.S. That is what President Bush is talking about all over the news. all across the u.s, real estate is at it's worst. It is good for the buyers but not for sellers, it is the buyers mkt, as per my situation, I am not going to take less then my home is worth. I am not going to let someone steal my house. I have way to much equity in my home. I will hold onto it until my d day. The market is not expected to get any better for at least 5 more years, maybe longer. I did a lease purchase on my house for one reason, the mkt is aweful for sellers, and i have nothing to lose. I have everything to gain. My lawyer has told me this. People are being taking advantage of when it comes to selling their homes for less. I won't stand for that. I have a lease purchase only because more is to be gained, plus i am still the owner, then they must come forward with the financing within 1 year or they lose! I look forward to the upcoming year. I will sit on it and even if the people still come through with their financing, I am still at least to gain by my equity of 50,000 that i already have in my home and plus doing the lease purchase i have gained 15,750 on a lease purchase of 225,000 @ 7% in just one year. Go figure. I am ahead 65,750 if they can't float. Cindy.

have speculation on the markets turn around, but

"The market is not expected to get any better for at least 5 more years, maybe longer"

in my opinion is way too long. I am tring to buy now, hold and rent, then sell in mid 2010...That is the plan I am working on. Two years till it gets back to 2006 prices. Like I said my area didnt get hit that much. This is already proving me right...prices are flat to slightly on the rise.

cindy, i don't think you understand my post? It's VERY easy for me to say "values are pretty steady", beacuse in MY AREA, they are. I could care less about what president BUSH is saying about the housing market, you need to remember he is speaking as a NATION, thier are certain LOCAL factors that certainly out weigh NATIONAL factors cindy. If you would RE-READ my post, I talk about how to determine what cycle your LOCAL MARKET is in, by comparing COMPS of houses that sold between NOW and 6-12 months ago,(how long they took to sell). Cindy a BOTTOM MARKET represents a steady market, meaning homes are done or almost done in declining in value, a BOTTOM MARKET also means prices have dropped as far as their going to before heading back up (UPSWING). It is a buyers market in just about everybodys situation, i know that, what i meant by saying "values are pretty steady" is: home prices are NOT going up but, thier NOT going down either, hence BOTTOM MARKET.Oh, and another thing the market WILL get better way before 5 years, trust me

by the way, if your listening to what is being said on TV as gospel, most of the time they are months behind what is really going on.....CLASS DISMISSED,CINDY, SULLY.

Thanks for your posts. The debate really was enlightening. You are both on track in your messages and I was able to get the point.
Sully, I will be checking out the local scene which I feel sure is bottomed or very close to it. Growth will occur within the next 3 to 5 years in my area according to our town planning manager who I contacted yesterday when a local news article declared that a new town Charrette had been put together for the up-coming growth or our area. I will be meeting with him in a couple of weeks to discuss the plans.
Can any of you suggest some questions I could ask the city planning manager?
Thanks for your little debate. It helped a lot!

Sully, that was a REALLY good explanation of a bottom market. Thanks for teaching.

i obviously could have explained it even further, but i'm @ work and that post would have took a very, very, long time.I try, SULLY.

All RE is LOCAL. And I REALLY mean local. Local as in San Diego is different than Los Angeles and even different zip codes in SD are different.

So it is incomplete to say that the RE market either has or has not bottomed out without talking about location. I do not believe that it is safe to say that marktets have bottomed in places like Vegas, Miami or Phoenix. My guess is that the worst is behind us but it is by no means guaranteed.

Another point is that it will be VERY difficult to determine exactly when the market bottoms except months aftr the fact. If you are buying right NOW then you will be ok- either short term OR long term. ESPECIALLY long term.

Just my gut.. but I do NOT believe the predictions that we are still 5 years out of a recovery. I am buying into the date of late 08 to mid 09.

Also.. remember that there are NO margin calls in RE. If you do NOT have to sell in this market then wait until the market is stronger. In the markets I am in, I am a BUYER. I will not be selling anything except possibly on a LO.

I don't agree that people are being taken advantage of. They KNOW what the purchase contract says and they either sign it or they don't. Again.. if you do not HAVE to sell now, then do NOT sell. There have always been cycles in RE and that will continue. Also, there have always been discounts when people have to sell quickly. That will also continue.

Know what is happening in YOUR local market and use it to YOUR advantage.

GL

Mark

I think that given the upcoming election, there is a chance that RE will start to pick up at the end of '08', but then it may get worse before it gets better after the election?
What are your thoughts on that?

Mark, is LO Lease Option?
I could not find that one in my acronym list or the back of the book.

the whole point of my post was, i feel that the worst is behind us, and that i feel pretty confident that we have indeed reached the BOTTOM or damn close to it,im also with mark on this subject, the fact that by early 09' to mid 09' we WILL be in some type of a UPSWING, it might not be much but, it will be better than it is now, also need to agree on BUYING and NOT SELLING @ this point, i would NOT sell until i see huge strides in UPSWING momentum. YOUR HERO, SULLY.

yes LO is lease Option

also see here for others

http://www.deangraziosi.com/node/3208

"the worst is behind " deffinantly behind us in my area. Like I said it will back to or close to "06" prices by 2010. Upswing will begin soon...

I copied that post from Rina to my notes and that one was not on it (or I am as blind as I thought I was)
Thanks again D!

Sorry to confuse you. lol. I am always updating the glossary as people ask about or contribute new acronyms. dgadmin kind of put me in charge of it. If you come across any more that aren't on there, just post a note in that forum or if I see it in here, I'll add it, too. Thanks. Hope that helps.

Rina

Sully, I am not going to waste peoples time and energy on arguing with you on this site. Have a great day, cindy

You ARE appreciated.......

Sully, I have to agree with you buddy. What is one of the major things that is pushed down our throats about the real estate market? ......... location, location, location. Be carefull what you believe when you read the headlines and what the news reporters are saying about the so called market. Do you always believe what you hear? Even though they may give you statistics that doesn't mean everything, it's what they DON'T tell you that really matters. In my area, homes that weren't selling last year are selling now, which also has to do with the time of year. There are plenty of homes that are selling for over $100k (median is around $80,000) so I will go with those numbers mostly, not what Bush is telling me. I listen to the facts, not the beliefs of others. Now, I have also seen a huge increase of the "cheaper" homes selling in the last few weeks. I was actually going to purchase one last week, and before I could discuss it with my investor it sold. Even my realtor told me that the homes priced where I like them are selling, so for right now I will go with those statistics, untill things start to change. The market in general in my area is getting better, and I forgot, rentals are increasing just along with the sales. Good luck everyone and keep up the great work!

I've been dealing with 2 markets since 2004. One in Washington State and the other in So Cal. Washington now has zero foreclosures in my area and only REO's and regular sales. It is definitely on the upswing. So Cal--LB,Lakewood area is still on the bottom and more foreclosures every day, so I'm buying REO's in Wa. because they are cheap and have few buyers, and buying short sales in CA. I'd say you all are right, we just have alot of areas in this country. jrgnsn