Drop in Home Prices Forecast....

[Pandora]

Originally Posted by Pandora
6.25% fixed I believe, but they are on the way up.

Actually for a 30-year fixed it is 6.67%...

Freddie Mac's website has a weekly report of current interest rates...good stuff!

^ prior postings

Hard to believe that here we are 7 months later and the interest rate is 6.21%. I was so sure when I posted in the past that the rates would be over 7% by now. hummmm

 

[somdrenter]

Home prices can drop all they want, it'll never dip low enough for us to lose on the investment in our house. I am very glad we bought when we did, right before the big boom.

There were those in the 70’s and 80’s that thought the same.

http://www.nytimes.com/imagepages/2006/08/26/weekinreview/27leon_graph2.html

 

[itsbob]

There were those in the 70’s and 80’s that thought the same.

http://www.nytimes.com/imagepages/2006/08/26/weekinreview/27leon_graph2.html

And the only people that lost were the ones that sold in the 80's, the ones that held on to their properties are now sitting VERY well off... Even if they held their property for just 10 years, they made out pretty well.

The ones that lose money are the ones that panic, and say, OMG we better sell before we lose more money.. what they didn't realize is they hadn't lost anything, up to the point where the sale was final and money changed hands.

 

[itsbob]

And the last reason to buy instead of rent...


If you buy today, your payment will be the same in 10 15 or 20 years, ending in NO payment (less taxes, there will always be tax to be paid))... If you rent you can bet you will be paying more a month in 5, 10, 15 or 40 years, and I'd be willing to bet that in 20 years your rent will be at LEAST 3 times what is today. So you can buy and pay 2000 a month for the next 20- 30 years, or rent and pay 1500 today, but pay upwards of 6000 in 15 - 20 years and increasing payments until the day you die.

 

[BadGirl]

Bob, I don't think that anyone is arguing that in most cases it is smarter to buy than it is to rent. I think the concern is that SOME people who only intend to stay in a place for a short period of time MIGHT be in a better position to rent.

 

[Pandora]

Pssstttttt POP!


http://www.msnbc.msn.com/id/20144277/


http://www.msnbc.msn.com/id/20041753/


Scarier than I ever thought! People could be stuck in the house they are in for a while.

 

[itsbob]

Pssstttttt POP!


http://www.msnbc.msn.com/id/20144277/


http://www.msnbc.msn.com/id/20041753/


Scarier than I ever thought! People could be stuck in the house they are in for a while.

It will recover, it always does, and there will be another boom here..

They are already talking about signs of market recovery in the months of October and November..

 

[FromTexas]

^ prior postings

Hard to believe that here we are 7 months later and the interest rate is 6.21%. I was so sure when I posted in the past that the rates would be over 7% by now. hummmm

Yup. You called it. 6.3% still another 7 months later from that 7 months...

I know, I know... those bankruptcies are skyrocketing! At less than .25% of homeownership I am sure about it. Hmmm, what is that? Prices have risen year over year in Maryland? Couldn't be! They wrre supposed to fall by 10-20%!!!!

 

[Pandora]

FT,

Prices have fallen.

Bob,

I hope you are right.

 

[huntr1]

Military living has it's advantages, one is the possibillty to actually buy a house as an investment everywhere they live.. Just imagine if someone that retired today, had bought a house here back when they first started their career in the 80's, and if they did that everywhere they were stationed!?? They could retire from the military, sell all of their properties, and be a millionaire.

I know somebody that did this. Their son was my age. They always bought nice houses in nice neighborhoods and had a management company handle the upkeep of the houses. They were officers and rented to other officers and in a number of cases, they had renters get their change of stations arranged so that they would go from one house to another owned by the same couple. Son is military now and is following in the parent's footsteps.
They are sitting REAL pretty now.

 

[FromTexas]

FT,

Prices have fallen.

Bob,

I hope you are right.

http://donotlist.blogspot.com/2007/05/maryland-area-home-prices-still-rising.html

http://www.realtor.org/press_room/news_releases/2007/ehs_june07_prices_rise.html

http://www.realtor.org/press_room/news_releases/2007/hef_july07_housing_prices_recover.html

http://www.realtor.org/press_room/news_releases/2007/phs_june07_shows_market_improvement.html

I'm looking for the BIG drop that happened, the panic, the madness...

I guess it can't be found.

The first article there is based on the national home survery NAR performs. If you go look up the report and click through, you will see Maryland home values (based on median) in all areas of Maryland have increased year over year. Thank you very much but please don't let me interrupt your financial expertise with such nonsense like studies, interest rates, and other outliers.

 

[somdrenter]

[Thank you very much but please don't let me interrupt your financial expertise with such nonsense like studies, interest rates, and other outliers.

Hey Tex, I got some AHM I'll sell ya on the Cheap!

 

[FromTexas]

Hey Tex, I got some AHM I'll sell ya on the Cheap!

Why would I want to buy a company that played the risky end of the mortgage market?

There is a reason people are saying the problems are in the subprime market.

Would you eat subprime beef? Would you pay for a subprime whore?

 

[K_Jo]

Why would I want to buy a company that played the risky end of the mortgage market?

There is a reason people are saying the problems are in the subprime market.

Would you eat subprime beef? Would you pay for a subprime whore?

Someone looking for me?

 

[somdrenter]

Why would I want to buy a company that played the risky end of the mortgage market?

There is a reason people are saying the problems are in the subprime market.

Would you eat subprime beef? Would you pay for a subprime whore?

It's no longer just sub-prime. It's moving into ALT-A.

 

[somdrenter]

Cramer says "just walk away"(YouTube)

http://www.youtube.com/watch?v=c7e9H4zTqk4

 

[FromTexas]

http://www.youtube.com/watch?v=c7e9H4zTqk4

Is that Cramer's outburst about the economy/market? I can't watch it at work to find out, but that is what I am guessing. I can't believe people think the guy was honestly paniced. This is the guy who has admitted to manipulating the markets for himself and his hedge fund buddies by shorting stock and causing a stir in both his book and in an interview. Yet, he is a trustable source!

 

[Pandora]

Ft,

The market value of homes has dropped, just look at the paper. Even vrai stated that she has noticed some where in a posting around here in the past week that home values have dropped in this area.

The one added addition I didn't expect was that mortgage companies would be going under in this fashion. But then again, they have been messing around with risky loans and practices getting people in high dollar homes with ARMS and interest only loans so that would make sense that they are now suffering because of it.

I predicted (you know I am human - I am allowed to do that right?) that rates would go up and values would drop, but the rates have not gone up and from what I have seen (screw these pansy articles you've posted ) the values have dropped.

I do have a question, why would they think the market will improve in Oct. and Nov. Bob? Odd months to see an increase.

 

[FromTexas]

You are right. Screw the research. They are only professionals.

 

[itsbob]

Ft,

The market value of homes has dropped, just look at the paper. Even vrai stated that she has noticed some where in a posting around here in the past week that home values have dropped in this area.

The one added addition I didn't expect was that mortgage companies would be going under in this fashion. But then again, they have been messing around with risky loans and practices getting people in high dollar homes with ARMS and interest only loans so that would make sense that they are now suffering because of it.

I predicted (you know I am human - I am allowed to do that right?) that rates would go up and values would drop, but the rates have not gone up and from what I have seen (screw these pansy articles you've posted ) the values have dropped.

I do have a question, why would they think the market will improve in Oct. and Nov. Bob? Odd months to see an increase.

Something about prospective closings.. it takes 40 - 90 days form the date of an offer to a closing so they can project out how the market (sales) is going to be 3 - 4 more months out.. they have seen a sizeable increase in the amount of accepted offers for the next few months.

Since home sales are based on final sale of the home (closings) and they can project the amount of closings in coming months.. they know how well the market is going to be up to October or November: today. How well the housing market is going to be in September is already history.. and we haven't even got there yet,.