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O/T Housing Prices Fall (12/26/07)

Discussion in 'Uncategorized Threads' started by Joe Potosky, Dec 26, 2007.

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  1. Joe Potosky

    Joe Potosky Well-Known Member

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    This is what you get when you overbuild and offer little or no down payment and a variable mortgage rate.

    Remember the old days when you were expected to save money for a downpayment and then received a fixed payment for 30 years (one that you could afford and would never increase).
     
  2. BIGDON

    BIGDON Well-Known Member

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    Actually if you can afford it there are some outstanding bargins out there.

    Don
     
  3. cdconley

    cdconley TS Member

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    The sky is falling, the sky is falling. Big deal, real estate in my area doubled in most cases over a very short time. So a few years of falling 6.7% is nothing more then a market correction. And for those that want to buy a home this is a great market, prices are more realistic and the interest rates are still historically low. The only thing you’ll see less of is people not being able to overextend themselves as they were allowed to do in the past. When inventories start to dwindle and the financial market make more realistic loans the decreases will level off. But if you look at the price of real estate over the past 5-10 years if estimating additional sliding, real estate has surpassed inflation and almost any other investment. Remember real estate is a long term investment (that includes your home) and looking at 12-18 months of decline is a mistake.
     
  4. alfermann66

    alfermann66 Member

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    I thought he covered it pretty well Earl. Capitalism is a wonderful system, but terribly unforgiving of stupid decisions as I have learned first hand. Fortunately for me they weren't all stupid.

    Buz
     
  5. BIGDON

    BIGDON Well-Known Member

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    Earl you want everything at the highest level when you retire. Maybe in a perfect world but this isn't a perfect world, far from it. It's also the reason I'm still working.

    Don
     
  6. phirel

    phirel TS Member

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    In many areas housing prices artificially inflated rapidly. In all areas, very poorly secured loans were made. The adjustment we are now experiencing should not be a surprise to anyone. Real estate remains a good investment and now is a good time to invest.

    Pat Ireland
     
  7. Whiz Bang

    Whiz Bang TS Member

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    I live in south east Minnesota and dig basements for new home construction. I work for two builders. Starting the first of the year I have eight basements to dig. I have turned down two basements from private owners due to the fact I cant give good service during winter months. Was talking to the builder Thursday and they are planning close to sixty homes in this one sub. division this coming year. I am considering buying one more excavator to keep up.

    My plans to shoot the Spring Grand and Las Vegas this winter just went in the tank.
     
  8. cubancigar2000

    cubancigar2000 Well-Known Member

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    right after the first of the year is a great time to invest in real estate
     
  9. grnberetcj

    grnberetcj Active Member

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    The Real Estate market is still strong here in Delaware...slower than it was but still healthy. The builder's have built more units than buyer's, but the prices have remained steady and will continue to rise. This area has a very wealthy work force and will continue to thrive as Delaware has low property taxes, no sales taxes and plenty of work for those that want to work.

    Curt
     
  10. luvnbearhugs1

    luvnbearhugs1 TS Member

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    Here in Southern Fairfax County Virginia, the housing market has slowed. There are too many high end houses ($750k and up) and not enough affordable housing. The problem here, particularly in Alexandria, is that the Military is moving some 40+ thousand jobs to Ft Belvior beginning fiscal year 2009, which is actually Oct 2008. (10 miles south of the 495 beltway on Route 1)

    When that happens, the boom will begin because those folks who currently live in the outskirts of the county will move in closer to be closer to work, and for a brief period, the houses will be cheap enough to allow that to happen. That is when I plan to bail out of this area. I can hardly take the traffic now and when they move all those jobs it will be a nightmare. Plus, my modest home will be worth more than it is now, because it will be one of the very few modest affordable homes in the area.

    One thing is for certain. An investment in real estate will never be all bad. There is only so much land on this planet on which to build. It just takes time.
     
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