Home prices

Hi everyone,

Can someone confirm this?

One of my friends came over on Saturday. He was claiming that home values are going down. He said something to the effect of 14%... I don't remember 14% down since when though.

What are your observations of the market?

Thanks mucho!

i recall the previous prices for the month went down by 4%, not 14%

Home values may appear to be coming down because sellers are not getting their astronomical asking prices.

Take that away and the general trend is still moving up.

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Posted by MCDO15

i recall the previous prices for the month went down by 4%, not 14%

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Do you know where you read this? Or the source? Newspaper?

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Posted by DjPiLL

Home values may appear to be coming down because sellers are not getting their astronomical asking prices.

Take that away and the general trend is still moving up.

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I have noticed a subtle decrease. But the market tends to get lower at the end of the summer. I just want to see if his claim is substantiated.

If you look at the last quarter, they went up. There could be seasonal changes and the fact that people are asking way too much money for their homes and end up taking much less.

My neighbor put his house on the market for $639K. He ended up selling it 6 months later for $575K. That's some spread!

I am buying a house for 395k that was listed at 405k. It was originally listed at 425k.

So I guess you can call the spread of 395k - 425k a 'drop in house prices'.

But I am more inclined to call it a market correction. That same house was probably selling for 375k a year ago.

Good deal DJPill..
Ours was selling for 430K and our realtor bid 410k and we got it. So even if the prices drop we wont feel as bad :)

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Posted by DjPiLL

I am buying a house for 395k that was listed at 405k. It was originally listed at 425k.

So I guess you can call the spread of 395k - 425k a 'drop in house prices'.

But I am more inclined to call it a market correction. That same house was probably selling for 375k a year ago.

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where is your new house?

our house origionally went on the market for 407 - they were pretty greedy and ended up coming down quite a bit.

We were their 3rd set of buyers - 2 sets of people before us fell through. After the sellers decreased the price and put it on the market again - we were able to get them to come down only 4k.

I wouldn't say the prices are dropping - our house was just way overpriced origionally and the sellers were tired of paying double the taxes (they already moved. 5 months before we bought it) but it wasn't exactly a steal.

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Posted by riniko

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Posted by MCDO15

i recall the previous prices for the month went down by 4%, not 14%

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Do you know where you read this? Or the source? Newspaper?

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I think it was Newsday...i woulnd't bank on this too much because i beleive it might of been the national avg and not just New York.

It's making me so sick reading about how eventually the housing bubble will burst. I don't want to hear this. I read on bankrate.com an article that said it's not a question of if the bubble will burst, but when...

At least 1) I got a fixed rate and 2) I plan on living at my new house for the long haul. If the prices do go down drastically, I'm going to try to pay as much extra principal as I can.

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Posted by violet

It's making me so sick reading about how eventually the housing bubble will burst. I don't want to hear this. I read on bankrate.com an article that said it's not a question of if the bubble will burst, but when...

At least 1) I got a fixed rate and 2) I plan on living at my new house for the long haul. If the prices do go down drastically, I'm going to try to pay as much extra principal as I can.

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i agree...i'm not going crazy with the bubble bursting. I'm sure there still some room to go with prices. I believe you must also think about the general encomony. People need jobs to support these expensive homes.

I did get a fixed 6 percent rate and counting on 6 to 7 years as im sure i would need more space as we get more to our family.

as long as there is a constant demand for homes, some of these people we get more money then its really worth (in our mind at least)

well I am marrying a mortage banker and he claims that the prices will start going down this year

I know alot of people who are waiting- inlcuding us

they have to go down- these people are CRAZY- I have seen gross crappy houses in neighborhoods I wouldn't drive thru let alone live in going for over $700,000

I don't think it's that bad if the prices go down a little. I just don't want them to go down drastically.

I read an article that said the best thing you can do to be prepared if the bubble does burst is:

-get a fixed rate. people should stay away from adjustable right now

-do NOT go into your equity and borrow right now in case the value of your house does go down

-pay extra principal each month, especially if you have an interest only mortgage (my second mortgage is interest only, but it's only 20k and I plan on paying principal to it. interest only on 330k would be a completely different story)

-do not buy a house now if you only plan on living there for a short time

-most importantly, don't buy a house as an investment. buy it to have a place to live!

I have read articles though that don't believe this will happen. Again, I only see this really hurting someone if they only plan on living in their house for a very short time. Sooner or later, the prices will have to either come down a little or stabilize, but for the value to actually increase, it won't be as easy as it was in the last 5 years.

http://www.businessweek.com/bwdaily/dnflash/jun2005/nf20050622_9404_db008.htm

From today's paper
Median home prices on Long Island rise again

Another article re. Westchester

From Aug 24 Newsday
Housing sales dip nationwide

MLSI
Long Island Housing Statistics

Just read a few articles mostly by Forbes (on MSN) and basically it said that if there is a bubble burst New York is one of the cities that most likely will be affected as well as LA, San Diego etc.

The NY Times pretty much says the same thing every Sunday. I suggest you guys read the RE section in the Times every Sunday its so interesting and informative. We read it together because its scary to think where this economy is headed:(

We will see. But for sure the prices have to stop climbing and most likely they will come down especially since winter is on its way.