People Need To STOP Buying~

I believe that the prices of homes will not come down until people stop buying homes at astronomical prices! If someone lists a home at an unreasonable price and someone else buys it...the Comparative Market Analysis will increase the value of all the other homes in the area. Making the asking price of everyother home increase.

Prices of homes are insane and if we dont do something about it soon, LI will be for the rich and the poor only...say goodbye to the middle class.

Don't take offense to this...I am merely venting because it kills me to see all of my friends moving out of the state just to get by.

I've said the same thing myself- as long as a seller can find someone willing to pay these prices, the prices will stay the same.

We are among those who chose to leave LI. Money-wise, it would have been tight, but I also refused to spend $400k on a small house with no basement that needed additional work. We still had to pay a lot (but a lot less than we would have paid on LI) for our house but it is bigger, on more land, and in move-in condition

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Posted by TracyInQueens

I've said the same thing myself- as long as a seller can find someone willing to pay these prices, the prices will stay the same.

We are among those who chose to leave LI. Money-wise, it would have been tight, but I also refused to spend $400k on a small house with no basement that needed additional work. We still had to pay a lot (but a lot less than we would have paid on LI) for our house but it is bigger, on more land, and in move-in condition

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It's very true! FH and I can't wait to leave LI for this reason - along with the traffic, taxes, etc.

You get so much more for your money in other parts of the state or country - except CA

REALLY!!!
if they keep buying these homes at these crazyyyyyyyyyyyyyyyyyy prices the price will never go down.

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Posted by AnniesSS

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Posted by TracyInQueens

I've said the same thing myself- as long as a seller can find someone willing to pay these prices, the prices will stay the same.

We are among those who chose to leave LI. Money-wise, it would have been tight, but I also refused to spend $400k on a small house with no basement that needed additional work. We still had to pay a lot (but a lot less than we would have paid on LI) for our house but it is bigger, on more land, and in move-in condition

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It's very true! FH and I can't wait to leave LI for this reason - along with the traffic, taxes, etc.

You get so much more for your money in other parts of the state or country - except CA

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I know! Personally I am looking forward to living someplace a little quieter with a lower cost of living. I will miss the proximity to the ocean, and being so close to my family, but we will have a much better quality of life where we're going.

I went to an open house in my neighborhood this weekend (same style house) for $480,000. Let me tell you, the house was a POS!!! EVERY room had the super-dooper cakey, overpainted walls, everything was outdated and lathered with a nice shade of MAUVE!!! There was even leopard patterned wallpaper in the foyer. They attempted to sponge paint everything they could. The yard was a mess and the studio apartment was the original crappy wallboard, flooring and fixtures. I'm sure alot of people would have thought the house was in great shape but I saw some structural stuff that made me shutter. I can't believe that is what the houses are going for. You would need a good $100,000 to make it nice. $580,000, for Patchogue?!?

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Posted by ambersmom

I went to an open house in my neighborhood this weekend (same style house) for $480,000. Let me tell you, the house was a POS!!! EVERY room had the super-dooper cakey, overpainted walls, everything was outdated and lathered with a nice shade of MAUVE!!! There was even leopard patterned wallpaper in the foyer. They attempted to sponge paint everything they could. The yard was a mess and the studio apartment was the original crappy wallboard, flooring and fixtures. I'm sure alot of people would have thought the house was in great shape but I saw some structural stuff that made me shutter. I can't believe that is what the houses are going for. You would need a good $100,000 to make it nice. $580,000, for Patchogue?!?

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Ick! Sharon, that sounds like the $460K dive I posted about a few weeks ago - total crap! Are these realtors smoking crack or something?!

I should have been born in 1970 rather than 1979 because then I would have benefited from this price spiral - it's disgusting in my opinion.

The areas I really want to be in (like Wantagh) I can't even touch because of bidding wars and HIGH prices. I saw a ranch in Wantagh for $569,000. Hardwood polyurethaned floors throughout - so they can ask THAT much? ridiculous!

I agree - but it will never happen - that if everyone starts bidding much lower it might effect the market.

I suppose if we buy on Long Island my FH is going to have to become a contractor or we'll both be working 2 jobs for the rest of our lives ( and we make good salaries to boot)

and a

We bought our house less than a year ago and they sale prices comparable to our house have gone up since then already! It's nuts!!!

Ladies- I still think the end is near.

I thought it would happen faster- but now a lot of economists are talking about a 'bubble'... when people start day trading or 'flipping' real estate- I'd say trouble is ahead.

Only time will tell...

The prices never drop....the increase may slow....but they will never drop. People have been talking about a drop for at least five years. It never happens.

I would not recommend waiting for prices to drop. Since inflation is more probable, your money will just be worth less as time goes by.

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Posted by am470

The prices never drop....the increase may slow....but they will never drop. People have been talking about a drop for at least five years. It never happens.

I would not recommend waiting for prices to drop. Since inflation is more probable, your money will just be worth less as time goes by.

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I agree with this comment. I would like to add that if it DOES 'drop' in NY, it won't be more than 10% and it will be temporary. Real estate prices in NY have been going up for about... oh... 200 years!!?

no. something has to happen. how many people can actually afford 500,000 mortgages, car leases and insurance for 700+$, taxes at 8k, have school loans, go out to dinner, afford LV and gucci, and everything else? credit card baby. and those bills won't go away. so i predict something will happen b/c all these people will not be able to keep up, esp. if mortgage rates go up. yes, ny real estate increases, but with the way this country spends, expect something. and the fact that mortgage companies are handing out expensive loans for more than people can afford, they are only asking for trouble. for instance, if a couple makes 120K combined, they really are only entitled to a loan for 240k, but they are getting loans for three times that. these companies are banking on forclosures! plus, salaries aren't increasing at the same rate, so the proportion of income to expenses is higher than national averages.

eta: add to the fact that a large portion of Long Island schooled 20-and 30-somethings are leaving b/c they can't afford to stay is likegiving a record deal to milli vanilli...or like investing money in a psychic.

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Posted by ThongLori

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Posted by am470

The prices never drop....the increase may slow....but they will never drop. People have been talking about a drop for at least five years. It never happens.

I would not recommend waiting for prices to drop. Since inflation is more probable, your money will just be worth less as time goes by.

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I agree with this comment. I would like to add that if it DOES 'drop' in NY, it won't be more than 10% and it will be temporary. Real estate prices in NY have been going up for about... oh... 200 years!!?

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Incorrect.

Maybe you all are too young to remember
But in the early 80s and again in the early 90s the housing market DID drop.

My father bought his house in 1988 and by 1992 it was worth LESS money. This wasn't an isolated experience either- oftentimes certain sectors of the economy slide. Of course, back then- you still needed 20% to buy a house... so even if the market did drop, you had equity.

If you look at the entire current macroeconomic picture, it is unrealistic to assume that the economy in its current state can sustain this level of growth. The reason why certain economists think there could be a situation here is because people aren't putting the amount of money down they once were. And lets face it, the less $$$ down, the less equity you build- especially in the first year.

To think ANY market- whether housing or stocks or bonds is not cyclical is short-sighted. In 1999 every single dot.com stock that hit the IPO market went crazy like gangbusters... I'm not making a comparison from market to market- but I AM making the comparison of the stock purchasers back then to the home purchasers of today.. the attitude, the 'house hysteria' is very similar- maybe it's my historian's mind- but it sort of feels like history repeating itself to me.

Of course, I understand that people want to think- 'I'm smart and I made the right decision, etc etc..' so they are going to squash any thought that doesn't agree with them- and it certainly is in the best interest of banks, sellers and the economy to keep this thing going- and I think well, if you have the money for a down payment, and you can afford to withstand any possible downturn in the market & afford to make your mortgage payments no matter what (i.e. you aren't stretched to thin) AND you want to stay in the house you are in for at least 5-7 years- then of course, it's very smart to buy if you can afford it..

but if you are not able to put a lot of $$$ down (like say me and DH) and you aren't sure where you want to be in 5 years- buying in this market could be dangerous... NOTHING in life is 100% guaranteed- except death & taxes.

before I get flamed to death- I am not writing this to be nasty or insult anyone's judgment... I am simply trying to pull out some historical reminders- to those who may be too young- to remember, that even here on Long Island, in the past 25 years- housing prices have been cyclical (and, it has happened in NYC too.. there have been recent articles about the NYTimes about it recently...)

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Posted by Sassyz75

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Posted by ThongLori

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Posted by am470

The prices never drop....the increase may slow....but they will never drop. People have been talking about a drop for at least five years. It never happens.

I would not recommend waiting for prices to drop. Since inflation is more probable, your money will just be worth less as time goes by.

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I agree with this comment. I would like to add that if it DOES 'drop' in NY, it won't be more than 10% and it will be temporary. Real estate prices in NY have been going up for about... oh... 200 years!!?

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Incorrect.

Maybe you all are too young to remember
But in the early 80s and again in the early 90s the housing market DID drop.

My father bought his house in 1988 and by 1992 it was worth LESS money. This wasn't an isolated experience either- oftentimes certain sectors of the economy slide. Of course, back then- you still needed 20% to buy a house... so even if the market did drop, you had equity.

If you look at the entire current macroeconomic picture, it is unrealistic to assume that the economy in its current state can sustain this level of growth. The reason why certain economists think there could be a situation here is because people aren't putting the amount of money down they once were. And lets face it, the less $$$ down, the less equity you build- especially in the first year.

To think ANY market- whether housing or stocks or bonds is not cyclical is foolish. In 1999 every single dot.com stock that hit the IPO market went crazy like gangbusters... I'm not making a comparison from market to market- but I AM making the comparison of the stock purchasers back then to the home purchasers of today.. maybe it's my historian's mind- but it sort of feels like history repeating itself to me.

Of course, I understand that people want to think- 'I'm smart and I made the right decision, etc etc..' so they are going to squash any thought that doesn't agree with them- and it certainly is in the best interest of banks, sellers and the economy to keep this thing going- and I think well, if you have the money for a down payment, and you can afford to withstand any possible downturn in the market & afford to make your mortgage payments no matter what (i.e. you aren't stretched to thin) AND you want to stay in the house you are in for at least 5-7 years- then of course, it's very smart to buy if you can afford it..

but if you are not able to put a lot of $$$ down (like say me and DH) and you aren't sure where you want to be in 5 years- buying in this market could be dangerous... NOTHING in life is 100% guaranteed- except death & taxes.

before I get flamed to death- I am not writing this to be nasty or insult anyone's judgment... I am simply trying to pull out some historical reminders- to those who may be too young- to remember, that even here on Long Island, in the past 25 years- housing prices have gone down.

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Point taken, but look at the *overall* historical chart. Of course there are ups and downs, but when you look at the long-term span of time, *overall* prices have kept going up.

No matter what the market, if you buy into a good location, you're making a good investment. Established areas and desirable neighborhoods will almost always weather a downturn.

Real estate is always the best and safest investment! Yes, the market did crash some time ago. But that only became a problem for those who wanted to sell before it rebounded. Also, what people forget is that if real estate goes down, it is a reflection of the overall economy. So your stocks will decrease, people incomes will drop, people will be laid off. So you won't necessarily have the money to purchase a home anyway even if the real estate prices decrease.

ETS: I am not an expert on this topic. But my entire family has made their living off of being in real estate.