Just wanted to know what you think of the prices of homes? Do you think they are going to continue to rise like they have for the past year or so, or do you think they are going to level out, or do you think they are going to drop significantly???
I think they are going to keep rising, until the house market is sooo saturated with homes for sale, and the only people that can afford them are the really rich or the really poor.
Scott
kissy27
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Re: Predictions of House Prices for the future
If you look at the history of the market, there is no way the prices are going to fall significantly! There is a chance that prices will level off..I know that after watching homes in my area, the prices all start out ridiculously high & after a month or so, you see the prices come down...
Remember one thing, no matter how high the prices go, & no matter how much work a house needs, there will always be a person willing to buy...So until people stop buying at these high prices (which is not a reality), the market will continue to rise!
cluelessbride
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Re: Predictions of House Prices for the future
No one can answer this question with confidence. It's pure speculation.
My guess - big fat guess - is that on LI there will be a bit of a drop but not a signifcant one.
Blu-ize
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Re: Predictions of House Prices for the future
As long as rates stay stable and don't increase significantly, most likley home prices will stay the same or fluctuate slightly. Over the last year, prices have leveled off, but are still quite high. In LI, there is not more land, so I wouold think the market will remain robust. I think people have a bloated sense of what their house is worth though. I have a neighbor who started at $639K in Bethpage and is willing to take $575 now.
Interest rates Supply/Demand Economy
People will always need a place to live. I would put my money in bricks rather than anthing else..
thiadora
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Re: Predictions of House Prices for the future
Posted by Blu-ize
As long as rates stay stable and don't increase significantly, most likley home prices will stay the same or fluctuate slightly. Over the last year, prices have leveled off, but are still quite high. In LI, there is not more land, so I wouold think the market will remain robust. I think people have a bloated sense of what their house is worth though. I have a neighbor who started at $639K in Bethpage and is willing to take $575 now.
Interest rates Supply/Demand Economy
People will always need a place to live. I would put my money in bricks rather than anthing else..
I agree with this.
My DH and father, however, think that the market will plummet and then come back over the next 7-10 years.
But as clueless said- it's all speculation....
acre730
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Re: Predictions of House Prices for the future
My DH and father, however, think that the market will plummet and then come back over the next 7-10 years.
But as clueless said- it's all speculation....
Sounds like my DH and father. We are waiting, see no need to rush into anything at this point.
Blu-ize
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Re: Predictions of House Prices for the future
Most analysts agree that if the prices drop, it will be gradual due to interest rates rising gradually. This makes sense to me.
When we bought 2 years ago, this talk was going on as well..I don't think it's a bubble.
lilacwine
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Re: Predictions of House Prices for the future
This week's The Economist has a cover story about the issue. Basically, the article states that the UK and Australia are about a year ahead of us and that prices have been dropping in those places.
The Washington Post had an article last week about home envy -- the frustrations of potential 1st time buyers vs. those who were lucky enough to buy several years ago.
FH wants to wait for the bubble to burst. I'm not sold.
Blu-ize
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Re: Predictions of House Prices for the future
I saw that article. There is no basis for it. The UK and Australia are nothing like the US. I will say that you may want to watch for changes when Greenspan retires and if the house, senate and the President go Democratic. That will always change the economic outlook.
heidla
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Re: Predictions of House Prices for the future
It is also diffucult to estimate because NJ, LI and NYC are different then other parts of the country. The demand is still so great here that I don't see the 'bubble bursting'. It might deflat a little, but I don't foresee a huge change.
myasmom
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Re: Predictions of House Prices for the future
I was told that house prices may fall but interest rates will go up..so either way you will pay..My boss said in 84 his rate was like 16% AND I heard that in the past it had gone even higher
cluelessbride
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Re: Predictions of House Prices for the future
There was a drop in prices on LI in the 80's I think. Or maybe early 90's?
Blu-ize
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Re: Predictions of House Prices for the future
House prices dropped when the interest rates skyrocketed..some were paying 18%.. the rental market was booming though
