The Future of Real Estate

i hear such varying opinions in re: short term future of real estate sales. i know interest rates are slowing rising, but how do you think that will affect real estate prices?

i can't image that price are going to continue to rise along w/ rising interest rates. from your experiences, what have you heard in regards to the market dropping, leveling or rising in the next couple of years?

No one can predict what's going to happen, but I was talking with a RE agent this weekend and her opinion was it's basically going to stay the same. It's not going to go down significantly.

From what I've seen...it just keeps going up.

I always thought when interest rates rise, house prices go down.

I think the market will definately stablize for a few years, and the prices won't jump up again the way they did for the past 5 years.

The prices may drop a bit, but it's not going to be drastic...JMO

i think it is leveling in some areas and rising in others. although hopeful, i doubt prices will drop much. even though it is a sellers market, the buyers basically set the prices. if people continue to keep buying at these outragous prices, why would the prices drop?

again, properties are assesed based on recent home sales. if the house down the street (similar style, condition, property) sold for $400,000 in april and another for $420,000 in july then i would follow suit and list my property in sept for over $420,000.

i am just extremely frustrated. we have been pre-approved for a mortage and have a substantial amount for a down payment, but i don't see much value in many of the homes on the market. personally, i am appauled at some of the homes that we have viewed. we are willing and able to spend over $500k, but from what we have viewed, that is still not enough money to buy a nice sized family home w/ a decent amount of land.

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Posted by skew

i am just extremely frustrated. we have been pre-approved for a mortage and have a substantial amount for a down payment, but i don't see much value in many of the homes on the market. personally, i am appauled at some of the homes that we have viewed. we are willing and able to spend over $500k, but from what we have viewed, that is still not enough money to buy a nice sized family home w/ a decent amount of land.

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We're in the same situation you are and it seems hopeless! As it is, we probably have to move out of Queens because $600,000 gets you a cardboard box!

I also spoke with a broker yesterday who seems to feel the market is stabilizing.

DH is a real estate attorney and he has no answers either. He's afraid to buy now just in case the real estate market takes a dive in a few months or a year. But what if it doesn't?!?!

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Posted by Eireann

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Posted by skew

i am just extremely frustrated. we have been pre-approved for a mortage and have a substantial amount for a down payment, but i don't see much value in many of the homes on the market. personally, i am appauled at some of the homes that we have viewed. we are willing and able to spend over $500k, but from what we have viewed, that is still not enough money to buy a nice sized family home w/ a decent amount of land.

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We're in the same situation you are and it seems hopeless! As it is, we probably have to move out of Queens because $600,000 gets you a cardboard box!

I also spoke with a broker yesterday who seems to feel the market is stabilizing.

DH is a real estate attorney and he has no answers either. He's afraid to buy now just in case the real estate market takes a dive in a few months or a year. But what if it doesn't?!?!

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EXACTLY!!!! however, if we don't buy now we are going to regret it if prices continue to rise.

as i mentioned, a homeowner WILL NOT sell their house for less than they purchased it for. so, i can't see that prices are going to drop majorly. on the other hand, as interest rates slowly rise i cannot fathom that prices are going to rise even higher than the are now.

For every 1 point increase in rates, house prices drop 7%. That's the national average--but I have heard that it is a lower drop in the NYC area.

The Fed is expected to raise rates tomorrow and probably again in November.

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Posted by Bride626


The Fed is expected to raise rates tomorrow and probably again in November.

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Just because the Fed raises rates... doesn't mean the interest rates will rise. Yeah the Fed raised rates... and my CD rates are rising... but the mortgage rates remained unchanged. In fact, the Fed raised the rates already and the mortgage rates tanked last week thanks to a crappy job report.

As long as unemployment sucks... you can bet the house the the mortgage rates will stay reasonable, at least till the election.

I think November will be a huge turning point in the rates. This is why I am HOPING that Bush gets re-elected. If he remains in office... I dont see the rates skyrocketing anytime soon.

Well, I hope you are right and that mortgage rates stay the same as I can't close on my home until January!! However, most financial professionals I met with believe that they will rise at least 1/2% point between now and then.

I also think that a Bush win would be beneficial as most economists agree that rates will rise more quickly if Kerry is elected.

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Posted by philby

The housing market on L.I. will stabalize but not drop. It is a desirable place to live and the proximity to N.Y or the The Hamptons or the beaches (N/S shores) will keep it that way.

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Add excellent schools to your list! LI has several of the nation's best school districts too.

I think the homes will continue to go up for at least another 3-4 years, maybe not as fast as the last 5 years but people are still buying like crazy, New homes and developments are being built and sold before they are even finished and its really a sellers market because people go into bidding wars over homes! Not to mention all the investors that try to buy up all the homes so they can remodel and resale!!!

Long Island Is one of the most expensive and safest place to live in the US and everyone knows it, people also keep buying because owning a home is also an investment, I went into contract on a home in April, we closed in Aug, from April till now how home went up in value and we didnt even do anything to it yet.

IF eventually home prices dip they wont be at anything worth waiting for (maybe a few thousand), but by then they would have gone up that much more... JMO, but I would try to buy now, just focus on the school district ~ the better the district the better the resale value of your home.

I believe houses will always go up, like everything else. It may go up slower than before.

I always think about my parents house. They bought it for $50,000 25 years ago. I know that was long ago, but now it can sell for $500,000.

I wonder what Our house will be worth in 25 years!

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Posted by Snowboardgirl


I always think about my parents house. They bought it for $50,000 25 years ago. I know that was long ago, but now it can sell for $500,000.

I wonder what Our house will be worth in 25 years!

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i know!!! scary thought.

they say (older folks) that it is all comparable (then and now) however, i know my when my parents bought their first house the price of the house was 2x my father's salary. the same house (we have way sinced moved) sold last year for $550,000. how is that comparable? i am SURE the new homeowners salary (even combined) is no where near $275,000 (1/2 of the price of the home).

In this area I think the 'entry level' homes will continue to be in demand, especially those in good shape. You may find that the 'handyman special' or those with less desirable locations - busy street, near an airport, less desirable schools - may take longer to sell or prices will drop a little when demand drops, but there are always people looking to get into their first home.

Conversely, you may find as taxes rise, some people, especially empty-nesters, will trade down to a smaller, less expensive home, adding to the demand for the 'entry level' homes.

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Posted by dcwife

Houses don't always go up. In the late 80's they were high and then dropped. It is fine if you plan on staying a while because long term they will always go up. But if you buy an over priced fixer upper and put in a lot of money to fix it up- it might take a while to break even on that.

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I have also been told about the 80's and how alot of people got screwed and forclosed after this...

I think the interest rates will climb up and prices will drop(not drastically). Hopefully it will level off...