Real estate value question

[Auk1124]

I'm no economist, though I slept at a Holiday Inn once. I just assumed that with the recession/downturn/negative economic bubble/end of the world (take your pick), that real estate prices would drop some.

For instance in my neck of the woods there are a ton of houses on the market on every street corner. BUT... real estate seems to be holding its value very well around here. All of these houses are priced higher than the moon. And all of 'em are sitting empty.

In other words, is there going to be a market adjustment in real estate? Is the lack of a fall in real estate prices isolated to my area? Armchair economists and property gurus, give me the word.

[mrdux]

Around here lots of folks are actually upside-down (owe more than the value of the property) and are just hoping somebody just can't live without that particular property. For someone who really wants to sell, most prices are going to have to come down to sell in such a buyers' market.

It should be a good time to buy a bargain if someone was looking to invest in real estate.

[EKY.MTN.HUNTER]

My uncle snatched up a town house in Lexington, he had been looking at it for awhile then all the sudden it became crazy cheap.

[Duster]

They sure have not gone down in this area. Checking the ad's in the local paper I found a house on 2 acres listed for $179,000 that not long ago was on the market for $159,000. Also found a 3 acre lot on the lake near me they are asking $125,000 for. The houses that are selling best around here are in the 50 to 60 grand range. Most are 3 bedroom 1 bath on a half acre or so lot. I might add a house in my neighborhood on the water just sold to a Doctor out of Tennessee for a weekend retreat for a cool half million. Nice lindel cedar home about 2200 Sq Ft on two acres but not worth that price as far as I am concerned.

[luckydawg]

at one time the wife and I made quite a bit of cash building houses and selling them or even remodeling homes (flipping). right now it is more in the buyers corner and not so much in the sellers. but all things cycle around.

[ril7572]

In general, prices have held up well. Farm prices are still very strong.

With the forclosures on homes, there are some bargins out there. Banks and mortgage companies don't want to own any more real estate. They are letting properties sell at the courthouse door for bargin prices. The forclosure sales aren't for everyone, but some buyers are doing well there.

[trust me]

If a house has a high price and is sitting empty after 6 months, give them a lowball offer. They may break their necks jumping at it. The advertised price and the price they'll accept may be vastly different.


The most important thing is to figure out what a house is worth to you, the potential buyer. Then make that offer. The doctor that bought the half-million dollar home might have been just as happy to pay twice that amount, because $500,000 means something different to him than it does to you and me.

[predator]

In general, prices have held up well. Farm prices are still very strong.

With the forclosures on homes, there are some bargins out there. Banks and mortgage companies don't want to own any more real estate. They are letting properties sell at the courthouse door for bargin prices. The forclosure sales aren't for everyone, but some buyers are doing well there.

This is about what is going on in our area. The national press is blowing this way out of proportion because of what is happening in Ca., Nevada and Fla.
Those 3 states account for a large percentage of the mortage crisis. They tend to forget the fact that these same 3 states had double-digit price increases for over a decade. A market correction was in order, and most of the ones hurting were the last ones in.

Of course, there are people sitting on houses all over, but now is the time to buy, when they are ON SALE!!

[Hammer]

my 2 good friends that sell real estate are having good years. Plenty of sellers of course, and the buyers are there too, but they really work at it.

[Al]

I sold my place in Fl around 4 yrs ago for $400,000. It resold 1 1/2 yrs later for $500,000. An unbelievable increase! But whoever bought it is stuck with it for a while because everything crashed there. As of last Christmas construction has stopped, golf courses stoped being built in the middle of the projects and most spec homes stopped in mid build in these new subdivisions. Theres a highrise appt. building built in downtown Orlando that is less then 20% occupied.
I doubt my place is now worth what I sold it.
They just way over built and the realtors keep pushing the prices to the max but they priced most people out of the housing market.
When we first built there, starter home subdivisions, priced homes from the low 70's when we left 10 yrs later starter homes were selling in the low 200's.

[Auk1124]

I'm just not seeing any bargains on residential property in my area. Not many foreclosures either. I've heard rumors that the agents around here are suffering. It's hard to believe there are that many people upside-down on their mortgages around here, but I guess that's the case.

[Al]

I'm just not seeing any bargains on residential property in my area. Not many foreclosures either. I've heard rumors that the agents around here are suffering. It's hard to believe there are that many people upside-down on their mortgages around here, but I guess that's the case.
I bet that most that are upside down are because they got 2nd mortgages on their houses.

[slickhead slayer]

I'm just not seeing any bargains on residential property in my area. Not many foreclosures either. I've heard rumors that the agents around here are suffering. It's hard to believe there are that many people upside-down on their mortgages around here, but I guess that's the case.

I know in my area, the big stuff is whats hurting. Anything over $400,000 is sitting. Have a neighbor who had to buy the ranch on my street because he needed handicap accesible aspects. He had a very large home that he moved from, it sat on the market for over a year and a half. He had it listed for $1.1, and ended up selling it for $760,000. Which is about what he paid for it some years ago.
seems like pretty big corrections in the very high end market.