If you are waiting to buy a house, WAIT!

Discussion in 'Economy' started by Neubarth, Jul 2, 2010.

  1. Neubarth
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    Neubarth At the Ballpark July 30th

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    The housing market continues to deteriorate. Thursday's report on May pending home sales was down 30% from the prior month and nearly 16% vs. a year ago. The market weakness spans the country. Sales in the Northeast, Midwest and South fell more than 30%, the bright spot, the West, only fell 21%.

    The news comes after last week's record low new home sales in May, which plummeted nearly 33%. Experts say the expiration of the new homebuyer tax credit is to blame for the sudden market softness.

    Unfortunately, the market could get worse and prices could fall further, says Richard Suttmeier of ValuEngine.com. High unemployment and struggling community banks are two main causes. Saddled with bad housing and construction loans, local banks will continue to restrict lending.

    Plus, the failure of the Obama administration's mortgage modification program means a steady flow of short sales. “People are going to be surprised when they see there have been short sales,” which negatively impact appraisals in the local community, says Suttmeier.

    How low can prices go?

    Using the S&P/Case-Shiller index as his guide, Suttmeier suggests homes across the country could lose half their value. “If it gets back, like stocks, back to the 1999-2000 levels, that’s another 50% down in home prices,” he says.
     
  2. Douger
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    Douger BANNED

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    I sold in 2005 for 875.
    I found a " real value" site that shows it's current " will sell" price at 320.
    That's 15 grand less than I paid in 1996.
    Post 96 I did 100 plus in upgrades.
    I figure by 2013 a bank will then own it and let it go for 200 or under.

    If you "need" to buy a house now / Find another country.
    If are B.W.'d, and glued to all things empire, buy some ag exempt land with plenty of water and a good soil test from the county ag co-op.Far away from the battlefields....aka cities.
    It's a far better move than sitting on stocks, bonds, IRA's or, Dolares.
    It'll be like being one of the few with a lifejacket on a sinking ship.
     
  3. Neubarth
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    Neubarth At the Ballpark July 30th

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    As previously stated, I see only deflation or near to deflation for the short term. When that deflation turns to inflation I can not predict, but when it does, house values will follow.
     
  4. crait
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    crait Program Developer

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    Please post your source and the source of said 'experts.' Thank you.
     
  5. Terral
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    Terral Terral Corp CEO

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    Hi Neubarth:

    Housing prices are going to continue the downward trend for many reasons:

    1. Too many JOBS are being Outsourced overseas to places like India.

    2. NAFTA Offshoring of the U.S. Manufacturing Base. Jobs are going overseas, which means fewer and fewer American Workers can afford to make an offer on your house.

    3. 23 Guest Worker Programs bring in 1.5 MILLION Foreign Nationals to 'displace' U.S. Workers from JOBS. That means fewer and fewer American Workers can afford to make an offer on your house.

    4. 20 to 30 Million Illegal Alien Foreign Nationals are stealing identities and JOBS from American Workers and nobody in Government is doing one thing about it. "Worker Displacement" is a cycle that NEVER ENDS, as Illegal Aliens displace American Workers, then American Workers must go out and displace more American Workers from JOBS. That means fewer American Workers can afford to make an offer on your house.

    5. Foreclosures and Bankruptcies are skyrocketing, which means more and more Short Sale houses on the market. Too many foreclosed houses on the market means prices will go DOWN and more bankruptcies means fewer and fewer American Workers can afford to make an offer on your house.

    6. No matter what any Government Office says, unemployment is skyrocketing through the roof and the Government is LYING about the numbers. The real unemployment number is somewhere around 20 percent and escalating higher, which means fewer American Workers can afford to make an offer on your house.

    7. People know that prices are going DOWN, so they wait and wait for the housing market to find a bottom. However, there is NO BOTTOM in the housing market so long as all of these conditions remain for the current Economic Depression.

    8. Fannie Mae and Freddie Mac Mortgage-backed Security Portfolio Values are going DOWN, as house prices continue to collapse right before our eyes. This means that more and more foreclosed houses must be thrown onto the open market, which will LOWER housing prices again.

    If you buy a house today, the same house will be worth LESS tomorrow. Do not buy today, when you can buy for less later down the road ...

    GL,

    Terral
     
  6. B. Kidd
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    B. Kidd Gold Member

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    FANTASTIC deals to be had here in Vegasland.......
    70 percent of homeowners here are 'underwater'.
    RETIREES, you are invited!!! Come one, come all!!!
     
  7. judyd
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    judyd Active Member

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    I don't understand the reasoning in the OP statement. Did you mean it's a bad time to sell? Because then I could agree with you. On the other hand, it's an ideal time to find a home you couldn't have afforded two years ago, and the interest rates are at an all-time low! If a person has a steady income and a downpayment, this is an excellent time to buy.
     
  8. Tom Clancy
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    Tom Clancy Clancy for Ron Paul

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    Sold my house for 400K more than i paid for..

    Must be the addition of the Jacuzzi, and that only cost around 1K..

    Also, It was in CA, so Location is everything there.
     
    Last edited: Jul 3, 2010
  9. JakeStarkey
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    JakeStarkey Diamond Member Supporting Member

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    Now is the time to continue investing and managing in middle-level rental property.
     
  10. B. Kidd
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    B. Kidd Gold Member

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    Thanks Jake.

    I can only add to that, ESPECIALLY, in Vegasland!
     

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