Just wondering what you guys are seeing. My GF's condo development would normally have 1 unit for sale... it would hang around about a month or less. There are 4 there now. Things in North and South Jersey aren't really turning over and the number of homes available in the usual zipcodes I look at has gone up a bit... you folks seeing the same thing in your neck of the woods?

Just wonderin'... people love to cry that the sky is falling or the "bubble" is bursting... but I'm wondering if this time (stress the word 'this') it really is????

Just wondering?

Pete

The bubble didn't burst but pockets of the country have corrected, high end is doing fine while the bottom has bottomed out again due to flipping. I have no idea why people call a 3 or 4 percent decrease in values hells bells since the value bounces back after a single decent year.

What range do you consider high end?

It depends on the market but high end in a market is high end, it could be 300K or 2 million.

Colorado is leading the nation in foreclosures. It's putting pressure on homes 200k -225k. One analyst said it's a blood bath under 200k. I'm hoping it's a short lived correction to all the easy money that has been out there and the short term ARM's that people got in to.

... is seeing a significant levelling off. Houses that were 150 to 200 five years ago and were easily sold for 300 to 350 last year are now sitting on the market for months and being reduced to around 220 to 280. At least in certain areas. As I'll be in the market soon, I hope... I sure hope this trend continues for a while.

- Peter.

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Yeah, I'm seeing it across the board here.

House in North Jersey that were $200K 10 years ago and were going for $500-$550 are sitting around and either being pulled off the market or being reduced.

In other parts of the state, houses that went for $300K 3 years ago were going for $800K and now are sitting around on the market.

At first I thought it would be small correction... I don't think so this time around. Money just isn't as cheap as it was - put that with the current economy (for the working class) and prices will drop, making you able to buy.

How about commercial? Anyone seeing anything there?

If I were an investor, I'd be a little worried. But if your primary residence goes down in value, no big deal since your next house will also be similarly cheaper, should you decide to move. I do feel for the folks who bought recently at the peak and took out creative mortgages in order to qualify.

I predict fuel and energy costs will erode home prices further.

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Yes.

Here's a VERY common example in North Jersey.

Young couples can't afford to live in North Jersey so they moved further away from work to be able to buy somthing. Now they have an hour commute, which means they spend less time at home, more time in the car. Cars burn gas...

Now that's a very basic example... but it shows how when you put that together, with the higher rates, and silly folks that went for the adjustable short-term money -- or worse yet, interest only... well, they're screwed.

And to the folks that don't remember the 80's...

MANY home closing had the *SELLER* coming to the table with $$$$ from SAVINGS to give to the mortgage company because they were selling the house for LESS than what they owed!!!

Can you imagine that? Well you won't have to imagine it, because it is going to happen. And that sucks for A LOT of people.

Ironic that this came up.
You’re right on, pj67.
We just spoke with our agent in Scottsdale last week. She sold our town home there (Jackrabbit and Hayden) early last year. She said if we’d have waited until this year to sell, things wouldn’t have gone so well. Things are settling down there, for sure.

In the market soon? Interested in the McCormick Ranch area?? We’re selling out the desert for a place in/near Prescott. I’m an ERAU grad. Love it up around there. Wife wants closer to Strawberry/Payson. We'll see.

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Ding, ding, ding, we have a winner. That's exactly what is happening. Low interest rates make housing prices soar while high rates make it harder for people to buy more expensive housing. The higher the rates go the more houses there will be sitting. However, with that said, new construction prices are helping home prices stay relatively high.

Both areas are nice -- I guess it depends on how isolated you want to be. Prescott is a much better environment for kids and its proximity to Sedona, Flagstaff, Jerome, etc. make it a more attractive choice, IMHO...

In my area the market is still extremly strong. Actualy if you ask me, and a couple other brokers I know agree, their is not enough product on the market.

Some things sit, but I think a large part of that is from people getting greedy and asking say $1.15M for a house thats only worth about $1m.

My market is abnormal though. An average house is $300k-$600k. Something thats 3k sq feet in a good area can fetch $700k+ no problem. Anything on the water thats decent size is seven figures.

Actualy one beach house I was watching sold for $1.1M last year, listed for $1.725M a few months ago. I *think* sold for $1.6M recently.

New England is nuts, its one of the only places in the country where a $1m house is no big deal, pretty "normal" actualy.

LA Bay area has us beat though.

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What bothers me are the 100% loans, they are a good thing if used properly. If abused you can get into trouble fast.

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Ant loan will get a person into trouble if not used properly, in this market its not a bad idea to borrow 95-100% because cash will do better in the stock market and if a person is buying the house below value they have much greater vested interest than is perceived.

Don't buy in to the la la blah blah on the street a large portion of home loans are FHA and they only require 2.5% of the cost vested and that can be closing costs.