Housing Market

Doesn't it depend more on where your house is? Originally Posted by WTF

You have a stunning grasp of the obvious.

Optimistic predictions and pessimistic predictions can both be correct...depending on the amount of time it takes to reach either. Like someone said (think it was Samuel Clemens), "If you don't like the weather, just wait." Originally Posted by charlestudor2005

You are right ,the truth will probably land somewhere in the middle.

BTW Nicolette I like your new avatar pic

You have a stunning grasp of the obvious. Originally Posted by pjorourke

Oh master, you flatter me!

Do you think the value of homes will:

• increase in value

• decrease in value

• or, will the value remain the same within the next 6 months?

Originally Posted by Nicolette Morgandy

NM, as several have implied here, you need to limit your request to a geographic area. The more specific the geographic area, the more likely you are to get a useful answer.

Suze Orman says things will get better .It may just take a while Originally Posted by Becky

Now there is a profound prediction. The key question would be when?

Doesn't it depend more on where your house is? Originally Posted by WTF

Wow, WTF made a funny.

Doesn't it depend more on where your house is? Originally Posted by WTF

Wow, WTF made a funny. Originally Posted by Rudyard K

http://www.youtube.com/watch?v=j4XT-l-_3y0

Leave Suze alone she is doing her best

I like her and Dave Ramsey....but I also like my Aunt. Does not mean I would take their advice on money matters.

http://articles.moneycentral.msn.com...utOfTouch.aspx


THE GOOD
For starters, she has helped an awful lot of people, particularly when it comes to facing up to the personal and self-esteem issues that surround money. If she can help someone deal with financial fears and gain control, she has put them on the path toward a comfortable financial future.
THE REALITY
Her push for paying off mortgages to the exclusion of everything but retirement-plan savings matched by employers could leave consumers with too big a chunk of their net worth tied up in real estate.

Orman estimated her liquid net worth at about $25 million, with an additional $7 million worth of houses. With just $1 million of that in stocks, it means that just 4% of her liquid net worth is in the stock market.

What does Orman do with the rest of her money? Solomon asked, and was told: "Save it and build it in municipal bonds. I buy zero-coupon municipal bonds, and all the bonds I buy are triple-A-rated and insured so that even if the city goes under, I get my money. I take a little lower interest rate to make sure my bonds are 100% safe and sound. "
As for playing the stock market, Orman said "I have a million dollars in the stock market, because if I lose a million dollars, I don't personally care."
In short, the person being trusted as everyone's financial adviser has a portfolio that few people could live with. Originally Posted by WTF

[quote=

Suze Orman says things will get better .It may just take a while[/quote]

Now there is a profound prediction. The key question would be when?



Originally Posted by Rudyard K

Depends where in the country you are. Those areas (e.g., middle America) where prices didnt run up as much as they did on the coasts haven't dropped that much and propbably wont fall any further. Some places (e.g., California, South Florida) still have lots of inventory to work off. Of course, house prices in Washington DC are rising. Surprise! Surprise!! Originally Posted by pjorourke

I live in TX near the MX border. Seems like our RE market has not been affected at all. Don't know all the reasons but I can take some guesses. First, RE prices were never really inflated there. Second, the major businesses there have not seen a financial downturn (medical services [mostly for the retire Snowbirds] and their supporting industries, banking, Mexicans that shop on this side [they are strictly a cash society, no credit], and of course, last, but not least, illegal drug and firearms trade).

Nor do I look for any change. I, personally, disagree with most of those industries on which the economy where I live is built on moral grounds. But most others where I live could care less as long as the economy stay fluid.

Like others have mentioned, location will be the greatest determining factor in a price rise or fall however the overall economics cannot be ignored nor minimized. I know I am negative but I see a general trend in jobs even in the IT industry, which has a far more positive outlook than other careers fields, which does not indicate an improvement for a variety of reasons. If one does not have a job, or security in their position, will they go out and extend themselves? The answer to that is most will not but some will. Still this discussion of housing prices rising/falling or staying the same is entirely dependent on the local economy and were things were to begin with for each locality. Then it goes to the economy as a whole for the country at large.

Most of TX did not run up in the boom, so the house here in HTown will rise over time. The vacation place in FL is a different story. Values were so inflated there that if I needed to sell, I might get half what I paid in 2004. I don't see those markets coming back for several years.

What does Orman do with the rest of her money? Solomon asked, and was told: "Save it and build it in municipal bonds. I buy zero-coupon municipal bonds, and all the bonds I buy are triple-A-rated and insured so that even if the city goes under, I get my money. I take a little lower interest rate to make sure my bonds are 100% safe and sound." Originally Posted by WTF

And who is probably the largest insurer of municipal bonds? Uh Yep...that would be AIG. Oops.

Actually, they are still very safe as the insurance proceeds related to municipal securities are generally segregated from their other endeavors. But I'll bet SO didn't know that. Counterparty risk is something most folks haven't thought about over the years...but they need to.

And who is probably the largest insurer of municipal bonds? Uh Yep...that would be AIG. Oops. Originally Posted by Rudyard K

Well ignorance is bliss. Probably why I'm so happy.

Actually, they are still very safe as the insurance proceeds related to municipal securities are generally segregated from their other endeavors. But I'll bet SO didn't know that. Counterparty risk is something most folks haven't thought about over the years...but they need to. Originally Posted by Rudyard K

Bear Stearns knows about it!

All Real Estate is Local. By local I don't mean region of the country or even Metro area, I mean neighborhood.

The only things that are pretty consistent are interest rates and tax incentives.

Also be wary of some of these indicator stats like "existing home sales" and "median sale price" & reading too much into them. They can be very misleading

--------------------
News Alert: New home sales hit record low in January
10:03 AM EST Wednesday, February 24, 2010
--------------------

Sales of new homes plunged to a record low in January, underscoring the formidable challenges facing the housing industry as it tries to recover from the worst slump in decades.

The Commerce Department reported Wednesday that new home sales dropped 11.2 percent last month to a seasonally adjusted annual sales pace of 309,000 units, the lowest level on records going back nearly a half century. The big drop was a surprise to economists who had expected sales would rebound to an annual rate of 360,000 units.
http://www.washingtonpost.com/wp-dyn...l?hpid=topnews

The X got the estate. It was worth it. I then bought a house for 186k. Now it's worth 160k. I'm under water and now do I send them the keys or when I want a new place to live I swallow the loss and pay the diff? Bad decisions = pay pay pay. Sometimes i wish I could be evil.

If you do a strategic default, remember your credit takes a hit too. Want to rent a home after walking away? The landlord will want to see your credit report. Hmmm, big hits, score under 700/600/etc. I can't rent to you. Then an agent and tenant have to get creative in offering an incentive to have a landlord reduce their reservations. PM if you want more.