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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: bentway who wrote (51561)	4/7/2006 12:48:55 AM
From: GraceZ	Read Replies (1) \| Respond to of 306849

Mortgage companies are famous for closing the barn doors after all the cows are gone. When we bought a distressed property in the last RE downturn we had to put 20% down and pay 2% over owner occupied housing rates even though the property was selling at a serious discount to the other properties around it and had fallen almost 30% from where it was at the previous peak.

To: bentway who wrote (51561)	4/7/2006 9:59:51 AM
From: Think4Yourself	Read Replies (1) \| Respond to of 306849

Was talking to a friend at the gym the other day and it turns out he is a renter interested in buying a house. I asked (incredulously) why? He said he has watched housing move up every year and was tired of missing out. I mentioned some of the main themes we talk about (interest rates rising, housing inventory climbing, permits climbing, mortgage apps falling), and suggested he watch prices closely over the next few months, as they have started falling locally. Also suggested he could actually get a real bargain if he waited a few years, the type of bargain that more than pays for his living expenses while he is waiting. With the builders building bigger and more expensive houses into the slow down, and the local high paying jobs vaporizing, it is absolutely inevitable that housing prices will come down. That was my one good deed for this year ;) My neighbor's kid STILL has not gotten an offer on her condo, even a lowball one. The flippers down the street also look like they are stuck with their house. They keep putting it on the market and taking it off. Every time it goes on they have done more to it and lowered the price. They still seem too high for this area but the house IS starting to look nice. They are going to lose money on it.