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

To: posthumousone who wrote (155916)	10/9/2008 8:50:52 PM
From: bentway	Read Replies (1) \| Respond to of 306849

"since this is the real estate crash thread....has real estate bottomed?" Hell no. Deflation will push houses down much further. Foreclosures will skyrocket with a recession and job losses. The only house you want is the one you live in, and you probably want to rent that.

To: posthumousone who wrote (155916)	10/9/2008 9:01:16 PM
From: Elroy Jetson	Respond to of 306849

There are a few more years of home loans to reset first, followed by foreclosures resulting from job losses in the "recession". Since this is the real estate crash thread....has real estate bottomed?

To: posthumousone who wrote (155916)	10/9/2008 9:28:01 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 306849

RE:"I know of 15 houses that have pulled their listing because they anticipate a bailout" Do they think the bailout will stop the price decline?

To: posthumousone who wrote (155916)	10/9/2008 9:43:27 PM
From: patron_anejo_por_favor	Respond to of 306849

Real estate has not bottomed. Maybe next year, more likely 2010.

To: posthumousone who wrote (155916)	10/10/2008 3:07:36 AM
From: Live2Sail	Respond to of 306849

I live on the Peninsula of the Bay Area. I was just looking at all the listings of the area on MLS. It looks to me that there are a lot more listings today than there were last week. The 2M+ range looks like it is getting crushed, and it's putting the pressure on the 1M+. From realtors, I'm hearing that there's a stalemate between buyers and sellers. Both are supposedly waiting to see what happens with the bailout package. From a mortgage broker I know: "I was just talking to someone today, that the market conditions are actually good this year for buying, if you fit a number of critieria: - Job security: none of us can have 100% job security, but if you believe you will have somewhat expected income, then you’re fine - Qualifications: good to excellent credit is to be expected, not a nice to have - Assets: down payment is a must….20% is pretty much the norm, rather than a nice to have….you can still do 10% but will have to do PMI If you’ve got these going for you, rates are actually amazingly good. Since 1960’s, 30 year fixed rates have only dipped under 6% once, that was in 2002ish. Most of the time between 1960 and now we have average over 6.5%, believe it or not. In 1980’s (the last time we had a real estate crash and slowing economy and inflation), rates were between 12-18%. Right now, 30 year fixed is 6.0% or less with 0 points. I just closed a transaction today that was 5.5% with 1 point. In the medium to long run, I’m scared to say that rates are going to shoot up because of the way the economy is going..but that’s just my feeling. On the positive side, if you have credit, assets for down payment, and job security, you have so much leverage as a buyer right now. Sellers are panicky, and choosing offers that have solid financing rather than the highest price. We hear it over and over again each week. And they are more willing to negotiate, across markets (even in Palo Alto, Mountain View, Los Altos and Menlo Park [some of the most desirable towns on the Peninsula)]).