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Your housing market overvalued?

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NewYorkBuck said:
Me neither - at least no more sorry than offering 50 cents on the dollar for their upsidedown house..... :biggrin:
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Vulture! :wink2:

Interesting article recently in the Wall Street Journal about the overall economic market in Bloomfield Hills, MI. The housing market there is just filled with incredibly expensive homes. IIRC, almost a 4 year supply of homes in the $600K range.

I've noticed recently how real estate companies are already shifting to deal with the downturn in the market and also competition from a more vibrant "for sale by owner" industry, such as zillow.com.

Our house will probably be on the market in the next few months. I'm hoping to sell it myself. I'd be much happier to sell it at a lower price if I do not have to pay some realtors 7.5%.
 
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When I sold my last house, I took the standard contract and made the percentage 3%, instead of 7.5%, which is standard here as well.

The estate agent pissed and moaned but when I thanked her for her time and showed her the door, she accepted the deal without question. Don't be afraid to negotiate, someone who sells houses on weekends doesn't deserve to live better than you do!
 
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7.5%??? Where/who charges that rate? Around here (Columbus) 3% tot he buyers agent and 3% to the sellers agent is typical. If you're good, you can negotiate the selling agent to 2% (assuming you let the agent represent you in the buying process where he/she will make 3% on that deal as well).

I frankly thing 1.5% to each side is fair... more than that is nuts imo (unless the value of the house is not very high... and if it is a million dollar house, I think 1% is fair)...
 
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There was a post on this thread back in March about a designated area for financial discussions. I haven't posted much but the possibility of a financial site piqued my interest. <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /><o:p></o:p>
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I was wondering how the poll went?<o:p></o:p>
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Is there a chance for an area for financial and investment points of view?<o:p></o:p>
<o:p> </o:p>
 
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Thump;781155; said:
No shock here considering the amount of ARM loans that got re-adjusted and the amount of people living in houses they can't afford.

http://news.yahoo.com/s/ap/20070313/ap_on_bi_ge/late_mortgages
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Thx Thump, I was just thinking of reviving this thread myself, given how right my predictions are becoming.... :tongue2:

Right now, the ARMs adjusting are the least of it. The bigger problem right now is the subprime market is imploding and taking down at least part of the economy with it. Almost every subprime lender in the nation is either bankrupt or up for sale right now. We're talking huge companies that made billions over the last four years. This flow of capital is now completely cut out of the economy. This phenomenon is now starting to infect the Alt-A market as well. If the cancer goes all the way up through prime (and it may, Im just not sure yet), bar the doors.

As far as ARMs, right now, Wall St has figured out the 2006 vintage of loans blow. This year, the 2005 2/28s will be resetting, and I think we'll find the 2005 vintage blows as well. Next year, the 3 yrs will be resetting, and I think we'll come to the same conclusion again. So by the end of 2008, we will have no subprime market and most of the ARMs from the most prolific three year lending period in history all with massive pools of loans that are underperforming. By necessity, credit is going to get tighter than a virgins ass and there will be very little money chasing just oodles of houses on the market. In some areas, I think we could see housing prices adjust by more than 30%, which would start to bring us back to the historical mean, which is what I said would have to happen all along.

As a potential house buyer, I think 2008 and 2009 will really be years to make sellers cry, and trust me Im going to bring tissues to every house I put an insanely low bid on. On the flip side, sometimes I wish I was wrong on this, because this housing phenomenon has enourmous impact on my business. (Some may say it IS my busieness.) Oh well - with any boom, there is always a hangover. Given the size and scope of this one, dont plan on getting off the bathroom floor anytime soon.
 
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I'd be interested in seeing an updated version of the study that started this thread. I'm in the market as a buyer in Columbus right now, and the areas in which I'm looking seem a little overpriced. Any Columbus realtors out there?
 
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NewYorkBuck;781175; said:
Thx Thump, I was just thinking of reviving this thread myself, given how right my predictions are becoming.... :tongue2:

Right now, the ARMs adjusting are the least of it. The bigger problem right now is the subprime market is imploding and taking down at least part of the economy with it. Almost every subprime lender in the nation is either bankrupt or up for sale right now. We're talking huge companies that made billions over the last four years. This flow of capital is now completely cut out of the economy. This phenomenon is now starting to infect the Alt-A market as well. If the cancer goes all the way up through prime (and it may, Im just not sure yet), bar the doors.

As far as ARMs, right now, Wall St has figured out the 2006 vintage of loans blow. This year, the 2005 2/28s will be resetting, and I think we'll find the 2005 vintage blows as well. Next year, the 3 yrs will be resetting, and I think we'll come to the same conclusion again. So by the end of 2008, we will have no subprime market and most of the ARMs from the most prolific three year lending period in history all with massive pools of loans that are underperforming. By necessity, credit is going to get tighter than a virgins ass and there will be very little money chasing just oodles of houses on the market. In some areas, I think we could see housing prices adjust by more than 30%, which would start to bring us back to the historical mean, which is what I said would have to happen all along.

As a potential house buyer, I think 2008 and 2009 will really be years to make sellers cry, and trust me Im going to bring tissues to every house I put an insanely low bid on. On the flip side, sometimes I wish I was wrong on this, because this housing phenomenon has enourmous impact on my business. (Some may say it IS my busieness.) Oh well - with any boom, there is always a hangover. Given the size and scope of this one, dont plan on getting off the bathroom floor anytime soon.
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Thanks for the insight. It will be interesting to see if this mess is actually big enough to teach the greedy and stupid some basic fiscal responsibility the hard way. It might just start turning the nation around if it does. As for me, I'm in downtown Denver, and while it's getting overbuilt IMO, it will still decline or flatten far more slowly than the burbs around here, which are foreclosure central. Should my wife and I start a family in the next couple of years and head towards the burbs, I suspect we'll have lots of affordable options . . .
 
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FCollinsBuckeye;781352; said:
Highlands Ranch beckons.

:wink: :p
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That's some strong birth control right there. Actually, doing a scrape or remodel in Green Mountain might be kind of cool . . . or just getting rich so I can have a loft that's twice as big as the one I have now and includes a big terrace for a hot tub and some serious container gardening . . .
 
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