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Good news for people looking to buy a home to live in


jbooma

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The housing bubblets are starting to flatten. Which for people who buy a home to LIVE in them is a very good thing. On the Today show this morning they have said the average amount of times a home stays on the market in the San Diego, Boston, SF areas is now greater then 35 days, before it was like 7 days.

This is good for everyone. The prices will go up but only by single digit increases not the double it has been. What is going to happen is home buying and selling will go back to the people who want to live in homes, not who want to invest in them. This is the end of the flippers, as well people who just want to make a quick buck.

This will also give those who want to own a chance now to not get priced out of a market.

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I'm a real estate agent here in Northern Va.

It is definitely a buyers market now. Six months ago, it was nuts, people were buying left and right, houses would have multiple contracts offered after they spent 3 or 4 days on the market...Agents had to do little to no advertising in order to sell one.

Rumor has it that now that the interest rates are slowly starting to go up, there will be quick action. People that are freaked out after Katrina and oil prices will now make their moves before rates get too high. It won't be what it was earlier this spring, but it also won't be 30+ days.

And actually Jbooma, this is what we realtors call a "normal market". It's like speeding on the highway at 130 mph, and then dropping down to 100. You're not going as fast as you were, but you're still moving pretty damn fast.

It's also good for me because the so called "discount brokers" won't be able to stay in business for very long :) They don't make enough to be able to market a property for the long haul.

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I wonder if it can actually burst? I hope so, the sooner the better.

why is that so we can have a recession??

the only way the market in an area could burst if there is a disaster in that area or massive layoffs, the market is making a correction now and getting back to normal

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The thing I hate about "flippers" is that it is hard to establish actual neighborhoods anymore :(

Southern York county here in PA is going through a growth spurt that is almost crippling. More houses but no planninng on where thery're going to school all of these kids. My son started high school this year and his jr. high (grades 7 and 8) was over 1100 kids last year ! :yikes: The high school is woefully over crowded to the point that every year they are parking more "mobile classrooms" around the school to handle the influx of kids.

Most of the population boom is from Maryland. People can get much more house for the money and the taxes are much lower. I83 to MD in the morning is a mess.

Every time I turn around I see another sign "Coming soon! single family homes etc. etc."

Use to be some beautiful landscape around here. Now it's piles of dirt where another effing development is going in. :mad:

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I used to work for the National Association of Home Builders editing for their cheif economist and there was never a national housing bubble during this boom. There may have been isolated local bubbles, but not in the overall market.

The key indicator to watch is the amount of housing on demand at any time (measured in month's supply). Though the new housing starts and home sales numbers were off the charts, the inventory on hand was at record lows as well. In order for there to be a bubble, there has to be ridiculous price increases and sales volume accompanied by too much inventory. As long as there were more people looking to buy than houses available for purchase, the market would continue to grow.

What you're seeing now is a leveling off -- homes have reached there new true market value and will stabilize. But there is no bubble to burst.

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Have definitely seen a cooling down here in southwest CT. Prices still seem to be a little high...houses are staying on the market a bit longer (that could also be because school is back in session and everyone has settled in for now?). I don't expect to see a bubble bursting...but just things settling down a bit.

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I used to work for the National Association of Home Builders editing for their cheif economist and there was never a national housing bubble during this boom. There may have been isolated local bubbles, but not in the overall market.

The key indicator to watch is the amount of housing on demand at any time (measured in month's supply). Though the new housing starts and home sales numbers were off the charts, the inventory on hand was at record lows as well. In order for there to be a bubble, there has to be ridiculous price increases and sales volume accompanied by too much inventory. As long as there were more people looking to buy than houses available for purchase, the market would continue to grow.

What you're seeing now is a leveling off -- homes have reached there new true market value and will stabilize. But there is no bubble to burst.

What he said.

I am seeing a slow down in the appreciation of property in Ocean City, MD and the Days on Market for property is increasing. I wouldn't said it is a bubble bursting just a leveling off. The mortgage business has been slowing down here locally for the last few weeks. Refi's have died off because of the steady increase in interest rates and the purchase loans have leveled off. Is this a temporary lull or is it a sign of things to come??....who knows.

I made sales calls to several Realtors yesterday and they are "crying the blues" about the lack of buyers. In fact, one realtor and I discussed business for about 5 minutes and then talked about Football for the next 30 minutes. He was so bored he wouldn't let me leave.... :doh: ....Ravens fan none the less!

btw - My perspective is based upon my job...I am a Loan Officer.

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What he said.

I am seeing a slow down in the appreciation of property in Ocean City, MD and the Days on Market for property is increasing. I wouldn't said it is a bubble bursting just a leveling off. The mortgage business has been slowing down here locally for the last few weeks. Refi's have died off because of the steady increase in interest rates and the purchase loans have leveled off. Is this a temporary lull or is it a sign of things to come??....who knows.

I made sales calls to several Realtors yesterday and they are "crying the blues" about the lack of buyers. In fact, one realtor and I discussed business for about 5 minutes and then talked about Football for the next 30 minutes. He was so bored he wouldn't let me leave.... :doh: ....Ravens fan none the less!

btw - My perspective is based upon my job...I am a Loan Officer.

Agreed. Leveling off is a good way to describe it.

People looking to sell their homes still need to figure this out. Yesterday I was talking to an agent who was on a listing appointment. The people wanted to list their house at a million, but the agent said he wouldn't take the listing because the owners are asking too much. He said he'd take it from anywhere from 850k to 900k, but nothing higher. The owner wouldn't agree so the agent didn't take the listing. The owner signed with another agent who listed the house for 950k. It's been on the market for close to 50 days now and hasn't seen a price reduction.

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My parent's old home in Alexandria, which they bought in 1979 for $50,000, I'm told is worth over a million.

Ri-f'ing-diculous.

It's a safe bet. If not a million, probably close to it.

Saw a house a few weeks ago that really wasn't that nice. Actually, it kind of sucked. But it was two miles from the beltway, two miles from rt 7 here in va...the location was prime, and thats what drove the price up to 1.1 million.

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my parents bought in 73 in Bethesda. 4 BR 2.5 bath with 2 Car Garage... 35K. They have no idea how much its worth... its funny to talk to them about it- just no idea.

My parent's old home in Alexandria, which they bought in 1979 for $50,000, I'm told is worth over a million.

Ri-f'ing-diculous.

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This has been a worry of mine for quite some time.

I have a townhome being built in Leesburg. It's due for closing in the April/May timeframe. Good deal on new construction, probably some of the best out there for what you get.

The builder's lender has been giving me grief trying to lock-in a rate, though. They have a lock-in program program where you pay a fee to lock the rate, but have been dicking me around for the last two months and rates have gone up at least twice in that time period.

I'm starting to wonder if I should just tell them to tear up the contract at this point in time. Even though the home isn't terribly expensive, the rate increases could price me out eventually.

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I'm starting to wonder if I should just tell them to tear up the contract at this point in time. Even though the home isn't terribly expensive, the rate increases could price me out eventually.

How much money did you give them up front when the contract was signed?

If it wasn't too much it might not be a bad idea.

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I would argue that it is anything but a buyer's market at this point. Prices are already inflated, and interest rates are higher. It may not be the seller's market that it was this summer, but that fact of the matter is that if you buy now your debt to income ratio is going to be high, unless you are making very good money and willing to drive.

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How much money did you give them up front when the contract was signed?

If it wasn't too much it might not be a bad idea.

$1k when I signed the contract, which I understood I wouldn't get returned if I wanted out.

I signed a promissory note for $14k more. I have given $4k, but no more at this time. I may still be able to get the $4k back since I haven't gotten a closing date yet. We're thinking strongly of backing out and staying in our condo for a couple more years.

I don't expect a burst. That's just not gonna' happen. Even if prices level, though, we can't afford to get a single-family home here. I hate to have to leave the area I was raised in just because I can't afford a freaking house. I don't exactly make chump change, either.

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though, we can't afford to get a single-family home here. I hate to have to leave the area I was raised in just because I can't afford a freaking house. I don't exactly make chump change, either.

I looked at relocating to Baltimore last year. They offered me a substantial relo package, a raise, and many perks i.e. sell my house, car allowance etc.

We played with the numbers, and to have a similar lifestyle in Baltimore I would need to be making well over $300k.

No thanks. It might have been a good career move though, but that still remains to be seen.

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We played with the numbers, and to have a similar lifestyle in Baltimore I would need to be making well over $300k.

...jeez...

Maybe we should move south. Laura has been talking about the Carolinas... :laugh:

Still, I hate to leave the area where I was raised. It's absurd here, though.

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...jeez...

Maybe we should move south. Laura has been talking about the Carolinas... :laugh:

Still, I hate to leave the area where I was raised. It's absurd here, though.

I know how you feel. Grew up in Arlington and would LOVE to live there but it is just to much right now. I have grown to love Reston though and for now my commute is not too bad.

The other thing with the market cooling all my friends now who quit their jobs to sell homes might start to rethink those decisions. For a couple of years it has been insane, but if we go back to a normal market, then they might not like it as much.

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I'd just be ecstatic seeing my property taxes go down (wishful thinking). I wish they were as low as what you guys have down in MD/VA; then I could actually afford a life. :(

The reason your property taxes are high is because you don't have sales tax. Govt has to get its money somewhere.

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