Will subprime fiasco affect other markets besides California?

[mixxalot]

Do you think it will cause builders to reduce prices in other markets such as Texas and Colorado as well?

I may buy in Dallas or Austin as it is still far cheaper than anyplace in California.

[CardiffBaseball]

Dude… you have an itchy trigger finger. Texas I like, others hate, but at the end of the day it’s your call.

The fiasco will affect Texas just as much as Cali, it’s just that the actual losses won’t seem so high, but I still see Texas as getting hit hard. Lower salaries, and zero down loans were the norm there as well.

Take the market or area I know which is Dallas. Remember that property appreciation is very difficult in a lot these areas because it seems there is no limit to how far out new homes can be built. North Dallas is full? Then, build, Coppell, Richardson and Plano. Those fill up you have Friscon, McKinney, Wylie…

Same for Tarrant county. As the H-E-B area filled, you go north to Colleyville, Grapevine, Southlake, Keller, North Richland Hills, etc. What’s a few more miles of driving, and someone is always building new freeway.

This endless sprawl keeps property values down everywhere which hurts distressed sellers, which in turn causes NOT’s/NODs, and eventually foreclosures.

[patientlywaiting]

I agree with Cardiff.
The foreclosures have to be resold so someone. To find buyers, prices have to drop.
I have a relative who lives in the Columbus, Ohio area. They live near the best private school in Gahanna and prices only nominally moved up during the boom. Now the whole region is being hit with foreclosures. Guess where prices are headed?

The whole country is affected by the mortgage mess. The places such as California and Florida that overheated the most will experience the most pain. But “affordable” TX, OH, IN will be affected as well.

[mixxalot]

Prices in all markets

Well thats good because at least I can get even better deal. But seriously I am planning this out way in advance to see what happens. It is still at least a year or two away and once I have made some trips to Dallas and Austin can make final choice. If by 2009/2010 prices are reasonable in San Diego that would be my first choice to stay put. But still 400k is a lot for even a 3 bedroom home when I can easily buy one for 120k in Texas.

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