[gn]

By the time the dust settles, this house or houses equivalent to it will go for a lot less than $400k.

[gn]

By the time the dust settles, this house or houses equivalent to it will go for a lot less than $400k.

[gn]

Given the fact that prices went up b/c of the “credit expansion”, I don’t see how a “credit reduction” would not cause prices to go down.

On top of that, all the houses built to satisfy the demands of the speculators are not going anywhere. So, if anything, the market has more surplus now than it did before “credit expansion”.

This means that prices will over-correct.

[gn]

Given the fact that prices went up b/c of the “credit expansion”, I don’t see how a “credit reduction” would not cause prices to go down.

On top of that, all the houses built to satisfy the demands of the speculators are not going anywhere. So, if anything, the market has more surplus now than it did before “credit expansion”.

This means that prices will over-correct.

[gn]

Given the fact that prices went up b/c of the “credit expansion”, I don’t see how a “credit reduction” would not cause prices to go down.

On top of that, all the houses built to satisfy the demands of the speculators are not going anywhere. So, if anything, the market has more surplus now than it did before “credit expansion”.

This means that prices will over-correct.

[gn]

you might want to force yourself to buy six months after you think it is time. If stability is in the air buy ,if the waiting revealed more declines wait another six months.

Rustico, excellent advice.

When prices were going up, it's driven by greed. When prices go down, it'll be driven by fear. They always overshoot.

This means prices are likely to down below levels justified by the fundmentals.

 

[gn]

you might want to force yourself to buy six months after you think it is time. If stability is in the air buy ,if the waiting revealed more declines wait another six months.

Rustico, excellent advice.

When prices were going up, it's driven by greed. When prices go down, it'll be driven by fear. They always overshoot.

This means prices are likely to down below levels justified by the fundmentals.

 

[gn]

I think from now on, the behaviour will be "bimodal". Below $500K range, a somewhat disorderly drop, lower $/sqft being covered up by fairly unchanging transaction prices as people get better and more homes for their precious and fewer $. Above $500K is where the fun will be to watch. As the market practically empties out to everyone but cash buyers, there will be quite a scramble for anyone unfortunate enough to sell.

bsrsharma brought up a good point about the "bimodal behavior"

I wonder which will pack more punch:

1. The downward pull on prices from the inability of buyers to move up b/c they cann't sell their old house.

2. The downward push on prices b/c the difficulties of getting non-conforming loans.

Any thought ?

[gn]

I think from now on, the behaviour will be "bimodal". Below $500K range, a somewhat disorderly drop, lower $/sqft being covered up by fairly unchanging transaction prices as people get better and more homes for their precious and fewer $. Above $500K is where the fun will be to watch. As the market practically empties out to everyone but cash buyers, there will be quite a scramble for anyone unfortunate enough to sell.

bsrsharma brought up a good point about the "bimodal behavior"

I wonder which will pack more punch:

1. The downward pull on prices from the inability of buyers to move up b/c they cann't sell their old house.

2. The downward push on prices b/c the difficulties of getting non-conforming loans.

Any thought ?

[gn]

kaycee,

Thanks for sharing your story with us. I fully understand the difficult position that you are in.

Just out of curiosity, do you have a good amount of equity in that house ? If so, it would have been better to lower the price to attract a buyer with a strong offer. In a falling market, it’s better to cut your loss early.

[gn]

kaycee,

Thanks for sharing your story with us. I fully understand the difficult position that you are in.

Just out of curiosity, do you have a good amount of equity in that house ? If so, it would have been better to lower the price to attract a buyer with a strong offer. In a falling market, it’s better to cut your loss early.

[gn]

kaycee,

I’m not trying to rain on your parade. But, consider this.

Let’s assume that, looking forward there’s an equal chance
of prices going up or down.

The buyers are paying below market rent.

If prices go down significantly, they walk.
If prices go up significantly, they buy the house.

As you can see, it’s a win-win situation for the buyers.

This is why, typically, in a rent-to-own situation,
the buyer pays above market rent. Otherwise, it’s not fair
for the owner.

Now, with all the credit/debt problems on Wall Street,
going forward, prices are more likely to go down than up.

[gn]

kaycee,

I’m not trying to rain on your parade. But, consider this.

Let’s assume that, looking forward there’s an equal chance
of prices going up or down.

The buyers are paying below market rent.

If prices go down significantly, they walk.
If prices go up significantly, they buy the house.

As you can see, it’s a win-win situation for the buyers.

This is why, typically, in a rent-to-own situation,
the buyer pays above market rent. Otherwise, it’s not fair
for the owner.

Now, with all the credit/debt problems on Wall Street,
going forward, prices are more likely to go down than up.

[gn]

My commute went from 1 hour to 5 minutes, my salary stayed the same

JES, just out of curiosity. What is your profession ?

[gn]

My commute went from 1 hour to 5 minutes, my salary stayed the same

JES, just out of curiosity. What is your profession ?

[Author]

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