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Housing prices dropping further?


jld
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I think so. We got an *awesome* price on the house we bought last Spring, and I'm still watching what things are doing just because it interests me. There was a 6 bedroom HUGE house on a great property in town for sale about a year or two ago (for upper $200s; and at one time it could have sold for that). It went off the market, and then came back on a couple of months ago -- for $239,000, then it dropped to $219,000 which is less than the owner paid for it several years ago. I'm waiting for it to close so I can see what the final price was. Things are sitting -- and prices are dropping (or the listings expire). Some are selling of course -- the lower priced ones. It IS a good time to buy if anyone can swing it.

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Hi, jld!

 

In Vancouver, Canada, the prices have dropped somewhat and the market is MUCH slower than the crazy pace it's been at in past years. It's the high-priced houses ($800,000 +) that aren't selling quickly but the lower-priced ones (around $650,000 and under) are still selling. Recreational property is not moving quickly either. In Bellingham, WA, south of Vancouver, people tell me the prices have dropped there but property still looks expensive to me. There are waterfront condos that are listed beginning at a million$. Yikes!

 

My friend in Berkley, CA says that the prices there haven't dropped because it's so desirable and there isn't any more land to build.

 

My friend's mom just bought a house in Arizona that was originally $650,000 for around $250,000.

 

I guess it just depends on the area. It will be interesting to see what happens in the coming years.

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It is the case here. I live in an inner city neighborhood and my next door neighbor just abandoned her house because she couldn't sell it and she was only asking for 1/2 of what she paid for it. Every time our house is reassessed for taxes, it loses value. Things are likely not to improve here in the city.

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Prices here (in TX) seem pretty good. There is also a ton of new construction where we live. Back home (in MO), our family says it is bad, very very bad. We still own our house there...:glare: My mom says they're seeing a lot of robberies in the area (which really bothers me and I can't leave that house vacant).

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I don't know if prices are dropping or not, but when I looked at a list of property transfers in our paper recently, 10 of them were for less than $3000 and being turned over to a bank (foreclosures), 5 were from banks to people (buying foreclosures), and 5 were from people to people (normal sales). It wouldn't surprise me in the least if prices were still going down.

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Yes, I'm seeing it in our area of Virginia.

 

Some homeschooling friends of ours were transferred to Florida last month. They lived down the street from us, same neighborhood.

 

They bought their house in 2007 for $480,000. Sold it a few weeks ago for $330,000. And they were surprised they got that much for it.

 

We have a foreclosure 2 doors down from us that originally sold for $425,000. It's been priced at $225,000 for the last 2 years and still hasn't sold.

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No. Our prices have stabilized, and are seeing slight increases. Inventory, for the most part, isn't sitting on the market.

 

Now, I have seen some properties that *will* sit. The just aren't priced for the market. There are really 3 types of homes that are selling. New homes (around $120/sq.ft.), ready-to-move into homes, priced around $100/sq.ft. and fixer uppers ($85/sq.ft. or less).

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No. Our prices have stabilized, and are seeing slight increases. Inventory, for the most part, isn't sitting on the market.

 

Now, I have seen some properties that *will* sit. The just aren't priced for the market. There are really 3 types of homes that are selling. New homes (around $120/sq.ft.), ready-to-move into homes, priced around $100/sq.ft. and fixer uppers ($85/sq.ft. or less).

 

That's pretty low for your area, though, isn't it, Lisa? Or is that incorrect?

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Yes, I'm seeing it in our area of Virginia.

 

Some homeschooling friends of ours were transferred to Florida last month. They lived down the street from us, same neighborhood.

 

They bought their house in 2007 for $480,000. Sold it a few weeks ago for $330,000. And they were surprised they got that much for it.

 

We have a foreclosure 2 doors down from us that originally sold for $425,000. It's been priced at $225,000 for the last 2 years and still hasn't sold.

 

Essentially, those starting points are near-market peaks. The VA (especially No. VA market) didn't start to really fall until 2008 and into 2009. The market bottomed out in 2009/early 2010, but really has stabilized (pricing is comparable to 2002/3 at the beginning of the rapid rise) With foreclosures, it's not as simple. Depending upon the bank, they can be really difficult to work with. We have one foreclosure in our area that is cash-only (asking $325,000, squatter on premises). We think that the bank may have paper-work issues, but no one is going to touch a house like that for $325,000 cash.

 

Most of the reasons I've seen for foreclosures not selling have to do with issues such as mold (and bank unwilling to deal), extensive damage throughout the home (and bank unwilling to deal), or paperwork issues. There is a "sweet spot" in our area regarding foreclosures. A 2700 sq.ft. home in good condition (may need paint, but not much more) on 3 acres is about $350k. That same 2700 sq. ft. home in a tract, the "sweet spot" is closer to $250k. If condition is poor, or it has been vacant for a long time, that number drops significantly (as much as $100k)

 

I don't know about that particular house, but I could look it up on the MRIS listings and may be able to get some insight into why it's been on the market for 2 years.

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yes, because of the foreclosures. The people who just need to sell have the foreclosures to compete with.

 

I am so glad we got out when we did (and we paid price tag with foreclosures, too-it was a nightmare). And if I overpaid on my house-c'est la vie --I didn't by much, that's for sure.

 

just looked at the comps for where I bought my house last June--same houses are still up for sale (I live on the best street in town-location and all that :-)) the one house we had a contract on went down another 40k--and I'm betting they won't go further, they're at a price breakpoint. The other house went down 50k, He just wants out. AND a foreclosure went up (thw worst house on the street previously rented out-the only house not lived in by owners) and they are starting at 200k. WHICH is a sweet deal for here--even as a fixerupper. It's not only on the best street-but it's on higher side of our road with all the more expensive houses so it's a great investment for someone.

Edited by justamouse
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That's pretty low for your area, though, isn't it, Lisa? Or is that incorrect?

 

Actually, for our area, that is a much better representation of what our market can bear. Our median household income is around $80,000 here. Three years ago, a 2,700 square foot home (new) on 1/4 acre or less ran you $400,000. The housing prices were not a reflection of anything other than speculation. Keep in mind, housing in our area more than DOUBLED in a 5 year period.

 

Today's market prices, while "low" by comparing them to the peaks, are a more "true reflection" of being 55 miles away from Washington, DC. I expect to see modest gains, but nothing significant.

 

So, no. I don't feel that prices are "low." There will still be short-sales and foreclosures in our area, because people may *need* to sell, but purchased at peak pricing. Those two things will keep the prices on re-sale homes pretty moderate, but houses in good condition, with some upgrades will sell quickly for anywhere from 100-120/sq.ft. New homes are selling (again, without issue) starting around $125/sq.ft and up (we had one sell for $150/sq.ft. because of upgrades).

 

HTH!

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