inflated housing market

[Lorn]

Re: inflated housing market

^You got that right. I think 2007 will be the year those people figure they can't afford the house they bought. I believe the figure is some enormous billion dollar figure where the rates will reset and these people will find themselves having to pay hefty increased monthly payments.

[toasty]

Re: inflated housing market

just watch what you get...everyone who "got in" on an ARM a few years ago are probably slitting their wrists now. Just go fixed and hardly bother watching the rates flux...try to save a few bucks in the short-term = paying much more in the long-term.

word. ARMs and IO mortgages are great for some people, particularly those who have high income and invest their extra money, but way too many people use them to try to buy more house than they can actually afford and end up overextending themselves when the market changes. I feel for anyone who is in one of those markets where home values are actually declining who got in on an IO ARM in the past few years. They might very well find themselves upside-down on a house. Not a good spot.

[FM]

Re: inflated housing market

just watch what you get...everyone who "got in" on an ARM a few years ago are probably slitting their wrists now. Just go fixed and hardly bother watching the rates flux...try to save a few bucks in the short-term = paying much more in the long-term.

[toasty]

Re: inflated housing market

^^ oh sure, no question -- that's not going to change whether the market is hot or soft, though.

[Lorn]

Re: inflated housing market

I'm talking about his mortgage. Unless your friend can buy the house outright he will have to borrow money to do it. If he doesn't need a mortgage then by all means.

[toasty]

Re: inflated housing market

Only if he can continue to service the mortgage.

how do you mean? I would think that after a couple of years the place would have appreciated enough to at least cover closing costs and the like. As long as he doesn't do something with high points, the tax savings alone ought to balance out the transaction, so in the unlikely event the place doesn't appreciate at all, it would still basically be a wash.

[Lorn]

Re: inflated housing market

unless he will need to sell it within a year or two for sure, it's still probably a better deal than renting (in most markets). Build equity, get tax benefits, etc. -- even if it doesn't appreciate a ton right off the bat, it's still a good investment.

Only if he can continue to service the mortgage.

[toasty]

Re: inflated housing market

Shit try the bay area... I just bought my first house last year. 1,267 sq/ft $575,000. About 35 min east of S.F. Insane out here!??!?

That's sick. Without going into detail, suffice it to say that I spent significantly less than that for a place that is 3 floors, 3,000 square feet, essentially brand new except for its brick frame (1893), and 2 minutes from downtown/10 minutes from everything I would want to do. Gotta love midwest housing prices.

[res0nat0r]

Re: inflated housing market

Shit try the bay area... I just bought my first house last year. 1,267 sq/ft $575,000. About 35 min east of S.F. Insane out here!??!?

you must be making some scratch to be living near the bay area.

unless he will need to sell it within a year or two for sure, it's still probably a better deal than renting (in most markets). Build equity, get tax benefits, etc. -- even if it doesn't appreciate a ton right off the bat, it's still a good investment.

yeah i am telling him the same thing, he will probably wise up in a couple of months when he starts looking for a house

[Lorn]

Re: inflated housing market

this thread depresses me. Our condo in Ft Laud is up for sale since we are moving to GA. I already moved and my wife is coming up soon, but until the condo sells, we are tight on money in trying to get the condo sold.

Damn bro. Sorry to hear it.

[chuckc]

Re: inflated housing market

cool well good luck sellin your house
the cleveland housing market is real slow too now

LOL...it always will be slow there....who in there right mind would stay in that city....frekain second worse city other that seatlle for amount of sunlight.

[toasty]

Re: inflated housing market

my roommate wanted to by a house this march or so but is now is iffy. i told him it is a great time b/c the market sucks so bad that he will get it cheap, but he is worried that the price wont go up for a while after he buys it

unless he will need to sell it within a year or two for sure, it's still probably a better deal than renting (in most markets). Build equity, get tax benefits, etc. -- even if it doesn't appreciate a ton right off the bat, it's still a good investment.

[FM]

Re: inflated housing market

just cause they say its gonna happen, doesnt mean it will. hell..housing could go up even more.

I always take economic predictions like this with a grain of salt. there is a saying...those who know don't say, and those who say don't know. If this guy was so sure housing markets were gonna shit the bed, he'd shut up about it and short sell every REIT (Real Estate Investment Trust) he could in the cities listed.

everyone who listens to these doesn't get very far. Just look at each individual market as its own entity and stop trying to compare it to everyone else. What's hot somewhere is cold elsewhere and vice versa. Heck, my town built/is building over 175 units in several development areas in the past 2 years and they're still getting snatched up...maybe not "immediately" but still within 6 months, and many prices exceeding $375/$400K...minimum new here I believe is around $290 and that's scraping the bottom. No bubble here...probably won't be for another 3-5 years.

Even in the cooler markets, someone will be investing/trying to build something...so just dig, you can still get in OK.

[Homskillet]

Re: inflated housing market

god i wouldnt even want to think of the price of a decent house in LA

Shit try the bay area... I just bought my first house last year. 1,267 sq/ft $575,000. About 35 min east of S.F. Insane out here!??!?

[BureOne]

Re: inflated housing market

^ dude, 1 bedroom, 1 bath, small drive way, no garage, fucked up neighborhood = $460K

that's lame shit right there! Apt's the way to go