U.S. Home Prices May Be Lost for a Generation

[alienlovechild 75]

Considering that almost 120,000 permits in the entire country were issued during that period, it shows that more than half of all new construction is in the South, where the cost of housing and living is significantly lower than in the Northeast, Midwest and on the West Coast. In contrast, just 5,571 units were approved in New York and New Jersey combined.

That's enlightening. Around here there's been very few new homes built but I don't know if the vacant homes have jumped in number. I've been seeing some houses on the market for over six months without the owners or REOs making big cuts in prices. I don't know if it's greed, ignorance or just trying to break even but a lot of owners are living in a fantasy world thinking prices are going up in a few months. A lot of the vacant homes will be trashed and almost worthless.

One of the reasons the housing mania was so damaging was that median home prices rose to about three times average household incomes as opposed to double income levels in 1950.

No kidding. Most people simply didn't that make that much more to pay for more expensive homes. The size of the median price has increase every year since 1973 as the average size decreased.

[Nikita2Charles 33]

Great time for first time homebuyer with a stable Job

Bought right before the peak season 2005, now the value has dropped to almost 50%. The sad thing the bank won't bulge. Even a financial adviser at the bank said, you were doing the right thing but now you are paying for it.

Put a huge downpayment to keep monthly mortgage as low as possible, but folks who had 0% downpayment, Got nothing to lose, they Just walk off.

To increase your leverage Stop Paying the bank only then they'll try to negotiate with you, couldn't beleive what I was hearing, as long as you are being nice, honest you get penalized by the banks.

That downpayment money you can just forget about it. It takes about 6 months to start that foreclosure stuff and the banks don't have enough ressources, so you might be looking at living there for almost a year without paying anything.

1) They are forced to work with you

2) If they are still greedy by then you have about 1 year of mortgage saves up in your Safety Deposit Box, give them the house and after a few years you can start over, that's the sad situation and ideas coming from someone who work at the bank itself.

That's why I HATED that Bank Bail out, it's all for the rich guys and nothing for the average Joe.

Simple case

Colleague Mortage by Bank A, converted as investment securities and sold to Bank B, Bank B converted securities into international investment tricks to BANK C.

So If a bail out to work gota give it to Bank A which is working directly with the customers

By putting the $700+ Billions at the top level, Bank C get paid for what they originaly paid for the loan securities, and the Homeowner still got screwed.

Edited May 4, 2009 by Nikita2Charles

[Mrs.J06 4]

Yup, we bought our place in the second quarter of 2006 - even being in the WI sticks we probably lost about 25%, also.

No problem as long as we don't have to move - I'd hate having to sell. Reading this makes me wonder how long it will take to get at least half of it back, though...

[Ling Ling 22]

I bought in 2000. By 2006, the price was driven up nearly double (should've sold then). Since 2006, I've lost about 20%, but the house still appraises for over 20% more than I paid for it, so I'm not complaining. Maybe I would be complaining if I had sold and bought-up in the inflated market. Good thing I hate packing and moving.

As for it being a great market for new homeowners, yes and no. If you're below a FICO of 750, plan on coming in with 20% down, the right income, and a stable work history...

plus you've gotta find the right house, in the right neighborhood. Banks aren't interested in risk right now.

My friends in banking say they're sending out proctologists to make sure everything is in order...on the bank and the buyer's side of the deal.

My tip for this economy, invest in examination gloves.

[I AM NOT THAT GUY 5,715]

I bought in 2000. By 2006, the price was driven up nearly double (should've sold then). Since 2006, I've lost about 20%, but the house still appraises for over 20% more than I paid for it, so I'm not complaining. Maybe I would be complaining if I had sold and bought-up in the inflated market. Good thing I hate packing and moving.

As for it being a great market for new homeowners, yes and no. If you're below a FICO of 750, plan on coming in with 20% down, the right income, and a stable work history...

plus you've gotta find the right house, in the right neighborhood. Banks aren't interested in risk right now.

My friends in banking say they're sending out proctologists to make sure everything is in order...on the bank and the buyer's side of the deal.

My tip for this economy, invest in examination gloves.

Or, greaseless lube.

[Ling Ling 22]

Or, greaseless lube.

Touché

[S and S 12]

The area I'm moving to hasn't really been hit at all. Most houses are selling fast. My aunt bought her three bedroom house for about 100K about 4 years ago. Houses in her neighborhood like hers are selling at about 125K so it is still a profit. This is a nice neighborhood too with clean manicured lawns and family friendly, not rundown. Prices aren't going up there since last year, but they aren't going down either. I plan on buying now though while things are looking good and go pre-approved for a loan without a problem. They only wanted me to put 3.5 percent down too and told me that it is better not to get a loan for anything under $100,000 as interest rates go up if you go below that number. I'm trying to keep my payments low and put a down payment as well, so we will see. I start house hunting this weekend though I've been searching online and working with a Realtor that sends me links to houses for sale.

[w¡n9Nµ7 §£@¥€r 123]

Where do you live?

[S and S 12]

Where do you live?

Moving to Oklahoma City

[S and S 12]

Here is an example:

http://www.realtor.com/realestateandhomes-...3159_1105397318