I'm buying a home now in Phx, AZ and am being offered 100K off a list price of a new 400K home by builders in great areas. Question is will the market go lower??

Molecule,
Any source for your info. I live in Boise and do see price reductions but not by much. As I see it, houses here are overpriced by more than 100K. And don't tell me there isn't land in ID I wouldn't pay more than $60 per sqft for Boise suburbs.

DS

richard612 said:handyguy said:Bubbles may only be definitively identified in hindsight, after a market correction What I want to know is what new market fundamental will pop-up out of nowhere to justify and provide support for 400% appreciation in eight years.

there's a trend that some countries become not afraid of us (such as the 2 people visited UN last week), and they start to use other currencies in oil transactions. that's the most recent fundamental change

QueenieB said:vickh said:I'm buying a home now in Phx, AZ and am being offered 100K off a list price of a new 400K home by builders in great areas. Question is will the market go lower??



I'd ask for their special BOGO offer - you know, buy one get one free.


that's what i was thinking. realistically though I'm offering them 125K off their asking price. Let's see what happens? I figure at that offer I won't hurt as much if there's a "small" correction

richard612 said:I'm afraid to make any lowballs for fear that some stuck seller might actually accept one.
hehe I think that depends on how "low" your lowballing 50% off the asking price and I am sure the seller wouldn't even look at it

hope69 said:richard612 said:I'm afraid to make any lowballs for fear that some stuck seller might actually accept one.
hehe I think that depends on how "low" your lowballing 50% off the asking price and I am sure the seller wouldn't even look at it

Houses are still way over priced even at 50% off. In bubble areas, 80% hair cut will bring things back to normal.

vickh said:I'm buying a home now in Phx, AZ and am being offered 100K off a list price of a new 400K home by builders in great areas. Question is will the market go lower??

If I were you'd hold off on buying a house here in Phoenix. Definetly a renters market.

How long will housing slump last?

BOSTON AND NEW YORK - First came a slowdown in the volume of home sales. Now prices are falling, and the question for anyone selling, buying, or even just hanging onto a home is: How far and how fast?

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The expert consensus: The slump could last into the summer of 2007. And the speed could depend on how many people hit the panic button or take their homes off the market.

Last month, the median price of a single-family home was down from a year ago - the first significant national decline in 13 years, according to tracking of previously owned homes by the National Association of Realtors. This August, the median price for all housing types was $225,000, down 1.7 percent from August 2005, when the median was $229,000, the realtors' group reported Monday.

Low rates spurred and sustained the higher than normal price-income thing, over 3-3.5x income.

Believe it or not, there are more cities in the US than Boston, NY, LA, Phoenix, and Miami. There are more states than California and Florida.

On average, prices are still very reasonable.

As far as the 5% increase vs the very recent 20% increases, what will most likely happen as has been stated is just a flat maybe 1-2% increase per year going forward. Some areas might go negative. Some might go VERY negative (miami, Vegas, LA), but all in all I think a soft landing will happen. Stagnation would be great, especially in Dallas, where home prices are stupid cheap.

No, I won't be a seller left at the alter. I didn't go hog wild and buy 10 condos with the hopes of selling them to greater fools in LA or Miami. I have 1 rental and 1 other home I'll hold on to. Nothing to far over the top.

As far as the local market, I really think Tx property taxes are helping to moderate price increases.

mnsweeps said:How long will housing slump last?

BOSTON AND NEW YORK - First came a slowdown in the volume of home sales. Now prices are falling, and the question for anyone selling, buying, or even just hanging onto a home is: How far and how fast?

ADVERTISEMENT

The expert consensus: The slump could last into the summer of 2007. And the speed could depend on how many people hit the panic button or take their homes off the market.

Last month, the median price of a single-family home was down from a year ago - the first significant national decline in 13 years, according to tracking of previously owned homes by the National Association of Realtors. This August, the median price for all housing types was $225,000, down 1.7 percent from August 2005, when the median was $229,000, the realtors' group reported Monday.
Last time, it lasts about 7 years (1990-1997). Why should it last only one year this time? The bubble this time even has a lot more air to pop...

By the way, both my wife and I are professionals with steady jobs and we now cannot even afford to buy our own home, which in 1997 (lucky us!) cost us less than 1/4 of the current worth (based on zillow.com estimate).