allegro54 said:USA Today indicated that real estate prices have fallen all over the country, with the exception of the West, in which prices grew by about one-tenth of 1%.

The Northeast had the biggest losses--about 15.6%

They concluded it's now beginning to be a buyer's market.


That doesn't sound right, unless we're talking about two different things.
Do you have the date or a link?

A bunch of september 25 articles all state (added one link below, since they all say the same thing):
By region of the country, sales of existing homes rose 1.9 percent in the Northeast to a seasonally adjusted annual rate of 1.07 million units in August. The median price for a home sold in the Northeast was $271,000, down 3.9 percent from August 2005.

"Existing-Home Sales Holding At A Sustainable Pace"

BUKE said:caonima said:rinconshop said:richard612 said:Kashmoney said:

if you calculate 400% increase from pre bubble prices and 40% drop from post bubble prices, it will be a significant drop.

yeah, it's significant if drop by 40%, but still 240% of pre bubble. any investment to grow 240% in 6 yrs is significant.

and the most important thing is will u see 40% drop? too good to be true, </blockquote></blockquote></blockquote></blockquote>

rinconshop said:It' easy to understand why new home sales are up- home builders are cutting prices aggressively. For example, 20 to 30% off with new homes from D.R. Horton, Inc. / Riviera Estates

used homes normally associate with better commute, new homes don't. location location location

rinconshop said:True bargain hunters should wait at least 5 years.

That's what I'm waiting for! Granted, I can't afford a home anytime soon in the DC area.

I have a colleague that is starting to think about buying her own home. She's waiting until Feb 2007 to make an offer. Her reasoning (and mine too if I am still single by then) is to buy a home at a price where you can afford the mortgage (by yourself) and rent out rooms to save money. She's hoping that the foreclosure market will be better by then.

By the 3x annual salary mark (which I actually like and would love to have), I'd have to make over $100K to afford a $300K-$400K house (which is a townhouse [not the "luxury" ones] close to DC or a sfh farther western va/northern md/wv) now. That's scary to think.

Right now, I'm just trying to save the 20% down payment.

Unraveled said:She's waiting until Feb 2007 to make an offer. Her reasoning (and mine too if I am still single by then) is to buy a home at a price where you can afford the mortgage (by yourself) and rent out rooms to save money. She's hoping that the foreclosure market will be better by then.She'd be better off making a Feb 2007 goal to re-assess the market, not *buy* in the market. If prices are plunging and inventory is building, it makes no sense not to hang on for a bit longer and see what develops.

There were plenty of bargain-hunters who got priced out in 89, excitedly bought in 91, and proceeded to lose their down payment over the next two years thanks to depreciation.

Here is my 2cents:

Currently:
1) Negative points for housing market.

High interest rate makes it unaffordable for regular buyers.

Due to fear of housing bubble, investment properties are on sale, overwhelming inventory hence reducing prices.

Everyone is on wait (watch and see pattern).

Most talked about topic in media and getting fuel with the economic reports.

Lot of people with ARM and fully streched financial situation cannot afford their homes and heading towards foreclosure which would further lower the price.

2) Positive aspects:

: Stock market is near record high.

: Job market is good.

: Unlike stocks, house is what americans dream for and have to live in.

: Gas prices are going down slowly.

: Rental market is hot, that means lot of people are waiting to buy.


What I see from above is essentially, interest rate is the only factor which is softening the housing market. Rest all seems like hype or people scared. (Made up stuff).

My thought is this year it will continue to go down, but as soon as the prices seems not moving much, all this crowd who is waiting to buy will jump in and prices will moderatly appreciate again after that. (Not crazy like before). I am expecting 1st half of next year it might level down and will start moderate appreciation in the second half.

Let see if this happens.

The Dow Jones Industrial Average is practically at its all time high.

ashprag said:

Brian is a Bay Area mortgage broker. "Michael" is his client -- a 23-year-old auto mechanic. The payment on Michael’s new home is $4,200 a month, but he only earns about $4,000 a month -- leaving him $200 in the red. He was only able to get the loan because his broker used "stated income" to inflate his paycheck. Brian (the broker) said, "I put on the application that he made $13,000 a month, which was unverified … That's the definition of a stated income loan. You state the income. Most definitely it was a fraudulent loan. The income was literally made up from thin air."

....

One broker, "Dennis," works for a mortgage company where he says a whopping 85 percent of loans are stated income. He says out of that 85 percent, they all have inflated numbers.....

Liar Loans

orphanis said:teplitsa said:that's 30 stocks, hardly the stock market
S&P500 also does not look bad, aprox. 12% off it's peak in 2000

so if you put money into the SP500 6 years ago you would be down 12% after 6 years and down 25% at the trough. sign me up for this killer investment.

why not just buy some t-bills and sit on 5% or so?