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hahaha. dan, this is nothing new. your prediction has been in the media for a long time already.
Windfall profits are beginning to pile up for those of you who took my advice and resisted the temptation and hype of jumping into the over-valued home investment market and have waited out the SA real estate bubble. Over-building in the area is leaving many investors in the unfortunate position of renting new homes for hundreds less than just a year ago, just to get people into houses, bringing down the monthly rent payments on avg. price per foot.
YahooThe housing slump has been painful for millions of people who work in real estate or recently bought a house.
For Patrick Killelea, however, this year has been one long victory lap. Mr. Killelea, a 41-year-old software engineer, has long preached that it makes more economic sense to rent than buy homes. He recalls shouting "Wow!" when he heard about September's 9.7% drop in prices of new homes.
"I didn't want to gloat," he says. "But then again, maybe I did."
For years, Americans who refused to buy real estate at what they considered excessive prices were ribbed for failing to profit from one of the greatest booms in history. "Are You Missing the Real Estate Boom?" needled the le of a 2005 book by David Lereah, chief economist of the National Association of Realtors.
Now, with the housing market in a slump, renters who sat out the boom are finally getting some satisfaction.
Dean Baker, an economist, believes that the slump validates his decision to sell a two-bedroom condo in Washington's Adams Morgan neighborhood two years ago. Mr. Baker says he received $450,000 for the unit, which he had bought for just $160,000 in 1997. Since unloading the condo, he and his wife, Helene Jorgensen, also an economist, have been renting an apartment nearby for about $2,300 a month.
Prediction #1 for 2007:
Where rents go, mortages follow. Intrest rates aren't coming down, so expect deep discounts in new home prices to get people into homes. If your in the market, or will be soon, keep an eye on how long houses in your area stay on the market. The longer you wait now, the better price you'll get later as more and more investors are forced to turn their investment homes into a market already burgeoning with the glut of new houses still coming on the market. Wait long enough and you could save up to 20% or more.
If you bought a new home recently, expect your home to lose value this year even though the county will say your home appreciated at a 3% rate (for tax purposes). So, maybe holding off on that second mortagage for that home improvement loan, or credit card consolidation or new car wouldn't be such a good idea.
hahaha. dan, this is nothing new. your prediction has been in the media for a long time already.
Dan does this all the time. He pats himself on the back for obvious predictions.
Right.
Dan does this all the time. He pats himself on the back for obvious predictions.
Except if you do a Google search on such matters you’d see I've been saying this is what was gonna happen for two years now while your MSM was happily pimping the possibilities of a infinite 10% appreciation in yearly S.A. appraisal values, but anyone who’s read this forum for awhile already knows that Manny and Clan always have such short memories at such convenient times.
dan, EVERY place said the bubble was going to burst. and it was only temporary. just like the tech bubble of the 90s.
Yeah, but the fall is for totally different reasons in SA. Coastal markets, Florida, Calif., the whole East and West coast are falling because prices finally reached a breaking point where people were, and still are in my estimates, paying big money for small homes based on over-valued property values (people should be moving away from the coasts, but that's a different topic). That fall was predictable.
In SA though, there are still plenty of affordable homes, too many in fact, and that market saturation of new and used homes between 180-250K has lead to a current renter's market, and soon will lead to a buyer's market until demand from mortage-ready possible home-owners catches up with the number of homes coming onto the market in that price range. It's a temporary situation that will take a few years to correct depending on how much longer builders keep building.
lmao
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