Real Estate Supply

[Just_In_Thyme]

You won't need to be patient for very long. Prices have been falling for a while now and the pace will increase as sellers with low basis in their property get more and more nervous about the depressed market. Those people will begin unloading at prices not seen for several years.

Do you have some specific examples that we can look at? We are always looking for a bargain.

 

[sandfleas]

Ask a good realtor. They can point you in the right direction. Or, just look at some of the recent postings on this forum about condos and land for sale where people are getting desparate to sell. Make them and offer they CAN refuse and see what happens.

Do you have some specific examples that we can look at? We are always looking for a bargain.

 

[Franny]

Thanks Shelley and Joe for the info. We received the email as well!!

 

[elliedog]

Thanks, everyone.

 

[Hollibird]

I officially got my real estate license. yeah! just in time to not make any money.

 

[goin' coastal]

I officially got my real estate license. yeah! just in time to not make any money.

Hollibird,
Congrats!! :clap_1:

Surely things will start to change in time. There is only so much paradise. So many beautiful homes in the area. We have one we have not been able to sell--I love it, could not build it today for asking price. If I could move it to Nashville I would. But I guess the bank holding the 300% loan would not allow it.

 

[BMBWalker]

Here's my take on the real estate market

- If you're living in a home, and are not leveraged to the teeth, you're going to be just fine

- If you've owned a vacation/rental property for several years with a manageable mortgage and can handle the increased taxes, insurance and other carry costs, you're going to be just fine

- If you bought an investment property in the last year at sky-high prices with an exotic mortgage (leveraged to the hilt), figured on double-digit appreciation, and believe you will make a profit after carrying costs by renting it out, you're going to be severely disappointed.

- If you bought into pre-construction condos that will be complete in 2006/2007 and expect to flip them for a bunch of money--you're going to get screwed.

Areas with the highest and fastest appreciation will fall the fastest and the furthest (Florida condos come to mind). If you're looking for a homestead, I see no problems getting into the market now. Investment property is a whole different ballgame; the days of double digit appreciation and "flipping for fun and profit" are pretty much history. If the stock market takes off (like it did today), real estate will fall even faster as investors turn their back on and move out of real estate (whose illiquidity is a drag on one's portfolio). If you want to own more RE than your primary residence and a second home, there are other areas in the real estate game which are better investment plays than gambling on pre-construction condo flips (commercial or self-storage REITs come to mind).

Personally speaking, not a single one of my "boomer" friends, family, or acquaintances have expressed any desire to shell out $500,000+ to live in a 930sf concrete box in the middle of an SUV traffic jam.

Shelly...congratulations... I think! Your post has turned out to be absolutely correct. It's good to see someone who's mature enough not to attempt "puffing" for their own benefit. You were right and I'm sure you will continue to be so. I also agree with you about the boomers...Can't see a boomer using most of his/her retirement money to buy, or finance, a 500k+ unit and then be comfortable trying to live on a Social Security check for less than $1500 a month; that kind of thinking just doesn't make sense.

 

[SHELLY]

Shelly...congratulations... I think! Your post has turned out to be absolutely correct.

The old saying goes: Even a broken clock is right 2 times a day....

That said, I still can't believe how many "in the know" people believed that the "flipping" for fun and profit could go on indefinitely...go figure

 

[BMBWalker]

The old saying goes: Even a broken clock is right 2 times a day....

That said, I still can't believe how many "in the know" people believed that the "flipping" for fun and profit could go on indefinitely...go figure

Shelly...you are being very humble...in my readings of your posts, I find you to be accurate in your assessments of the current market and the future. Those flipping cycles come along every 15 to 20 years...usually last a couple of years and are then gone with the wind. "In the know" people don't always think and act appropriately... money does that, you know!

Since we're coming up on a new year, would you give us your assessment of the current market and a prediction on the next year(s)? I promise not to comment on it next year if you should stump your toe on this one!!

 

[spinDrAtl]

Shelly...congratulations... I think! Your post has turned out to be absolutely correct. It's good to see someone who's mature enough not to attempt "puffing" for their own benefit. You were right and I'm sure you will continue to be so. I also agree with you about the boomers...Can't see a boomer using most of his/her retirement money to buy, or finance, a 500k+ unit and then be comfortable trying to live on a Social Security check for less than $1500 a month; that kind of thinking just doesn't make sense.

This seems pretty obvious to me but if you are a boomer looking for a retirement area, you have to choose wisely, spend what you can afford, and know what type of lifestyle you desire.

If you have a primary residence you are selling and simply desire to roll the money into a home in another location, you may not spend any of your retirement money.

I would have a hard time believing that anyone who has been responsible enough to amass a substantial retirement account would then empty said retirement account to pay cash for a retirement home and then attempt to exist on a meager fixed income.

I'm sure there are many people who can afford to buy themselves whatever type of retirement home they choose. There are probably equally as many who cannot. Since developers overbuilt based on speculation and media hype about boomer waves, then they can face whatever consequences come their way. Hopefully it won't trickle down to harm the rest of us too much.