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Home sales plunging in Utah
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its Doom day | 1:01 p.m. April 24, 2008
GAS ARE HIGH & HOUSES OVERPRICE NO WAY WE WILL GET OUT OF THIS HOLE
RE: DC TO UTAH | 1:03 p.m. April 24, 2008
Wait till end of the summer as fall/winter approches the market slow down
seller a more willing to work on the price
Caveat Emptor | 1:05 p.m. April 24, 2008
It is encourging for me to see a majority of comments about this article
reflecting a detectable skepticism about the "Can't Lose" real
estate market here in Utah. After three years back in Happy Valley, it initially
felt like the clocks had been turned back a couple of years, and the prevailing
feeling was that housing was significantly undervalued in Utah, while markets
around the US were tanking.......Kudos to those of you who have figured out that
the special interest groups, that control the state legislature, also
perpetuated the housing myth, for almost two years, so they could extract their
excessive fees and profits from investments. Utah is one of the few states left
in the US where real estate transactions are essentially secret. From a consumer
protection standpoint, this is unacceptable. Please consider voting in State
Representatives who actually represent your interests, not those of their
lobbyists.
Comments continue below
Trite But True | 1:04 p.m. April 24, 2008
Dang, with all of the tortured logic and twisted numbers running through this
thread it is not hard to see how one-third of the hosts of heaven bought the
adversary's plan.
The material world is an illusion. Don't build on sand. You are responsible for own actions. Neither a borrower nor a lender be. Give credit where credit is due but cut-up those stupid cards as fast as you can.
The material world is an illusion. Don't build on sand. You are responsible for own actions. Neither a borrower nor a lender be. Give credit where credit is due but cut-up those stupid cards as fast as you can.
Grey | 1:06 p.m. April 24, 2008
I would bet that now is a good time to build your own home. There are a lot of
construction workers looking for jobs, and can't a person buy a vacant lot
and build a 1200 sf home for under $200,000?
So Many Experts | 1:11 p.m. April 24, 2008
I love how everybody thinks they know the truth. Those owning homes/selling
homes want to be optimistic, those hoping to afford one or not in one want to
claim the sky is falling so they can get in cheaper. What does it all mean? In
the words of the motivation speaker, Matt Foley.....Jack Squat!
My experience (worked as a Real Estate consultant to builders/developers in Southern California)shows that even if home prices came down 5-15% people still can't get loans and that doesn't make much difference on coming up with 10-20% to put down. The prices did soften there, but the sky hasn't fallen, no one has given homes away,and loans are still hard to come by. People will default before they give their homes away for next to nothing, because they owe on them, but keep dreaming. That's ONLY an opinion.
My experience (worked as a Real Estate consultant to builders/developers in Southern California)shows that even if home prices came down 5-15% people still can't get loans and that doesn't make much difference on coming up with 10-20% to put down. The prices did soften there, but the sky hasn't fallen, no one has given homes away,and loans are still hard to come by. People will default before they give their homes away for next to nothing, because they owe on them, but keep dreaming. That's ONLY an opinion.
Re: DC to Utah | 1:13 p.m. April 24, 2008
Article from Newreach two days ago reporting on the decrease in new home
inventory. In their analysis, things will turn upward by year's end.
Meaning you may see things drop another couple points, but if you miss it you
could pay on the upswing. My advice is to listen to professionals within many
different facets of real estate/economy, not people who think they're
professionals and post here on these articles. Given that, I fall in that
category, so take that how you will. For the rest of the pessimistic and angry
people, I invite you to start attacking me now since my opinions differ from
yours. Have a nice day everyone.
Almost Newlywed | 1:18 p.m. April 24, 2008
I'm buying a home right now, but it's a $120,000 townhouse. It's
my first home, I'm getting married, and I need a place to live. I figure I
can pay a $800 mortgage payment or pay $700 for rent.
Which would you pick?
Which would you pick?
bottom is here | 1:27 p.m. April 24, 2008
Prices are not going to drop much lower in hot-commodity places like north utah
county where you have a ton of new schools, as well as temples and lots of land
for sale. People within the state and outside Utah have been moving here like
crazy and that isn't going to stop. To sale you simply have to price your
home at the lower end of the market for your particular home. You aren't
going to make a killing but you will do very well on the sale especially if you
bought your home around the 2001-2002 time frame. Greedy folks are going to have
to set on their homes for a long long time because those inflated prices just
don't sale anymore.
First rule | 1:29 p.m. April 24, 2008
Calling a spade a spade isn't pessimistic and angry. It's smart.
The economy doesn't have emotions, people do.
Was it illogical to buy a home with no down and a variable rate when you had seen homes gain $40k in values for the last few years? From your view, how could you loose.
When, the small guy gets in to the market, it's time to bail out. The low hanging fruit has been picked.
Markets hate uncertainty. We don't know how the economy will come out. This is not a buyers market but it will be.
You make opportunity from down sides. The best time to go shopping is before you buy. Learn the market. The more you learn about the market the best buy you will make. While you're taking time and learning, learn to cut out the middle man.
When it comes down to money, you have no friends in the business.
Take this time and pay off your loans, save and learn. This to will pass.
The economy doesn't have emotions, people do.
Was it illogical to buy a home with no down and a variable rate when you had seen homes gain $40k in values for the last few years? From your view, how could you loose.
When, the small guy gets in to the market, it's time to bail out. The low hanging fruit has been picked.
Markets hate uncertainty. We don't know how the economy will come out. This is not a buyers market but it will be.
You make opportunity from down sides. The best time to go shopping is before you buy. Learn the market. The more you learn about the market the best buy you will make. While you're taking time and learning, learn to cut out the middle man.
When it comes down to money, you have no friends in the business.
Take this time and pay off your loans, save and learn. This to will pass.
Re DC to Utah II | 1:37 p.m. April 24, 2008
I also live in the DC area. A few years ago (2004), before the major Utah price
run up, I considered buying a place in Utah for kicks. There were a few nice
places in Salt Lake for around $250k that, compared to DC, looked like a steal.
Opted not to buy. Now, those places are around $500k. Was this realistic? No.
Think about it. Last time I checked, Utah salaries didn't double in 4
years. Like every place else in the country, prices didn't go up based on
fundamentals. The only--and let me emphasize that--the ONLY people who say that
prices will solidify and/or go up in the near term are realtors and related
parties. Do some research. Look at reputable statistics/analysts. NO ONE who
is reputable is pretending that Utah prices will go anywhere but down in the
near term. Simple logic bears this out: The median income in Utah (according
to the US govt stats) is $45k. Historically, the median house price in Utah
should correlate. However, as two prior posters note, they can't buy
anything decent on that income. Use your head. If the average person
can't buy the average house, prices must go down.
Broker | 1:39 p.m. April 24, 2008
What happened to people being honest to their clients? I am a mortgage broker
and I may have lost out on some business over the last few years because of the
craze, but I have and will continue to give sound financial advice about home
and commercial loans and how they fit in to a family or business' overall
financial picture and plan. There are honest people who work in real estate
that give sound advice. As in any field, whether your buying a TV or a home,
BUYER BEWARE!!! Do your research, if it doesnt sound right, it isnt.
To:Newlywed | 1:43 p.m. April 24, 2008
I suggest looking out of state. Some may be apprehensive to leave the bubble of
Zion, especially with Mom and Dad and everyone so close. But I married someone
from Oklahoma, and we decided to start our lives out here. No, it is not flat
plains and dust bowls out here. It is gorgeous! Housing is SO MUCH MORE
affordable here, as compared to Utah, it blows my mind.
Our first home:
1973 built, great condition, 1,100sqft, paid $60,000
Our second home (purchased 4 years later)
2001 built, new condition, 2,300 sqft, paid $150,000
Seriously, Utah is NOT where it's all at. I do love and miss my family. But for cost of living, you have to do what is best for your future family. And looking out of state may bring you to a much better market.
Our first home:
1973 built, great condition, 1,100sqft, paid $60,000
Our second home (purchased 4 years later)
2001 built, new condition, 2,300 sqft, paid $150,000
Seriously, Utah is NOT where it's all at. I do love and miss my family. But for cost of living, you have to do what is best for your future family. And looking out of state may bring you to a much better market.
First Rule offers best advice | 1:47 p.m. April 24, 2008
After reading all the comments up to now... I would have to say First Rule has
the best advice.
"Take this time and pay off your loans, save and learn. This to (I think they meant the housing crisis) will pass."
Excellent advice.
Finally don't give asking prices. This market can be tamed by a smart buyer. Use low-ball offers and you can get into a house if you really want to. There are some desperate builders and sellers out there.
The bank owned homes are the best buyd. Since the losses are being used as a tax write-down. Low-ball offers! If you wait long enough most defaulting homes will be bank owned at some point.
This housing market will take at least 3 years to clear up.
Remember low-ball offers. Its a buyer's market the sellers can take it or leave it. If they leave it someone else thats desperate will take it.
"Take this time and pay off your loans, save and learn. This to (I think they meant the housing crisis) will pass."
Excellent advice.
Finally don't give asking prices. This market can be tamed by a smart buyer. Use low-ball offers and you can get into a house if you really want to. There are some desperate builders and sellers out there.
The bank owned homes are the best buyd. Since the losses are being used as a tax write-down. Low-ball offers! If you wait long enough most defaulting homes will be bank owned at some point.
This housing market will take at least 3 years to clear up.
Remember low-ball offers. Its a buyer's market the sellers can take it or leave it. If they leave it someone else thats desperate will take it.
picky about realtors | 1:48 p.m. April 24, 2008
First time we sold a home (2 years ago) we were not picky about selecting a
realtor. We used the "friend of a friend". Big mistake.
He said he had a 28 day turn around time on selling. Ours was on the market for 5 months! And our price was quite reasonable.
Every time we tried to call him to see how things were going, if we had any offers, any showings, what we could do to "stage" it better, etc....EVERY Weekend he was out rock-climbing, skiing vacation, even a cruise! He didn't even tell us. And weekends are the BEST days to show homes!
We finally gave up on him. Chose another lady, and she had it sold within 3 weeks.
Make sure you get a GOOD REALTOR (or sell it yourself if you have the know-how), because the money we lost on that home every month it sat on the market was enfuriating!
He said he had a 28 day turn around time on selling. Ours was on the market for 5 months! And our price was quite reasonable.
Every time we tried to call him to see how things were going, if we had any offers, any showings, what we could do to "stage" it better, etc....EVERY Weekend he was out rock-climbing, skiing vacation, even a cruise! He didn't even tell us. And weekends are the BEST days to show homes!
We finally gave up on him. Chose another lady, and she had it sold within 3 weeks.
Make sure you get a GOOD REALTOR (or sell it yourself if you have the know-how), because the money we lost on that home every month it sat on the market was enfuriating!
Tia | 1:55 p.m. April 24, 2008
The market is horrible...down by almost half...but by all means build multiple
"skyscrapers" across the valley and add thousands of condos that
families larger than 4 can't fit into.
Smart.
Smart.
Forbes | 2:04 p.m. April 24, 2008
Forbes magazine names Salt Lake No. 3 city for home sellers
Salt Lake is the third-best city for selling a house, says a new Forbes analysis. In its �Best Cities for Home Sellers� report, Forbes said that high job growth combined with declining inventory and a sharp drop in new construction � �despite not having an overwhelming inventory glut� � make Salt Lake City a good market for sellers. Other top markets for sellers include San Jose (No. 1) and San Francisco (No. 2). The report�s findings come from a study of the country�s 40 largest metro areas that analyzed unsold vacancy rates, construction starts, job growth and the degree to which the new conforming loan limits would affect financing availability in the city. Read the Forbes story.
Salt Lake is the third-best city for selling a house, says a new Forbes analysis. In its �Best Cities for Home Sellers� report, Forbes said that high job growth combined with declining inventory and a sharp drop in new construction � �despite not having an overwhelming inventory glut� � make Salt Lake City a good market for sellers. Other top markets for sellers include San Jose (No. 1) and San Francisco (No. 2). The report�s findings come from a study of the country�s 40 largest metro areas that analyzed unsold vacancy rates, construction starts, job growth and the degree to which the new conforming loan limits would affect financing availability in the city. Read the Forbes story.
Larry | 2:35 p.m. April 24, 2008
I have family living in the Salt Lake, and I wouldn't mind moving there. They have had snow and inversion since the first of Dec. My wife will not have anything to do with that kind of weather for four months, beside being cold and windy.
Lobster: Market Price | 2:42 p.m. April 24, 2008
Artificial prices. Reality. Special interests. Myths. Tradition. Avarice. Should
be. Could be. Outta be.
I remember when Snelgrove ice cream was a nickel a scoop and a half-dozen Spudnuts were 20 cents.
Which one of the above terms applies to my childhood treats?
How about market value?
Things are just getting the way they'll be.
I remember when Snelgrove ice cream was a nickel a scoop and a half-dozen Spudnuts were 20 cents.
Which one of the above terms applies to my childhood treats?
How about market value?
Things are just getting the way they'll be.
Motgage/realtor | 2:44 p.m. April 24, 2008
I love all the comments here. You can tell the people who are educated about
the market conditions and others who are bitter for some reason. All the people
who talk about how dishonest realtors and mortgage brokers are, are the ones who
are always looking for the cheapest way out. I have never helped anyone do
something that was not beneficial for the at that time.
It is all about each individuals wants and needs. What one needs to do is find a professional who knows what their talking about and not just talking out of thier rear so they can make a quick buck.
It is all about each individuals wants and needs. What one needs to do is find a professional who knows what their talking about and not just talking out of thier rear so they can make a quick buck.
Mortgage/Realtor | 2:45 p.m. April 24, 2008
The problem we are facing in Utah is that employers are not paying salaries that
match the home prices in Utah. Sellers wanting to sell their homes want more
than what their homes are worth. Media has convinced people that they should
not buy (which is true for some people). It actually is a great time to for
fixed rate Mortgages. The problem with waiting here is that rates will most
likely go back up with the correction that is taking place (and much needed).
With the rate increases people will be right back where they started if they
wait 2 years. The payments will be the same if they wait because rates will be
higher and prices may be lowere. If they buy now rates will be lower and the
price of the home may be higher. It all depends on what the person wants or
needs at that time.
What some one needs to remember also is tha every market is different. Every city is different, every neighborhood is different. Prices fluctuate depending on where you want to buy or sell. My advice would be to do some homework and find out more.
What some one needs to remember also is tha every market is different. Every city is different, every neighborhood is different. Prices fluctuate depending on where you want to buy or sell. My advice would be to do some homework and find out more.
Mortgage/Realtor | 2:56 p.m. April 24, 2008
Another Issue I have seen is that people here are not willing to buy an older
home as a starter. To the newleyweds that say they cant afford it, I compliment
you for resisting. Fact is that you can afford a home making $45k a year. You
are just unwilling to compromise what you want. I admire your desire to have a
budget, but you cant have your large car payments and own a home at your income
level, so you have to compromise. Many others also say that they can't
afford a home but they are unwilling to have an open mind about what they need,
not want. They are of the same mentality that has caused the mess. If they
already owned a home they would not be willing to sell for less either. Find a
professional that will give you honest adivse. If i have a client that will not
lower their home to realistic prices or wants a mortgage product or want to be
dishonest in anyway I will not work with them. Sad thing is they will find
someone else that will.
wallofvoodoo | 2:57 p.m. April 24, 2008
The really annoying thing is the poor develpoer who built a house on the
speculation that they would sell it. That is the real reason it is called a
"spec" house. Now the wealthy homebuilders want us to cry big tears of
saddness because they can't exploit illegal labor and lower-middle class
Utah's to make themselves rich. Boo-hoo. In my opinion all the people who
are suffering right now deserve it and the goverment should let capitalism do
what it does best and let them fail and quit using my tax money as welfare for
the rich.
For Shame | 3:13 p.m. April 24, 2008
Mortgage/Realtor is berating people who say they cannot afford a home- what a
surprise. People like Mortgage/ Realtor are the types who helped coax people who
could not afford to buy to take out risky loans. Shame on you Mortgage/Realtor
for not accepting people's word at face value when they wisely say they
can't afford to buy on their income and urging them to buy anyway.
To Mortgage/Realtor | 3:14 p.m. April 24, 2008
Finally! An honest mortgage/realtor! "Buy now, because in two years
prices will be lower!" Smart advice...if you make your commission off
others' selling prices. Hmmm. If I buy when the price is lower (even if
the interest rate is higher--which is not a certainty, considering the way the
Fed is acting), then I can pay off the principle FASTER WITHOUT incurring all
the extra interest. Or wait, if the price is lower...I can refinance any time
the interest rates are lower FOR A TOTAL OVERALL LOWER MONTHLY PAYMENT. Shucks,
that doesn't work if I have a higher principle. Darn. Oh well. Buy now
if you want. Just realize that there's a reason housing prices here are
traditionally cheaper: "Employers are not paying salaries high enough to
match the prices of the homes." Unless Mortgage/Realtor is able to
convince employers to raise salaries 100%, then unfortunately the only other
option is for housing prices to drop to match salaries.
Bob: to mortgage/realtor | 3:17 p.m. April 24, 2008
You are correct that in a few years payments may be the same because house
prices will go down and interest rates will go up. What you forgot to mention to
many here looking to buy (myself included), is that an interest rate is
temporary/fixable. The price you pay for the house is permanent. Meaning, you
can always pay off the loan faster and save a grundle in interest payments, but
you can never recover overpaying for a house that you could have bought much
cheaper next year. You are far better to buy the house cheap and take a higher
interest rate. You could refinance if rates come back down, or you can find
seller financing. There are many ways to deal with the higher interest rate
aspect, but once you buy, your price is locked in. I started looking about a
year ago, and decided to wait it out. Have seen nothing but more inventory and
lower prices since. I am casually watching the market, and will buy when I find
the right house at the right price. Price, location, and items that you CANNOT
change later are the most important factors. Simple economics say prices
continue falling.
Mortgage/Realtor | 3:52 p.m. April 24, 2008
To Mortgage/Realtor, you prove my point exactly when I say people are not
educated when they speak. I understand you think you can refinance but you
forget to think about the larger picture. You will pay closing costs to
refinace. If you add that into your loan (if you have enough equity to
refinance), you pay interest on your closing costs. You act like it is simple
to just refinance, these are things i advise my clients on.
Bob also you prove my point. I mean not demeanor in any way but, I am trying to point out that you need to find someone that understands what they are taliking about, becasue they do it everyday. Sure you can pay off your home quicker if you have a lower price but if you have a lower rate you can still pay it off possibly more quickly if you have a lower rate and pay the same payment as the higher interst rate payment and a lower purchase price. That is why you need someone that can explain this to you instead of just beleiving what you hear from others.
Bob also you prove my point. I mean not demeanor in any way but, I am trying to point out that you need to find someone that understands what they are taliking about, becasue they do it everyday. Sure you can pay off your home quicker if you have a lower price but if you have a lower rate you can still pay it off possibly more quickly if you have a lower rate and pay the same payment as the higher interst rate payment and a lower purchase price. That is why you need someone that can explain this to you instead of just beleiving what you hear from others.
dachsatian | 3:56 p.m. April 24, 2008
Everything needs to be taken into context. Some areas are bad, others
aren't as bad. In my experience, I'm seeing the hardest hits being
taken by luxury homes, new construction and fixer-uppers. It's true - the
average income in Utah doesn't match up with the number of luxury homes
flooding the market right now and new construction is down 40% from a year ago.
You have to look at the specific home and neighborhood - comparing one house to
the rest of the entire market just won't work which is why there is so much
conflicting information out there. And there is no such thing as a
buyers/sellers market for those who need to both buy & sell. Pricing must
reflect current conditions for the specific property type and location - and
that may be good for some and bad for others. And what goes up, eventually
comes down - and will return back up as well. Real estate has always been the
safest LONG TERM investment.
Mortgage/Realtor | 4:04 p.m. April 24, 2008
Example of how you could pay more for a home if rates are higher but home prices
are lower:
$200,000 at 5.75%= principal and interst payment of $1161
$180,000 at 7%= principal and interest $1190.
If you took that same payment of $1190 at the $200,000 home you could pay if off in roughly 28 years instead of 30.
$1190 x 360 ($180,000 home) months payments=$428,400
$1190 x 338 ($200,000 home) months payments=$402,500
Let someone help you make a concious decision. If you decide to gamble and wait great but at least get some facts before you just automatically assume you know.
If you decide to wait great but if not it is o.k. also.
$200,000 at 5.75%= principal and interst payment of $1161
$180,000 at 7%= principal and interest $1190.
If you took that same payment of $1190 at the $200,000 home you could pay if off in roughly 28 years instead of 30.
$1190 x 360 ($180,000 home) months payments=$428,400
$1190 x 338 ($200,000 home) months payments=$402,500
Let someone help you make a concious decision. If you decide to gamble and wait great but at least get some facts before you just automatically assume you know.
If you decide to wait great but if not it is o.k. also.
Homeowner | 4:43 p.m. April 24, 2008
Mortgage/Realtor has a point. Bottom line, do your homework before buying! Then
KEEP LOOKING for your dream house. It is a buyer's market, that means that
even those making $45k can get a house if they want to. I bought my house from a
foreclosure and far below fair market price. The deals are out there if you are
patient... but if you don't look or don't do your math, you will never
find the great deal you deserve.
If you are too scared to buy a house when they are a dime a dozen, then you are only feeding the bubble bursting issue... and don't be stupid and get one of the adjustable rate mortgage (ARM) loans. Get a FIXED RATE loan.
Don't pay an ARM and a leg... do your shopping with a good Realtor and good luck.
If you are too scared to buy a house when they are a dime a dozen, then you are only feeding the bubble bursting issue... and don't be stupid and get one of the adjustable rate mortgage (ARM) loans. Get a FIXED RATE loan.
Don't pay an ARM and a leg... do your shopping with a good Realtor and good luck.
New home owner | 5:34 p.m. April 24, 2008
I just bought a nice home in Springville for a fair price. I make just over 40k
and the house payment is only $100 more a month than my rent was (if you think
home prices are inflated, look at rent prices).
I went through a realtor and she was great to work with. She didn't try to sell me something out of my price range and didn't try to convince me that this was some spectacular time to buy. She was honest and realistic and I would have had a hard time finding a great place in my price range without her.
Not all realtors are evil. Some genuinely care about their customers.
I went through a realtor and she was great to work with. She didn't try to sell me something out of my price range and didn't try to convince me that this was some spectacular time to buy. She was honest and realistic and I would have had a hard time finding a great place in my price range without her.
Not all realtors are evil. Some genuinely care about their customers.
Home Prices up .041 | 5:53 p.m. April 24, 2008
This says the sales are down.
Not home prices.
Read the words
Learn to communicate with what it says.
Trouble is so many lies are in the news paper
When it cost $400,000 to build a home, with cost as it is
You can not expect to buy it for less.
The news here is telling you a resession is on the way if you don't spend your money
Your neighbor and then you will be out of work
Simple as that
When demand for goods are gone, So is your job
Not home prices.
Read the words
Learn to communicate with what it says.
Trouble is so many lies are in the news paper
When it cost $400,000 to build a home, with cost as it is
You can not expect to buy it for less.
The news here is telling you a resession is on the way if you don't spend your money
Your neighbor and then you will be out of work
Simple as that
When demand for goods are gone, So is your job
To DC | 6:27 p.m. April 24, 2008
No one can predict what will actually happen and when the bottom will be reached
- though I believe the bottom has not been hit. I just bought a 4500 square
foot fully finished home for $305k from the bank. Do you think I should have
waited on this one like most people are saying above? There are good buys out
there. Just don't get in over your head like most speculators of the last
couple years have.
tina | 6:57 p.m. April 24, 2008
I don't really see any reason to panic. The national home market was way
over inflated for so long. The homes here never went overpriced like other
parts of the country. We shouldn't see a bubble burst like some are
talking about. Only a softening of the market because things never got
overinflated like elsewhere.
Wanting to buy in Utah | 7:01 p.m. April 24, 2008
D.C to Utah. You would be so wise to wait. Like most people have said, Utah is
not immune to what's happening in the rest of the U.S. People here got the
exact same shady loans everyone else did to afford their payments in the
beginning. It WILL crash just like everywhere else. We are going wait about 2
years until the market may have dropped as much as 40% and then get a great
house with a payment we can afford. I do feel bad for those in a selling
situation right now but...in the long run for us with no house to sell it will
be a great investment when the prices come back to reality.
When to buy? | 7:06 p.m. April 24, 2008
Investments and purchases involve risk. The cost is always dependent upon the
when. Recognize the macroeconomic trends and act accordingly. Bottom line is,
don't commit to something you really can't afford. Unfortunately the
perception of many was you can't lose which caused them to stretch too far.
Personally I believe interest rates will stay low in the short and home prices
will decline from where they are today. If I were looking to buy again, I would
be socking away cash, and looking for the best deal.
Forbes Fooey! | 9:55 p.m. April 24, 2008
My sister lives in San Jose and the article is WRONG.
People that really know finance know that magazine articles are a poor basis for a decision like where to put 100's of thousands of dollars.
Forbes is famous for making bad calls.
Magazines need a steady stream of articles so they pump this stuff out all the time. I know more about what is going on in Utah than some writer in New York. In case you haven't noticed...the experts are WRONG...REGULARLY.
People that really know finance know that magazine articles are a poor basis for a decision like where to put 100's of thousands of dollars.
Forbes is famous for making bad calls.
Magazines need a steady stream of articles so they pump this stuff out all the time. I know more about what is going on in Utah than some writer in New York. In case you haven't noticed...the experts are WRONG...REGULARLY.
TOT | 10:14 p.m. April 24, 2008
Yes, house prices can fall a lot more.
Why use the realtor-speak "get into a house"?
It's "take on a huge debt in order to pay a monthly payment until you actually complete the buy some day down the road, as long as you don't default and remember to pay your property taxes".
Quit arguing that higher interest rates mean higher payments. Higher interest rates also put DOWNWARD PRESSURE on house prices. People can only afford so much each month. If the interest makes the payment go up then the price of the house needs to go DOWN for buyers to afford the monthly nut.
As an extreme consider how much a house would be worth if mortgage loans were not available and people had to buy houses with their savings. The cost of borrowed money largely determines what a house is "WORTH".
Also it doesn't matter what it cost to build a house. What it will sell for is what it will sell for no matter how much it cost to build it.
Why use the realtor-speak "get into a house"?
It's "take on a huge debt in order to pay a monthly payment until you actually complete the buy some day down the road, as long as you don't default and remember to pay your property taxes".
Quit arguing that higher interest rates mean higher payments. Higher interest rates also put DOWNWARD PRESSURE on house prices. People can only afford so much each month. If the interest makes the payment go up then the price of the house needs to go DOWN for buyers to afford the monthly nut.
As an extreme consider how much a house would be worth if mortgage loans were not available and people had to buy houses with their savings. The cost of borrowed money largely determines what a house is "WORTH".
Also it doesn't matter what it cost to build a house. What it will sell for is what it will sell for no matter how much it cost to build it.
Someday... | 12:06 a.m. April 25, 2008
I bet home prices are not going to fall much. I think they may just stagnate for
a while. I would love to see prices fall so I can buy sometime in the next
couple of years, but I am not going to hold my breath.
Who is to blame for the debacle? I think lenders and brokers made out like bandits. They sold homes for inflated prices with high monthly payments. Now not only do they get the money, they also get to resell their home. Talk about a sweet deal for those guys.
Who is to blame for the debacle? I think lenders and brokers made out like bandits. They sold homes for inflated prices with high monthly payments. Now not only do they get the money, they also get to resell their home. Talk about a sweet deal for those guys.
Jason | 12:22 a.m. April 25, 2008
Most of the realtors and brokers I've are the ex-jocks and otherwise
intellectually or motivationally challenged individuals who just couldn't
quite figure out what to do with their lives including getting an education and
pursuing a worthwhile career. Sure they tend to be the smooth talkers and very
charismatic... but intelligent and honest, usually not. Why people trust their
"professional experience and judgement" in making one of the most
important financial decisions of their lives is beyond me. As nice as they are
to you.... they are really just looking to get their 6% commission.
If you are buying or selling a home, do yourself a favor and do it by owner. You and the seller can then split the 6% commission that would have been wasted on a realtor showing you where the dotted line is to sign on.
If you are buying or selling a home, do yourself a favor and do it by owner. You and the seller can then split the 6% commission that would have been wasted on a realtor showing you where the dotted line is to sign on.
Waiting | 12:25 a.m. April 25, 2008
Newly Wed
I think there are many people like us. Since when do starter homes cost over $200K? Something is seriously messed up. It's not like I want to live in a brand new mansion. I just want a modest home in a good neighborhood. I am graduating from school and starting out at $53K which I consider pretty good, but it will still take me a couple of years at least to be able to afford anything livable at today's prices. I will not live in a condo. I have three kids!!
I think there are many people like us. Since when do starter homes cost over $200K? Something is seriously messed up. It's not like I want to live in a brand new mansion. I just want a modest home in a good neighborhood. I am graduating from school and starting out at $53K which I consider pretty good, but it will still take me a couple of years at least to be able to afford anything livable at today's prices. I will not live in a condo. I have three kids!!
Wassup | 7:15 a.m. April 25, 2008
I guess the days of using your home as an ATM are over. If you don't have
the money, don't buy the item!
If you simply bought a house for an investment, you got hosed. Deal with it. If you bought a house to have a home and you qualified to make the payments, you still have a home.
It's just those who were greedy and cash poor that thought a house would get them out of debt (go figure) got the short end of the stick. Tough.
If you simply bought a house for an investment, you got hosed. Deal with it. If you bought a house to have a home and you qualified to make the payments, you still have a home.
It's just those who were greedy and cash poor that thought a house would get them out of debt (go figure) got the short end of the stick. Tough.
Worthy? | 8:27 a.m. April 25, 2008
I know a handful of successful LDS real estate agents, and let me assure you,
when they ask if you are honest with your fellowmen, they grant an exception for
politicians and real estate agents!
Realtors aren't the enemy | 9:18 a.m. April 25, 2008
Isn't great that those who think we are the reason the sky fell out. We
don't inflate the prices. Get educated and learn about supply and demand.
If people were willing to pay overinflated prices that is what realtors need
"advise" thier clients to do. Who makes the final choice though? The
seller, we are there to make them as much as possible. Not everyone in our
industry are dishonest, or not educated. Just goes to show how much people are
willing to put the blame on others when they have no clue as to what reality is.
Oh just so you all know, most realtors don't pocket the 6%. Most have to
pay thier boker 30%, then they have all the costs that are involved in marketing
and selling your home. I have kept track of my hours also and have come to an
average income of $12 an hour for most of the homes I found or sold for my
clients. How many of you would like to take a job where you are working at all
hours of the day and never have days off becasue your clients call you every day
morning and night.
Droves | 9:25 a.m. April 25, 2008
People are losing their houses, shirts and shoes in droves. Why can we bail out
Chrysler and not the average joe in trouble?
Lefty | 9:38 a.m. April 25, 2008
We all know this is GWB's fault anyway. He did nothing to help the Utah
housing market. If I make $500,000 per year, can I afford to buy a new home?
Quite complaining and go make money and market correction don't seem to be
such a big deal. Yes, I am a BYU grad.
Anonymous | 10:09 a.m. April 25, 2008
Wow Lefty
Your post was incoherent. Your BYU education does not appear to be serving you very well.
Your post was incoherent. Your BYU education does not appear to be serving you very well.
SLC | 10:13 a.m. April 25, 2008
Droves: We should not bail out either of them. Both got themselves into that
situation. Joe sixpack is drowning in debt which is his fault. The 1% of average
folks that are sinking because of a tragedy or something, deserve sympathy and
assistance. But the rest of us need to take our licks and learn from it.
Realtors: $12/hour seems about right for a profession that requires a 3 week course to certify. I'm not saying that to be rude. I just think that's fair. And I have to suspect that most of those hours are not spent really slaving away. Realtor fees on a $250k home sale would amount to $15,000 for two agents, or $7,500 each. I don't care if they have to give 30% of it to their broker. Do you know how much work most Americans have to do to earn $5200? Answer: A lot more work than sitting there puppyguarding the sacrosanct MLS, which by the way, is not a service. Especially when I can find almost every listing online myself. I'm not denying that Realtors add some value to the market, but only SOME. They deserve appropriate compensation for their efforts, not a windfall.
Realtors: $12/hour seems about right for a profession that requires a 3 week course to certify. I'm not saying that to be rude. I just think that's fair. And I have to suspect that most of those hours are not spent really slaving away. Realtor fees on a $250k home sale would amount to $15,000 for two agents, or $7,500 each. I don't care if they have to give 30% of it to their broker. Do you know how much work most Americans have to do to earn $5200? Answer: A lot more work than sitting there puppyguarding the sacrosanct MLS, which by the way, is not a service. Especially when I can find almost every listing online myself. I'm not denying that Realtors add some value to the market, but only SOME. They deserve appropriate compensation for their efforts, not a windfall.
To Lefty: | 10:32 a.m. April 26, 2008
Please re-post in english so that I can decide whether or not I would like to
respond to your thought.
To: Newlywed | 8:41 a.m. April 28, 2008
The question isn't whether to rent for $700/month or buy for a mortgage
payment of $800/month. The question is whether to rent for $700/month or own
for more like $1100/month. Here is why: mortgage insurance, homeowners
insurance, property taxes, water, sewer, gargabe, maintenance and it is somehow
easier to have junky hand-me-down furniture in an apartment.
Make sure you know what all of the costs are before you buy. If you live in a house it isn't an investment.
Why tie yourself to a house so soon? Renting keeps you more flexible. My wife an I were able to take advantage of education and work opportunities outside of Utah that would not have happened if we hadn't sold our newlywed home and started renting.
Make sure you know what all of the costs are before you buy. If you live in a house it isn't an investment.
Why tie yourself to a house so soon? Renting keeps you more flexible. My wife an I were able to take advantage of education and work opportunities outside of Utah that would not have happened if we hadn't sold our newlywed home and started renting.
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