Mortgage industry is tanking - Page 4 - cougarguard.com — unofficial BYU Cougars / LDS sports, football, basketball forum and message board

Solon · 08-07-2007, 04:27 PM

Quote:

Originally Posted by BYU71

They're sitting a whole 1-3 months. LOL You guys need to go through a credit crunch or real estate collapse like occured in the late 70's and early 80's. Anyone ever heard of S&L collapse. Of course again it was a result of brilliant banking types and their lending practices. Bankers belong in my way overpaid grouping.

We should get Salt Lakers going on junk bonds while we're at it.

Mormon Red Death · 08-07-2007, 05:07 PM

Quote:

Originally Posted by BYU71

They're sitting a whole 1-3 months. LOL You guys need to go through a credit crunch or real estate collapse like occured in the late 70's and early 80's. Anyone ever heard of S&L collapse. Of course again it was a result of brilliant banking types and their lending practices. Bankers belong in my way overpaid grouping.

I agree... try being in michigan where its common to have your house on the market for a year

Jeff Lebowski · 08-07-2007, 05:29 PM

Quote:

Originally Posted by cougjunkie

The crazy thing about this market right now is that starter homes between 150-250k are still selling like hotcakes. Middle priced homes between 275-500k are sitting on the market for months and months. Homes between 500-800k are the worst to try and sell, but once you get over the 1million dollar mark they are selling like crazy. Ideally anything between 2 and 5 million wont stay on the market for long.

Very interesting. There are two home for sale in our neighborhood for sale for $550K. Neither one is getting a sniff.

I have another friend who just built a $950K home in Alpine. It was a home show home and they didn't get a single offer. I am afraid he may go chapter 11 over this.

UteStar · 08-07-2007, 05:37 PM

The problem is that people will have seen a home go up in their neighborhood which is about the same size of their home and that home goes up for $400K...so they think (most homeowners think the same way), my home is better than that home so I will sell it for $425K. Nothing happens, so the guy grudgingly lowers his price down to $400K...nothing happens, it sits for a few months, people start thinking that the home has problems, and the owner lowers his price down to $375K and it finally sells.

The issue is now that the guy is not happy that he made $100K on his home (he bought it for $275K a couple of years ago)...he is pissed that he 'lost' $50,000. He never really had it, it was an inflated value in his head on what he thought the home was worth. Your home is only worth what people will pay for it but that is hard to understand when you are just coming out of a hot market and you think your home is a national treasure.

Another problem is all of those people that just built homes or are building homes and they bought at the peak 6 months ago...so they are paying top dollar for a home that will be worth less when it is finally finished in the fall. They financed it thru the builders and they use these builder's agents. Talk about a recipe for disaster.

cougjunkie · 08-07-2007, 08:01 PM

one other thing real estate agents are up in the night a lot of the time on value. My parents neighborhood in eagle mountain for example.

They bought there house about 2 years ago for 176k 4 bedrooms 2 bathrooms about 1800 sq ft. Good value at the time.

Now the neighbors across the street are selling there home same exact model for 250k but it was listed for 300k at first.

Behind them same model just sold for 195k (which is a lot more reasonable).

UteStar · 08-07-2007, 08:58 PM

I agree with that Junkie...the problem with a lot of the agents out there is they talk to the seller and ask the seller what they want to sell it for...the seller gives them a number that is just crazy but the agent does it. It doesn't sell and it pisses everyone off.

Good agents spend the time to get the real market value. My wife was asked to sell a house and she came up with the figure of what to sell it for--around $400,000--at the highest. The seller said that was dumb and wanted to sell it for $450K. My wife knew that it was not worth it and ended up telling the seller that she would not sell it for that figure (she knew it was a ridiculous figure and didn't want her name attached to it)...well, a bunch of realtors lined up to sell that house for the price. It still hasn't sold and continues to sit and the price is dropping. This is just in SL where the market is slow but not brutal...I can't imagine how brutal it has become in Phoenix, LV and San Diego.

MikeWaters · 08-07-2007, 09:01 PM

Market is fine in Dallas. I'm sniffing for a new home, and I'm not finding any particular amazing deals.

FMCoug · 08-07-2007, 09:26 PM

Quote:

Originally Posted by MikeWaters

Market is fine in Dallas. I'm sniffing for a new home, and I'm not finding any particular amazing deals.

We live in a relatively stable market. No big run-ups, but no crashes either. It's slow right now ... but prices are fairly stable. I'll take my 3-5% a year, year in and year out, rather than speculating with my home (largest investment) like so many do in Utah.

SteelBlue · 08-07-2007, 10:40 PM

Here in far Northern CA we're seeing a very interesting market. It peaked about 2 years ago, and prices have come back but only slightly. Now we're seeing a multitude of homes on the market and none of them are selling. Buyers aren't biting on the inflated prices and owners are too stubborn (many out of pure necessity) to come down on the price. I get the feeling that prices are about to drop like a rock as inventory continues to grow.

08-07-2007, 08:01 PM	#35
cougjunkie Senior Member Join Date: Jan 2006 Location: Utah Posts: 5,741	one other thing real estate agents are up in the night a lot of the time on value. My parents neighborhood in eagle mountain for example. They bought there house about 2 years ago for 176k 4 bedrooms 2 bathrooms about 1800 sq ft. Good value at the time. Now the neighbors across the street are selling there home same exact model for 250k but it was listed for 300k at first. Behind them same model just sold for 195k (which is a lot more reasonable). __________________ LINCECUM!

08-07-2007, 08:58 PM	#36
UteStar Senior Member Join Date: Aug 2005 Posts: 1,817	I agree with that Junkie...the problem with a lot of the agents out there is they talk to the seller and ask the seller what they want to sell it for...the seller gives them a number that is just crazy but the agent does it. It doesn't sell and it pisses everyone off. Good agents spend the time to get the real market value. My wife was asked to sell a house and she came up with the figure of what to sell it for--around $400,000--at the highest. The seller said that was dumb and wanted to sell it for $450K. My wife knew that it was not worth it and ended up telling the seller that she would not sell it for that figure (she knew it was a ridiculous figure and didn't want her name attached to it)...well, a bunch of realtors lined up to sell that house for the price. It still hasn't sold and continues to sit and the price is dropping. This is just in SL where the market is slow but not brutal...I can't imagine how brutal it has become in Phoenix, LV and San Diego. Last edited by UteStar; 08-07-2007 at 09:03 PM.

08-07-2007, 05:37 PM	#34
UteStar Senior Member Join Date: Aug 2005 Posts: 1,817	The problem is that people will have seen a home go up in their neighborhood which is about the same size of their home and that home goes up for $400K...so they think (most homeowners think the same way), my home is better than that home so I will sell it for $425K. Nothing happens, so the guy grudgingly lowers his price down to $400K...nothing happens, it sits for a few months, people start thinking that the home has problems, and the owner lowers his price down to $375K and it finally sells. The issue is now that the guy is not happy that he made $100K on his home (he bought it for $275K a couple of years ago)...he is pissed that he 'lost' $50,000. He never really had it, it was an inflated value in his head on what he thought the home was worth. Your home is only worth what people will pay for it but that is hard to understand when you are just coming out of a hot market and you think your home is a national treasure. Another problem is all of those people that just built homes or are building homes and they bought at the peak 6 months ago...so they are paying top dollar for a home that will be worth less when it is finally finished in the fall. They financed it thru the builders and they use these builder's agents. Talk about a recipe for disaster.

08-07-2007, 09:01 PM	#37
MikeWaters Demiurge Join Date: Aug 2005 Posts: 36,365	Market is fine in Dallas. I'm sniffing for a new home, and I'm not finding any particular amazing deals.

08-07-2007, 10:40 PM	#39
SteelBlue Senior Member Join Date: Aug 2005 Location: Norcal Posts: 5,821	Here in far Northern CA we're seeing a very interesting market. It peaked about 2 years ago, and prices have come back but only slightly. Now we're seeing a multitude of homes on the market and none of them are selling. Buyers aren't biting on the inflated prices and owners are too stubborn (many out of pure necessity) to come down on the price. I get the feeling that prices are about to drop like a rock as inventory continues to grow.