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The Shifting Calculus of Buying a House
AP/ Yahoooo ^ | 10/13/2006 | James R. Hagerty and Anjali Athavaley

Posted on 10/13/2006 8:25:22 PM PDT by ex-Texan

Report Predicts Price Declines In 100 U.S. Cities Over Next Few Years . . .

Home buyers have another reason to sit on their hands.

In the latest news from the slumping U.S. housing market, a report released this week says that median house prices are likely to decline more than 10% over the next few years in 20 metro areas, including Las Vegas, Tucson, Ariz., and Washington, D.C.

The report, by Moody's Economy.com Inc., a research firm in West Chester, Pa., also says that the slump won't end quickly. Indeed, according to the report, prices may keep falling until 2008 or even 2009 in some areas. In all, prices are falling or likely to decline soon in about 100 metro areas, the firm says.

* * * The study comes on the heels of a survey from the U.S. Census Bureau showing that 35% of American homeowners with mortgages last year spent 30% or more of their household income on housing costs, including loan payments, real-estate taxes, insurance and utilities.

In 2003, a similar survey found that 30% of such homeowners were spending that much on housing. The new survey illustrates the strain on household budgets that has already helped slow house-price increases in some areas and push them modestly lower in others.

(Excerpt) Read more at biz.yahoo.com ...


TOPICS:
KEYWORDS: bogosity; bubblebrigade; bubbles; depression; despair; doom; dustbowl; eeyore; grapesofwrath; housing; iluvwilliegreen; joebtfsplk; mortgages; realestate
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These writers took the high road. View the Data?. I believe real estate prices may decline 30% on the west coast. In several over priced areas, housing may decline over 40%. Want to learn more? Just click my FR Page. Or Click Here
1 posted on 10/13/2006 8:25:23 PM PDT by ex-Texan
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To: GodGunsGuts; Hydroshock; M. Espinola; Calpernia

*Ping*!


2 posted on 10/13/2006 8:26:57 PM PDT by ex-Texan (Matthew 7: 1 - 6)
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To: ex-Texan

I guess that is why we chose to buy a home we could afford


3 posted on 10/13/2006 8:30:00 PM PDT by Claire1
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To: ex-Texan

In a store today, the owner (a friend of mine) was conversing with a local real estate guy, who was telling her that nothing, but nothing is selling here. I joined in the conversation and he opined that housing is just too expensive - local people cannot afford it. Now that Californians aren't pouring over the border with big bucks, that's it.

Talked to another realtor yesterday on the phone and he sang the same song. Said that the ranks of realtors are going to thin out, as well.

New houses are now listed under "Houses for Rent".

How is it doing in P'land?


4 posted on 10/13/2006 8:33:22 PM PDT by little jeremiah
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To: ex-Texan
I believe real estate prices may decline 30% on the west coast. In several over priced areas, housing may decline over 40%. Want to learn more?

And we all know how good your predictions are. Last year you predicted housing in New York would fall 40 per cent in 6 months. It went up.

5 posted on 10/13/2006 8:39:40 PM PDT by Always Right
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To: little jeremiah

Basically, the same old stuff. A brand new condo development sits totally empty. It looks abandoned. No cars are parked in the driveways. The builders have new signs up saying "Zero Down!" and "Prices Reduced!" Television ads are running on week ends advising people to buy foreclosures. Mortgage ads still run 24/7 on the radio. They are still pitching teaser rates of 2.5% and zero down loans.


6 posted on 10/13/2006 8:41:01 PM PDT by ex-Texan (Matthew 7: 1 - 6)
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To: Always Right
It sucks to predict imminent collapse for 3+ years, in the face of rising prices year after year.
7 posted on 10/13/2006 8:42:23 PM PDT by Petronski (Living His life abundantly.)
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To: little jeremiah; GodGunsGuts; Hydroshock; M. Espinola; Calpernia
Here are other factors to add to the mix:

Oil and Gold Prices Back Up Over Korean News

North Korea's Nuclear Program

8 posted on 10/13/2006 9:21:34 PM PDT by ex-Texan (Matthew 7: 1 - 6)
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To: Petronski; ex-Texan

Although a lowering in interest rates and energy prices are taking some pressure off families, I still think that with the massive number of arms reseting the future is rocky to say the least.


9 posted on 10/13/2006 9:29:05 PM PDT by Hydroshock ( (Proverbs 22:7). The rich ruleth over the poor, and the borrower is servant to the lender.)
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To: Hydroshock; ex-Texan

The realtors I talked to recently all said that until prices come down drastically, people around here, at least, are just not going to buy. And they are not buying.

I noted on another thread a few days ago what my realtor friend in HI said. I'll have to ask him what it's like on hte other islands. On the Big Island, prices are down 20% and more. Tons of inventory.


10 posted on 10/13/2006 9:55:39 PM PDT by little jeremiah
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To: little jeremiah

If prices are falling, why buy today? You may save by waiting till tomorrow.


11 posted on 10/13/2006 10:01:12 PM PDT by djf (There is no such thing as "moderate muslims". They are all "silent supporters!!")
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To: djf

The prices haven't fallen much yet here; a lot of price reductions but apparently not enough to entice anyone to buy. The Californians loaded with cash have dried up and local people can't afford the inflated prices. Still way too inflated.

It'll be interesting to see what happens in the next say half a year.


12 posted on 10/13/2006 10:12:24 PM PDT by little jeremiah
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To: Petronski; ex-Texan
Don't take it personally, ex-Texan. Petro has got it in his head that he has been single handedly talking up real estate prices all these years. You can imagine his horror when the real estate market stopped listening to him.
13 posted on 10/14/2006 12:23:46 AM PDT by GodGunsGuts
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To: little jeremiah

Hmmm...I wonder if that mean rents will go down, rather than up, as real estate continues to decline. If what you're saying represents a trend, that means there will be a glut of rental properties in the not too distant future.


14 posted on 10/14/2006 12:26:46 AM PDT by GodGunsGuts
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To: ex-Texan
The report, by Moody's Economy.com Inc., a research firm in West Chester, Pa., also says that the slump won't end quickly. Indeed, according to the report, prices may keep falling until 2008 or even 2009 in some areas. In all, prices are falling or likely to decline soon in about 100 metro areas, the firm says.

LOL! Another lapdog sycophant hired to promote socialist/Dimocratic fear to the ignorant.

If you'll buy that, I'll throw the Golden Gate in free.

15 posted on 10/14/2006 6:15:56 AM PDT by 100-Fold_Return (They Took My Saddle in Houston, Broke My Leg in Santa Fe, Lost Wife + Girlfriend)
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To: GodGunsGuts

Already here in our admittedly small valley (about 17,000 people), the local paper has about 3X the usual amount of rentals. The newly built houses have really high rents, builders trying to cover their payments, about $1100. Don't know if anyone is renting them. The "regular" houses, though, have gone down a bit - for instance, you can rent a couple bedroom house on acreage for under $600.

I'll ask my realtor friend in HI what's happening on the other islands, and also about rentals.


16 posted on 10/14/2006 7:24:42 AM PDT by little jeremiah
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To: ex-Texan

A house down the street from our family homestead (in suburban Boston) was put on the market last February for 1.25 million.It just sold a month ago for 880K.


17 posted on 10/14/2006 7:43:18 AM PDT by Gay State Conservative ("An empty limousine pulled up and Hillary Clinton got out")
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To: ex-Texan
A lot of people will refinance their mortgages to lower their monthly payments. And lenders will agree since they're going to get repaid on the loan, albeit at a lower return than they otherwise expected. But it beats foreclosure, leaving them with next to nothing.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus

18 posted on 10/14/2006 8:20:47 AM PDT by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives On In My Heart Forever)
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To: GodGunsGuts
...has got it in his head that he has been single handedly talking up real estate prices all these years.

Another absurd lie from GGG. Must be a day ending in "y."

19 posted on 10/14/2006 8:46:50 AM PDT by Petronski (Living His life abundantly.)
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To: Petronski

Oh, I'm sorry. Did you want to share the credit with your posse?


20 posted on 10/14/2006 9:16:41 AM PDT by GodGunsGuts
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