Is the Real Estate market in a definite downswing?

[mickeysgal]

We live in a small rural southern town, so we are typically not a good indicator of real estate prices nationwide. However, we did see a surge in prices last year, and I've now seen a leveling off of prices so far this spring. What have you seen in your part of the country? Is it a buyer's market? Are prices leveling off or still increasing?

 

[Chicago526]

Too early to say around here, the spring rush of homes going up for sale just started, it will be easier to tell once we hit mid summer. If homes are just sitting on the market and people have to start to lower their asking price, then we'll know! The Chicago area doesn't usually have real estate bubbles like CA and NYC, but I have a feeling that we'll see little to no increase in home values this year. Prices won't really drop, but they won't go up, either, and homes will sit on the market longer than in years past before selling.

 

[momof2inPA]

It's been a buyer's market here for over a year. My sis lives in a nice suburb of DC and there are homes starting to go up for bank auction. One went for 150k less than it was listed and 100k less than any home had sold for in that neighborhood for several years.

 

[Crankyshank]

It depends. In some areas it has cooled and in some markets it has cooled. The market for new homes has definitely dropped. Houses are staying on the market longer but the prices for starter homes really hasn't dropped at all.

The house 3 doors down from me sold in about two weeks (3 BR/1BA ranch with about 1400 sq ft. ugly mint green siding, no garage, and not much upkeep done - for $239,000).

 

[golfgal]

Houses sure aren't moving in our town like they were. I think some of it is that the usual spring 'rush' is just later then normal. We are hoping that now that Easter is over summer looks closer and those that were thinking about moving do some more active looking. The real estate market in our town has always been pretty steady and now is it on the slow side of steady.

 

[Rafiki Rafiki Rafiki]

Rural Mississippi: Definitely a seller's market here.

The realtors in the area are saying we're about 800 houses short of what we need.

We bought for $250K two years ago and will probably make somewhere between $50k and $100k profit when we sell this spring.

 

[wdw4us2]

Definitely slowed down here. Between the insane rise in home prices and the hurricanes of the past two seasons, the market has really slowed down here in southeast Florida.

Many people that bought houses as investments to flip are starting to feel the pinch. There was a big article about it today in our local papaer (The Stuart News).

I think this is actually a good thing - things were getting so crazy this time last year. Some houses were only on the market for a matter of hours before they sold - at ridiculously high prices. Median home prices increased here between 100-150% between 2000-2005. Maybe now more people will be able to buy homes as the prices come down to more realistic numbers.

 

[JuneChickie]

Minnesota here

Our market hasn't cooled off at all in our part of town. One home in our neighborhood
went up for sale and the sold sign went up 3 days later. Another home 3 doors down from us , the sold sign went up a week later. These homes are both over 250,000.
I guess its called ,, LOcation, Locaction , location

 

[golfgal]

Interest rates are starting to climb and that will have some effect on the markets too.

 

[Disney Doll]

They are levelling off here, but not bottoming out.

My DH, who is in real estate full-time (and has been for 18 years)is glad that it's levelling off slowly and easily, rather than bottoming out. For those who make real estate their profession, they don't like the real wildly high markets...it's unrealisic, a lot of folks jump on the realtor bandwagon when the market is hot to "ride the wave". Then, when the market drops again, they're gone.

 

[horseshowmom]

Rural Mississippi: Definitely a seller's market here.

The realtors in the area are saying we're about 800 houses short of what we need.

We bought for $250K two years ago and will probably make somewhere between $50k and $100k profit when we sell this spring.

A friend of ours in Meridian put his house on the market last Saturday morning and signed the papers on it that night. He got the full asking price too.

 

[BeNJeNWaFFLe]

In my town it is definitely not leveling out. Not at all. This is no exaggeration. In the area including my block, and 3 blocks next to mine, there are 12 houses for sale! They are all way over priced and NOT selling. Both my neighbors houses are for sale. One is 900 sq ft, 1.5 baths, 2-3 bedrooms, small kitchen, no garage, no laundry, unkept yard going for......$409,000! It's been for sale with two different real estates since about November. I doubt they'll get that price, but I can't wait for them to go. My other neighbors house is larger and its been updated and kept nice. They are asking for something in the $500K. Will they get that, I have no idea. I just know that I would like to buy my own house in a year or two and I have no chance with a market like this.

Most of these houses have been for sale for months. They aren't selling. All I know is that I hope some nice families move in to both my neighbors houses. We've had our fair share of bad neighbors over the years and are ready for normal people.

 

[ChristmasElf]

Definitely slowed down here. Between the insane rise in home prices and the hurricanes of the past two seasons, the market has really slowed down here in southeast Florida.

Many people that bought houses as investments to flip are starting to feel the pinch. There was a big article about it today in our local papaer (The Stuart News).

I think this is actually a good thing - things were getting so crazy this time last year. Some houses were only on the market for a matter of hours before they sold - at ridiculously high prices. Median home prices increased here between 100-150% between 2000-2005. Maybe now more people will be able to buy homes as the prices come down to more realistic numbers.

We have good friends in West Lake Worth that saw their neighborhood prices in the 800's and up last summer (which was ridiculous considering the homes were average of 3000 feet and back up to a very busy road) anyway, this year the houses that are for sale are just sitting and the owners have lowered the prices at least twice on each property. No where near the demand of last summer.
Here in Orlando, the prices are cooling a bit but will probably get a little more traffic when school gets out for the year.

 

[sajetto]

Things are a little strange out here for now. All new construction is just sitting. Why? Because this built way to darn much of it! We've got hundreds of newly developed subdivisions with dozens of empty houses in each one that have sat there for over a year.


However, resales are still doing quite well. People are rushing to get in those homes because interest rates are rising, the homes are affordable, and the new homes are overpriced and builders in our area are begining to take on undesirable reputations because they are building too quickly. Some of my family works in the planning department for the city and have told me that home inspectors have reported more issues with the new homes than the old ones.

We just got a 30 year fixed rate mortgage for 6%. The loan officer was saying that we came in just in time, she got the new paperwork for 3 different loans that have increased to 7.5%!

This worries us though because we have 2 houses we were hoping to flip this year. It make take longer to sell them with the interest rates that are soon to appear.

 

[FreshTressa]

Not yet where I live!

I think because I live right next to microsoft and they are hiring my neighborhood is still in demand.

Traffic around here is horrible, and I live about 4 minutes from microsoft...no freeways or traffic jams, so houses around here continue to go up up up!

 

[poohluvrs]

Sales have slowed a tiny percentage, but prices are up a tiny bit as well...the average home price here is approx $400k - which seems to be the very low side of the market right now...lots of high end home sales...

 

[poohluvrs]

And no, i dont see a "burst" in the R.E. bubble, its pretty steady!