More good news - real estate market picking up

[Greebo]

http://www.msnbc.msn.com/id/32104105...s-real_estate/

WASHINGTON - The U.S. housing market has started to recover from the most far-reaching crisis since the Great Depression, data released Thursday shows. Sales of previously occupied homes rose for the third month in a row in June, the National Association of Realtors reported. That hasn't happened since early 2004, during the boom.

Foreclosure numbers are also declining, and inventory is declining as well. That means values will at a minimum, start to stabilize, and optimally, start gaining value again - HOPEFULLY at a rational pace now that we, presumably, have gotten over the "everyone deserves a home no matter how stinking awful their credit record is and how unlikely it is that they'll actually be able to pay for it" craze.

[strezzed]

Same thing here. I see more "sold" signs than "for sale" signs now.

[frugalwarrior]

Well, I hope your right but the aftermath here is still devastating. The formerly $280,000 house next door just sold for $125.000. I was excited because the new people seemed great and I had been worried. My neighbor tells me they paid cash so it's probably a rental. My worst fear.
The house next door to my mothers is up for $14,500. i told her to buy it. Her house is worth $90,000 according to Zillow.com.
People that formerly couldn't afford a neighborhood now can. The trouble is can they afford to maintain it. Will this turn into another prob. And of course there is the fact that I am still paying at the old rate on my mortgage and not the new "pricing " that annoys me. Kinda takes the "woohoo" factor out of the fact that we will be paid off in 4 years or so, doesn't it.
I do hate to sound bitter but we didn't get behind in our mort. even when my DH was ill because I did things outside the box so we didn't. There is no Gov't leg up available for us and our taxes are the same. No one reset the price of our mortgage and even refinancing to a lower rate won't help after i pay fees w/ so little time left.
we are in the middle and there is no help here. Sorry to stray off course but Clariton is helping fuel this post too.LOL.

[Greebo]

Hey the economy isn't like a canoe - it can't stop and turn on a dime - its more like an ocean liner. It has to go a LONG way down the shore before you realize that the whole time, it was changing course.

These indicators don't mean tomorrow everyone will be in the green again - it just means things are improving.

I mean - our house went from ~$250k to about $220 and we couldn't refinance right now to save our lives cause we're at 103% loan-to-value...

But staying the course and waiting it out are the best options we have. So...we wait.

[forHISglory]

We just sold our house this week (woo hooooo!); of course,several hurdles must be jumped before it's a done deal: appraisal, insurance inspections, etc. But we really wondered if it would sell at all in this economy. We listed at $205, 000, and later dropped to 199,000. The offer was for 195,000. Not as much as we had hoped for, but not too bad, we thought.

So yes, the market is picking up, but is doing so very very slowly.

[Greebo]

We just sold our house this week (woo hooooo!); of course,several hurdles must be jumped before it's a done deal: appraisal, insurance inspections, etc. But we really wondered if it would sell at all in this economy. We listed at $205, 000, and later dropped to 199,000. The offer was for 195,000. Not as much as we had hoped for, but not too bad, we thought.

So yes, the market is picking up, but is doing so very very slowly.

Closed sold or contracted offer sold? Not to rain on any parades, just cautioning against chicken counting...

[MomToTwoBoys]

Same thing here. I see more "sold" signs than "for sale" signs now.

It's that way here in Calgary, as well. Bank of Canada said that one of the two biggest factors in the economy climbing out of recession locally was the housing market taking an upturn.

I feel for people who lost a ton of value on their houses. People who are looking to buy their first home or are looking to upsize/downsize for cheaper than they were before are going to benefit the most. We bought our house when it was listed for $139,900 but we managed to get that down and that was before the market shot up in 2005. I can't imagine trying to buy a house in Calgary when it was being sold for $400k or more before the housing bubble burst 18 months later.

[MomToTwoBoys]

http://www.msnbc.msn.com/id/32104105...s-real_estate/

Foreclosure numbers are also declining, and inventory is declining as well. That means values will at a minimum, start to stabilize, and optimally, start gaining value again - HOPEFULLY at a rational pace now that we, presumably, have gotten over the "everyone deserves a home no matter how stinking awful their credit record is and how unlikely it is that they'll actually be able to pay for it" craze.

I hope this also teaches the buyers what their real limits are. People buying homes that cost them more than 25% of their income every month should hopefully get smarter with this whole situation.

[Greebo]

I hope this also teaches the buyers what their real limits are. People buying homes that cost them more than 25% of their income every month should hopefully get smarter with this whole situation.

We can only hope, right?

I think the banks are going to be more likely to learn this lesson more completely than anyone else, but that's fine by me. I've got NO problem if the banks make it harder for people who can't afford it to buy a house.

[forHISglory]

Greebo, the buyers and us have agreed to a price. They have been approved for a loan. The inspections came back clear. If the appraisal comes back OK, then the deal is closed.

[Greebo]

Greebo, the buyers and us have agreed to a price. They have been approved for a loan. The inspections came back clear. If the appraisal comes back OK, then the deal is closed.

Almost... the deal is closed after you spend 2-3 hours in a room with the buyers, your realtor, their realtor, and the title agent.

But it certainly sounds like you're on the right path w/o road bumps.

[Preston]

I will say honestly that some of this will be due to the first time home buyer tax credit. But that was the point of the stimulus.. but there is also going to be higher regulation on getting approved for a home which may hinder some peoples' ability to get a home.

I will say I wouldn't have been able to buy this year if things didn't come down to the way they are -- We bought our house in June. The house, when it first went on the market was listed at 115k. There was a contract on the house that fell through.

By the time it got around to us went down to 100k and we got it for 95k, but the sellers covered all our closing costs, provided a home warranty, and paid for all the title transfer fees... about a $3000 concession.

[frugalfranny]

I truly hope this is all true.

Would be great for my future plans. I will keep my fingers crossed.

[strezzed]

It's that way here in Calgary, as well. Bank of Canada said that one of the two biggest factors in the economy climbing out of recession locally was the housing market taking an upturn.

I feel for people who lost a ton of value on their houses. People who are looking to buy their first home or are looking to upsize/downsize for cheaper than they were before are going to benefit the most. We bought our house when it was listed for $139,900 but we managed to get that down and that was before the market shot up in 2005. I can't imagine trying to buy a house in Calgary when it was being sold for $400k or more before the housing bubble burst 18 months later.

We were checking MLS to see whether the drop in value has been quite large. It actually hasn't been bad here. One neighbour was selling for $580k but purchased at $375k 5 years earlier. A few years ago they might have sold for $650k so I don't see the drop as drastic (but then again we're not the ones selling).

[McD]

I have noticed quite a few homes being bought/sold in our suburb, as well as many more being built. It's still very slow and steady, but it's picking up.