boopie
15th December 2007 - 05:37 PM
by Pat Mertz Esswein
Thursday, December 13, 2007
provided by kiplinger.com
| QUOTE |
| We at Kiplinger's Personal Finance magazine believe housing prices nationally will bottom out in 2008, but the recovery for housing markets will be slow. While lenders and loan servicers, the federal government and consumer credit counselors work out a plan to relieve some homeowners facing unaffordable rate adjustments on their subprime ARMs, home values continue to slide. |
| QUOTE |
| In the hottest markets -- California, Nevada, Florida, and to a lesser extent Washington, D.C., and parts of the Northeast -- investors and homeowners are watching helplessly as home values fall and mortgage costs rise (ARM resets will peak this spring), and they can neither sell nor refinance. Result: Foreclosures are soaring. |
peanut
16th December 2007 - 01:04 AM
We are just in a normal market in my opinion. We have been spoiled by exaggerated appreciation from the last 5 years or so....so now that things are normalizing people want to say that things are crashing. ARMS have always been risky. People just got greedy and wanted to buy above their means and now they are paying the price. JMO
arrowflinger
16th December 2007 - 11:37 AM
| QUOTE (peanut @ Dec 16 2007, 01:04 AM) |
| We are just in a normal market in my opinion. We have been spoiled by exaggerated appreciation from the last 5 years or so....so now that things are normalizing people want to say that things are crashing. ARMS have always been risky. People just got greedy and wanted to buy above their means and now they are paying the price. JMO |
Well, the Augusta area and eastern Carolina have been shown for some months to be a 'hot-spot' for risky debt of all types, so if foreclosures follow that pattern, there will be excessive inventory around our area.
Homes in our neck of the woods have quickly sold in recent years, but there is a very definite slow-down with some homes on the market for 6 to 8 months.
Prices may very well go down here, too, but not by the 30% being seen on the coasts.
Too many multistory, 2800 to 3500 sft homes have been built considering the aging demographics. Those will almost certainly fall and there should be a premium on 1400 to 1700 sft homes on a single floor. There will be a shift BACK to the subdivisions built in the 70's and 80's with ranch homes of this size and remodeling will boom.
A builder or remodeler of homes that are handicapped accessible should do very well.
JMAHO
peanut
16th December 2007 - 10:46 PM
With the foreclosure rate, it is a good opportunity for investors wanting rental property.
My boyfriend does remodeling so I am hoping that his business will boom! He has been pretty slow the last couple of months, but then it's hunting season too. I don't think he has wanted to work too much. He gave a deer to my parents today when they were in town.