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Mike2400 · Joined: 26 May 2007 Posts: 7

Statistically, incomes are NOT keeping pace with the prices & inflation. I foresee California leading the pack in the Real Estate market 'crash'. (Texas)I can't afford anything over $120k, and under $150k, the homes are outdated, neglected, disrepair, no concessions by Sellers,in questionable neighborhoods.In 1962, my parents bought a 2500 sq ft home in a suburb of San Jose, California for $30k. In 1966, they sold it for $33k. Today, because of taxes, inflation, extreem demand, and the Real Estate mindset, that home - with general upgrades - would go for over $650k. I would not expect the home to sell for $33k, but a fair price would be $100 a sq foot...So, now people are beginning to realize - in this FEEDING FRENZY of Real Estate - that in very short time, homes in San Diego and other such communities will be unapproachable.What is your spin on this?? See link...http://articles.moneycentral.msn.com/Banking/HomeFinancing/WhyYouCantAffordAHome.aspx100807

Dilettante · Joined: 07 Mar 2007 Posts: 3

No it will get worse first..we are in a recession but most are blind to it.

carly · Joined: 20 Dec 2005 Posts: 2

It's already burst. Home prices are way down in most markets.

VAgirl · Joined: 16 Mar 2006 Posts: 5

never

Sharon9349 · Joined: 12 Nov 2003 Posts: 3

Well aren't you Mrs. Current Affairs. The bubble has already burst...In order for people to ACTUALLY afford a home the prices would have to drop 50%, at least thats how it is in California. The last several years people bought homes that they could not afford, pretty much everyone who bought a home could not afford it. So now if those people want to sell their home they can't because they will only get half of what they paid for BECAUSE nobody can afford it at full price. Even if you wanted to buy a house that you can't afford you can't anymore because the banks have gotten really strict with that. So now you have a LARGE percentage of home owners who have a Mortgage they can't afford and no one to buy it from them, and banks who want their money NOW because the values of homes is dropping.Its a real cluster f**k

gracec · Joined: 22 Jan 2004 Posts: 3

ahh sweety in case you havent turned on a tv or read an article in the paper...the housing market bubble burst roughly a year ago. meaning that the housing market is full of homes for sale, and there are not enough buyers.the foreclosures on homes exploded due to the bad credit and lending of many companies...and what happened was that they gave loans to people who could not afford them. then the banks had to take back ownership of many of these homes and along with the regular people trying to sell...there are a ton of homes out there...now if you looking for a home within a certain price leve, what you should do...is get a listing on foreclosed homes because the banks are selling those off at very very good prices...banks are money lenders, not house sellers, so they are willing to take a loss to just get rid of a property.the other thing for you to do, is to look at the type of houses that you like, sold from regular owners and go in with a horribly low bid...you would be surprised but they might start to work with you and you could walk out with a great deal on a house that in any other market you couldnt afford...the reason for this is that they are regular home owners are hoping to get their money's worth, but in a way know unless they get a very niave customer they wil get a lot less than what they are asking...so i say go for it!look at it like this..one of the homes i recently bought was listed at 309,000....i came in with a bid of 250,000 and it was sold to me for 272,000...cause i told them there is a lot of other stuff out there and if they wanted to sell their home, that i had a limit.

gogo7 · Joined: 26 Oct 2004 Posts: 7

it already has! according to the news,sales are down 41% over last year.an article i read just today(raleigh nc "news and observer.")says the number of homeless is increasing this year,due to the crash in market for houses,combined with low or not increasing incomes.raleigh used to be a buyers/realtors dream,but the market is so bad,people are dropping home prices just to sell them,and taking a big financial hit in so doing.people arent buying.lenders and their "a.r. m's " messed everything up.

onukpa · Joined: 20 Apr 2006 Posts: 5

It's already happening in the area I live in. The market is flooded with foreclosures due to no money down loans doled out to minorities and fist time home buyers by the boat loads. Now they are getting these homes back in disrepair and worth less than they loaned for them. In this area all the foreclosures are bringing down the home values and the builders are having to liquidate new homes. People who have pre existing homes to sell basically have to give away their equity to sell their homes. If we tried to sell our home right now we would have to take a loss. We bought just before 9/11 when homes were super inflated and have put around $55,000 of improvements into our home. We are pretty much stuck here for a while.

PontificalPape · Joined: 09 Dec 2006 Posts: 5

I hate to tell you this, but prices are down almost 30% in San Diego, right in line with what I predicted over two years ago. The bubble has already burst in most of the country. Those places that were on the leading edge are on the verge of a turn around.The prices thirty years ago have nothing to do with conditions today. Price is where marginal supply and marginal demand balance. There just isn't a whole lot of supply, and demand is very high, for places like the Bay Area, San Diego, etcetera. It isn't important to the price level that someone making $10 per hour can't afford it. There are enough people who can, and who want to, to keep the pricing level where it is. If there weren't, prices would have fallen a long time ago.This is probably about as affordable as things are going to get, right now. I don't have a crystal ball, so I can't make a promise as to how soon, but the economics is a much better predictor of what than when.You want housing to get more affordable? Make it easier to build. For over thirty years now, we here in California have been doing everything short of completely outlawing new development to slow down development. But this has consequences in the price of housing. You can't pretend to be surprised that in an area so many would like to live, where the supply has been highly constricted, that the prices have shot up like they have.

artwhiterealtor · Joined: 01 Oct 2005 Posts: 2

It already has burst. Some Canadians are spending BIG higher valued Canadian dollars on US real estate for a while, but that cant last. It obscurs the fact that the US home market is dead.