How much will home prices fall in 2007 ?

Question

Let's say ... a $300,000 house right now ... what will it be selling for in about Dec. of 2007 ? Also, what do you think mortgage interest rates will be later this year ??

Answer 1

Some homes that are listing for 300k now will be able to buy at 235k or so.

The market is correcting and from what?

http://www.breakingbubble.com/index.htm

To find out what the market is correcting from.

Answer 2

The first thing you need to understand in that real estate is cyclical by nature. So every 5 to 10 years there is a peak and then a trough.

Generally, a rule of thumb is to spend 3 times what you make annually for a home. So if you are looking at a neighborhood with median household AGI of $100,000, then the median home price should be a corresponding $300,000. Thus if this is the case in your neighborhood, then the price will probably either stay flat of go down some since we are leaving the top of the market now. More than likely, though the home you are looking at is priced at $300,000 and the average household AGI for the area is only $50,000, thus the property would be overpriced by $150,000 (i.e. 3 times $50,000 = $150,000 sale price).

But because of toxic loans like pick a payment and interest only, there are a bunch of people (roughly 75% in some areas) that have purchased more home than they can pay for, once the adjustable loan adjusts and you are going to see them giving the home(s) back shortly. Actually this is already happening. Watch the news and read the newspapers for proof of this.

So this is not a good time to buy, but if you find hte niehgborhood you like and wait for a year or so, you will be able to get a great deal at that time, once there are tons of repo's on the market. If you need to lookup the average AGI (adjusted gross income) for your area, goto melissadata.com and see the tax info. Once you see what people in the neighborhood are making, then you can determine what the prices of the homes should actually be.

Good luck.

Answer 3

You have not provided enough information. A $300,000 house in the northern Virginia, Washington and Maryland area will be bid on far above $300,000. In some parts of SC it may drop just a hair. The Seller regardless will not want to drop much lower than the amount that they owe on it, unless paying to get out of the mortgage is more attractive than paying it and hoping for someone to buy.

Answer 4

Depends where you buy,of course.A friend has a 600k home on the market,has lowered asking price 80k,house is empty,no offers,and he's paying mortgage on two homes till it sells.Interest rates,on the other hand,I wouldnt expect to rise much more.I saw a fixed 25 yr at 7.5 today,which doesn't sound too good compared to the last 5yrs,but It shouldn't go too much higher.Wait till those idiots who used a ARM to buy too much house get foreclosed on,this will drive prices down as the market floods.

Answer 5

lengthy time period it really is a sturdy ingredient, couple of minutes period it really is a nasty ingredient and doubtlessly might want to steer on to a melancholy if different aspects kick in which includes larger rates of pastime and better unemployment. The decline signifies that some human beings like those with pastime in elementary words mortgages who offered their homes in the previous few years are probably in a negative fairness challenge and may want to really have borrowed against their homestead ensuing in even more desirable negative fairness. This quantities to an massive volume of unsecured debt nationwide that could want to not in any respect be payed decrease back, that could want to reason banks and loan agencies to pass below. as an social gathering 60% of all new mortgages in California (as of early 2007) were pastime in elementary words mortgages, this on my own might want to reason tremendous scale economic sector loses and mess ups. If the housing "bubble" bursts we will be in a sustained melancholy, and we are strolling a great line at the moment.

Answer 6

I'm not sure whether or not they will. But I DO know they'll have 2 eveventually fall if 2 many ppl won't buy cuzza de prices. 2 many ppl R livin w/ others w/ homes which is Y real estate's losing business @ least around my area. We have live-ins everywhere here but no homeless; if so we don't hear bout it.

Answer 7

$309,000 - given the average nationwide appreciation rate. Some markets more, some markets less.

Mortgage rates can not really get less than they are right now.