Some people say that real estate will drop to 1/4 of what the prices are right now in the near future. That means a condo in Los Angeles that some poor family bought 2 years ago for 400K will be 100K in a year or two? That doesn't sound right.
What's your opinion on housing price in big markets like Southern California?
2007-08-10 04:05:22 · 10 answers · asked by frdsgt 2 in Business & Finance ➔ Renting & Real Estate
No, that is not right, but a 25% is more likely. The housing market was artifically inflated by people who had no business buying in the first place. They are dropping out now, and the market is actually correcting itself, not "dropping". The 400k house 2 years ago should never have been that high, and will go to a more realistic value of about 300k.
This is a great time to buy if you are not planning to sell in the next couple of years. The losers put a bunch of inventory on the market, which gives buyers lots of leverage. That leverage will be gone in another year as the investors snatch up the bargains.
2007-08-10 04:12:27 · answer #1 · answered by Landlord 7 · 2⤊ 1⤋
Its been a sellers market for quite awhile now, people bidding up the sales price of homes and houses sell in days. With the sub-prime failing the market will turn to a buyers market and you will see deals comming out of the wood work. Days on the market is on the rise and inventory is increasing with lots of price reductions. Real estate is not going to drop 75% of value, I don't know where you got that from.
2007-08-10 12:04:09 · answer #2 · answered by Leo F 4 · 1⤊ 0⤋
Your math is 3/4 off the price, not 1/4. At 1/4, that condo would sell for 300K. Still a drop, but that's the chance you take.
It's not a bad time to buy, but it's a horrible time to sell. When you buy, make sure you can live in your home and ride the wave of real estate highs and lows. And condo sales tend not to do that great- trust me, I know. Mine has been on the market for almost 3 months and nothing! I'm not going to sell it for less than I paid for it, but I may have to "give away" the appliances and other upgrades I've made over 4 years. It's still better than rentng, though, where I'd get nothing back after moving but a deposit!
2007-08-10 11:20:26 · answer #3 · answered by Twin momma as of 11/11 6 · 0⤊ 2⤋
It's never a bad time to buy real estate. Only bad markets. And Southern California is never a bad market.
2007-08-10 11:43:22 · answer #4 · answered by Anonymous · 0⤊ 1⤋
i live in california-----and of course we are seeing a large number of foreclosures due to the sub-prime and ARM crisis.
you can find some great deals...you just need to dig around. make sure the properties are clear of liens or back taxes before you bid on them.
part of the problem is people owe more than the property is worth...so they cannot refi. the property values are dropping...but if you remember the early 90's...this is not unusual and we will recover.
California is always a good place to buy (if you can afford)....and prices always go up and remain high in southern CA....everybody wants the sunshine....
good luck and good hunting :)
2007-08-10 11:58:41 · answer #5 · answered by Blue October 6 · 0⤊ 1⤋
All real estate investors will tell you... in a good market, buy, in a bad market, buy. There are deals to be had no matter where you buy. I specialize in equity management and mortgage planning. I could give a rent vs. own analysis to see if it's worth owning right now. Even if your home loses value...
Caseycasperson.com casey.x.casperson@chase.com
2007-08-10 11:14:42 · answer #6 · answered by The Smart One 4 · 1⤊ 1⤋
I would say if you are gonna live in the house you buy for atleast 7 yrs you cannot loose. Nomatter what the market is.
Good Luck.
2007-08-10 12:55:27 · answer #7 · answered by Dan 2 · 0⤊ 0⤋
there is no way home values will drop by 75%, unless there is a complete and total market crash. Which won't happen.
2007-08-10 11:12:52 · answer #8 · answered by dan 4 · 1⤊ 1⤋
I doubt that it would drop that much, but wouldn't be surprised at a drop, maybe as much as 25% or so.
2007-08-10 11:31:38 · answer #9 · answered by Judy 7 · 0⤊ 1⤋
Not sure.
But if you are renting you are throwing your money away.
Owning is better the renting in my Opinion.
2007-08-10 11:09:03 · answer #10 · answered by devilish1965 4 · 1⤊ 1⤋