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London Girl is correct. Things like food and utility bills will continue to rise, and real estate will continue it's decline - experts are now saying 2011 for any bottom. The fed is even trying to push mortgage rates even lower than they already are, can anyone say 'life support'? lol
At least one good thing from home prices continuing their slide. . .the "home flipper" is going the way of the dodo bird. haha
London Girl is correct. Things like food and utility bills will continue to rise, and real estate will continue it's decline - experts are now saying 2011 for any bottom. The fed is even trying to push mortgage rates even lower than they already are, can anyone say 'life support'? lol
At least one good thing from home prices continuing their slide. . .the "home flipper" is going the way of the dodo bird. haha
I beg to differ. Since prices are going way down, it's now much easier to acquire more properties to rehab. Small houses and condos are now the game because after renting them out, the original investment is covered in what, 5 years? 100% income in 5 years is a pretty safe investment.
I agree that the days of putting makeup on giant houses to make a quick 50k are over, but "flippers" are just becoming landlords now.
I would expect that house prices will decline. But rents may increase.
why is this?
i'm always curious when people suggest rents will go up / are going up in an environment where real estate prices are going down. it suggests that sellers have no pricing power, but landlords do.. and i don't understand why that would be.
With all the foreclosures in recent years, there's a growing pool of people who need a place to live but who aren't going to qualify for a mortgage anytime soon.
With all the foreclosures in recent years, there's a growing pool of people who need a place to live but who aren't going to qualify for a mortgage anytime soon.
Is anyone actually seeing this in their market yet though?
Just curious. I'm in a smallish town in the Midwest and things are staying pretty much flat.
I have a couple of theories.
a) Folks who lost their jobs and their homes have left the area for greener pastures (i.e. larger nearby cities).
b) People are so down and out that we have completely shut them out of the housing market---including rentals. They've moved in with friends or family or are lving out of their cars and campers. At the most they are living in a "weekly" hotel.
In other words, there does not appear to be a growing rental market in my location.
Woudl love to hear what it's like in other parts of the country.
People can rent places with out jobs. Give most any landlord a big enough deposit and prepay the whole lease/produce Sec 8 documents and you can get a lease. How can people prepay the whole lease? Cash out IRA,not smart but i have seen it...
Rents won't go sky rocketing, but landlords will get what they ask if people need to stick around for family reasons...
That won't work to get a mortgage and I sorta doubt that anyone with an IRA substantial to buy a house would be so eager to toss it at overpaying for a house.
If people need to leave town you will see more vacancies and falling rents.
If incomes are flat/declining prices fall.
This is simple stuff...
Smaller towns,with a more limited range of employers tend to react more quickly / dramatically to downturns. Sadly even if hints of a turn around are in the air for some,in smaller towns with an isolated employment base, the downward pressure is harder to overcome...
Quote:
Originally Posted by plaidmom
Is anyone actually seeing this in their market yet though?
Just curious. I'm in a smallish town in the Midwest and things are staying pretty much flat.
I have a couple of theories.
a) Folks who lost their jobs and their homes have left the area for greener pastures (i.e. larger nearby cities).
b) People are so down and out that we have completely shut them out of the housing market---including rentals. They've moved in with friends or family or are lving out of their cars and campers. At the most they are living in a "weekly" hotel.
In other words, there does not appear to be a growing rental market in my location.
Woudl love to hear what it's like in other parts of the country.
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All about employment trends and income...
