Real Estate - where we stand - what should I do?

[car54]

Originally Posted by MKing

I hope someone or the op can help me understand this because I don't understand how prices adjusting to 2004-2005 prices could happen or be a good thing, (except for sellers) because 2005 was the height of the market?? So I just don't understand this post. Our house would have sold for about $600,000 in 2005 but now we would be lucky to sale for $400,000 - $425,000, so how is home prices going to "drop" to 2004-2005 levels?? Thanks for helping me understand.

You're right, that doesn't make sense....maybe he meant 2000-2001 prices?

I don't think the market will EVER see 2004-2005 prices again (in inflation adjusted dollars).

[El General]

IMHO, it is very early 2004, and we will be at 2003 prices within the next two months. The folks that are waiting for Spring probably will be waiting for Santa to come down their chimneys on 12-25. Foreclosures in Fairfax County now stand at 4000 for the year, in 2005, there were less than 200.

[seysoldTD]

Originally Posted by MKing

I hope someone or the op can help me understand this because I don't understand how prices adjusting to 2004-2005 prices could happen or be a good thing, (except for sellers) because 2005 was the height of the market?? So I just don't understand this post. Our house would have sold for about $600,000 in 2005 but now we would be lucky to sale for $400,000 - $425,000, so how is home prices going to "drop" to 2004-2005 levels?? Thanks for helping me understand.

Mking,

When in 2005? If you think your home would have sold for this price back in 2005, then in today's market you might sell it for the same price. Several facts that are different today from a couple of years ago: in this price range buyers expect a pristine home, no exceptions; he inventory for these homes is a lot higher, buyers are hard to come by, and the banks are more strict on loan guidelines.

One very important factt: some areas have been hit with a higher price decline due to the sale of distressed properties so your $600K might be a high price tag.

seysoldTD

[MKing]

Oh trust me $600,000 would never happen now, it would have at the height of the market, which I could have sworn was 2005. In July 2006 a house a little smaller than ours sold for $575,000, so I know ours would have sold for more in the market frenzy that was going on. But now there is 4 or 5 homes in forclosure and they can't even sale for in the mid to high $300,000, (these are all smaller than our house).

Our house is in pristine condition, (all hardwoods, a finished basement that looks brand new because we don't use it) lol my family calls it the museum. Which is not true but we have over 4800 sq ft on 3 levels, no children, and both my dh and I are neat freaks! So I believe our house would show well, but I don't think it would ever sell for what it could have in 2005 so that is why I am so confused by the comment the market is "dropping" back to 2005 prices. Sorry I am not "getting it"

[normie]

Maybe you saw a typo or something handwritten? 2005 sorta looks like 2003. Usually I hear people talking about prices falling to 2003 levels.

[claude henry smoot]

When I said I expected home prices to drop to 2004-05 levels, I was going off this data (Fairfax County Median House Value - data collected from various sources):

2000 $209,000
2001 $238,000 +14%
2002 $275,000 +16%
2003 $315,000 +15%
2004 $385,000 +22%
2005 $479,200 +24%
2006 $542,744 +13%


Based on the home prices I've been seeing in Fairfax, most people aren't listing at 2004 prices yet. So when I think of the height of the market, I actually am thinking 2006-07. In my mind, prices topped off in early 2007, and the credit freeze in August was the "point of no return".