Comments on: Is a Second, Stable Housing Boom on the Way? http://www.sundriesshack.com/2009/07/28/is-a-second-stable-housing-boom-on-the-way/ Delivering the Best of the New Media Since 2004. Fri, 25 May 2012 06:20:26 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: ThomasDhttp://www.sundriesshack.com/2009/07/28/is-a-second-stable-housing-boom-on-the-way/comment-page-1/#comment-685321 ThomasD Thu, 30 Jul 2009 01:20:23 +0000 http://www.sundriesshack.com/?p=9719#comment-685321 I'd advise caution for the near term. Know your market. I'm presently in the tri-cities of NE TN and while prices took a little dip last year things are firming up again. Some neighbors have had to move due to job changes and they've had to resort to some non-traditional approaches to selling but overall houses that are priced fairly will sell, and the ones that sit unsold are either overpriced or have not so hidden issues. Conversely much of my family is in SW FL and things there are horrible with a parade of horrible marching in and no visible end in sight. Sure, you can buy a brand new luxury condo in Fort Myers for literally less than half (maybe even a third) of what it initially sold. Unfortunately that does little to compensate for the $1000 a month maintenance fees, which will only rise as the lower floor retail space continues to sit unused and fails to generate any of the much anticipated revenue and more residents fail to materialize. Pity the few buyers who are now trapped in those concrete mausoleums. I'm afraid the real stress test will occur when interest rates start to rise. If the market does not tank when rates break the 6% barrier then all is well. If buyers vanish as real prices rise then things could get nasty in a hurry. I'd advise caution for the near term. Know your market.

I'm presently in the tri-cities of NE TN and while prices took a little dip last year things are firming up again. Some neighbors have had to move due to job changes and they've had to resort to some non-traditional approaches to selling but overall houses that are priced fairly will sell, and the ones that sit unsold are either overpriced or have not so hidden issues.

Conversely much of my family is in SW FL and things there are horrible with a parade of horrible marching in and no visible end in sight. Sure, you can buy a brand new luxury condo in Fort Myers for literally less than half (maybe even a third) of what it initially sold. Unfortunately that does little to compensate for the $1000 a month maintenance fees, which will only rise as the lower floor retail space continues to sit unused and fails to generate any of the much anticipated revenue and more residents fail to materialize. Pity the few buyers who are now trapped in those concrete mausoleums.

I'm afraid the real stress test will occur when interest rates start to rise. If the market does not tank when rates break the 6% barrier then all is well. If buyers vanish as real prices rise then things could get nasty in a hurry.

]]> By: Obi's Sisterhttp://www.sundriesshack.com/2009/07/28/is-a-second-stable-housing-boom-on-the-way/comment-page-1/#comment-685303 Obi's Sister Wed, 29 Jul 2009 07:52:20 +0000 http://www.sundriesshack.com/?p=9719#comment-685303 You've been ambushed as one of my favorite blogs! See <a href="http://justgrits.wordpress.com/2009/07/29/ambushed-seven-things-i-love/" rel="nofollow">here</a> for instructions (you know how these things work). You've been ambushed as one of my favorite blogs! See here for instructions (you know how these things work).

]]> By: fosterthttp://www.sundriesshack.com/2009/07/28/is-a-second-stable-housing-boom-on-the-way/comment-page-1/#comment-685301 fostert Wed, 29 Jul 2009 07:09:14 +0000 http://www.sundriesshack.com/?p=9719#comment-685301 I wouldn't get so excited. Every fall has a little bounce back. The marginal people had to sell quick and accepted lower prices, which drove prices way down. We're just entering a phase of basically stable prices. They are back up to the point where people are willing to sell now. And they are still selling a lot less quickly than last year. This isn't really so great. But recoveries take time. The numbers two months from now should look better as the summer construction work shows up on the books. But their won't be even a minor boom for a decade. Every third generation, we learn what our grandparents tried to tell us: markets don't always rise. We learned that lesson, and people will be a lot tighter with their money. They won't just buy a house on the assumption that the increase in value will cover them. And that takes a lot of people out of the market. Without the irresponsible buying, booms don't happen. I wouldn't get so excited. Every fall has a little bounce back. The marginal people had to sell quick and accepted lower prices, which drove prices way down. We're just entering a phase of basically stable prices. They are back up to the point where people are willing to sell now. And they are still selling a lot less quickly than last year. This isn't really so great. But recoveries take time. The numbers two months from now should look better as the summer construction work shows up on the books. But their won't be even a minor boom for a decade. Every third generation, we learn what our grandparents tried to tell us: markets don't always rise. We learned that lesson, and people will be a lot tighter with their money. They won't just buy a house on the assumption that the increase in value will cover them. And that takes a lot of people out of the market. Without the irresponsible buying, booms don't happen.

]]> By: suekhttp://www.sundriesshack.com/2009/07/28/is-a-second-stable-housing-boom-on-the-way/comment-page-1/#comment-685293 suek Tue, 28 Jul 2009 19:29:50 +0000 http://www.sundriesshack.com/?p=9719#comment-685293 You may be right. I've forgotten where I saw it - I've been checking out economic/financial blogs in order to try to get a handle on what's going on - but there was a plus one and a minus one...the plus one was that the price of lumber was going up again. The minus one was that railroad car loads were still low and going lower each week. You may be right. I've forgotten where I saw it – I've been checking out economic/financial blogs in order to try to get a handle on what's going on – but there was a plus one and a minus one…the plus one was that the price of lumber was going up again. The minus one was that railroad car loads were still low and going lower each week.

]]> By: Karenhttp://www.sundriesshack.com/2009/07/28/is-a-second-stable-housing-boom-on-the-way/comment-page-1/#comment-685290 Karen Tue, 28 Jul 2009 14:10:27 +0000 http://www.sundriesshack.com/?p=9719#comment-685290 I remember a day when even a small amount of good news was actually good news. What does it take today to call something good news? I believe the housing industry led us into this recession, and housing will lead us out. one step out of a recession is still out, even if its not 10 steps. I remember a day when even a small amount of good news was actually good news. What does it take today to call something good news? I believe the housing industry led us into this recession, and housing will lead us out. one step out of a recession is still out, even if its not 10 steps.

]]>