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« Reader Earns a Ton with Amex Blue | Main | Money and Happiness, getting a Raise, and the Housing Rebound »

July 11, 2008


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It is a strange time for real estate but also a time for some investors to make some great money. Phoenix is a tough area right now but if you do you due diligence there are going to be some people who become millionaires out of this time period.

And then there are areas (like where I live) where the housing market hasn't changed at all. Houses are still moving as they always have and the prices haven't really changed (or maybe gone up).

Our experiences seems to be similar to FMF. We have a couple of houses on the block that have not sold and are priced right. Then we have a couple (including ours that we bought) that have been foreclosed on and in questionable shape. Fortunately, the neighbors seem to have a lot of pride in their own house, so they keep an eye on each other and mow the yards that need it to prevent the whole neighborhood from going down. We are in the same association as the neighborhood across the street and they are having a really tough time selling houses for some reason. Prices are about 5-10% lower for basically the exact same thing we have...odd.

I have to say that I cashed in on this market. I'm a first time homebuyer and closed on my first place May 30th. I probably saved about $10k. Thanks housing bubble!

I'm with Paul, our area is pretty consistent with pre-bubble times. There is a little excess inventory probably but things are still selling pretty well. I think new homes have slowed though.

If you have an open mind right now, people are buying houses for screaming deals and fixing them up. If you can wait for awhile to sell, you definitely will get your money out of it!!

My area is OK. It is a buyer's market, there is some decline in some property values, but we haven't been hit much by foreclosures yet. I heard that NYC started experiencing foreclosures, so maybe we in Westchester cty will be hit soon, but so far it hasn't been that bad. Sure I see in our Pennysaver - a weekly publication we get for free that has real estate ads as well as other stuff - that the asking prices for condo complexes I know about is lower, but they are still above the pre-bubble level. I personally think our area is still overpriced because IMHO 300K for a one bedroom condo is ridiculous, even more ridiculous than a median house for 600K-something, so the prices may come down more.

A newsletter from a real estate said that the median price is a little bit up since last year, but I am wondering about the effect of high end properties for seriously rich. Maybe if they foreclose the Clintons' house in Chappaqua ....
I am curious if the prices would show decline if multi-million dollar homes are excluded, but nobody provided that statistics.

The recession has arrived.

The real estate market is bad news in the midwest. Economic downturn and subprime is eroding home values. In Houston, where I live, it is the exact opposite. I hope oil stays high for a while.

> there are going to be some people who become millionaires out of this time period

So Mark expects inflation to go up at double digit rates? (until homes in Phoenix are worth a million inflated dollars) :)

Here in Springfield, Illinois, it's still booming along in real estate. My wife and I just purchased our first home, at just below what we would have considered our "maximum price" to pay for it.

It hasn't hit here yet, but you can feel the wave coming. I wonder if we're going to see it hit really hard towards fall, when gas is at $6/gallon, and everyone has been maxing out their credit cards. Not maxing them out with toys, cars, and computers, but simple things like gas and food. Whats going to happen when the credit crunch hits people at the gas pump, rather then the best buy check out line?

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