Your probably know this already, but the bubble has busted in most places. Real estate would still be going strong if all those dumbasses didn’t take out those adjustable loans, putting all of those foreclosures on the market. Experts say we still have another year to go before we start seeing things get better.
The area I live in (Idaho Falls, Idaho) wasn’t hit that hard by the bubble, prices still went up, but not as bad as Arizona, California, and Florida. But when I can see the effects of the bubble hit here, I know it must be pretty bad in other places. Around here, your house will usually end up on the market for about 4 months. As of right now, most houses are sitting on the market for 10 + months. But thats still not that bad compared to other places such as Phoenix, Arizona which had 4,700 houses on the market a few years around, now have about 67,000 houses on the market right now.
What does that mean? This situation is only bad for people selling there houses, right now is the time to hold on to your real estate and wait for better weather. Its also great for investors, this means that there are tons of houses on the market that are cheaper than usually that you can pick up and rent out. And that is exactly what I plan on doing too, I have been searching the market these last few months and there are a ton of cheap (but good) houses on the market that I could purchase and then rent out. Time to start shopping.
The interest rate is still strong too, it is in the same exact spot that I got mine over a year and a half ago which is 6.25%. However getting a loan will be a different story, since most lenders are getting butt raped from all the bad loans out there, so lenders wont be giving just anyone loans anymore.
This whole situation is because of materialistic people. They go and purchase a home, then see that they still have extra money every month so they go and buy a new car, they then realize they still have money every month so they go and buy a bike or something, and then it all comes crashing down when they get a 400$ phone bill or something they cant afford. They end up losing everything. I believe that and the adjustable rate is what hurt people the most with there mortgages. This even happened to one of my buddies, whom lives with his parents now.
If you’re looking for some more articles on this, than check out these:
Housing Slump Likely to Worsen
America’s big, fat housing inventory
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Fuck.Real.Estate.
All the jackasses who inflated the market, offer BS loans, etc, caused these problems, and you know what, serves them right.
Yep your right, its mostly because of these BS loans, putting all of these foreclosures on the market.
The market’s great right now if you want to buy. Especially for something like a rental property. Ive also heard that it might be a while before things go back to normal
Where I live in Florida, they’re saying the market won’t full be corrected till late 2009. People here were morons for thinking their 3 bedroom 1800 square foot house was worth $400,000.
I’ll be looking to buy in late 2009. Can’t wait to get a house for it’s true value, rather then some inflated shit.