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How's the housing market where you live?

lilwing88lilwing88 Posts: 2,812 ✭✭✭
in Non Cigar Related
Here in Chicago, it's rough, to say the least. We're putting our place on the market soon but we unfortunately have to do a short-sale cuz we're upside down on our mortgage. My realtor gave us the unhappy news that home values in my area would go down 5% by this summer and 10% by the end of the year. He also said that home values won't start to turn around till 2013 and won't recover to 2006 prices till 2020!!! Yikes!

If the short-sale works out, our credit will take a hit and we won't qualify for anything but an FHA loan for three years. So, we'll be renting for a while till we can fix our credit and save some money for a downstroke. Wish me luck!
Guns don't kill people, Daddies with pretty daughters do…..

Comments

  • denniskingdennisking Posts: 3,703 ✭✭✭
    My home I owe 250K on is worth 150K. Thanks for asking. :inserts barrel of gun into mouth:
    really though, it's abyssmal. I couldn't sell my home if I tried. I moved out of it 3 years ago and have been renting it out for a portion of the mortgage payment. I rent a home literally twice the size as the one I own for less than my mortgage. Tell me how a home is supposed to be an investment again..... The Southern Oregon market was directly affected by the market in Southern California. When theirs took a dump so did ours. People would sell their homes in SoCal for more than they were worth and a lot more than they owed and move to Southern Oregon and buy a home cash. When their market died, ours did as well.
  • mobyallanmobyallan Posts: 69 ✭
    sad to say, Dennis nailed it. SoCal market really sucks right now - we might be short selling as well...It's not the end of the world though - just gotta keep rollin' right?

  • letsgowithbobletsgowithbob Posts: 677 ✭✭
    I'm originally from california, got out in 05, luckily. One of the things my friends are doing in california, is buying a second home. You can get a great home for cheaper than you ever could have gotten one before, and then when you move into it, let the first one go back to the bank. I mean your credit is screwed for 7 years, but it would have been anyways with a short sale. Plus with a short sale I have heard in some states all the money that was shorted can be counted as income for taxes.
  • DiamondogDiamondog Posts: 4,171 ✭✭
    Market here in Ottawa right now is on fire and has been for quite some time......I had a house built and once the lot had a hole in the ground it went up 14k alone.....it is going to be rough though by July the gov't is changing taxes so housing will cost considerably more because of taxes. That being said, Ottawa is the biggest gov't town in Canada so the housing market is always steady or on fire never really gets low like other cities.
  • LukoLuko Posts: 2,003 ✭✭
    Things are good here in Pittsburgh, PA. Our ups are never too high and our downs are never too low. We lagged behind when things were going great guns but when things crashed, the landing was a little more gentle for us. Plus you've always been able to buy an shitload of house compared to other parts of the country. I could buy a very, very nice 4 or 5-bedroom here for 250K. As it is, I'm in a nice little 3-bedroom that I got for just over 100K.
  • lilwing88lilwing88 Posts: 2,812 ✭✭✭
    letsgowithbob:
    Plus with a short sale I have heard in some states all the money that was shorted can be counted as income for taxes.
    That's a good point...... I'll have to ask my lawyer about that. Thanks.
    Guns don't kill people, Daddies with pretty daughters do…..
  • TatuajeVITatuajeVI Posts: 2,378 ✭
    Well, Michigan's economy has been in the crapper for years now - far longer than the rest of the country, and our housing market is one of the worst in the country. Some people are saying it's a great time to buy a house here, but I disagree. I don't think we've hit bottom yet - which is scary - and more jobs are still being cut in the auto industry. The Big 3 really f-ed themselves over the years and our government taxed the he$$ out of them, and Michigan is paying for being such an auto-driven state. But I'm sure our governor will figure out how to tax them more and send more jobs away, lol.
  • denniskingdennisking Posts: 3,703 ✭✭✭
    lilwing88:
    letsgowithbob:
    Plus with a short sale I have heard in some states all the money that was shorted can be counted as income for taxes.
    That's a good point...... I'll have to ask my lawyer about that. Thanks.
    all the money they write off of the loan will show up as income and the loan company will submit a 10-99 form to you. also, if you short sell, the second mortgage is not entitled to jack so unless the contract states that they can't come after you for the balance, they will sue you, win, and garnish your wages.
  • cabinetmakercabinetmaker Posts: 2,560 ✭✭
    Lots of new construction here in Texas, at least this part. The housing market took a dump in other places worse than here, but we still got hit. Thankfully I sold my house in 06 at the peak and have been renting ever since..
  • kuzi16kuzi16 Posts: 14,633 ✭✭✭✭
    my area took a bit of a hit. ive been watching the newspaper and keeping an eye on asking prices near my house with similar features. they have gone down a bit but not too much. if i stay in my house a few more years i should probably be ok. i have no plans to leave for at least the next 10 years. im saving up to build. if i would have started my plan 10 years ago (when i was unable to) now would have been a great time to build. oh well. thus is life.
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  • denniskingdennisking Posts: 3,703 ✭✭✭
    I can't believe how cheap the homes are in Ohio, Kuzi. When I go to Columbus, we stay in a brand new 2800 sq.ft home and it cost 225K. The same home in southern Oregon would have been 450K. I rent a 2900 sq ft home that sold as a foreclosure for 269K. In a foreclosure it was more expensive than the homes in Ohio. It's crazy out here on the West Coast. Of course, you can keep your property taxes.
  • kuzi16kuzi16 Posts: 14,633 ✭✭✭✭
    oh yeah, ohio cost of living is cheap. my house at the high point in the housing market was bought by myself (out of need not out of band-wagoning) i paid about 150K for 1800sqft.
    as far as taxes go...
    im not doing too bad.

    mostly because the lot is kinda small.
    Kuzi's Forum Links Page
  • TheedgeTheedge Posts: 316 ✭
    I built about 2 years ago on a brand new block at the edge of town, southern MN. I've had the block to myself the last 2 summers. There is room for about 50 homes I believe, 168 all together with "phase 2" smurk. The dog sure likes the room to roam. I'm lucky business wasn't a complete bust, and I've got some pennys set aside.

    This winter they finally started on 2 new homes. It's actually a builder who had been in California and was forced to move back, lost his shirt. They are nice homes, but small, certainly not what he's used to building. He's got one serious looker on the line, going for 235 I believe.

    It'll all come around.
  • ScottUScottU Posts: 194
    No too bad, however it never really hit the outrageous highs like most of the country. I bought my house in 07 for 100k, put about 25 into it, and now have it listed for 160 so I guess I can't complain.
  • fla-gypsyfla-gypsy Posts: 3,023 ✭✭
    Great if your buying, horrible if your selling.
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