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View Full Version : Did the Real Estate bubble burst or not?


Sodar
12-19-2006, 01:02 PM
Nice Interactive link that discusses the housing market in each region of the country. I do not forsee a huge down turn out here in the West in terms of plunging values... I do however see a plateau and a buyer's market prevailing. I think most of the market is dependent on the zip code!

Here is the link: http://www.money.cnn.com/popups/2006/fortune/invguide_realestate/4.html

I did just read about a new housing development who recently completed construction and need to unload his inventory... Early buyers paid top dollar, but the developer lowered prices $100k to ease selling, making the early buyer's upside down after only a short time. Some of the early buyer's were complaining because they did an interest only loan with a balloon at 3 years, hoping to refi their homes to make the balloon payment... I guess this is what they get for being dumbarse's!!

M-Funf
12-19-2006, 01:46 PM
My wife works for one of the largest home builders in the area. They build homes that are on the more expensive side. The downturn in the housing market has hit them very hard. They are selling homes at a loss in some cases, there are no new "starts" planned unless a buyer wants a specific lot and house, they have reduced their direct workforce by half, etc. etc.

I don't know that I'd say the bubble has burst, but it's leakin' BAD!

Sodar
12-19-2006, 02:08 PM
I agree... when I first graduated, I went to work for a small residental developer in Newport Beach. I luckly saw the axe coming and was able to jump to the commercial side before it actually happened!! The high-end residential stuff has felt little effect though... we are currently building a luxury high-rise condo in Los Angeles, with the base condos going for more than $3 million a unit.

trickskier
12-19-2006, 02:26 PM
It seems to be dying a slow death right now. We haul a lot of building materials and our business is way off. This time of year is usually slow, but right now it is extremely slow. Georgia-Pacific has closed 3 saw mills in the southeast indefinitely.

TMCNo1
12-19-2006, 03:30 PM
It seems to be dying a slow death right now. We haul a lot of building materials and our business is way off. This time of year is usually slow, but right now it is extremely slow. Georgia-Pacific has closed 3 saw mills in the southeast indefinitely.


I have a guy and his son that I see at breakfast, that builds houses and they say the lumber/building supply business is just like oil. They can't get enough lumber/plywood quickly enough and cheaper because the building suppy industry has slowed production the keep prices elevated. They work 6+ days a week and can't build houses fast enough, yet costs are rising and the new inspection/code requirements/OSHA/jobsite theft/vandelism are killing them to the point that they are getting out of the business and are going to go into the cattle business.

Monte
12-19-2006, 04:05 PM
getting out of the business and are going to go into the cattle business.
#1 that sounds like a lot of bull... :D :D I think the issue with real estate is the flooding of the market. There have been sooooo many homes built in recent years that the older homes are loosing value daily, and the supply is beginning to outweigh the demand for the new ones. #1 I know you've seen those gargantuan neighborhoods popping up on I-40 and I-85. These things look like they were built in a day, and are right on top of each other... I don't see where the people are coming from to buy them.

sanjuan23
12-19-2006, 04:09 PM
California.......

Workin' 4 Toys
12-20-2006, 08:36 AM
Here was a little secret I learned........

Buy 10 years ago... and sell 8 months ago.....:cool: There..I let the cat out of the bag.....:rolleyes: It's about time to start the cycle over again....GO.!!

Sodar
12-20-2006, 08:42 AM
Here was a little secret I learned........

Buy 10 years ago... and sell 8 months ago.....:cool: There..I let the cat out of the bag.....:rolleyes: It's about time to start the cycle over again....GO.!!


Ain't that the truth!! I hope for the good of my own self that the market takes a complete dive, people are forced from the homes in droves, and I can slide in on a sweet foreclosure! See what a nice guy I am!

But, I seriously do not know how the average person is able to get into the market... especially here in CA.

Workin' 4 Toys
12-20-2006, 08:49 AM
Ain't that the truth!! I hope for the good of my own self that the market takes a complete dive, people are forced from the homes in droves, and I can slide in on a sweet foreclosure! See what a nice guy I am!

But, I seriously do not know how the average person is able to get into the market... especially here in CA.
Here is how......Buy what you WANT not what you can AFFORD....It's the American way.....That's what banks are for....They will tell you how much you can afford....:rolleyes:

Average person.....Can you say the words "average person in California" in the same sentence? For those that can not afford...Location..Location...Location....MOVE.... ;)

phecksel
12-24-2006, 10:10 PM
Detroit is beginning to see some serious reductions in prices. Highest default rate in the country. It's not pretty.

Sodar
01-11-2007, 12:59 PM
I think in the next couple years we are going to see a lot more things like this ( http://hotboat.com/forums/showpost.php?p=2331720&postcount=1 (http://hotboat.com/forums/showpost.php?p=2331720&postcount=1) )... I feel sorry for them, but come on... Didn't they at least see it a LITTLE bit!!

NORTHERN LIGHTS
01-11-2007, 01:04 PM
Here is how......Buy what you WANT not what you can AFFORD....It's the American way.....That's what banks are for....They will tell you how much you can afford....:rolleyes:

Average person.....Can you say the words "average person in California" in the same sentence? For those that can not afford...Location..Location...Location....MOVE.... ;)
absolutly!!! buy location location location location location! em LOCATION. some of these "developments" that have sprung up look like trumps earlier homes. i mess a little with land selling. people are fri**in crazy a year ago. but hey...anyone lookinf 4 land?

djhuff
01-11-2007, 05:32 PM
The biggest drawback in my area is potential homebuyers not being able to sell their homes in other parts of the country. There are plenty of people moving here to support the building, but they cant sell their homes in DC, Chicago, etc.

Farmer Ted
01-11-2007, 05:49 PM
Luckily it hasn't burst here, we sold our house in 3 days.

Datdude
01-11-2007, 07:33 PM
I think in the next couple years we are going to see a lot more things like this ( http://hotboat.com/forums/showpost.php?p=2331720&postcount=1 (http://hotboat.com/forums/showpost.php?p=2331720&postcount=1) )... I feel sorry for them, but come on... Didn't they at least see it a LITTLE bit!!


Dude made it sound like money is not an issue:confused:

On a side note......I cruised around on hotboat.com and a post in the wakeboard section made me laugh. The poster said that where he is from "Mastercraft is like a Bayliner" or something like that-LMAO:rolleyes:

Sodar
01-11-2007, 07:37 PM
Dude made it sound like money is not an issue:confused:

On a side note......I cruised around on hotboat.com and a post in the wakeboard section made me laugh. The poster said that where he is from "Mastercraft is like a Bayliner" or something like that-LMAO:rolleyes:

IMO, the guy is going flat broke... do you think he is gunna tell everyone he was reckless with spending and now must bail out fast?? :confused: