Reply to I think the bubble is popping.

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Market has significantly cooled.  There are almost double the number of houses in overall inventory now in our search area as compared to early summer/spring. Prices keep dropping. Many, many people vaaaaaaastly overpaid horrifically last winter and early spring this year.  I see sooooo many better homes now compared to ones I remember before that actually went for higher prices.  [/quote]

How so? Last winter was, what, 10 months ago? So they've been enjoying life in their nice house for 10 months. What does it cost to rent something for 10 months? $20,000 to $40,000? And life is too short to live in an unhappy abode for upwards of a year of life.

And I don't see any home [b]values[/b] going down. I see some asking prices getting trimmed, which is not the same.[/quote]

Plus you paid down equity over the last 10 months.  I don't think a lot of the people waiting for the supposed crash to hit understand what happens when you pay your loan.  I mean, they do logically but not really because if you wait for a crash for five years, you pay rent for five years.  If you buy, you pay down some principal with each payment for five years and you've gone from a loan of 80% of your home value (assuming 20% down) to 70% because you paid down 10% of your house's price in those first five years.  This doesn't even include any possible appreciation from "the bubble".  Point being, you live in your house five years and there has to be a decline in prices greater than 30% to be underwater and if that happens, you just keep making payments and wait for the market to bounce back and eventually your payments will pay down the equity on the loan and the market will correct and you will no longer be underwater any longer.  People just can't get past that [b]top [/b]line number.  You should buy when it's right for you.  Timing the market in hopes of either a crash or a great appreciation in the next year or two is a doomed prospect.[/quote]

Top line number: the price.[/quote]

The latest data from the Case Shiller index, which is the best source of data on prices because it aims to actually compare prices for similar properties, is from July (a month after OP posted) and it just shows more appreciation. I see houses that sit, that have price reductions, and maybe don't sell for as much as another house sold, and there is always a reason. The house that is sitting and was reduced is on a main road, has a sh$tty kitchen, etc., all things that were not true of the comp but the sellers thought they could get the same price. Also, there is natural seasonal variation, no it's not as crazy as the spring, it might take two weeks instead of two days to sell a house, that doesn't mean that there's a bubble or that it popped.[/quote]

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