Median home prices fall for 3Q in most US cities (Prices drop in 75% of cities)

AP via Yahoo Finance ^ | 11/8/0211 | Derek Kravitz

[Qbert]

WASHINGTON (AP) -- Home prices dropped in nearly three quarters of U.S. cities over the summer, dragged down by a decline in buyer interest and a high number of foreclosures.

The National Association of Realtors said Wednesday that the median price for previously occupied homes fell in the July-September quarter in 111 out of 150 metropolitan areas tracked by the group. Prices are compared with the same quarter from the previous year.

Fourteen cities had double-digit declines.

[Qbert]

"Most analysts say prices will sink further because unemployment remains high and millions of foreclosures are expected to come onto the market over the next few years."

[Rational Thought]

Little financing available, unemployment remains in orbit and more people are suffering financially. Pretty safe bet that real estate is nowhere near bottom.

[Psalm 73]

Still dropping faster than I can make my mortgage payments........

[TSgt]

If you got cash, buy land, they aren’t making anymore of it!

[TSgt]

Financing is available for those who have 20% or more to put down. I’m in the process of buying another home that sold for $155K in 2006 for $75K.

[moehoward]

"...and millions of foreclosures are expected to come onto the market over the next few years."

But, mittens said the banks aren't being allowed to foreclose..../s

[RetiredArmy]

I here you. I bought my house at a good price. It is no longer worth what I paid for it. If I wanted to sell it I couldn’t.

[Wally_Kalbacken]

The Missus and I just bought a home in Palm Beach County after sitting on the sidelines for 3 years and leasing as the price level collapsed. We bought a house which was sold as new construction in April 2006 for $675K, and which later had a pool and other significant upgrades added to it. We paid $300K in October. Financing was easy, though the enhanced scrutiny of documentation is evident and there were some short delays.

Is is possible that prices will decline further? Yes, but they are already well below replacement cost, and we can be confident of being here for the next 15+ years, so it was a no-brainer for us.

Now the only problem is the resentment that is just below the surface, coming from nearby owners who paid 2-2.5x what we did for identical houses. and are now well under water. That is an interesting sentiment to encounter, they seem to think we “stole” this house.

[Rational Thought]

Government has placed numerous guidelines and procedures on mortgage lenders. I have personally heard of well qualified borrowers being declined due to new guideline technicalities, including the goofy nationwide appraisal process.

My experience is that not only does a borrower have to have excellent credit and income, with a qualifying job (excluding the self employed in many instances), but also a great deal of luck. In other words, 20% down certainly helps in gaining an approval, but by no means is a guarantee of financing.

That being said, congratulations on your purchase.

[CodeToad]

“resentment that is just below the surface, coming from nearby owners who paid 2-2.5x what we did for identical houses. and are now well under water.”

We found the same thing. Homes around here in our small neighborhood were way beyond overpriced. Some paid as much as $350/square foot. We paid $81. The resentment is amazing. They also found out that the county Assessors office lists all home prices (I couldn’t resist!), so many that were claiming to have paid much less were found to have paid the most. These homes were originally targeted to be in the $400k range, but many paid as much as $950k.

[CodeToad]

“Financing is available for those who have 20% or more to put down.”

There is also FHA fiancing at 3% down or VA financing at 0% down.

[Atlas Sneezed]

Now the only problem is the resentment that is just below the surface, coming from nearby owners who paid 2-2.5x what we did for identical houses. and are now well under water. That is an interesting sentiment to encounter, they seem to think we “stole” this house.

---

Here’s a friendly strategy: Tell them apologetically about how you understand the frustration they feel. Fib and say you took a bath on your previous house, so you’re in the same boat, but just moved to have nicer neighbors. And remind them if you hadn’t been ready to buy at the price you did, the sale price might have been even lower.

I also presume that your house will never lack for upkeep and maintenance, so they won’t be able to think of you as the poor folks that they hoped high prices would keep away.

I bought a property at auction at a record-setting low for the development, and am prepared to tell concerned neighbors that if I hadn’t been there to bid up the price, it would have sold for much less.

[VanShuyten]

Thanks to the taxpayers' billions, our house in northern Virginia has reclaimed the value we paid three years ago. The house behind us just sold for $20,000 over estimated value and above its value three years ago.

Just submitted a re-finance application for 3% over 10 years. Our real estate deal didn't look too good at the time we made it, but it's looking up.

[Psalm 73]

"It is no longer worth what I paid for it. If I wanted to sell it I couldn’t."

But a deal is a deal - they agreed to loan me money and I agreed to pay it back. Period.
I would NEVER think of defaulting - I just don't see how those people can do that.......
Good for you for sticking it out.