patrick.net

Look, I've been reading this site for a LONG, LONG time and visit the Housing Crash page daily. The forum I haven't spent a lot of time on since it changed format but I have been watching it for the last couple of weeks. I have noticed the threads regarding defaults, etc. BUT, they don't seem to be by the regulars that have been here since I first started dropping by (2007?). Look at the two latest started by condohelp and the San Jose deadbeat (Klarek's name, I can't remember real name and am too lazy to look it up), both individuals joined in July 2010. Does this make them a "typical" poster/contributor to this forum or just drivebys seeking validation for decisions they've already made? I don't know.

I agree, the situation will continue to get worse for most areas. I've been looking at houses recently, and what I noticed with tract development houses that went for 350k to 400k are now 250k to 280k. Areas were every house is on a 70 x 100 lot lost a lot more value than houses on bigger lots. Personally my house that is on a 2 1/2 acre lot which I paid 400k for is worth somewhere around 360k, yes a loss in value, but no where near the hit the McMansion's in the tract developments took. I think part of the problem is in an area where every house looks the same on the same sized lot and there are a dozen or more for sale in the development (sometimes on the same street) the seller needs to some how make there house stand out to a buyer from the competition and most often it's with price. As one seller reduces there price to make there house stand out, the other sellers match or lower then prices even further. This isn't something that happens on a daily bases, more like every other month, but the effects are the same. With other houses, that are not part of tract developments, where lots are bigger and houses are not of the same cookie cutter floor plan as every other house in the block, it's far easier to be unique without reducing prices month after month, so there is less of a downward pressure on prices. In many areas the tract house developments are the new slums, no matter how high class the developer meant for the area to be. Lower prices attract a lower class of people, investors desperate to get a renter in there houses to pay the mortgage lower rents and accept renters they would not have a few years ago. As the neighborhood changes and the original buyers see the area going downhill put there houses on the market and further reduce prices, lower prices and rents attract even a lower class of rift raft. Just take a look at any area that Cheap to live and compare that to an area where it's expensive to live. It's pretty obvious that legalize segregation is alive and well in this country and it's done by wealth and pricing. Sure any person weather they are black, latino or whatever can buy a house in an expensive area if they have the money, but they tend to be a minority in the area, not the norm at all.

I've been on this site since early 2007 - just before I bought my first home in Fort Worth, Texas. I used to post on the old forum under "joshua."

It almost seems as if there are more trolls and posts about people walking away as there used to be about inflation/deflation and gold/commodities.

I also think this forum is rather late to this trend. Other forums I read/participate in having been deal with this far longer. There is a far more sympathetic audience on those "other" forums than is found here.

Five years ago, these people weren't underwater and obviously didn't come to this site or if they did, they ignored it. Why would they come here now? They're desperate for information and help. They think that since some people here saw it coming, they can get some magic answer to their problems. However, I think they are only looking for the answers they want. There must be some "experts" somewhere that will tell them prices are going to skyrocket and everything will be okay. They ask for advice and then argue about it. They still want something for nothing.

Landru3000 says

Five years ago, these people weren’t underwater and obviously didn’t come to this site or if they did, they ignored it. Why would they come here now? They’re desperate for information and help. They think that since some people here saw it coming, they can get some magic answer to their problems. However, I think they are only looking for the answers they want. There must be some “experts” somewhere that will tell them prices are going to skyrocket and everything will be okay. They ask for advice and then argue about it. They still want something for nothing.

Well said Landru. Agree 100%.

Recent news speculates that homes will continue to lose market value for at least another year before the housing market hits bottom. They are basing this information on the amount of foreclosures and short sales and the amount of homes that are late on payments that will go into foreclosure. The article, can't remember the name, but Patrick posted it, speculated that home prices may never rebound and if they do it can't be expected to for at least another 10 years. Again, as most know, real estate is local. I believe that the Silicon Valley has deflated, but has a while to go, maybe even longer than a few years before this area hits bottom. Since this area has a stronger economy than most, it may be able to sustain inflated home prices longer.

I have to admit that I have only recently become interested in this site as my husband and I are questioning what to do with our underwater property. I wish I took a more active role in the decision to buy, however it wasn't my decision at the time. I have learned the lesson from our property and don't feel that anyone should consider buying a house unless they want to live in it long term. If you feel that you want to buy something now, knowing you want to live in it long term, I would tell you to do it. If your home loses money, but you plan to live in it long term, I don't see the problem. However, I would want to make sure the home isn't grossly over valued from the get go.