When will house prices come down?

Some of my friends like to marvel over the value of their property, especially during these inflationary times. I've never been impressed though. To me home values just seem more than they are worth. I own my home. If I sell it and buy another, it's just a lateral move. I'm no more ahead or behind than I was, and that scenario holds true whether prices go up or down. I think we need a recession, not because recessions are lovely, but because they keep the economy from running away. Everyone likes a bubble, and then they get depressed when it bursts like it's not supposed to happen. I don't like recessions, but I don't like bubbles either.
 
squatting dog said:
First started leveling off here in our area of Florida, now starting to come down. 3 weeks ago, 3-2 house's were selling for $350,000 and up and most were pending or sold. Today, some of the house's we were watching are now asking $299,000 or less.
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Isn't it hard to also get home owner's insurance in Florida as so many of the insurance companies are pulling out of the state? Have a friend with a small villa on a lake that has paid $2,000 for her insurance and just got notification the new policy would be $3,000. God bless those folks on Fort Myer's Beach or areas decimated by hurricane Ian. They should retire all hurricanes that start with the letter "I". We went through Ike in 2008 and it was not a cake walk.
 

Liberty said:
Isn't it hard to also get home owner's insurance in Florida as so many of the insurance companies are pulling out of the state? Have a friend with a small villa on a lake that has paid $2,000 for her insurance and just got notification the new policy would be $3,000. God bless those folks on Fort Myer's Beach or areas decimated by hurricane Ian. They should retire all hurricanes that start with the letter "I". We went through Ike in 2008 and it was not a cake walk.
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If they still pay mortgage on that villa, insurance rates are higher. Also, flood insurance is high if live near water.
 
Reno’s housing prices are going down which is good because they were ridiculous. We sold 18 months ago at the height and then I also bought a condo. The condo was half the price of the house.

At the time I set a new high for the building paying over 53k more than the one that sold before. Before the buyer would take offers you had to agree that the seller was not lowering the price knowing that the condo wouldn’t appraise so you needed the money to make up the difference. The realtor tried to talk me out of paying so much. But I intend to die here so didn’t care as it had everything that was important to me in my price range.

Within 8 months I could have sold for 50k more. Now however I could still get what I paid including realtor fees and closing costs. I am hoping prices keep declining so younger people have a chance to buy property. Part of the problem here is that the Californians sell at high prices and moving here our prices seem cheap so they drove the price of everything up.
 
Liberty said:
They've got no mortgage - and almost everyone in Florida lives near some kind of water - Florida seems to be the state where they dig holes for lakes and put in subdivisions around them...lol
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Forgot to mention, they have had this insurance company for years and years. So many insurance companies are pulling out of Florida.
 
Well the investors in the phoenix area have sure cooled off. I used to get at least one call or text per day wanting to buy a house I owned….now we are down to perhaps one a week. Rents were driven up by the crazy market (I know because I have a couple rentals) and they are falling too. Welcome relief.
 
Liberty said:
Isn't it hard to also get home owner's insurance in Florida as so many of the insurance companies are pulling out of the state? Have a friend with a small villa on a lake that has paid $2,000 for her insurance and just got notification the new policy would be $3,000. God bless those folks on Fort Myer's Beach or areas decimated by hurricane Ian. They should retire all hurricanes that start with the letter "I". We went through Ike in 2008 and it was not a cake walk.
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It isn't hard to get flood insurance... just expensive as all get out.
Since the re-drawing of the flood zone maps, insurance has jumped a bunch. One needs to get hold of a flood zone map and check it over before jumping into buying a home here.
Now, folks that already own a place are pretty much screwed because even if they have no mortgage, you have to decide if it's worth the risk.
For the record, our flood insurance was an additional $572 per year... in addition to our normal insurance policy. ($3122) 😠
 
rasmusjc said:
Well, we took advantage last year of the astronomical prices of homes in the North Texas area and sold our house on the way to downsizing. We moved into this house at the beginning of this year...this house cost 1/3 of the price that we sold our home for, and property taxes are only 40% of what we were paying at the old house. The difference helped a lot in shoring up our retirement funds.

BTW, as an aside, the person we sold our house to claimed he was just going to add on to the house and leave the structure intact. For the fun of it, we went by our old house 2 months ago, and were blown away that everything was gone (leveled) with only the slab left (along with 4 trees removed that were older than the house, and the house was a total brick house, so it couldn't have been easy to demolish). Oh well, that property is his problem now, we're enjoying being retired in this near the country house.
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You made a great decision! I have often thought about downsizing, but during the real estate boom there was nothing smaller that was available in our area. If it went on the market, it either sold immediately or was torn down. We also love our neighborhood.

I went through a similar situation to yours with the house I grew up in. I grew up in a ranch-style house in Tampa, FL on a canal off the gulf of Mexico. There were many who moved into the neighborhood while I was there and added second stories onto their houses. My parents sold in 1996. Their house was immaculate and had a glassed-in sun porch that overlooked the water.
I went back to visit in the mid 2000's. Ours was the only house that had been torn down and was replaced with a "McMansion" that barely fit on the lot. It was a big, gaudy Mediterranean style house that stood out like a sore thumb among the stucco ranches. :(
 
My agent, who I talked to Friday on my lunch break says things are softening. I'm not sure I believe it. That place I was kind of interested in looking at was pending when I talked to her. She also said the mobile home park rents are going up. They can only raise the rents so much on current residents but are jacking it up for new. Always the greed.
 
JustDave said:
Some of my friends like to marvel over the value of their property, especially during these inflationary times. I've never been impressed though. To me home values just seem more than they are worth. I own my home. If I sell it and buy another, it's just a lateral move. I'm no more ahead or behind than I was, and that scenario holds true whether prices go up or down. I think we need a recession, not because recessions are lovely, but because they keep the economy from running away. Everyone likes a bubble, and then they get depressed when it bursts like it's not supposed to happen. I don't like recessions, but I don't like bubbles either.
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I agree with this so much. I bought that house I owned in 2001 and of coarse values kept going up. Of coarse I waited and sold in 2009 after prices started to tank. But I never refinanced, didn't use the house like a bank account I could draw from. And that's what people did. I heard stories of people losing their homes because they did refinance and got into these nutty loans.
 
Don M. said:
The general economy, inflation, and rising interest rates are making it harder for people to afford a mortgage. But the lack of new home construction is keeping the supply of housing low, while demand continues to increase. If, as the "experts" predict, we slide into a recession in 2023, that will have a marked impact on housing prices.
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I agree.

When the recession hits prices will fall. Prices are extremely high in our area, Utah, and just starting to drop because of interest rates. Plus the foreclosures will start soon as well. Those people who bought expensive houses using variable rates are going to be on real trouble soon.

As interest rates rise, people will not be able to afford their house payments and they will put them on the market to try and avoid foreclosure. There are a great many houses for sale right now. Before a house would sell on 3/4 days. Now I see houses for sale for 90 days or more.

There is a house I would like to buy and they have dropped the price and it’s in “our” preferred area; but it’s still way too expensive. Even if it goes down more in price, I am not sure I should buy a house now since we are 76 years old.
 
dseag2 said:
It is not a good situation for sellers, but it is a good situation for those of us who intend to stay in our homes in the DFW area for years to come.
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Yep, if you own your home and plan to stay in it pricing doesn't matter much, up or down. Except that it could impact your property taxes.
Liberty said:
They should retire all hurricanes that start with the letter "I". We went through Ike in 2008 and it was not a cake walk.
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Good point, I remember Hurricane Ivan, 2004. Had a cousin who had just bought in Pensacola and moved in 2 weeks before it. Not long afterwards he moved inland. Taking out the I-10 bridge over Escambia Bay was impressive.
 
Alligatorob said:
Yep, if you own your home and plan to stay in it pricing doesn't matter much, up or down. Except that it could impact your property taxes.

Good point, I remember Hurricane Ivan, 2004. Had a cousin who had just bought in Pensacola and moved in 2 weeks before it. Not long afterwards he moved inland. Taking out the I-10 bridge over Escambia Bay was impressive.
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We lost 40 mostly huge trees in Ike - you couldn't walk 6 feet in front of our house, on our driveway without tripping over fallen tree carcasses. Hub is a fire commissioner and the fire dept. went throug h 2 or 3 chain saws trying to clear the way down our road to get to the house. They finally
made it. Out of power for 11 days. Ian looked a lot like Ike on the radar - taking up most of the gulf on its way in. There are hurricanes and then there are HURRICANES!

Thank heavens we don't have any where near as many as Florida or Louisiana has, but one of those "I" ones counts for at least 2 or 3 of the baby canes.
 
My son has been looking for months in westchester .

The only houses falling in price are the same listed houses that were undesirable and didn’t sell even before rates soared …

Homes are not like stocks ..there can be 20 homes for sale but the only one that counts is the one my wife likes .

Desirable homes are selling in a day or two at prices above bank appraisals for cash
 

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