PDA

View Full Version : Vegas Home $ Fallout



Freak
03-09-2005, 06:15 AM
I'm surprised this has not been talked about. So what do you think?
http://www.lasvegassun.com/sunbin/stories/business/2004/nov/03/517768223.html
http://www.kvvutv.com/Global/story.asp?S=2637422&nav=2NiwTjR3

Dribble
03-09-2005, 06:58 AM
That's like I'm going to sue my boat builder because the boat is worth less than I paid for it two years ago.
If the prices went up 20% I doubt that he'd go give them more money.

mondorally
03-09-2005, 07:00 AM
I bailed out of a deal in HB when they started dropping prices on new townhouses. Went from $120k in built in equity based on the increased prices in the next phase to breaking even at best..... And it had no boat storage!
Justin

NorCal Gameshow
03-09-2005, 07:01 AM
This is my favorite part:
"alleged that after realizing he did not have the means to pay the $15,000-per-month mortgages because he only makes "a little" more than $30,000 a year"
and he lives in san mateo county on 30k a year? :confused: :idea:

uclahater
03-09-2005, 07:05 AM
I love the "The Salesman made me buy 19 homes because they were going so quick" These people are retarded :idea: The same signs are showing in CA right now. The fact is these people took a risk, and it failed, and now they dont want to take the accountability for it :lightsabe

callbob4homes
03-09-2005, 07:18 AM
greed overcame any common sense any of these people might have had. All the players, not just the buyers, but the sellers and mortgage people as well. You can bet the vultures will start circling soon to pick up the pieces. Anytime an agent tells you "this property is GUARANTEED TO APPRECIATE", the flags should go up. Property values are going up still here in Gilbert and Queen Creek, as well as the rest of the Phoenix area, but for how long? No one knows for sure and my crystal ball is broken dammit. My feelings are, that a single family home buyer, or a small time investor that is looking to pick up the occassional "good deal" will still do well, but if you are looking to cash out like some of these greedy players.................look out. Common sense folks, common sense. Some of our "hot" areas here, Power Ranch, Seville Golf and Country Club, Johnson Ranch, just to name a few, I believe will still continue to do well because they are established communities already, and have a fairly stable base of permanent "home owners" as opposed to investor owned rentals. There are quite a few of those, don't get me wrong, but I feel that alot of these "for rent, for lease" signs will be turning to "for sale" signs soon after sitting empty. Could be some good buys soon, who knows. Buyer beware on these new subdivisions with a manufactured sense of urgency. Just my random thoughts, not to be construed as an offer to help you go BK or anything else some sue happy dumbass can think of to make me pay for their own stupidity. :hammerhea

mtndewdrops
03-09-2005, 07:27 AM
This is an classic case of how you can really get yourself in trouble if you get greedy. I can't believe the dude thought that he could pull that off. Now he is trying to bail himself out with a Frivoulous Lawsuit. I think he is going to get whacked :hammerhea .

Freak
03-09-2005, 07:30 AM
Yep on the news last night they were showing a new community with a (I feel) manufactured since of urgency. People get sucked into some bad deals and some people are just plain stupid. Those are the ones you gotta watch out for cause they want you to pay for their mistakes. Who in their right minds would give out so many mortgages to someone that obviously cannot afford it. I think some people are going to me in trouble. Makes you wonder what the fallout from bankruptcies from housing is going to do.

PHX ATC
03-09-2005, 07:51 AM
What Bob said up there.
I can see the rental owners having an issue here in Phoenix metro area in a few years (3 to 4) and for sale signs popping up all over the place. Oh well, then, I'll be ready to purchase a little home for my daughter's future and I'll be able to get it at a bargain of a price. Meanwhile, I've sunk money into my own house/property which I could care less if it tanks in value or not because I'm retiring there.

HavasuDreamin'
03-09-2005, 08:03 AM
No doubt that buying many homes to "make a killing" is not real smart, but if Pulte was telling these people that their homes would be worth more $$$$ by the time they closed, they could be in trouble.
My bet is that Pulte has to pony up some money. :argue:

Tyson Ross
03-09-2005, 09:21 AM
Damn Countrywide :) :) :) :)

Dave C
03-09-2005, 09:21 AM
No friggen way unless he already owns here. :hammer2: Median price in SM county is $672,500.
san mateo county home prices (http://www.dqnews.com/ZIPSJMN.shtm)
Except... I saw a nice fixer upper studio apartment that you can cram 10 people into that maybe he can afford.
Unless of course the $30,000 income is "all that anyone needs to know" ;)
This is my favorite part:
"alleged that after realizing he did not have the means to pay the $15,000-per-month mortgages because he only makes "a little" more than $30,000 a year"
and he lives in san mateo county on 30k a year? :confused: :idea:
You wanna see something interesting, multiply the square footage of your house by the price per square foot listed on the link. Example, 94403 = 503 per sq ft times 2500 sft feet = 1,257,500.
Needless to say our houses are small.

cdog
03-09-2005, 09:27 AM
While I hope this correcting market does'nt effect any of us hot boaters. I can tell you that it's long over due. Intrest rates will continue to rise and choke prices. I'd rather sell my home at a 10% gain then make 250k on it and buy at a inflated price. I've tried to tell people in vegas and az to expect this and they allways jump my shit as if i'm talking down thier homes or market. I own in tucson. I want my property taxes to stay cheap. AZ and LV may see a resergence in prices for a little while as the Socal market goes up this summer but I predict that this will be the last hurrah due to the rates and over pricing. What was 600k in january in OC is now 665k and probably going up. Any thoughts or speculation?

Sleek-Jet
03-09-2005, 09:39 AM
While I hope this correcting market does'nt effect any of us hot boaters. I can tell you that it's long over due. Intrest rates will continue to rise and choke prices. I'd rather sell my home at a 10% gain then make 250k on it and buy at a inflated price. I've tried to tell people in vegas and az to expect this and they allways jump my shit as if i'm talking down thier homes or market. I own in tucson. I want my property taxes to stay cheap. AZ and LV may see a resergence in prices for a little while as the Socal market goes up this summer but I predict that this will be the last hurrah due to the rates and over pricing. What was 600k in january in OC is now 665k and probably going up. Any thoughts or speculation?
Overpricing is already a problem here in Tucson. I've been in the market for about 9 months and had 2 house deals fall through do to the fact the houses are not appraising for what they are selling for (200,000 selling price vs. 140,000 appraisel). I am having to finance most of my home purchase, so the appraised value really comes into play.
I'm sure it isn't a big deal to people that can drop a good portion of the selling price on the table as cash, but it's making it difficult to break into the market.
I don't know if the market for older homes is slowing in Southern AZ, but I've got my realator really bugging me to start looking again... I figure one reason is that she's not moving as many houses anymore.

mbrown2
03-09-2005, 09:56 AM
Damn Countrywide :) :) :) :)
Haha...I am sure they will make some dough on foreclosing on those places as well....j/k....actually lenders lose on foreclosures....and no friggen way they would have loaned that much to someone making 30K a year....unless he had some doctored up paperwork..

cdog
03-09-2005, 10:00 AM
Overpricing is already a problem here in Tucson. I've been in the market for about 9 months and had 2 house deals fall through do to the fact the houses are not appraising for what they are selling for (200,000 selling price vs. 140,000 appraisel). I am having to finance most of my home purchase, so the appraised value really comes into play.
I'm sure it isn't a big deal to people that can drop a good portion of the selling price on the table as cash, but it's making it difficult to break into the market.
I don't know if the market for older homes is slowing in Southern AZ, but I've got my realator really bugging me to start looking again... I figure one reason is that she's not moving as many houses anymore.
Yep! Hold on there friend. I was just there over the weekend and saw what you are talking about. We own the mother inlaws place in oro valley. She allways tries to get us to move back and drove my wife by some new homes. No thanks, I'd shoot my self if I had to see her every week. She walks in to the sales office and starts talking about how we're from cali and they're on her like fly's on she-it. Goes to show. I have a lot of friends in tucson that are in there late 20's early 30's with kids and mostly have corporate jobs and make strong median income. They've gone crazy to buy a bigger house and I tell them to wait. If they did'nt do it a year or two ago they missed out on doing it the right way. Do you see how they are building homes everywhere? They're even tearing up the driving range off of river rd. to put in cracker jack box homes. My advise is to wait. The influx of out of state cash is responsiable for the rediculious prices, when that slows the market will follow.

cdog
03-09-2005, 10:04 AM
Haha...I am sure they will make some dough on foreclosing on those places as well....j/k....actually lenders lose on foreclosures....and no friggen way they would have loaned that much to someone making 30K a year....unless he had some doctored up paperwork..
Stated Income Loans!!! Countrywide has plenty of disclosure's to cover their asses. The buyer will loose against Cw.

Freak
03-09-2005, 10:06 AM
While I hope this correcting market does'nt effect any of us hot boaters. I can tell you that it's long over due. Intrest rates will continue to rise and choke prices. I'd rather sell my home at a 10% gain then make 250k on it and buy at a inflated price. I've tried to tell people in vegas and az to expect this and they allways jump my shit as if i'm talking down thier homes or market. I own in tucson. I want my property taxes to stay cheap. AZ and LV may see a resergence in prices for a little while as the Socal market goes up this summer but I predict that this will be the last hurrah due to the rates and over pricing. What was 600k in january in OC is now 665k and probably going up. Any thoughts or speculation?
Anyone who thinks housing is just going to go up is living in a dream world. The market corrects itself. It has in the past and will again. I'm in the green for about a 30% correction after that I will owe more than worth. Sucks to think about. I feel for all the 100% financed people.

cdog
03-09-2005, 10:24 AM
Anyone who thinks housing is just going to go up is living in a dream world. The market corrects itself. It has in the past and will again. I'm in the green for about a 30% correction after that I will owe more than worth. Sucks to think about. I feel for all the 100% financed people.
Believe it or not this scenerio has all happened before and will happen again. I just finished a Econimics of Real estate course for my brokers exam and it's crazy how much of what we are going thru today is written about and predicted to happen again.

mondorally
03-09-2005, 11:04 AM
Believe it or not this scenerio has all happened before and will happen again. I just finished a Econimics of Real estate course for my brokers exam and it's crazy how much of what we are going thru today is written about and predicted to happen again.
I'm expecting it and thats why I sold my condo to get into a house with some boat storage. Yeah I'm probably (OK, of course I am) overpaying but I'd rather ride out a correction in a detached house than a condo.
Justin

Mandelon
03-09-2005, 11:36 AM
A new home is finished every 20 minutes in the Vegas marketplace. There is plenty of land around too. Pulte pushed the prices of their new phases too high and sales plummeted.
So they lowered back where they outta be and this guy got caught in the middle. Risk = reward.......usually. But sometimes you lose your ass. He will not make the payments and Countrywide or whoever owns the loan will foreclose and remarket the property. They will take the loss and the rest of us will make it up with increases in banking fees and higher rates.

dirty old man
03-09-2005, 02:05 PM
c dog and mandelon are dead right. I did the next best thing to buying another high $ house, I bought the stock instead - PHM, making a killing. Now I'm going to invest all I can in Mobile, EXXon and Chevron

Catatonic
03-09-2005, 02:45 PM
C-Dog, you are exactly right. I have an MBA in Economics and own several investment properties and it is always amusing when people are going to make the "big strike" or else they are waiting for the "bubble to burst." It never fails that the market will always correct in a "cyclical" manner. If you read Adam Smith's "An Inquiry into the Nature of Causes and the Wealth of Nations", it was written 200 years ago by Smith and he is dead on with his cyclical predictions for the economy. You can definitely get rich in real estate however it rarely happens quickly.