TyronePA e-cafe - Tyrone Pennsylvania Community Forum

what do you guys think of the recent boom and bust with home prices? how bad has it affected your guys area? Ive seen some crappy homes
in crappy neighborhoods spike up two times in value about a year or so ago...

Here in Clevelnad Suburb... about 25 miles from the city.... 220K spec homes are now selling for 189-195K if they want to sell. I have a few friends who have had their homes on the market for over a year now and are getting almost no interest in it.

It is clearly a buyers market right now.

Myrtle Beach, South Carolina - we bought a house 3 years ago that has more than doubled in value/resale price.

We receive mailers all the time from real estate agents - as recently as yesterday - wanting to know if we want to sell. People often come up to the door asking the same, or we return to find notes that they have left.

The answer is "NO WAY".

The problem nationally, with some slight exceptions, Myrtle Beach being one of them, most home valuations were exaggerated when the interest rates dropped to record lows. As a result, homes were selling much higher than they should have been because people were willing to do it with the advantage of lower interest rates.

Now that the interest rates are adjusting, the home prices must adjust too. Home which developers were selling for 220K in 2003 are now being sold in the same developments for 195K. Try reselling your home you paid 220K for and turn a profit whent he builder will sell his brand new one to you for 195K.

The interest rates were so low, the demand became very high, and developers started build thousands of spec homes. It created a glut.... now the builders have too many new, unsold homes on their hand and they are discounting them signifigantly to keep money flowing.

http://www.npr.org/templates/story/stor ... Id=5644189

I agree with the premise as a whole the real estate market has gone soft. However, as where beachbiker lives and where I used to live, near Cocoa Beach, FLA.....the markets are continuously outrageous. I home we built in 99' sold for over 3 times the building price last year. Talking with friends still in the area there, the prices are no longer rising and because of the saturated market they are taking longer to sell. But the over value of the homes is holding steady. We then purchased a house in East Tenn near the Smokies.....still a booming area.....but a real dose of reality when it comes to home values.

Another thing that has happened is those of us who own rental or vacant property have really taken a tax hit this year. The appraiser in our county appraised the properties at the prices they were worth during the boom. Now no one is buying and everyone is trying to dump their properties to avoid the huge tax bills.

There was just an article here in our paper this morning about the fact that there was a decrease of permitting as compared to this same time last year.

June 2005 permits 752
September 2006 permits 159

Blackout wrote:I agree with the premise as a whole the real estate market has gone soft. However, as where beachbiker lives and where I used to live, near Cocoa Beach, FLA.....the markets are continuously outrageous. I home we built in 99' sold for over 3 times the building price last year. Talking with friends still in the area there, the prices are no longer rising and because of the saturated market they are taking longer to sell. But the over value of the homes is holding steady. We then purchased a house in East Tenn near the Smokies.....still a booming area.....but a real dose of reality when it comes to home values.

The key is you bought the home in 1999... anyone who purchased in 2001-2004 and early 2005 and need to get out from under a home is in a world of hurt.

jayestewart wrote:Another thing that has happened is those of us who own rental or vacant property have really taken a tax hit this year. The appraiser in our county appraised the properties at the prices they were worth during the boom. Now no one is buying and everyone is trying to dump their properties to avoid the huge tax bills.

There was just an article here in our paper this morning about the fact that there was a decrease of permitting as compared to this same time last year.

June 2005 permits 752
September 2006 permits 159

I heard on CBS News (like we can trust them) that in 3-4 years the reappraisals will reflect this flatness and decline we are seeing. It's actually what we are seeing now. The appraisals are going up right now based on what happened 3-4 years ago.

Just reading this thread and thought I would shed some light on it from my area: Annapolis and vicinity.

I live in a beach community along the South River, just south of Annapoils and about a mile from the Chesapeake Bay. I bought my small house, less than 1,000 sq.ft., in 1977 for $41K because that was what we could afford. About 6 years ago it was appraised at $130K. The only changes we had made to it were some new vinyl siding. Since then we have added a room and a front porch so that the house is about 1,300-1,400 sq.ft. and it has been re-appraised at $304K.

Since we are planning to stay here for quite some time I'm hoping that by the time we leave it isn't back down to the $41K we paid for it.