Home prices drop lower
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Check your back up plans ….
Are you still admitted to the bar in Connecticut? You could be Fuddrucker’s foreclosure attorney of choice ….
I am still licensed and I am considering that option, although I really, really don’t want to go back to the law.
I know three people who just bought in Darien in the 3-5 million range…… different market there? Prices were at a discount certainly– maybe 20% or so off originial asking– not half price!
No doubt because of this blog, Anon, I tend to attract buyers looking for half-off prices. I can’t often accommodate them – there just aren’t that many distressed properties, but I try. As an aside, I don’t think I’d advise spending $3 million in Darien, but that’s just me.
Why?? we’re in the market in the mid-2’s…. I head of a friend of a friend of a friend who spent in the 6’s in Darien.
I’d just like to see some new houses on the market. I think there are a lot of potential buyers in the same position. We have nothing to even consider, except for the same old overpriced houses that have been sitting around for months.
Yes, New, but those are the ones to target. Not now, their owners are still dreaming of the “spring market” and continuing to delude themselves, but come April, or May, they should be ready to get real. Find the ones you like now, and then wait ’em out.
I was planning on waiting till then (Darien), though a few houses we liked are now bindered or pending. Others will come on in the next month or two, but will they be willing to make a deal in May? Who knows? Maybe it will be Greenwich after all.
There’s a fine line to observe, fella, and if houses you’ve liked have gone to contract, I think you’ve gone over to the wrong side of that line. Not every house is overpriced, especially if it’s had a couple of price cuts. I have suggested a number of houses to clients that I thought were finally priced right, they hesitated, and someone else stepped in and snapped it up.
Exactly, Chris… It’s just that I’ve gotten trapped in the mentality that I have to get it at some mythical bargain price, but I’m willing to be more realistic in the months to come….. fortunately, we haven’t been desperate to get anything right away, but I’m going to get tired of looking!
Soemthing to read when your snowed/iced in tomorrow. He’s funny and reminds me of you for some reason…
There are a lot of forces at work that are not remarked upon in the media that are adverse to the acquisition of real estate and, in particular, high end real estate in Greenwich. These factors include the practice of awarding resticted stock with muti-year vesting (i.e.not cash) to wall street executives, the alarming
deterioration of CT’s financial condition including the new analysis by municipal bond rating agencies that CT debt plus unfunded pension liabilities places the state as the second most highly leveraged in the nation, the now broken model in Greenwich that one could always leverage price apprecaition to acquire a better house in the same town, the realization that energy prices are turning 6,000 + sf houses into Newport style white elephants, and the often startling news to many succesful residents in their fifties that they need to establish residence in a new state to avoid a muti-million dollar death tax bill. These are long term problems that affluent people are increasingly aware of and weigh very carefully when deciding to purchase an asset that is no longer expected to appreciate at more than anemic GDP growth raes, if at all.
All home loans should be full recourse loans, no leaving just the house to the lender when prices drop. It’s a weird “heads I win, tails you lose” policy, along with other bad policy, that outrageously inflated home prices.
In Texas, after the 1980’s debacle, home loans became recourse so people buy what they afford, not try to game the system for a killing later on. Also, the Texas Constitution limits home equity loans (total) to no more than 80% of the market value.
What’s the incentive to leave a home if you still have to make good on the loan?
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