US house prices fall in August

brian · #1 (**permalink**) 09-26-2006, 07:20 PM

The optimists are stating that it's a cooling rather than freefall:
http://news.bbc.co.uk/1/hi/business/5378680.stm

Quote:

The price of existing US homes has shown its first annual decline in more than 11 years, a report has shown.

In the latest sign of a housing slowdown, the study found that the average cost of an existing property fell to $225,000 (£176,000) in August.

This was 1.7% below the price seen in August 2005, and the first annual decline since April 1995.

The National Association of Realtors survey said sales of existing US homes fell 0.5% in August from a year before.

Sales in August totalled 6.3 million properties. However, this was better than market expectations of a decline to 6.2 million.

Still, quite a slowdown, and it's barely even started yet. Could be in for a rocky ride here.

taiarain · #2 (**permalink**) 10-10-2006, 01:09 AM

Yep. I worry about all those people who took out ARM's and those who are trying to sell right now.

tater03 · #3 (**permalink**) 10-11-2006, 03:25 PM

I heard on the news last night that they didn't think that this housing slump was going to last as long as previously thought. This is not to say that just because I heard it on the new it's true. I guess will just have to sit back and see how it all works out in the end.

riskey58 · #4 (**permalink**) 01-03-2007, 09:57 PM

It is really bad time to try and sell your home. I know people who have had their home up for sale for months now. The market is really bad.

taiarain · #5 (**permalink**) 01-04-2007, 06:06 PM

It's a buyer's market right now. Just wish I had some money to buy with. lol

sunshine · #6 (**permalink**) 03-07-2007, 03:31 PM

IT's a really hard time for home sellers, but the market will chnage really soon i'm sure of it.

Mark A · #7 (**permalink**) 03-23-2007, 09:23 PM

Take out a loan, buy property, live on a shoestring if you have to, historically home rates ALMOST ALWAYS go up. Also, if you own a home, it may be a good idea to purchase a second one to rent out. Short-term things could be tight, but long-term you will get ahead, especially if you do minor property improvements yourself.

princess275 · #8 (**permalink**) 08-26-2007, 09:31 AM

The negative sentiment (and the credit problems) has now spread to the UK too. More and more subrime mortgage lenders are tightening up now and I think the rest of the world is about to follow suit.

financeman45 · #9 (**permalink**) 10-21-2007, 11:34 PM

Quote:

Originally Posted by taiarain

Yep. I worry about all those people who took out ARM's and those who are trying to sell right now.

I am one of those people. I bought last December thinking my mothers estate would be finished and I could pay off a second I took out for the down payment. Probate hasn't closed and I am getting worried. That loan is an ARM.

ukey · #10 (**permalink**) 10-31-2007, 04:48 PM

Is it easy for a foreigner to get a loan in the states?

Dru · #11 (**permalink**) 11-01-2007, 07:04 AM

For anyone getting a loan, the process has become much more stringent. Income must be verified, not stated, in most cases. FICO scores must be considerably higher today than they required 6 months ago. Many loan programs have been dropped or changed over the past couple of months. Financing for "rollovers" is more difficult to obtain without high charges and low rate programs have mostly gone away. Lenders are requiring hard money for down payments, not seller participation type transactions. In all, it is a much more difficult marketplace and selling the property is even a bigger issue for many markets.

SCCA · #12 (**permalink**) 12-09-2007, 02:36 PM

You'd be surprised how easy it is to get a low interest rate.