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(Boston Globe)   The housing bubble burst that isn't happening seems to be happening in Boston. Quick honey, get the lube   (boston.com) divider line
    More: Scary  
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27395 clicks; posted to Main » and Business » on 29 Oct 2005 at 9:54 PM (16 years ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



213 Comments     (+0 »)


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2005-10-29 8:03:16 PM  
Good. Let's get this adjustment over with so we can return to a more realistic economy.
 
2005-10-29 8:09:17 PM  
Thankfully I don't live there. Should make about 15 to 20k on my house.
 
2005-10-29 8:10:30 PM  
 
2005-10-29 8:10:45 PM  
Good, maybe I'll be able to buy a house a year from now instead of wasting my money on rent.
 
2005-10-29 8:12:49 PM  
Good, maybe I'll be able to buy a house a year from now instead of wasting my money on rent.

A-farking-men
 
2005-10-29 8:13:17 PM  
Good thing I bought mine $100K under "market value" - this sort of thing is about to start happening everywhere
 
2005-10-29 8:13:51 PM  
Good. Just in time for the new bankruptcy laws to kill the lifetime dreams of all those homeowners who took equity loans to finance their Hummers and fuel and vacations and Kate Spade purses.

I'm buying stock in cardboard box companies on monday. Gonna be RICH!
 
2005-10-29 8:15:53 PM  
Welllll.... it's sort of happening in Boston. It's more like a Sssssssss slow deflation. And prices are just sort of levelling off, not falling AFAIK
 
2005-10-29 8:18:35 PM  
Good.

well, that may be a little harsh but a slightly softer way to look at it is: there are a LOT of 5+1 interest only ARMs taken out over the past few years... as the market levels out and property values come back down to earth AND those people see their payments jump by quite a bit... you're gonna see a lot of foreclosures. You don't have to wish harm on others, but you *can* take advantage of their misfortune...

This should also re-spark tax lien speculation as I suspect a lot of the folks in the aforementioned situation will not be paying their property taxes either.
 
2005-10-29 8:20:37 PM  
levelling off, not falling

When sellers all over are reducing prices by $50K and still can't sell, that's definitely "falling."

fwiw, this started happening in San Diego a few months ago as well, so it'shiatting both coasts. From what I've witnessed in L.A., it's leveled off, but nobody's having to drop list prices yet. Yet.
 
2005-10-29 8:20:48 PM  
Our non-profit in Mass just started a new program two weeks ago...we're setting aside cash and grant moneyto buy up all the land when the bobble goes, then revamp it & rent it to low income families.
 
2005-10-29 8:21:59 PM  
LittlestPirate:

well, that may be a little harsh but a slightly softer way to look at it is: there are a LOT of 5+1 interest only ARMs taken out over the past few years... as the market levels out and property values come back down to earth AND those people see their payments jump by quite a bit... you're gonna see a lot of foreclosures. You don't have to wish harm on others, but you *can* take advantage of their misfortune...

What he said, whatever he said.
 
ZAZ [TotalFark]
2005-10-29 8:22:15 PM  
Good, maybe I'll be able to buy a house a year from now instead of wasting my money on rent.

Thirded. I hope there is a real price decline as opposed to a lesser level of inflationarity insanity.

Certainly, few expect an '80s-style collapse, when home values plunged 25 percent or more.

Oh, well. With luck the "few" will be right.

Now, many are prepared to wait, believing that prices are coming down.

It's called positive feedback. If people truly believe in a boom or bust, they can make it happen.
 
2005-10-29 8:26:15 PM  
I wear this shirt fairly often these days:

[image from t-shirthumor.com too old to be available]
 
2005-10-29 8:32:30 PM  
[image from slrobertson.com too old to be available]

Bubble house?
 
2005-10-29 8:32:50 PM  
LittlestPirate: this sort of thing is about to start happening everywhere

Already happened in Indianapolis. Housing prices were down 2 percent last year. Only city in the top-50 largest in the US to have average prices drop.
 
2005-10-29 8:34:24 PM  
Yea!
I have been patiently waiting for the housing prices to go down now for 3 years.

I went and saw a house in central Mass about 6 months ago. It was and 1800's style house that used to be a pub. We thought we would go and take a look at it because it seemed that the place had a lot of charm. There were problems inside what were not in the ad. For starters, the place was completely gutted, not cabinets, no carpeting, no bathroom fixtures. It was on no land plus it had stuctural damage. On the top floor you could feel the house shake when you walked into the place. They were asking for $185,000, I shiat you not.

We even saw someone trying to sell thier trailer for $200,000 that had 2 bedrooms and you are not buying any land with it.

This is the start of some good news.
 
2005-10-29 8:35:52 PM  
Call me when it hits the midwest...
 
2005-10-29 8:36:23 PM  
Already happened in Indianapolis

excellent! This sort of thing always goes in cycles.

Remember kids: 30 yr fixed can be your friend over the long haul and you can still get 6% right now if your credit is good. And, if rates are better later, refi. Woo hoo. With what interest rates are about to do for a significant number of years, I wouldn't touch an interest-only for anything less than 10+1 right now and even then the rate is usually worse than a 30 yr.

I have a feeling a lot of new homeowners are going to be homeless in a year or two.
 
2005-10-29 8:37:14 PM  
We bought our pad 3 1/2 years ago in L.A. for $196,000, when everything was going for $240,000 and up.

The house two doors down - same size - sold for $400,000 6 months ago. Rideeee-culous. Hopefully things will level off out here so we can sell, take our winnings, and trade up.
 
2005-10-29 8:39:37 PM  
2005-10-29 08:34:24 PM woodstock

I went and saw a house in central Mass about 6 months ago. It was and 1800's style house that used to be a pub.

Dude, where? In Hudson?
 
wee
2005-10-29 8:40:03 PM  
I just bought a house last month in Sunnyvale, CA (which is notorious for its perpetually short supply of proprty for sale) for $50K less than they were asking. But we had take $20K less than we wanted to sell our place in San Diego last July.

The correction is indeed happening.

Don't be overly harsh about interest-only ARMs, though. If you're careful, you can get one with an interest rate cap. And it's one of the few loans that will let you lower your monthly payment (by paying down the principal).
 
2005-10-29 8:50:37 PM  
KazamaSmokers
Dude, where? In Hudson?

Near Sturbridge, west of Worcester.
 
2005-10-29 8:55:04 PM  
woodstock: We even saw someone trying to sell thier trailer for $200,000 that had 2 bedrooms and you are not buying any land with it.


I saw one of those. I laughed and laughed until I realized the realtor was serious. So I left.

/in worcester
 
2005-10-29 8:55:31 PM  
woodstock: Near Sturbridge, west of Worcester.


If you want something a little more reasonable, try Southborough.

*tries hard to keep a straight face and fails*
 
2005-10-29 8:57:44 PM  
woodstock: This is the start of some good news.

This is AWESOME. I can't wait to finally stop hemorrhaging rent money. I'm sick of getting priced out of my own neighborhood.
 
2005-10-29 8:58:55 PM  
I feel for all my friends who bought places in the South End, but I finally feel vindicated for saying it was cheaper to rent than buy. Maybe I'll actually be able to own something in a year or two.
 
2005-10-29 9:01:29 PM  
If you want something a little more reasonable, try Southborough.

*tries hard to keep a straight face and fails*


/hhhhhhhaaaaaaaaaa
//HHHHHHHAAAAAAAAAA
///Good one!
 
2005-10-29 9:04:33 PM  
I live in the Fenway. Nope. Not a worry. Prices still outrageous and selling ont he same day.

The ones that aren't selling are the people who tried to gouge even further beyond the bubble.
 
2005-10-29 9:10:12 PM  
I wouldn't go to Sturbridge. The schools in that town suck.
 
2005-10-29 9:33:41 PM  
KazamaSmokers: I wouldn't go to Sturbridge. The schools in that town suck.


But what about Old Sturbridge Village? Man, that place never gets old! That far outweighs any education at some fancy-pants "school" any day of the week.
 
2005-10-29 9:35:27 PM  
I wonder how these people are handling the sudden decline in housing prices?
 
2005-10-29 9:37:49 PM  
whoah, how topical. I just got offered a job in Littleton, MA and was looking for a place to live around there. Where in the area should I look?
 
2005-10-29 9:43:16 PM  
dj4aces: I wonder how these people are handling the sudden decline in housing prices?


Hahaha... I love how the realtors are saying "Oh yeah, everything's cool! Don't worry, there's no bubble here" when talking to prospective buyers, but amongst themselves they sing a different tune.
I just did a conference at my hotel with the top 200 real estate agents in the "luxury market"... they were all shiatting their pants.
 
2005-10-29 9:45:16 PM  
You can't beat Worcester. Low prices, big city, not as much crime as Providence, Hartford or Springfield. It's not pretty, but its not snobby either. And it has 9 colleges.
 
2005-10-29 9:57:35 PM  
Don't be telling me this crap. My mother-in-law just died, and we are about to put her house on the market.

/hold on bubble...
 
2005-10-29 10:01:31 PM  
[image from tinypic.com too old to be available]
 
2005-10-29 10:04:44 PM  
some_random_guy,


I just saw a condo in Kansas City go from 280k to 250k. It was on the market for 9 months.
 
2005-10-29 10:04:45 PM  
Oh lovely, zero! Let's trade polo ponies!
 
2005-10-29 10:05:02 PM  
I knew this sort of thing was going to happen when I thought to myself, "Hey, maybe I should get into the real estate business when I get out of college." This thought was followed immediately by, "Hey, if even I, a twenty-year-old college student, am seriously thinking about investing in real estate, the market's going to be popping real soon."
 
2005-10-29 10:05:49 PM  
Here is our sad story
1. House new in Los Angeles, Ca. in 1944 $7,000
2. We purchased this house in 1972 for $27,500
3. The current average price where we live is $765,000
CHING CHING CHING CHING....
 
2005-10-29 10:07:35 PM  
KazamaSmokers
I'm actually living in a small house (3 bed 2 bath) in Weston, while my highschool classmates are the rich ones with 5 car garages, horse stables and tennis courts.
 
2005-10-29 10:08:02 PM  
The exact oposite is happening in Manhattan, KS. With all of the soldiers being transfered to the area, properity values are going up, up, up.
 
2005-10-29 10:09:23 PM  
That was the most annoying farking ad I've yet to deal with in Mozilla.
 
2005-10-29 10:11:22 PM  
Farking finally...
 
2005-10-29 10:14:04 PM  
Any of you Mass inhabitants remember the last housing "correction" back when G H W Bush was president?

Things started off with a light lowering of prices followed by a steep decline. Waterfront homes on the Cape went from ~$150K to below $75K in less than a year. I saw people wiped out - and I do mean wiped out. Does history repeat itself? For those that are up to their necks in debt, I hope not.

Then we had the great auctioning off. It was kind of like the revisiting of the carpet baggers - northern style.

As a quick indicator, I used to keep track of the Boston Sunday Globe classifieds. If the size of the Real Estate for Auction section was bigger than the Help Wanted section I knew we were still in trouble.

Now, we have the Internet. Anyone have a good, fast check on the Interweb like that?
 
2005-10-29 10:17:05 PM  
So an overpriced area slows down and you assume the economy is tanking? Occam's razor = "Not enough folks want to live in Boston to justify their prices"

Sheesh...

Boston? /shudder
Call me when it hits the midwest.
 
2005-10-29 10:17:50 PM  
Too bad that the adjustments to the housing market seem to have been relatively mild thus far. I would have liked to see a massive crash, whatever the consequences for financial stability, consumption and economic growth, just to really hurt common idiot investors and teach them not to create bubbles.

/hey honey, you know that house we saw a year ago for 200k? It's 700k now, GREAT INVESTMENT
//let's bid 900k!11!
///god knows how academics and researchers don't go insane watching irrational behaviour in markets
 
2005-10-29 10:20:35 PM  
"hardly outrageous asking price of $570,000"
Do you know, I think I could purchase my entire block for that. that would be roughly 17 acres with 12 homes. Yeah, some of them should be razed to improve property values, but they're on the side of the block I can't see from here.
/rural life rocks
 
2005-10-29 10:20:36 PM  
Duck and cover! This is going to get nasty.
 
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