Comments on: Is The Housing Market Overheating . . . Again? http://www.biggerpockets.com/renewsblog/2009/10/27/housing-market-overheating/ Learn, Network, Invest Sat, 11 Feb 2012 16:57:56 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Eric Schwagerhttp://www.biggerpockets.com/renewsblog/2009/10/27/housing-market-overheating/#comment-76598 Eric Schwager Wed, 23 Dec 2009 19:29:13 +0000 http://www.biggerpockets.com/renewsblog/?p=8073#comment-76598 Being out here in California, I've certainly heard much about opportunities in Detroit. To ask a dumb question, what exactly is the position today of a $4k house bought one year ago? Are these these one going for $15k right now? They're cash-flowing, right?As to new investors rushing in where wiser ones fear to tread, if they're paying cash and the values go down, they'll certainly lose a lot of equity, but since loans aren't involved, I don't see how this would have anywhere as much impact on the financial system as the last time around. Thoughts? .-= Eric Schwager´s last blog ..3 Secrets to reading Housing Data for the Real Estate Investor, part 3: Looking beyond the trend =-. Being out here in California, I’ve certainly heard much about opportunities in Detroit. To ask a dumb question, what exactly is the position today of a $4k house bought one year ago? Are these these one going for $15k right now? They’re cash-flowing, right?

As to new investors rushing in where wiser ones fear to tread, if they’re paying cash and the values go down, they’ll certainly lose a lot of equity, but since loans aren’t involved, I don’t see how this would have anywhere as much impact on the financial system as the last time around. Thoughts?
.-= Eric Schwager´s last blog ..3 Secrets to reading Housing Data for the Real Estate Investor, part 3: Looking beyond the trend =-.

]]> By: Peter Giardinihttp://www.biggerpockets.com/renewsblog/2009/10/27/housing-market-overheating/#comment-74809 Peter Giardini Sun, 01 Nov 2009 03:38:33 +0000 http://www.biggerpockets.com/renewsblog/?p=8073#comment-74809 Glen... what market are you in?I totally agree that anyone who is getting into real estate today thinking that appreciation is going to give them any part of their deal is living in a fantasy world.I am on the fence regarding the worst to come... but more and more everyday I am not encouraged. Glen… what market are you in?

I totally agree that anyone who is getting into real estate today thinking that appreciation is going to give them any part of their deal is living in a fantasy world.

I am on the fence regarding the worst to come… but more and more everyday I am not encouraged.

]]> By: Peter Giardinihttp://www.biggerpockets.com/renewsblog/2009/10/27/housing-market-overheating/#comment-74808 Peter Giardini Sun, 01 Nov 2009 03:36:28 +0000 http://www.biggerpockets.com/renewsblog/?p=8073#comment-74808 Demos... this is what I find so unsettling. Some investors are moving away from the fundementals and just as you indicated they are overpaying and will not be able to sell on the backend... and we will watch this miserable cycle of "speculators" getting killed start all over again. In less then 3 years! Demos… this is what I find so unsettling. Some investors are moving away from the fundementals and just as you indicated they are overpaying and will not be able to sell on the backend… and we will watch this miserable cycle of “speculators” getting killed start all over again. In less then 3 years!

]]> By: Glen D. Scharerhttp://www.biggerpockets.com/renewsblog/2009/10/27/housing-market-overheating/#comment-74803 Glen D. Scharer Sat, 31 Oct 2009 19:30:39 +0000 http://www.biggerpockets.com/renewsblog/?p=8073#comment-74803 I belong to an investor group of around 80 seasoned investors. We have all stopped looking at REO's, they are a waste of time right now. I am not sure where all these cash buyers are showing up from, but all good deals have at least 10 cash offers and are selling for 10-20K more than the asking price. We have not seen the bottom yet and newbies buying now are going to go broke. These prices will not go up over 5% in the next 3-5 years, more problems coming with big government taking over. The worst is yet to come, hold on to your cash, you will need it in your survival kit, if it is even worth anything in the near future!!! I belong to an investor group of around 80 seasoned investors. We have all stopped looking at REO’s, they are a waste of time right now. I am not sure where all these cash buyers are showing up from, but all good deals have at least 10 cash offers and are selling for 10-20K more than the asking price. We have not seen the bottom yet and newbies buying now are going to go broke. These prices will not go up over 5% in the next 3-5 years, more problems coming with big government taking over. The worst is yet to come, hold on to your cash, you will need it in your survival kit, if it is even worth anything in the near future!!!

]]> By: Demos Loizideshttp://www.biggerpockets.com/renewsblog/2009/10/27/housing-market-overheating/#comment-74796 Demos Loizides Sat, 31 Oct 2009 14:21:12 +0000 http://www.biggerpockets.com/renewsblog/?p=8073#comment-74796 A few weeks ago, I was looking at an REO single family detached house in Dale City, VA. It was listed at $89,900 and the ARV was around $180-$200K. After looking at it, and knowing it needed about $20K in repairs, I told the agent I wanted to make an $80K all cash offer. He said he already had 9 or 10 all cash offers from other investors at $40K and $50K above list price.I told the agent, "They can have it. They don't know what they're doing. They won't be able to sell it". A few weeks ago, I was looking at an REO single family detached house in Dale City, VA. It was listed at $89,900 and the ARV was around $180-$200K. After looking at it, and knowing it needed about $20K in repairs, I told the agent I wanted to make an $80K all cash offer. He said he already had 9 or 10 all cash offers from other investors at $40K and $50K above list price.

I told the agent, “They can have it. They don’t know what they’re doing. They won’t be able to sell it”.

]]> By: Joshua Dorkinhttp://www.biggerpockets.com/renewsblog/2009/10/27/housing-market-overheating/#comment-74704 Joshua Dorkin Wed, 28 Oct 2009 18:06:25 +0000 http://www.biggerpockets.com/renewsblog/?p=8073#comment-74704 Liz - Did you see today's news about New Home Sales falling 3.6%. I don't really see that as news that we're on the path towards any upward curve any time soon. Liz – Did you see today’s news about New Home Sales falling 3.6%. I don’t really see that as news that we’re on the path towards any upward curve any time soon.

]]> By: Lizhttp://www.biggerpockets.com/renewsblog/2009/10/27/housing-market-overheating/#comment-74699 Liz Wed, 28 Oct 2009 17:47:44 +0000 http://www.biggerpockets.com/renewsblog/?p=8073#comment-74699 Signs are pointing to an upward curve and new home builders are beginning to crank things up again. All this will be moot if the unemployment rate remains high. Signs are pointing to an upward curve and new home builders are beginning to crank things up again. All this will be moot if the unemployment rate remains high.

]]> By: Peter Giardinihttp://www.biggerpockets.com/renewsblog/2009/10/27/housing-market-overheating/#comment-74698 Peter Giardini Wed, 28 Oct 2009 16:40:06 +0000 http://www.biggerpockets.com/renewsblog/?p=8073#comment-74698 My biggest concern for new investors and us more experienced ones is that the media will over-hype real estate and too many uninformed people will rush in driving up prices. This scenario turns into a lose - lose for everyone. My biggest concern for new investors and us more experienced ones is that the media will over-hype real estate and too many uninformed people will rush in driving up prices. This scenario turns into a lose – lose for everyone.

]]> By: Joshua Dorkinhttp://www.biggerpockets.com/renewsblog/2009/10/27/housing-market-overheating/#comment-74697 Joshua Dorkin Wed, 28 Oct 2009 15:50:50 +0000 http://www.biggerpockets.com/renewsblog/?p=8073#comment-74697 The news stations constantly run programming talking about great deals in places like Detroit, where you can buy a home for only $1. These along with other hype from the hypsters convince unknowing investors to jump in and buy properties that aren't worth the dollar you pay for them.As I always say to anyone jumping into the biz, heed caution. The news stations constantly run programming talking about great deals in places like Detroit, where you can buy a home for only $1. These along with other hype from the hypsters convince unknowing investors to jump in and buy properties that aren’t worth the dollar you pay for them.

As I always say to anyone jumping into the biz, heed caution.

]]> By: Sarah Dhttp://www.biggerpockets.com/renewsblog/2009/10/27/housing-market-overheating/#comment-74672 Sarah D Wed, 28 Oct 2009 04:00:47 +0000 http://www.biggerpockets.com/renewsblog/?p=8073#comment-74672 Good news for me then as my house i bought 3 years ago, finally prices are on the way back upLove it! Good news for me then as my house i bought 3 years ago, finally prices are on the way back up

Love it!

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