Firsttimerstp, Home Buyer in 55104

I read somewhere that places are selling at their 1995 prices...is this true?

Asked by Firsttimerstp, 55104 Wed Mar 3, 2010

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Below is a house price prediction site. It also offers some information on why they think prices will do whatever they will do.
http://www.housingpredictor.com/minnesota.html

Home sales are up and prices are down in Minnesota, where some of the most affordable housing markets in the country are at 2000 year home prices.

It looks like 2000, not 1995 to me. Some areas may be lower. Wait awhile, they may change even more.
1 vote Thank Flag Link Wed Mar 3, 2010
.Prices have rolled back.....way back. However, there are pockets of exceptions. Certain properties and areas of demand continue to prosper. Think property surrounding Disneyland, secluded sites, good schools and shopping or downtown city blocks hold value and demand. However, now is a good time to pick out a prospective purchase and set yourself up to make a good investment. Do it with the help of a good agent who will use speed, experience and know how to get you a great deal. The trick with any investment is to know how to get in and out of it successfully. Now is a very good time to analyze a purchase and take advantage of good interest rates. Remember, Real Estate works in cycles. We have had 17 documented previous ones to learn form. Make your self ready to leap into this one and catch the upswing
0 votes Thank Flag Link Wed Mar 10, 2010
Jeryl, "If you are sincere about buying, what difference does it make as long as you are getting a great deal at an affordable price?"

The answer is simple. No one wants to buy at inflated prices today only to see the sales price come along tomorrow. Who would want to buy now knowing that a price drop will come next week? Real estate may be next year, but if prices are still above historical norms we can expect more drops in the future. I would consider 1998 to be the benchmark, but it could be prices go below that as bubbles often drop below their starting point once popped.
0 votes Thank Flag Link Wed Mar 10, 2010
No, however, I am sure it depends on where you live. In Northern California we are at 2003 prices. It would have to go a long way to get to 1995 pricing, That is not going to happen.
0 votes Thank Flag Link Wed Mar 10, 2010
If you are sincere about buying, what difference does it make as long as you are getting a great deal at an affordable price? As long as you are not to position yourself so that you will have some sort of guarantee that the property will not be worth less at some point after purchase, you are going in the right direction. Find a great agent and rely on them to help you.

If you are thinking about selling, that is another story and again a great agent can make all the difference.
0 votes Thank Flag Link Wed Mar 10, 2010
Market delusions, market illusions! Price is one factor; I think in our area your will find a complete spread. Many homes are on the market at or close to the assessed tax evaluation which is usually way above those pertinent in 1995 - 2004; It is easy to check, using the County data for the 10 county metro area. The illusion part is about not believing every urban legend you hear. Conduct your own data search or get the help of a good agent. The factors that give the impression that prices are "down to nothing" or less is based on many of the short sales and foreclosure sales of totally distressed, depressed and, indeed, trashed properties - many without heating plants, wiring, windows, etc. Get a great agent; prepare all the goals and find the statistics that will point you in the right direction to achieve your housing, financial and personal life style agenda. Liz - 612-986-4105
0 votes Thank Flag Link Thu Mar 4, 2010
The Housing Affordability Index is at one of the highest levels ever. This statistic is more relevant than the actual price of a house in most cases. This takes into consideration the price of house, availability, interest rates, etc. I you need more information, let me know.
0 votes Thank Flag Link Thu Mar 4, 2010
No.

It's not true.

Many areas are selling at somewhat more recent prices. Andrew is pretty close to the mark with 2001 or so. Some are doing better. Jeanne's correct that some areas around Washington, D.C., are doing pretty good. Maybe at 2004 or 2005 levels.

Meanwhile, some areas may be close to their 1995 levels. Certain Midwestern urban areas, for example. It's really impossible to generalize. Even in the Washington area, there's a tremendous variation.

But, as for a blanket or general statement that properties are selling at their 1995 prices: No.
0 votes Thank Flag Link Wed Mar 3, 2010
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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Hi all, Jeanne back again - just checked out the link from Dan - for NJ it misses our healthiest regions and thereby paints a grimmer picture than what I see. Our urban/suburban hot spots, like Summit, Westfield and Morristown are all doing very well. The report does credit the Tax Credit for much of our momentum and I agree with that for sure. We are now seeing movement in other price points as well, and so the increased activity among first time buyers is clearing the log jam in a more general way.

Today we heard from some senior managers of our firm who reported that the D.C area market, including Maryland and Virginia is doing very well with low rates of absorption.

So from a NJ voice, we have held up better than 1995 levels, but we are definitely down across the board.

Best,
Jeanne Feenick
Unwavering Commitment to Service
Find success at http://www.feenick.com
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Wed Mar 3, 2010
While I think some areas could be trading at 1995 levels I dont believe most of the market dipped that low.
Web Reference: http://www.lennyfrolov.com
0 votes Thank Flag Link Wed Mar 3, 2010
Hi there - we are not at 1995 levels here in New Jersey. Thanks for the housing predictor link Dan, that's useful.

Best,
Jeanne Feenick
Unwavering Commitment to Service
Find success at http://www.feenick.com
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Wed Mar 3, 2010
FYI: Dan and me answer almost at the same time if not at the same time.

year 2000.
0 votes Thank Flag Link Wed Mar 3, 2010
In some cases it is true. I have seen year 2000.
But properties in bad shape get a greater hit.
Also, properties with City issues get to be sold at a lower price due to the city requirements.

Anything in bad shape has a "bad" (low) price. Anything in good shape has the right price, and great shape, sells over the listing price.
0 votes Thank Flag Link Wed Mar 3, 2010
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