Mac

My question is (and I can probably start a new thread on this) ... what happens if the new administration decides to bail out the people with foreclosed homes???? Will the house prices still remain high? OR will it fall eventually but only take longer....??????? - Fri May 9 2008, 11:38

I saw a 4 bedroom house put up for Sale in the 23456 area. The owner had bought it for $188,000 in 2004 and was selling it for 320,000 in 2007-2008.

Most of the realtors on this site seem to be citing reasons of proximity to the ocean and lack of 'desirable land' as causes to high prices of the houses.

What a buyer should be focusing on is not the current price of the houses but in the difference in the prices from 2004 to 2008. What really changed since 2004? Did we move closer to the ocean? Do we have 2 oceans now? The ocean was always around. What about the 'desirable land'? Why has Virginia Beach become so desirable all of a sudden? This is a resort town we are talking about not down town Manhatten. Where are the job opportunities for more people to move in and want to buy houses? Who are the big employers. Most people buy a house reasonably close to their workplace. Was there an increase in jobs here in Virginia Beach? Why the sudden spike in demand?

This spike in demand, whatever the reason, appears to be artificial. Any artificial demand cannot sustain itself in the long run. You cannot manipulate the markeyt for long. The market forces will even things out. Today the prices of homes in Virginia Beach is artificially high. In my opinion houses that should be selling for $220,000 to $250,000 are currently priced at $350,000 plus.

My advice is plain and simple. WAIT. Do not venture to buy now. The prices will fall dramatically and you will kick yourself later if you buy now. Save money for your down payment while you rent and wait for this bubble to burst. By the time the prices become more realistic you will have saved up enough for a decent down payment. - Thu Mar 20 2008, 08:28

What do you have to say about this Ms. Davis? - Wed Mar 5 2008, 09:53