Posts filed under 'Real Estate'
Since I live near Sacramento,ca; I take a lot of interest in the housing market here. I am currently renting since I find that much more economical than buying a $400,000 house. I almost bought a house last year, but backed out at the last minute. I could not justify paying $2500/month for a simple 1400sq ft 3bedroom 2 bath house. The housing market has been pretty insane here in this region. I knew that 20% price gains that these houses were experiencing could not continue for ever. Well, it turns out that I was right (along with other people who have been predicting the housing bubble for years now). There were a couple of articles that I read this weekend that really drive home this point. The Sacramento housing market is dead and I believe it is turning into a buyers market now. The first article comes to us from the Sacramento Bee. It talks about a street in the Mather Field area which has 7 houses for sale. 7 houses for sale on one half-mile stretch. These people who bought their houses for about $175k in 1999 are trying to cash out at $400k right now. I don’t blame them; I would cash out as well. But it just shows you what a tough time it is to sell right now. I guess that is good for us buyers. The second article was from CNN. It lists Sacramento as one of the 7 dead markets in terms of price gains. If you are a buyer, it is time to start hoarding up your savings. These 2 articles, along with the rising interest rates are definitely pointing to a slowing housing market.
May 8th, 2006
Its no secret that the housing market has been slowing over the past 6-9 months here in Sacramento. I was very actively lookign into getting a house around April/May of 2005; but just coudn’t justify the ‘outrageous’ prices back then. Well; it looks like it was a wise choice to wait. The so called ‘housing bubble’ that analysts have been talking about has finally burst. Centex homes is offering $100k off on their new homes as part of a special 2 day sale.
Imagine being a homeowner who bought those same homes last year. Your home has just lost $100k. If you had to sell your home; why would anyone but yours when they could buy a brand spanking new one for $100,000 less. Its things like that which are going to finally lead to the ‘housing bubble’ we have been hearing so much about. Just think for a second; how can Centex afford to price down this home $100,000. Does that mean they are going to lose $100,000 on this house? Most likely; they are going to have to give up the $100k profit they were going to make on this house. The housing prices in Sacramento (Northern California) have been insane for the past 2-3 years. It is about time that we start seeing discounts like this!
May 2nd, 2006
This site uses Google maps to display you any search listings. This gives you a very good overview of the location of a home.
Trulia
March 1st, 2006
Hey.. whats that sound? Could it be the bubble bursting? Now if the prices fall 24%, then we are in business!
LinkToArticle
March 1st, 2006
For all this talk of the so called ‘Real estate bubble’ over the year or so; it really hasn’t happened. Looks like the wait is over. This weekend’s advertisement in the sacramento bee might be the strongest sign for the bubble yet.
Do you want to be that guy who bought a house at $434k that is being sold at $299k right now?? Give it another six months and maybe these house prices will actually start to make some sense.
February 21st, 2006
