Update yesterday 9-15-08 Lehman Brothers filed bankruptcy, Merrill Lynch bailed out by Bank of America on top of Bear Stearns collapse in March 08' AIG worlds largest insurer may go out of business on mortgage insurance loans.
These firms provided the cash for the upper end of the market "jumbo" via their respective, now defective mortgage securitization businesses. I predict 96 to 98 prices adjusted for inflation by 2010 -2011.
The mortgage funny money period is dead, thinking of paying $750,000 or more for a house you better have perfect credit and 30%, so so credit bring 50% of purchase price or forget it.
The average home seller and realtor is clueless as to what these events are doing and will continue to do to residential re prices now and in the future.
If I were a seller I would price to 2000/01 prices now, and sell asap. Within 2 years you will look smart.
Dollar has been strengthening, so don’t expect an Indian family to over pay via the no longer existent Rupee 30% more buying power. Northern Bergen county is home to Wall street types suffice to say they are not earning money, if they still have a job. - Tue Sep 16 2008, 15:53
Northern Bergen County is the epicenter of Wall Street types, how they do, determines prices of RE.
It is not Manhattan, other than some benefit of some (no longer the case) Rupee vs. Dollar strength ie: in 2005 - 2006/07 Indian buyer pays $3mm is not equivalent to you paying $3mm, because of the weak dollar they had at least 30 - 35% more buying power. I anticipate prices dive, will not quite, but nearly follow California, Florida and Nevada's depreciation over the next 2 years, sooo instead of making a "good buy", at this point you will probably be kissing your money "good bye". Take annual rent multiply by 17 (14.5 is national avg.) premium is because of proximity to Manhattan, and there can be found the "market value" of the house. Anything above is subjective to say the least and very risky, not to worry banks wont fund that silliness anymore. All RE is local and some towns are more "infected" by spec builders, flippers etc. Time is not the leveraged mans friend. - Mon Aug 18 2008, 16:29
MVPs or 'Most Valuable Players' are key Trulia Voices members who have been contributing high-quality content throughout 2008 and providing valuable advice to consumers and real estate professionals.
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