Have Housing Prices Topped..link

[Mike Garrett RAA]

Lets see...20% per week for five weeks and the property is worthless....must be in Arkansas! :rofl:

 

[Terrel L. Shields]

Your gonna hurt my feelings! Gee, I didn't mean to put the horses in the wagon because it was downhill all the way. I download the MLS database each weekend. From Mar - Sep is the busy season, but all summer the 60-80 sales normal in my area have increased to 90, then well over 100 per week. Now in the space of the last two downloads, we were back to 55 this week, lowest in months. I am sure it will level off, perhaps somewhat lower than that (mid winter is often 30-40), but I do think that some people are suddenly confronted with payments higher than they anticipated and are either turning their attention to looking at cheaper houses or backing off in hopes the interest rates will fall again.
I think rates will fall once demand tapers off. This is a competitive business. But anything that affects the payments will affect the prices eventually. I think we are headed for a period where housing prices will flatten somewhat.
As for the value of Arkansas land, we used to have a saying here. "What you come here with is ours, its what you leave here with that you can call yours."
An old man I knew was asked what was his 40 acres worth (near a new airport), he replied, "Oh, about $500 an acre." The guy said, "I'd give you that in a heartbeat.". Lewis replied, "I didn't say I would TAKE that for it or that it would not BRING a lot more, but if you are going to raise cows on it like I do, it really isn't WORTH more than $500/ac." And that was true. If you are going to raise houses on it in a seller's market the sky is the limit.

 

[Mike Garrett RAA]

Terrell..... My wife and I are seriously considering Arkansas for retirement in a few years. I want to be on a lake with lots of bass and close enough to the larger lakes for tournaments. Lets hope those sales prices drop off even more.

 

[Walter Kirk]

Mike,
Don't worry about prices dropping. Since rates were so low and the lenders didn't care about credit there will be lots of forclosures and distress sales in a couple of years. In a situation like that resort properties go first so you shouldn't have any problem making a good deal.

 

[Mike Simpson]

Subprime & REO orders are picking up.