Falling real estate prices

[Menlaan]

Year on year median home prices fell 10%, the largest fall since 1970 (see article here: http://money.cnn.com/2006/10/26/news/ec ... tm?cnn=yes)

I'm curious how things are going for those of you who were trying the buy, fix up, and flip real estate strategy? I don't recall who was part of the big discussion last year on the topic besides Goose, but maybe there are others involved in real estate who can add your perspective on what's going on.

My take is that the flippers are in-mass cutting prices so that they don't get stuck with assets in a falling market. That's why sales are up, but prices are down. My prediction is that prices continue to fall for the next 6 months.

[Ginzburgh]

I don't see any price drop where I am looking. Every day I log onto the same websites and see the same old piece of shit houses at the same ridiculous prices.

[Narrock]

I just heard a real estate show last weekend on the radio, and they said real estate is predicted to drop 20% by next summer. So, I've got my eye on some land, but I'm going to wait a few months before I submit an offer.

[Ginzburgh]

20% is enormous.

[10sun]

20% is enormous.

I talked with a guy from William Pitt Sotheby's New Canaan office for a while yesterday. Granted, he is optimistic as Larry's livelihood is real estate at this point. However he stated in CT, the market was slow starting out, but has been picking back up this time of year.

The largest difficulty is that fewer people are willing to take the risk of buying a home before selling their current home. Plus the standard of people going upside down with their loans.

-Adam

[Ginzburgh]

Moving to New Caanan area?

My girlfriend is a teacher is Weston. There isn't a chance in hell we can get into Weston. 2,000 square foot home is 700K +. I can't even get into Fairfield. Closest I can get is Shelton.

[10sun]

No, the guy is a close family friend. He is the one who sold the family compound for us a few years back. "The largest residential sale in Stamford History"... I miss that place =(

but yeah, my uncle lives in New Canaan and I was there for my cousin's baptism etc. I spent today up near Buffalo, crazy winds up that way. 50+ mph gusts constantly until about 5pm.