Some good news and not so good news LOL

Discussion in 'Heavy Equipment & Pavement' started by Gravel Rat, May 16, 2008.

  1. Gravel Rat

    Gravel Rat LawnSite Fanatic
    Posts: 9,544

    The realestate market has finally peaked out and not much at all is selling realtors have said they haven't seen in this bad since 1982.

    This isn't good for realtors some of them are finding it tough. If the trend continues there will probably be realtors looking for a different career.

    Prices might start dropping to a normal level to the point guys my age might beable to afford a house. Right now the prices requires you to have a minimum 70 grand a year income to afford a house. House prices went from 200,000 for a average house to 400,000 plus in 3 years.

    Have to see what happens this summer it will be funny to see these people that thought their property is worth millions find out they will have to make a 400,000 dollar price correction :laugh:

    The biggest laugh will be the flippers thinking they could make a big profit now they are stuck with over priced property. The developers that have spent the millions are now looking at some tough times. The demand for 800,000-1 million dollar summer homes is non existant.

    I think this is funny because everybody thought this realestate gravy train was going to continue. The greed was getting bad now it has backfired.

    The commercial fisheries isn't doing good so the local fishermen will be hurting this year. The forestry sector is taking a beating more job losses. Tourism will be down this year with the price of fuel. Price of diesel fuel is at 5.07 a gallon and supposed to get higher.

    No realestate sales no work for all contractors. Excavation contractors will be the first to start to feel the stress off 3 to 10 grand a month equipment payments.

    Sure glad I wasn't sucked into a overpriced house and a 40 year mortgage and really happy I didn't do something stupid like quiting my job that is gauranteed employment.

    Reality check is setting in for many people now which is oh crap we have sunk ourselves into debt and no easy way out.

    My lesson was listening to a small developer/contractor who told me 4 years ago this boom is going to move fast and turn out bad guess what he was right. The boom has gone pretty well bust. The money spent developing land for subdivions is enough to boggle your mind. It may take the next 10-15 years for these developers to recover the money they spent.
     
  2. tallrick

    tallrick LawnSite Senior Member
    Posts: 682

    The real estate bubble was an obvious disaster to anyone with a few active brain cells. People don't understand that debt is not wealth, and just because your property is assessed higher than you paid you do not have anything till you sell it. On the contrary, higher assessed values mean higher taxes and less wealth for you. Since the United States has gone from manufacturing to financial services, the average worker has lost considerable buying power. The result of debt it increased money supply which causes inflation. All that "funny money" is coming back as higher commodity prices.
     
  3. larryinalabama

    larryinalabama LawnSite Fanatic
    Posts: 17,338

    Funny thing is here in Alabama prices are still rising, in our neighbor state of Georgia prices are still falling. Ive been looking and prices in Georgia are about 35% less than here in Bama. I wish the prices would drop here also even though I own 3 homes, I would like to purchase more.
     
  4. AWJ Services

    AWJ Services LawnSite Platinum Member
    from Ga
    Posts: 4,276

    The market in Georgia is still strong in the 150K range.
    Some areas were artificially inflated during the building boom but most rural areas went unchanged.
    Property value was also artificially tied too School districts and as each new school opened there was a mad rush too this new "Best School" in the county.
    Once the schools are open for a few years this phenomenon seems too stabilize coupled with the absence of sub prime lending it is no longer fashionable or affordable too move which lead too this artificial inflation.

    Real Estate agents actually control the property value oddly enough.

    Take my house it has increased in value consistently every year since ownership with no lose of value.
    My County only has seen a 20% increase in population over the last 14 years.
    The county next too us has tripled there population in the same time.
    There property values went through the roof during this growth period.
    As of now most have lost 20 to 30% value from 3 years ago.

    Florida is a sate that this happens in about every 10 or so years.
    The Panhandle went through the roof about 5 years ago.
    It has since stabilized and the real value of the property is now shown.
     
  5. JDSKIDSTEER

    JDSKIDSTEER LawnSite Bronze Member
    Posts: 1,163

    It is funny. Auto makers coming in fast and people following the jobs to Alabama. BRAC move to Redstone Arsenal is also a large plus in North Alabama.
     
  6. bobcat_ron

    bobcat_ron LawnSite Fanatic
    Posts: 10,116

    Same here, the Real Estate and new home construction is dropping big time, one of our building customers is sitting on over a dozen new properties and flips they can't get rid of and big brother isn't looking at any new equipment purchases, he's even forecasted that it will be just the 2 of us after 2010 working together like it was before.







    So I guess the.............
    [​IMG]
     
  7. Gravel Rat

    Gravel Rat LawnSite Fanatic
    Posts: 9,544

    No the sky isn't falling it is reality check for the greedy people and the stupid ones that beleived that if they don't buy now they will be priced out of the market.

    Well the market has stalled and now its time for the market corrections in prices. There are lots of people in the same income bracket as I'am can't afford to buy. If those people can buy then the economy keeps moving forward if they can't the economy stays the way it is SLOW.

    The people with money have bought what they wanted and what is left is what the people with less money can't afford. The mentality of people selling their houses figure well the neighbour got 1.2 million I should too.

    Bare bones basic building lots are way over priced. There were lots that couldn't even sell for 25,000 now the owners figure they are worth 125,000 guess what they are not selling.

    These people with the 500,000 plus houses will be sitting on the market for a long time. The people with houses and building lots that are 100,000-200,000 over priced will be sitting on them for a long time unless they drop the price.

    If people want to keep the economy going (and the only thing left here is construction) is drastic price reductions. There is really no other decent paying jobs besides trades. There are service jobs like working in the grocery stores etc but they are not big paying jobs. Construction is the only industry left in 90% of the communities in B.C.

    Commercial fishing is dead because of poor fishing practices (over fished). Forestry is going down they figure Forestry will be making a 20 year hiatus. There is no gov't projects in the works. There is no manufacturing jobs there could have been but the provincial gov't screwed that.

    When Gordon Campbell preaches the economy in B.C. is doing good he is spewing more B.S. and really doesn't care.

    Ron can laugh all he wants but farming out in the Valley is going to follow the same path as the other resource based industries in B.C. . The provincial gov't is going to make it tough for farmers. Adding more tax to fuel is one of them.

    It is the suckers deep into debt with realestate are going to hurt the most can you see yourself paying on a 40 year mortage. Paying for a house or condo that is 100,000 over priced. If the market does crash in places like Vancouver there will be lots of people loosing tons of money.

    The provincial gov't doesn't care because they are making millions of dollars in tax. Now property taxes are sky rocketing to the moon the gov't is making even more money.

    B.C. definately doesn't want what is happening down the the USA housing market with houses being foreclosed.

    Come on realestate bubble burst :laugh:

    It is slower now than it was in the late 90s. I had work in the 90s it wasn't alot but it was steady. Now my phone hasn't even rang. Nobody is doing renovations, not many people are spending money on their yard. I guess people are so cash strapped now they can't afford property improvements.
    I don't even think people can afford to have somebody to come and cut their lawn.

    I will find it really amusing to see the out of town developers that came here to build big fancy houses for big bucks get squeezed. They can't build these houses but they are not selling.
     
  8. iron peddler

    iron peddler LawnSite Member
    from midwest
    Posts: 184

    you with your black hood, sickle and the black cloud you rode in on can go back to Doom and Gloom land!!!! tired of hearing it!!!!!!!!!! are we supposed to feel sorry for million dollar investors? the only reason why this decline is getting press is because dot com morons became real estate morons!!!! wow i feel bad for them while they are vacationing and i am trying to sell equipment!!!!! i have no sympathy for rich people that make bad descions.....i can't afford a 400k house from 3 yrs ago let alone the morons the believe the bank that says they can afford 800k to a mil......GR let it go man and go to work...we are tired of hearing it!!!!!!
     
  9. crab

    crab LawnSite Senior Member
    Posts: 633

    thanks iron peddler i didnt want to be the one,gravel rat go to work.
     
  10. bobcat_ron

    bobcat_ron LawnSite Fanatic
    Posts: 10,116

    I want to hear more!!!!!
     

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