Over and over and over its said to be. Bad loans, people being unable to pay their mortage payments. Of course we know that bad things can and do happen to good people all the time. But I am stating that the price of most of these new homes are way overvalued in the first place. I could care less if a home costing lets say $500,000 is now valued at $400,000, $350,000 or whatever. Anyone watch the home channel or whatever its called? My wife does religiously because she wants to see which house the family finally decides to buy at the end of each segment.
I gotta tell you, I must be out of touch here in my little rural community in southeastern Illinois. Many of these homes sold, at least on television wouldn't garner half of what they are priced at in my area. Most of those $500,000 homes(just anexample) would only be worth half that or less here. Though I am sure the cost of living is different from area to area and state to state.......the amount of homes financed at some of the most rediculous prices I've ever seen is phenominal. People paid it and are now paying the price for utter stupidity and disregard for their personal financial responsibilities.
In short, I am simply amazed at the dumbness of some people and the greed plus unscrupulous methods of real estate developers, real estate agents and banks.
In some respects I agree with you, but no matter what, unless you're willing to pay market prices, you get nothing. We bought our home for $830k at the height of the housing boom. We bought in an area in high-demand due to location, comparative home values and for some reason, our township is a desirable place to live. We live in Tewksbury Township, bordering Clinton Township. As a matter of fact, the homes down the road from ours are in Clinton township and JUST BECAUSE OF THE TOWNSHIP THEY ARE LOCATED IN, their homes are 100-150k LESS. Don't know why, it just IS. The housing bust does not exist in parts of Brooklyn NY or in Manhattan because there's ALWAYS more demand than supply. The home across the street from mine, just last month, sold for 1mm...took just 12days on the market. The bust is relative....relative to credit rating, relative to income, relative to neighborhood, relative to location. I'm looking to buy a multi-family unit in a local area...gonna collect rents because it's a buyer's market for real estate, and owners are willing to negotiate if their place has been on the market awhile. Of course, if you just flat out lose your job, then you're in the 'crapper' with the rest of 'em....
My wife watches that all the time. I cant believe what some people will pay.
you pay what you have to,it's as simple as that. I remember a new Ford cost you $2000 and a new
Caddy was 10k. Now, you can't buy a decent scooter for 2k. The market dictates what you'll pay.
Is it ridiculous ? Sure it is...but if you want something and you can afford it, and you can't knock
200k off the price, you pay it or walk. Simple as that. Now it's the opposite....there are so many
sellers out there, and so few buyers (hence the glut of houses causes the price to fall..classic supply and demand) that's it's truly a buyer's market and I feel this is the time to capitalize. It's been said that real-estate goes thru 10 year cycles of boom and bust; some booms are bigger than others, and some busts are worse than others. This is not to say that this is not the biggest one in history, but people right now are complaining about 6.something percent on mortgage loans....after the Carter admin, were not the mortgage rates up around 20 percent ? (by the way, look forward to a repeat of that debacle in the Osama regime) So, if you buy during a 'boom', you pay inflated prices. If you buy during a bust, you'll be able to buy low and sell when the market rebounds. The problem we're having here, is a glut of houses on the market, and the poor are being disqualified for mortgage credit. I'd say, now is the time to buy...and buy in the cities with the express purpose of renting in high-demand areas (high population density = high housing demand). The difference here, is that the greatest demand is not for home OWNERSHIP, it's for housing for RENTERS who cannot otherwise afford to own a home now that FNMA and FHLMC are not shoveling money to deadbeats....
bergall you had absoltuely no choice in the matter of your $830,000 home ?
Quote:
the homes down the road from ours are in Clinton township and JUST BECAUSE OF THE TOWNSHIP THEY ARE LOCATED IN, their homes are 100-150k LESS.
how come you didn't move there, commute a bit farther and save $150,000 in mortgage which is really $450,000 over the course of a 30 year mortgage ....??
bergall you had absoltuely no choice in the matter of your $830,000 home ?
Quote:
the homes down the road from ours are in Clinton township and JUST BECAUSE OF THE TOWNSHIP THEY ARE LOCATED IN, their homes are 100-150k LESS.
how come you didn't move there, commute a bit farther and save $150,000 in mortgage which is really $450,000 over the course of a 30 year mortgage ....??
we moved here because we loved it. We came from a small town house and found 2 grassy acres bordered by scrub/woods with 14-rooms, including a stone wine cellar and a 2-story pecan-panelled library, 40-foot built'in pool with patio, deck and sunken hot tub. We toured lots of homes in the 4 months we looked and found this to be the most stupendous thing we could afford. Could we have spent less ?
Sure ! We'd spend 150k less and from what we were looking at in NJ, we'd be spending that same 150k to repair/update/repair the crap we were looking at. We could have gone out into the 'hinterlands' and found a cheaper place too...we saw lots of 'em....but my house is 4 minutes away from rt.78, one of the major
highways in the state (as opposed to a beautiful a-frame chalet on 15 wooded acres for $630k but which was a flag lot with a 1/4 mile driveway (lotta shovellin' when it snows...or just stay home...)
and 30 minutes to the highway. Yeah, we could have paid less, but we'd have gotten less too...
I recently heard a commercial on the radio for the Natl. Assoc. of Realtors in which the following statement was made: "Your home doubles in value approximately every ten years." That, in large measure, is why the housing market is in the sheitter. Absolutely no home appreciates 10% per year outside of Beverly Hills perhaps. After more than a decade of driving up home prices to totally unrealistic levels the real estate market is now experiencing a perfectly normal correction.
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Kevin Haendiges
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Housing market a piece of downturn?
