I just heard on the radio yesterday that home sales in SoCal are off 50% and prices are down 10%. So volume has dried up, but the bid isn't getting hit.
Once people in Cali figure out home prices can decline year after year the economy is in trouble. A lot of people refinanced their homes at high prices and took out loads of cash. When the home is no longer an ATM they walk away with what they have left.
2007 the property value of my neighborhood went up +6 percent. The average length of time on the market was 19 days. Of course we didn't participate in the bubble formation. Property values are pretty steady around here, in fact. Rochester, New York
I don't think he can answer that. Further, I don't think he realized that some homeowners didn't buy their house for speculation and actually bought their house to live in it for a very long time or the rest of their lives. Also, I don't think he's thinking about those whose homes have continued rising in value after purchase. Thus, he's more concerned with those whom have purchased a home for speculation purpose and purchased that home in an area where home values are declining (not rising). Mark
Seems to me he is a pissed off, angry little man on the wrong side of a deal. What is the point of the thread? To spread your doom and gloom? My McMansion has appreciated since I built it, but I built it to live in (well within my means). Proud? Silly cliche.....enjoy life.
As a homeowner in Bergen County NJ, I live maybe 10 minutes from Manhattan. The homes here have not seen a dramatic drop in value. I plan on living in my house for years to come. Today it is worth much more than what I originally paid for it. I can tell you the property taxes for Bergen county can span from $7,000 on up towards $30,000 a year for your home. That is the cost of living here. I do not see a Titanic event here, although I could skip the winters.
Location squared. The last 2 years my home has stayed static in price. 35 homes in my development surrounded by protected farms on the east end of Long Island. Homeowners Association own 200ft around the neighborhood. No thru streets can be built. No steet lamps. No crime. everyone keeps their home immaculate (at least the outside). Good schools. Surrounded on 3 sides by water. Fishing, surfing, state parks with hiking and biking all from a 5-25 min drive away. Duck, deer and turkey hunting as well. Vineyards and some of the finest restaurants you would want to eat at. Do I sound proud? F`n eh I am. We are not wealthy we just did it right. Save your money. Put 20% down. Live below your means. Rates still can be locked in super low.
I have a home in NYC and Chicago. The Chicago property has seen it's price appreciation stall, but still attain its value accumulated over 5 yrs. The NYC property continues to appreciate. And with this year's record bonus pool being passed around, I anticipate it will only continue to rise in the near term. So much for youngbuck's ignorant rant.
I thought seriously about selling earlier this year. Did some serious due diligence and spreadsheets and concluded it was foolish even if the value of my property depreciated over $100,000. Here's why: -Paid $650,000 with $150K down. -House was brand new when we bought it. -Love living 1/2 mile from some of the best surf breaks San Diego has to offer. -Should we have sold, likely could have got $740K on a good day. -Still today worth $725K all day long even on days where the sky is falling in real estate. -Should we have sold, we could rent the neighbors house for around $3,000 in the same development. Our monthly nut including taxes is approx $3200. Anything less than $3000/mo closer to the beach is a shithole or an "attached" property with neighbors burping on your head. -The tax benefits of owning are absolutely critical in this situation. -If the wife and I had no income it might make sense to rent. She makes a great income as do I. This year has been suprisingly good and I sell residential real estate and have since 1990. Add that to my first decently profitable year trading and the tax benefits are very necessary. We are having our first child in 2 months and I am glad I will still be able to drive down to the beach in two minutes and have a dawn patrol surf sesh after getting no sleep and still "own" a place by the ocean with a hot shower. Merry Christmas to you all and remember, while many have had their asses handed to them in real estate, most of these are people that should have never stopped renting. And for the ones that bought long ago and got sucked up into the refinancing for cash pyramid scheme, shame on them.