http://money.cnn.com/galleries/2009/moneymag/0905/gallery.home_exterior.moneymag/index.html Look at the values on these homes. Think we are still a tad bit expensive? Nah, we're close to the bottom in real estate. Yeah. Kev
$400-$450/ft ^2... That's about the low end of the market where I live, but taxes are only about 1/3.
in some places around Orlando, the REO condos are selling for less than the prices in the early 90s. truly nice places that were $250k during the bubble are now $40k and more are coming on the market as it seems EVERYONE that is so upside down is just leaving them. vegas looks similar, check this out http://www.realtor.com/realestateandhomes-detail/6500-W-Lake-Mead-Bl_Las-Vegas_NV_89108_1109239592 if you can't open it, the MLS is 935154. who knows if that means bottom for the condos as it is crazy difficult to get loans on them as opposed to houses(at least, in FL). mind you, at these prices, you could pay cash BUT ideally, you could keep that money for making money trading/paying less on margin or buy a few properties as there will be a lot more renters out there.
Oh yeah...some markets have a HUGE amount to come down. For instance... San francisco. I actually was born there because my dad worked construction as a laborer back in the 60s to 80s there. My dad ended up buying a house there around 1977 for about 47k. At the time he was making a whooping 18k per year(and that was in a union!) He sold the house about 10 years later for a 400% gain. If he wanted to buy the house back today, his job would have to pay 250k per year. I dont know any construction laborers making even close to that even with unions and double time pay.
yeah, good point. some markets are still relatively overpriced, like SF, LA, NYC have not come down to those 1990s levels or anything close to be actually affordable to most people living in those cities. mind you, just an hour or two out of SF and LA, prices should be getting the GM treatment/hammered with uber high foreclosure rates. http://www.nowpublic.com/world/stoc...highest-metro-foreclosure-rates-first-quarter ok, not GM as that will be worth zilch as soon as the S&P pushes its corpse to sea. i have no idea where the price levels of REOs in those markets are relative to historical prices but i can say that Orlando condo prices are like one of those very rare, enormous logs that get lodged in the toilet's hole to the fecal netherworld and it takes 5 or 7 flushes to push them along. already in the toilet and i don't know how much further prices can fall but with all the inventory, i am thinking they break lower. then again, with a septic tank, i have no idea how far the toilet's hole to the final resting place is either. shoulda been a plumber like my parents wanted.