[Luke9686]

Originally Posted by nep321

We'll see what happens. If CT does become prohibitively expensive one day, then yes, it is in my best interest to move out of state. I'm probably going to give it another year or two or three and see what happens income wise and real estate wise.

On the political side of things, my father, who is a bigtime real estate investor in CT and other states believes that Obama will be defeated in 2012, and this will cause stocks to surge and the housing market to begin true recovery. My father watches FOX News all the time, listens to Rush Limbaugh and lives in a huge house in the country with an SUV, big family, dogs and chickens. They are Christian and Republican and think that Obama is the worst president ever.

Your father is wrong. The recovery is happening now. Prices are dropping, that is the solution to rapid over inflation in housing prices.

[DanaMarley]

Originally Posted by brandonfromseattle

Never.

Housing prices are directly related to interest rates. Since 1980 interest rates have gone down. As interest rates go down people have more money to spend on "house." Interest rates are rock bottom right now, when they go up housing prices will go down. YES DOWN. Couple that with the fact that nobody in their 20's or early 30's who is paying attention will ever want to own a home due to the fact that there is no job security and the past 11 years have been horrible for wages and I can't ever see housing hitting what it was, not counting inflation.

Read this site www.patrick.net

Where do you get that idea? It's going to be better for the consumer, and the home sellers & buyers if this happens.

Also, people cannot save money if their money in the bank is getting a miniscule amount of change. That just doesn't work!

All these people want to buy a house for a song, and expect the home sellers to sell a quality house for the price of a double wide in many cases!
No wonder the economy is so bad. Yes, houses have risen dramatically in the last 30 years but, you're not going to find a house to buy in the $35,000 price range! That's the cost of a badly made new car now!

[jjinla]

"All these people want to buy a house for a song, and expect the home sellers to sell a quality house for the price of a double wide in many cases! "

I don't blame the buyers for nothing selling, I blame the sellers. An asset is only worth what someone else will pay for it. Nobody cares if you overpaid for something in 2007. I've heard so much that sellers don't want to 'give away' their houses, which really translates to take a loss because they overpaid (or lost a perceived gain because they didn't sell at the top.) If your house isn't selling, it's overpriced, period. You can wait for the economy to improve to get more for your house, but you'll be paying more for your move-up house, too (and interest & taxes).

[DanaMarley]

Actually that's not true at all Jjinia. Lots of people in CT have owned their houses for years & years, not just 4 years, and cannot get them to sell, even if they offer them at reasonable rates!
It's a BAD BAD market for the Home sellers now! Yes, housing prices have gone up since the 70s, but really so have cars! You try buying a car that's brand new for only $5000! Forget it.. and the cars are hardly worth the $30,000 they want now.. they don't last!

Nope, I blame the buyers, they all wanted to take advantage of the 90% or 100% offers for mortgage, many of them did, then they couldn't come up with their mortgage payments and now there's so many foreclosures on the market, it's driven the prices of home which are all bought & paid for, to a record low!
But the banks are the ones who offered these mortgages. THe banks have basically destroyed many of our economy in the last few years.
Now they want to offer poeple only .5% for savings accounts up to $500,000 and think this is OK, but also charge them out the ying yang just to get a simple statement for their bank account!
It's nuts!
Did you hear about the New York Protesters in Brooklyn who were protesting what Wall Street is doing? 700 people were arrested over the weekend. Nope, people are fed up with the way the economy is going! It's got nothing to do with the Home Owners who want to sell their homes, who actually own their homes.
All these people want a free ride and the Higher Ups who are wealthy as sin, let them get away with it, til they foreclosed on their homes! Not a good situation at all, but that's what we are dealing with now in this country.

[mikelizard860]

Originally Posted by DanaMarley

Where do you get that idea? It's going to be better for the consumer, and the home sellers & buyers if this happens.

Also, people cannot save money if their money in the bank is getting a miniscule amount of change. That just doesn't work!

All these people want to buy a house for a song, and expect the home sellers to sell a quality house for the price of a double wide in many cases!
No wonder the economy is so bad. Yes, houses have risen dramatically in the last 30 years but, you're not going to find a house to buy in the $35,000 price range! That's the cost of a badly made new car now!

You can find a very small good house for around 50k in some area's of the United States. You live in one of the most expensive housing markets in the country. Remember that.

You CAN find a house for that price OUTSIDE a ghetto like Detroit as well for around 35, but it will need a lot of work generally and it will be a small 2 bedroom house.

Home prices coming back down is a good thing. It was an artificial bubble anyway that had to collapse. It's a shame the BUBBLE happened. That was the real problem. If the bubble never occurred, then there would be no collapse of pricing.

[DanaMarley]

Yes, CT has some highest costs but the recent housing market has made many many homes in CT quite affordable, other than the yearly taxes!
You could sell a home in CT, then not be able to find a decent home in another area of the country too.. I don't see houses selling for only $100,000 in other desirable areas.
You don't want to live in a bad, dangerous neighborhood, trust me!

But... it would be a good market for someone down on their luck, who wanted to own a home.
Wonder what the midwest has as far as nice areas and affordable homes?

[mikelizard860]

Originally Posted by DanaMarley

Yes, CT has some highest costs but the recent housing market has made many many homes in CT quite affordable, other than the yearly taxes!
You could sell a home in CT, then not be able to find a decent home in another area of the country too.. I don't see houses selling for only $100,000 in other desirable areas.
You don't want to live in a bad, dangerous neighborhood, trust me!

But... it would be a good market for someone down on their luck, who wanted to own a home.
Wonder what the midwest has as far as nice areas and affordable homes?

CT is still NOT affordable. It would be a good thing if housing prices dropped much farther. Middle and lower class people might actually be able to buy a home in this state. Have you looked at the average prices for homes in most fairfield county? Hell even in the hartford area. It's out of reach for the majority. You're looking at 300k minimum+ for a descent home in rocky hill for example which is a nothing special suburb. How is that affordable? Someone earning 30k a year couldn't dream of that.

[tecis]

Hi guys, allow me to give you my opinion.

First of all, I have to admit I live south of the border.

However, I was born east of the border... like over the Ocean, and then some (Germany).

I believe the housing market has to be looked at locally.

In the Northeast, which I consider to be everything North East of NYC, prices are still in a HUGE bubble. They did not fall sufficiently after 07/08.


Why?

Prices in the US have been in the worst bubble EVER recorded.

How do I determine that?

Take a look at the mortgage rent ratio.

Normal is a value of 1 - 1,05.

In the late 1980s peak it was 1,25, then dropped to 0,9 in 1996, then back up to 1,9 in 2006, has since gone down to 1,25.

whygoldandsilver's Channel - YouTube

(Comment: Video is quite worth watching, the important stuff considering real estate starts right at 10:25.)

Realize something?

It dropped from the greatest bubble in history to just late 1980s bubble levels.

What has to happen to sort out the problem?

Option 1: Prices have to drop (higher possibility in my opinion)

Option 2: Rent have to rise (lesser possibility in my opinion)

I personally believe, that coastal CA and coastal New England currently still represent the biggest bubble in US real estate.

That's all before even considering people not heaving jobs (outsourcing, offshoring, useless US job regulations, illegal migration), student loans you can't even ged rid off in the event of personal bankruptcy (why has everyone have to have a college degree even for the worst crap and why do employees not hire people without one?), birth rates in the northeast US below reproduction level (2,1 per woman needed).

We might see the start of a second american revolution right now (ocuppy Wall Street).
In such an event, prices fall even further.

[Rickd203]

Originally Posted by DanaMarley

Yes, CT has some highest costs but the recent housing market has made many many homes in CT quite affordable, other than the yearly taxes!
You could sell a home in CT, then not be able to find a decent home in another area of the country too.. I don't see houses selling for only $100,000 in other desirable areas.
You don't want to live in a bad, dangerous neighborhood, trust me!

But... it would be a good market for someone down on their luck, who wanted to own a home.
Wonder what the Midwest has as far as nice areas and affordable homes?

The Midwest wouldn't measure up to the expectations of most of the regulars in this section. People here move to rural parts of the state to smell pretty flowers and listen to the birds singing. In the Midwest, they actually raise livestock in rural areas and the smell can overpower the smell of flowers. They often use farm machinery and it scares off the songbirds or drowns out their songs.

Many of country roads out there are still dirt roads. Who here would want to mess up the beautiful shiny finish on their SUV with all that dirt and dust? The people there aren't willing to raise taxes put AstroTurf on their children's playing fields (how barbaric!!!) or all the other foolish things people demand from their politicians. Roads there are for getting from one place to another. They don't waste millions of tax dollars to make a road through a major urban area look like an artificial park. We all know what's on the other side of those trees; urban sprawl. They don't like street lights blocking their view of the stars at night. They demand value from their tax dollars. They don't just hand over their cash to the government just so some city worker can get an outrageously bloated pension. The normal way of doing business here (screw unto others before they can do it to you) would get you run out of town or shot. If you see a dog in the road here, the typical reaction is to run the dog over and keep on going. In the Midwest, you are expected to go around the dog or run the high risk of getting your car shot full of holes. The same goes for livestock on the roads.

They may have nice houses at affordable prices but very few people here could adapt to the lifestyle in the Midwest.

[basehead617]

LOL Rick.

Some of your post is spot-on (I don't agree with all of it, of course). Especially about what most people here consider rural.

But I don't buy that the Midwest is, on the level, better - which from the sounds of it, you do.