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Old 01-25-2013, 02:56 PM
 
Location: Fredericktown,Ohio
6,515 posts, read 4,153,767 times
Reputation: 2565

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Quote:
Originally Posted by Hemlock140 View Post
There are good reasons for the price increases. One is investors, taking advantage of the higher rental prices. As mentioned in the article, those people that are under water are not selling and hoping for the price to reach what they owe, so less homes for sale. Then there's the demand. With the improvement in the economy some companies are hiring large numbers of people that need places to live. That one is the real, valid reason for home prices to go up.

Amazon towers win key approval | Business & Technology | The Seattle Times
That is a local story about one company and six years is a long time and a lot could happen between now and then. Would that bring a boom to the housing market in Seatle if the plan is pulled off, sure would.
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Old 01-25-2013, 03:47 PM
 
Location: Business ethics is an oxymoron.
1,671 posts, read 2,079,587 times
Reputation: 3266
2002: Buy now or be priced out forever.
2003: Buy now or be priced out forever.
2004: Buy now or be priced out forever.
2005: Buy now or be priced out forever.
2006: Buy now or be priced out forever.
2007: Buy now or be priced out forever.
2008: Buy now or be priced out forever.
2009: Buy now or be priced out forever.
2010: Buy now or be priced out forever.
2011: Buy now or be priced out forever.
2012: Buy now or be priced out forever.
2013: Buy now or be priced out forever.
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Old 01-28-2013, 06:43 AM
 
Location: Fredericktown,Ohio
6,515 posts, read 4,153,767 times
Reputation: 2565
Quote:
Originally Posted by Des-Lab View Post
2002: Buy now or be priced out forever.
2003: Buy now or be priced out forever.
2004: Buy now or be priced out forever.
2005: Buy now or be priced out forever.
2006: Buy now or be priced out forever.
2007: Buy now or be priced out forever.
2008: Buy now or be priced out forever.
2009: Buy now or be priced out forever.
2010: Buy now or be priced out forever.
2011: Buy now or be priced out forever.
2012: Buy now or be priced out forever.
2013: Buy now or be priced out forever.
From 02 to 08 lending standards were extremely loosened in the later years there was the no doc loans, ya know if they can fog a mirror they qualified. And gvt incentives like giving first time home buyers 2,500 in closing. I think we could agree that the pond has shrunken with lending standards tightened, in my area from what I have heard you need 15 to 20 % at closing. I think we could also agree that wages are falling and that trend won't change in our global economy. With falling wages and a stagnate economy as our future it would be a good guess that homes prices would fall or we will have a repeat of loosening standards and gvt props to hold the line or gas the prices.
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Old 01-29-2013, 12:34 AM
 
Location: The North
4,962 posts, read 8,679,624 times
Reputation: 3832
Some people won't be happy until that mansion they fell in love with is affordable on their middle class income.

Housing prices have increased mostly because buying has been beating renting. Once it becomes more balanced or renting starts winning the investors will dry up and the "real" market will have to stand up. So far it appears they will do their part, but anything could happen in the not too distant future. Predicting which way it will go is a hopeless exercise.
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Old 01-29-2013, 09:32 AM
 
Location: The Triad (NC)
26,853 posts, read 57,874,473 times
Reputation: 29266
Quote:
Originally Posted by Willy702 View Post
Once it becomes more balanced or renting starts winning the investors will dry up
and the "real" market will have to stand up.
In most markets rentals are hot hot hot now and have been for several years.
There are many reasons for this... but almost none of the have ANYTHING to do with house prices.
Quote:
Housing prices have increased mostly because buying has been beating renting.
Buying has ALWAYS beat renting for those with job stability and strong family ties...
(even in high price markets like LA, NYC and DC where the multipliers are just whack).

Like every other economic question...
it all still comes down to jobs, their wages, and the purchasing power of the dollar being earned.
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Old 01-29-2013, 01:48 PM
 
Location: San Diego California
6,797 posts, read 6,120,491 times
Reputation: 5171
IMO the real reason for the increases in housing prices and sales is the anticipation of inflation.
Due to monetary policy, inflation is baked into the cake.

When asked, a senior member of the Obama administration last week, 'how are we going to grow exports if we do not allow nominal wage deflation?', and he just said we're going to kill the dollar. It's a dead answer but that's where we're headed".

People are actively seeking safe places to put assets and with the economy showing signs of weakness, there will be increasing pressure to increase exports by dollar devaluation.
It is not that real estate represents a great value; it is that it is quickly gaining favor as one of the least risky places to place assets.
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Old 01-31-2013, 08:45 AM
 
741 posts, read 1,025,132 times
Reputation: 1198
My husband owns an underwater property in MI we have been renting out for the past five years, on top of putting all spare cash into closing the gap between value and mortgage. I'm crossing my fingers the market will slowly rise in that area so we could finally list the house!
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Old 02-01-2013, 10:37 AM
 
Location: Brawndo-Thirst-Mutilator-Nation
15,170 posts, read 15,210,720 times
Reputation: 10881
When this partially deflated bubble swells..........and then bursts, we will do the same song and dance of blaming the EVUUULL banks.

Hey, this is the FED wanting to reinflate this bubble, just like they are funnelling money into the stock market.

Policies of this government make life less affordable for the average person while at the same time give more and more power to corrupt Scumaticians.
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Old 02-01-2013, 02:57 PM
 
Location: Whittier, CA
494 posts, read 1,533,637 times
Reputation: 450
Quote:
Originally Posted by Willy702 View Post
Some people won't be happy until that mansion they fell in love with is affordable on their middle class income.
far from it... some of us are financially conservative and want to go with the tried and tested 3 times income parameter. With the median price of a house in Southern California approaching half a million... well, you do the math.

I'm very educated and have a great job but I am unable to even think of buying in the same area that my professional peers easily bought in the 90s. So what is the conclusion here?

My colleague bought his place in Irvine for $325,000 in 1996, current price is a million dollars... how is that realistic? Incomes are about 10% more at best since that time.
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Old 02-01-2013, 03:42 PM
 
Location: Whittier, CA
494 posts, read 1,533,637 times
Reputation: 450
Quote:
Originally Posted by MrRational View Post
Buying has ALWAYS beat renting for those with job stability and strong family ties....
Yeah.., tell that to the millions who lost their home during the crash, many of those thought they had a stable job.
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