Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Once upon a time, a frugal man bought a house in Northern Virginia for 200k. He bought this house far out in the burbs, knowing that he would have a heinous commute, because that was all that he could afford and he did not want to be irresponsible. (In the year 2000, houses in the NOVA far burbs could be had for around 150-200k, while fixer upper houses near the city or in the city were more expensive, 300k and up.)
Fast-forward to 2009.
The frugal man sold his house in the burbs for 450k, which was lucky indeed. Now, he thought to himself, at last "I will be able to buy a house closer to the city and erase my 1.5 hour (each way) commute!" Surely the housing market has led to the lowering of prices close-in to the city as well, he said to himself.
Well, no.
In fact, what the man finds is that today, the same houses close to the city that were selling for 300k and unaffordbale in 2000 are STILL UNAFFORDABLE and selling for 600k and up. And so the frugal man is, nine years later, unable to buy a house close-in to the city, even with a sizable downpayment, even with good credit, even with a housing crash, even with a historic recession. BECAUSE PRICES ARE STILL TOO HIGH AS COMPARED TO INFLATION AND WAGES.
The End.
Last edited by saltzman143; 01-25-2009 at 03:52 PM..
Reason: misspelled word
I guess I should have mentioned that my (former home) is worth 350k today (I sold months ago), but meanwhile the houses close in to the city are not commensurately dropping in price.
Perhaps the steady prices for the closer properties can be partly explained by the inflow of foreign dollars. I've read several articles recently that specifically noted the DC area is on the short list of highly-prized metros for newly minted millionaires from Brazil, Russia, India and China.
I guess I should have mentioned that my (former home) is worth 350k today (I sold months ago), but meanwhile the houses close in to the city are not commensurately dropping in price.
Homes in desirable areas will always be more valuable! I and others have been preaching this over and over and over. Some folks (particularly disciples of the S&P data named for a couple of professors ...) think that everything is gonna drop at the same rate -- it ain't!!! Just like YOU have realized you'd rather not have to put up with the commute in from the hinterlands, LOTS OF OTHERS are shopping in the SAME desirable areas!
You have to realize that some folks are, like you, looking for something closer in. Others may have realized that(like other metropolitian areas with horrible public schools and other urban ills) living in the core of the city is great in theory, but a challenge unless you have unlimited funds and want to move into the same desirable suburbs. Still others have "starter homes" in the desirable areas, have improved them and want to 'move up'.
All these things "LOCK IN VALUE" for home owners in the desirable areas AND ALWAYS HAVE, so yeah, they may be "more affordable" than at their bubblicous peak, but they are still holding value MUCH BETTER than other areas...
If you are willing to SHOP HARD, find the places that are basically QUALITY housing, but in need of some updating and/or other deferred maintaince you can almost certainly be sure that MONEY SPENT IN A DESIRABLE AREA is about the safest use of housing funds one can make...
Homes in desirable areas will always be more valuable! I and others have been preaching this over and over and over. Some folks (particularly disciples of the S&P data named for a couple of professors ...) think that everything is gonna drop at the same rate -- it ain't!!! Just like YOU have realized you'd rather not have to put up with the commute in from the hinterlands, LOTS OF OTHERS are shopping in the SAME desirable areas!
You have to realize that some folks are, like you, looking for something closer in. Others may have realized that(like other metropolitian areas with horrible public schools and other urban ills) living in the core of the city is great in theory, but a challenge unless you have unlimited funds and want to move into the same desirable suburbs. Still others have "starter homes" in the desirable areas, have improved them and want to 'move up'.
All these things "LOCK IN VALUE" for home owners in the desirable areas AND ALWAYS HAVE, so yeah, they may be "more affordable" than at their bubblicous peak, but they are still holding value MUCH BETTER than other areas...
If you are willing to SHOP HARD, find the places that are basically QUALITY housing, but in need of some updating and/or other deferred maintaince you can almost certainly be sure that MONEY SPENT IN A DESIRABLE AREA is about the safest use of housing funds one can make...
Location: Halfway between Number 4 Privet Drive and Forks, WA
1,516 posts, read 4,591,415 times
Reputation: 677
Quote:
Originally Posted by boocake
I guess I don't get it - all was great when your home doubled in value in 9 years, but it's totally insane that the other houses did, too?
ETA: Your post did more to illustrate SELLER frustration than buyer, lol!
The last homes to come down in price - if they do at all - are those that are
good commutes in good neighborhoods etc. - you can't build more
lake front (not access, but actual frontage) - they aren't making any more
There are still enough people with enough money to keep those prices high
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Exactly!!!
