Party Like it's 1997 ... (rent, new house, homebuyer)

[kalim2008]

Originally Posted by JG183

no one's house has doubled in value since '05

a 401K is an investment

a house is where you live

Nice slogan, but I think you missed his point, which is that home values still have not dropped to a sustainable level since almost doubling from 2000 or so to 2006 or so.

[JG183]

Originally Posted by kalim2008

home values still have not dropped to a sustainable level since almost doubling from 2000 or so to 2006 or so.

"sustainable" ...what does that really mean ?

through alot of work on my part, my annual income has more than doubled since 2000.

that said, can I afford a brand new, 3300 s.f. home in Upper Saddle River ?

no.

nor do I want that.

but in relative terms, housing prices are a bargain right now

[kalim2008]

Originally Posted by JG183

"sustainable" ...what does that really mean ?

When housing prices have kept up with average annual income. It's pretty obvious that average annual income has NOT kept up with housing prices from 2000 or so to the peak of the bubble.

It is also pretty obvious that with massive layoffs nowadays and going forward, housing prices will still keep decreasing going forwards. Once the economy has stabilized, then we'll perhaps see a period of stagnant prices, before it can go consistently upwards.

Btw, you must be one battered guy after all the pummeling you've received recently

[JG183]

this board seems to attract all the malcontents, many of us who are truly at peace with our homes values don't post here.

I'm not ready to throw in the towel yet, but yes -- it does get tough trying to get people to look on the bright side.

[kalim2008]

Originally Posted by JG183

this board seems to attract all the malcontents, many of us who are truly at peace with our homes values don't post here.

I'm not ready to throw in the towel yet, but yes -- it does get tough trying to get people to look on the bright side.

I'd settle for people being realistic

It's unrealistic optimism that got us into this mess in the first place.

[Delphi]

Originally Posted by todd72173

Thank you. A House is where you live.and not an investment. Dare I have said that so many times here and got blasted. I repeat again, a house is not an investment.

with falling wages (partly because of globalization!!!??) and rising price, everyone wants to find ways to make money to maintain their living standard. Hence dot-com bubble, housing bubble, crude oil bubble and now gold bubble.

But I guess we are standing at the crossroad where we have to sacrifice part of our living standard and restart with stronger basics.

[wileynj]

Originally Posted by Delphi

with falling wages (partly because of globalization!!!??) and rising price, everyone wants to find ways to make money to maintain their living standard. Hence dot-com bubble, housing bubble, crude oil bubble and now gold bubble.

But I guess we are standing at the crossroad where we have to sacrifice part of our living standard and restart with stronger basics.

Ahhh... finally, someone with a positive outlook - seeing a light at the end of the tunnel. I too feel that this recession is a blessing in disguise - it had to happen eventually and when it's over, our generation will educate the next generation... as our grandparents did for our parents. Save, be conservative, live within your means, etc., etc., etc.!!!

[colleeng47]

Originally Posted by wileynj

Ahhh... finally, someone with a positive outlook - seeing a light at the end of the tunnel. I too feel that this recession is a blessing in disguise - it had to happen eventually and when it's over, our generation will educate the next generation... as our grandparents did for our parents. Save, be conservative, live within your means, etc., etc., etc.!!!

I've been saying for years to my teenagers that this all had to come to an end, and we would be back to basics, where the important things matter, not how much you own.

I agree with you 100%, Wiley.

[Lusitan]

Originally Posted by wileynj

Save, be conservative, live within your means, etc., etc., etc.!!!

Great advice.

Advice which, for the vast majority of people, happens to be inconsistent with getting anywhere near the thought of buying real estate in NJ right now -- it's still massively overpriced.

How can the average working family, making the median income, "live within their means" when they cannot afford the cost of the median home? They can't; at least not without neglecting all the other things they need to be doing with their money, such as saving for retirement, education, and saving up for a rainy day. Therefore, the should not buy until home prices get back to normal.

And it won't be long, because the unraveling has starting and home prices are sinking in NJ.

[wileynj]

Originally Posted by Lusitan

Great advice.

Advice which, for the vast majority of people, happens to be inconsistent with getting anywhere near the thought of buying real estate in NJ right now -- it's still massively overpriced.

How can the average working family, making the median income, "live within their means" when they cannot afford the cost of the median home? They can't; at least not without neglecting all the other things they need to be doing with their money, such as saving for retirement, education, and saving up for a rainy day. Therefore, the should not buy until home prices get back to normal.

And it won't be long, because the unraveling has starting and home prices are sinking in NJ.

Sacrifice! That's why I don't live in Bergen County, Essex County, Hudson Co. etc! I live in an area where a great home is priced as it should be...where family and community are still the #1 priority...where mom's (or dads) have the option of staying home with the kids...etc.