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In the area where I am looking to buy (west central FL) there are many homes to be found that are now selling for less than they cost when brand new in 2003. In fact, we paid $118k for our first home in 2003 and I know from recent sales in the neighborhood that it would not fetch that much right now.
I think some of these HOA fees are also out of control. $95 a month for a middle class neighborhood where all you get is a playground. That is driving prices down in those neighborhoods because nobody can afford that on top of high energy bills, high taxes, and high homeowner's insurance here in FL. I've watched several short sale listings drop like rocks as the months go by. One is now $99k for a nice block and stucco home built in 2004 with almost 2,000 sf, cul-de-sac, fenced yard, and screened porch. (and this is a decent neighborhood near shopping, etc in Groveland, FL)
I think we are seeing the new norm in some areas right now. Higher interest rates, higher gas prices, higher energy costs, etc will squeeze budgets and force home prices to adjust downward.
He is bad news to employment, higher taxes starting in 2011 and more and more and more.
Till these and other things get rectified CORRECTLY it'll morph (unknown at this time) into other artificial sour things.
My god man....I can't stand Obama and the Democrats, but the leadership within the Republican party are all avowed globalists.
Globalism is the true culprit behind the country's downdraft in standard of living and future purchasing power...
It's age old : There's 16 slices in a pizza - It used to be that ''Capital'' was entitled to 9 of them and Labor 8....
Now ''Capital'' feels like they're entitled to 12 slices---and they're taking them---and labor can have the scraps.
With the exception of more ''bubble concoctions'' this country will never re balance its standard of living until the country's workforce becomes engaged in full-scale production of capital goods...
Every great/balanced economy needs butchers, bakers and candlestick makers. The Chinese are making all the candles and the Mexicans are doing some of the baking and butchering. A service economy just won't cut it...
I hope there's some *real* pitchfork and torch pushback one of these days...
Short gold when currency is being created at a 10% higher rate
that the economy is creating real wealth? They're doing it in the US,
Europe, Japan, who knows what the're doing in China and other places.
Hansproof, Calif is a different story. Land out there isn't cheap. Actually, everything is expensive in Cal. Even with prices coming down, it's still expensive. That will never change.
I see everyone saying housing prices are too high?? Why. By historical standards they are quite low. Sure, it will be a few years but housing will come back. Look at history when housing was terrible in the early 80's and it came back with interest rates at 15%. It will come back again. Builders aren't building but as the economy gets better more people will want housing and eventually the supply and demand will level out. As others have said unemployment is the key. When it goes down even those already employed will feel better about buying.
In the early 80's and early 90's the same stuff was being said, double dip recession, never going to recover etc and none of it happened. When people turn this negative is usually when the seeds for a recovery happen. Be interesting to see how it goes.
Quote:
Originally Posted by 73-79 ford fan
Through out history these asset bubbles take about as long to deflate if not a little bit longer, as they did to inflate. This bubble may have started as early as the mid 1950s or the start of the baby boomers entering there peak earning years in the early 1980s. Housing prices do need to come down much more than where they are today and they without a doubt will.
I see everyone saying housing prices are too high?? Why. By historical standards they are quite low. Sure, it will be a few years but housing will come back. Look at history when housing was terrible in the early 80's and it came back with interest rates at 15%. It will come back again. Builders aren't building but as the economy gets better more people will want housing and eventually the supply and demand will level out. As others have said unemployment is the key. When it goes down even those already employed will feel better about buying.
In the early 80's and early 90's the same stuff was being said, double dip recession, never going to recover etc and none of it happened. When people turn this negative is usually when the seeds for a recovery happen. Be interesting to see how it goes.
Please explain to me how "by historical standards they are quite low".
Frankly, nothing happening right now has any precedence in history. Anything remotely like this, we've always spent our way out of it... So, what happens when the debt gets so high that you can't spend anymore?
Take a look at how things were in your early 80s and early 90s - we had plenty of room to spend our way out of that back then... But, what about now?
Right on, that is the biggest difference and previous recessions - the amount of debt people are carrying. Absolutely the federal debt is a huge concern, just as much as europe and its just as bad.
But I'll still put my money in a recovery and not the end of the world. I continue to put money in my 401k, hold my real estate and hope for better days. I keep hearing this time is different and it is. But go back and read articles from 1991 and they say the same thing, this time is different because the consumer is tapped out etc. It will be interesting to see but I bet we have a tough, slow road ahead but it will be in the right direction.
Quote:
Originally Posted by MikeyKid
Please explain to me how "by historical standards they are quite low".
Frankly, nothing happening right now has any precedence in history. Anything remotely like this, we've always spent our way out of it... So, what happens when the debt gets so high that you can't spend anymore?
Take a look at how things were in your early 80s and early 90s - we had plenty of room to spend our way out of that back then... But, what about now?
Asking the question "When will the housing market recover?" is kinda like asking "when will the first snow of the winter fall?"
It depends entirely on which part of the country you are talking about. Some never will be back to the levels they were out a few years ago. Some areas suffered very little in the recent downturn.
Asking the question "When will the housing market recover?" is kinda like asking "when will the first snow of the winter fall?"
It depends entirely on which part of the country you are talking about. Some never will be back to the levels they were out a few years ago. Some areas suffered very little in the recent downturn.
I thnik we may have a warped sense of what has really happened to people from the media. Proably 90% are fine in this country but 10% is alot of people. I was watching where geithner bascailly sadi histoprially 65% of amereican have been able to afford to buy and own their own home and it grew duringthe last deacdes. Supply and demand from cheap ;easy credit which is what was long a government goal.Looks likie governamnt is rethinking this from the regualtion coming down which the real effect of is to contract credit in the economy.
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Please explain to me how "by historical standards they are quite low".
