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When do you think we hit bottom price-wise in Chicago?
What do you think that equates to, 2001 or 2002 price levels? Let's not adjust for inflation to keep it simple.
Like you, I was hoping to get the "free" money from the $15K tax credit. (I don't need realtors to tell me isn't really free as it is a tax credit only available to those paying over $7500 per year in federal taxes).
Like you, I was hoping to get the "free" money from the $15K tax credit. (I don't need realtors to tell me isn't really free as it is a tax credit only available to those paying over $7500 per year in federal taxes).
That's actually innacurate anyway. The tax credit, whether you like to call it free money, or your money, is available to anyone who pays taxes. Yes, the maximum benefit is derived by people who would actually have a tax bill of $15,000 or more, but the benefit is available to anyone who pays taxes and buys a house.
Well, it would have been available. If the bill were passed with that included. Now we wait & see.
You full well know I meant that the proposed tax credit only FULLY applies to individuals with tax liabilities exceeding $7500 per year. For those paying less, they would have received up to the amount they pay in in taxes.
Besides, as you pointed out, the bill did not pass. Instead, prices will just have to drop on their own, without additional govt interference.
I don't need a realtor to keep correcting me. But thanks.
You actually provide good info on this forum, unlike a lot of other realtors.
It figures, good ol' Congress will cut the only provision of the bill that might actually help the housing industry, by encouraging home buying. They just want to give tax breaks and giveaways to those who don't pay taxes, and stick it to those who study hard in school to get good jobs, work hard, save for a rainy day, don't leave above their means, and pay their taxes.
I'll be plenty disgusted if the tax credit doesn't go through (not eligible for the $7500 loan) because it's a darn good idea, and even has a precedent of success.
You full well know I meant that the proposed tax credit only FULLY applies to individuals with tax liabilities exceeding $7500 per year. For those paying less, they would have received up to the amount they pay in in taxes.
Besides, as you pointed out, the bill did not pass. Instead, prices will just have to drop on their own, without additional govt interference.
I don't need a realtor to keep correcting me. But thanks.
You actually provide good info on this forum, unlike a lot of other realtors.
First, thanks for your kind words.
And yes, I did, based on your posting history, assume you knew the details of what would have been available & to whom. I wanted to correct it though, for those who might have seen your post and didn't have the background.
It figures, good ol' Congress will cut the only provision of the bill that might actually help the housing industry, by encouraging home buying. They just want to give tax breaks and giveaways to those who don't pay taxes, and stick it to those who study hard in school to get good jobs, work hard, save for a rainy day, don't leave above their means, and pay their taxes.
I'll be plenty disgusted if the tax credit doesn't go through (not eligible for the $7500 loan) because it's a darn good idea, and even has a precedent of success.
That pretty much sums up how I feel also. What's the point of calling it a stimulus package when it barely includes a "real stimulus" to try to stop the thing that is the root of this economic mess...Housing.
Like others have mentioned, it does not matter if you give people 500/1000 dollars. In this economy most will just hoard the cash. You need a real stimulus package. Just give those same people a $500/1000 (actually it may be 400/800) Visa/Mastercard/Amex/Discover "check/debit card" Force them to actually spend that money.
When do you think we hit bottom price-wise in Chicago?
What do you think that equates to, 2001 or 2002 price levels? Let's not adjust for inflation to keep it simple.
Like you, I was hoping to get the "free" money from the $15K tax credit. (I don't need realtors to tell me isn't really free as it is a tax credit only available to those paying over $7500 per year in federal taxes).
I think I'm at the micro-local level now. Various owners/sellers are perceiving this thing so differently that one home might "bottom" long before the one next door.
What I'm looking for-- for safety's sake-- is a home that baring any addition of actual square feet is close to being in line with a pre-1999 selling price adjusted for inflation. This requires digging on my part, but the information is available.
I think most homes are going to over-correct below the historic trend line, but that's going to take a while, so I'll take my chances with one I like that's at least in line with historic values.
If I had to predict Chicago's market? There are two scenarios:
1. The stimulus works and this recession turns out to be similar to previous post-WWII recessions. Housing bottoms 2012-2013.
2. The stimulus doesn't work and we-- if lucky-- turn into Japan. If unlucky and there's some wild economic backlash from all this money the government is throwing around, we turn into Argentina. Japan scenario: Housing bottoms hard 2016-2018 and then has an epileptic seizure when the baby boomers start trying to downsize out of the McMansions. Argentina: Screw housing. You'll be worried about food. Half the McMansions will be empty and half will have 22 people living in them, space broken up into sub-units (I've already seen an example of this, by the way.)
For what it's worth, I think the downward trend in both scenarios will be a slow bleed. I doubt our area will accelerate through California type declines, where everything happens in one year.
And yet, I'm shopping for a house.
Here's my disclaimer: No one can call this thing. It's unprecedented in the truest sense of the word. I will be delighted to be utterly and profoundly wrong if housing turns around anytime sooner than 2012. That would be the best news ever.
Im a first time buyer and i am glad the bill did not pass due to the 5%down stipulation.There is no such thing as a 5%down loan, its either FHA 3.5% or 10%+.Most first time buyers can not afford to nor want to put down 10% in this sick economy.This bill was solely aimed at investors and not the young couple looking to buy thier first home to raise a family in.Is it just me or does Big Govt. like to bend the middle class over time after time, im sore.I live in California and have to wait on my state refund which is BS, after all I pay for all the social programs to help all the illegal imigrants with anchor babies.Which btw makes up a majority of our deficit here in cali, i deserve at least some of my money back lol.
Im a first time buyer and i am glad the bill did not pass due to the 5%down stipulation.There is no such thing as a 5%down loan, its either FHA 3.5% or 10%+.Most first time buyers can not afford to nor want to put down 10% in this sick economy.This bill was solely aimed at investors and not the young couple looking to buy thier first home to raise a family in.Is it just me or does Big Govt. like to bend the middle class over time after time, im sore.I live in California and have to wait on my state refund which is BS, after all I pay for all the social programs to help all the illegal imigrants with anchor babies.Which btw makes up a majority of our deficit here in cali, i deserve at least some of my money back lol.
I think people better get used to 10 or better yet 20% down again - anything else is what got us into the mess in the first place. If you are not hanging around for 5 years (you may need to move) then maybe you should rent. If you cannot afford 20% - rent till you can. Home ownership is not a right. I'm not seeing what is so bad about going back to the way things were 20-30 years ago.
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Bill
