Numbers showing how overpriced Hampton Roads real estate is (Virginia Beach: rental, condo)

[telemonster]

From our VERY OWN city-data.com site:

Virginia Beach:
Estimated median household income in 2007: $61,462 (it was $48,705 in 2000)
Estimated median house or condo value in 2007: $282,400 (it was $121,500 in 2000)

Chesapeake
Estimated median household income in 2007: $63,517 (it was $50,743 in 2000)
Estimated median house or condo value in 2007: $267,000 (it was $119,700 in 2000)

Norfolk
Estimated median household income in 2007: $40,701 (it was $31,815 in 2000)
Estimated median house or condo value in 2007: $200,100 (it was $88,300 in 2000)

Suffolk
Estimated median household income in 2007: $59,417 (it was $41,115 in 2000)
Estimated median house or condo value in 2007: $250,200 (it was $104,500 in 2000)


Here we can see it. Incomes went up slightly, housing prices all exceeded 100% increase. What filled the gap? Debt. Why were people willing to take on these high debt loads? They thought buying a house would make them rich, or falsely thought they would be left behind unable to buy a house (if no one can afford to buy, then nothing sells. This is a falsehood that was pushed by realtors, buy now or be priced out forever they crowed).

Young people should turn their backs on people trying to load them up with insane debt loads.

[Randomdude]

Why waste your breath with such figures.

[artistatheart]

I guess my question is: What's the answer? Either rent at ridiculous prices (we've rented in 4 different areas of the country--including Southern California--talk about overpriced! and never paid so much in rent as we do here on the peninsula) or buy at ridiculous prices. Whether the market is overpriced or not (I believe it is), people have to live somewhere if they work in the area.

[Randomdude]

Originally Posted by artistatheart

I guess my question is: What's the answer? Either rent at ridiculous prices (we've rented in 4 different areas of the country--including Southern California--talk about overpriced! and never paid so much in rent as we do here on the peninsula) or buy at ridiculous prices. Whether the market is overpriced or not (I believe it is), people have to live somewhere if they work in the area.

Which is why not working here or living here is the best answer Ive come up with.

The economics, nor the real estate seems to be adjusting in the area. So I say just dump it.

[telemonster]

Rents are decreasing. Purchase prices are decreasing (but there still is a bunch of speculators determined to get rich without working in real estate). Purchase prices aren't declining fast enough, and it's going to be painful to the local gov'ts when they have to give up the false prices they are appraising houses at. "$50,000 under city appraisal" ads aren't uncommon, and just go to show how out of line the cities appraisals are. The problem is they didn't understand the mania, and instead of saving the gains they spent them all and increased the gov't size.

Oh well.

It's fun to watch.

[TNKY]

I'd love to return to VABeach, but it's so unlikely based on the home prices. We need to escape MI soon, if possible, but since Hampton Roads is now so expensive, we are looking at areas in SC and TN where prices are affordable.

[jhrichmond]

What these numbers don't take into account is that people don't always live and work in the same city. Many of the higher end, beachfront homes skew these numbers because they are people's second (or third) homes.
I am not saying that housing isn't overpriced, but it is the same as Richmond. We paid $116K in 1999 for a house that we used as a rental and sold it this year for $270K.

[The Dissenter]

Originally Posted by TNKY

I'd love to return to VABeach, but it's so unlikely based on the home prices. We need to escape MI soon, if possible, but since Hampton Roads is now so expensive, we are looking at areas in SC and TN where prices are affordable.

I'm kinda in your position. I want to come back to Hampton Roads (Hampton) but the prices and salary/job market that is really hindering me. I can live with not owning a house but why should i rent an apt in a so-so area for $700 in Hampton Roads when i can do the same thing in Louisville (moving for BRAC in 2010) for $350-500? Never mind finding a good non-govt job down there wont be easy.

Now i'm thinking about Columbus, Jacksonville, and staying in Louisville long-term. Hopefully i can find an affordable Hampton Roads lite.

[citydweller]

I think there are deals to be found out there you just have to look. For instance there is a section of homes in the Kings Grant area that sell for about $220k that can get you into a good school district. Renting is another story but I think most home prices will continue to decrease.

[citydweller]

Also, keep in mind we aren't the only 'bubble' city where prices went nuts. Most are now in a lot worse shape than we are. I see homes online every day in CA that sell in the 100s when a few years ago they sold for $300 or more. I highly doubt we see homes that cheap here but still prices continue to come down.