U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > U.S. Forums > New Jersey
 [Register]
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.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 02-05-2009, 10:58 AM
 
263 posts, read 486,660 times
Reputation: 34

Advertisements

Quote:
Originally Posted by sholden View Post
Then again the government keeps bailing everyone out which is inflationary and that might push house prices back up to bubble levels in a few years.
Not necessarily. First, bubbles on the same sector do not repeat in a reasonable amount of time, thank god. People can be fools but not that much. Second, going back to fair valuations is necessary no matter what the gov does, fixing prices notwithstanding. Even if there is inflation house prices will remain flat and therefore reach historical levels through depreciation. So either wait for that to happen or bid half off peak.
Rate this post positively Reply With Quote Quick reply to this message

 
Old 02-05-2009, 11:00 AM
 
263 posts, read 486,660 times
Reputation: 34
Quote:
Originally Posted by sholden View Post
If you weren't such a one tracked, argumentative, overblown egoed so and so, you might notice I'm agreeing with you on almost every point.

So while you might just like the sound of your own voice (keyboard tapping?),
But not that much as to launch personal attacks
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-05-2009, 11:19 AM
 
744 posts, read 1,288,103 times
Reputation: 182
Quote:
Originally Posted by halfoffpeak View Post
Not necessarily. First, bubbles on the same sector do not repeat again in a reasonable amount of time, thank god. People can be fools but not that much. Second, going back to fair valuations is necessary no matter what the gov does, fixing prices notwithstanding. Even if there is inflation house prices will remain flat and therefore reach historical levels through depreciation. So either wait for that to happen or bid half off peak.
Did you notice I said push house prices back to bubble levels, so 2x what you consider the fair market value. But I said a loaf of bread would be $50, which is a 30x (or so) increase in price. Which obviously means house prices in real terms would drop to levels they have never seen before - precisely because people would be scared of housing due to all the people they saw getting foreclosed on.

Please look at the DOW chart for a bubble repeating in a sector in a few years.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-05-2009, 07:49 PM
 
Location: Montgomery County, PA
2,771 posts, read 5,781,070 times
Reputation: 604
Quote:
Originally Posted by clevedark View Post
I don't agree with the idea that owning a home is risky. For me, a parent and mother of two, it's the way I can guarantee in the surest way I can live in the community I want, in the kind of dwelling that I can afford and suits me, for the longest possible time, without someone else's interests (landlord) taking precedence over mine.
If you care about your paper gain/loss (presumably because you have some interest in selling it in future), there is substantial financial risk in buying a home.

If you're certain that you will spend the rest of your days living there, then the only risk is your downside risk on the mortgage amortization, but even that is constrained (provided that it's a fixed mortgage)
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-06-2009, 01:51 AM
 
263 posts, read 486,660 times
Reputation: 34
Sorry to revive this thread but here is a better graph of a home price index with baseline 1890. From NYTimes


Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-06-2009, 12:20 PM
 
2,312 posts, read 6,938,955 times
Reputation: 897
Holy moly!
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-06-2009, 12:37 PM
 
1,551 posts, read 4,288,465 times
Reputation: 506
"There are lots of good deals out there - now is a great time to buy!"
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-06-2009, 02:39 PM
 
2,312 posts, read 6,938,955 times
Reputation: 897
Is the graph adjusted for the cost of a borrowed dollar??
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-06-2009, 02:44 PM
 
263 posts, read 486,660 times
Reputation: 34
Quote:
Originally Posted by clevedark View Post
Is the graph adjusted for the cost of a borrowed dollar??
That's a good one

It should be adjusted for unemployment, 15K primary residence tax credits, and NY finance bonuses as well. I am not sure this is funny anymore
Rate this post positively Reply With Quote Quick reply to this message
 
Old 02-06-2009, 02:53 PM
 
Location: NJ
12,284 posts, read 33,044,845 times
Reputation: 5263
Quote:
Originally Posted by Lusitan View Post
"There are lots of good deals out there - now is a great time to buy!"
In the mail today I got the yearly notepad from a local realtor. In the envelope was also a card - "Now is a great time to buy!!" LOL
Rate this post positively Reply With Quote Quick reply to this message
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.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:



Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > New Jersey
Similar Threads

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top