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what's causing the collapse? I thought since the homes in the area didn't appreciate all that much (certainly not compared with the rest of the country), then they were able to keep their value.
I question the musings of one who would compare the hyper-inflated real estate market in the areas that have experienced a collapse in pricing with upstate NY. Moderator cut: comment . As loveautumn correctly points out, the market here never took off, housing prices more or less kept pace with inflation.
Last edited by Keeper; 04-15-2009 at 10:36 AM..
Reason: If you think someone is a troll report them
I disagree. There are certainly parts of the region that participated in the housing bubble.
I pulled a random listing off of the timesunion real estate section and looked at its sale history. Here it is:
14 Old Coach Rd, Clifton Park
Current sale price: $184,900
Sale history:
09/12/2006 : $177,000
04/12/2004 : $105,000
12/27/2001 : $88,000
If you think that is an anomaly and maybe it was just renovated, here is another just down the street:
86 Old Coach Rd, Clifton Park
Sale history:
11/12/2008 : $175,000
01/15/2008 : $10,000 (probably a relative)
05/31/2007 : $173,500
04/04/2005 : $145,000
10/17/2000 : $73,000
From $73,000 to $175,000 in eight years?
That is an insanely high rate of appreciation - far higher than wages have increased since 2001 (have wages even kept up with inflation since 2001?). Typical house appreciation is about 1% higher than inflation, so assuming 3% inflation, 4% appreciation per year since 2001 would be "normal". Instead, they increased over 11% per year since 2000, and that is including the past two years where there have been basically no increases. The increases from 2000-2006 were definitely in bubble territory. These places would probably be selling for around $105,000 right now using historical appreciation rates.
There is a lot of room to fall if the market comes unhinged here.
Where are they falling? Homes in my neighborhood have been selling at more they were than last year at this time. Granted not by much, but its still a light increase.
I should have quoted this in my reply above (so that the 'I disagree' made sense):
Quote:
Originally Posted by boomvang
I question the musings of one who would compare the hyper-inflated real estate market in the areas that have experienced a collapse in pricing with upstate NY. Sounds like a troll to me. As loveautumn correctly points out, the market here never took off, housing prices more or less kept pace with inflation.
I agree with garmin239 for now though - I haven't seen any real signs of decreases.
what's causing the collapse? I thought since the homes in the area didn't appreciate all that much (certainly not compared with the rest of the country), then they were able to keep their value.
They double and in many cases tripled in all counties from Albany north.
Who started the lie that prices didn't grossly inflate in upstate?
My bad. When you say Upstate I naturally assume that you are including the places that I am familiar with, Syracuse and the surrounding area. This area has not experienced a bubble, and has not suffered unduly from falling housing prices.
My bad. When you say Upstate I naturally assume that you are including the places that I am familiar with, Syracuse and the surrounding area. This area has not experienced a bubble, and has not suffered unduly from falling housing prices.
Ah, yes. This thread was moved from the Albany area forum to the NY forum, so I guess it's not clear what is meant by upstate. I saw it in the Albany forum, so was assuming that was the market under discussion.
My bad. When you say Upstate I naturally assume that you are including the places that I am familiar with, Syracuse and the surrounding area. This area has not experienced a bubble, and has not suffered unduly from falling housing prices.
I can assure that the idea that Syracuse(or any where else for that matter) did not experience a bubble is a lie. Those areas that didn't seen the phony housing appreciation should have in fact seen falling prices in years 2000-2007. The collapse just arrived in the northeast in Jan 2009. We are where FL was 2 years ago.
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