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Some walked away from speculative housing and IMO they should be barred from taking out future loans but to argue $500,000 homes are going to fall as low as $100,000 simply because interest rates go up is nothing more than hyperbole.
Home prices rose a record 12.1% in the year ending in April, the Standard & Poor's Case-Shiller index showed Tuesday.
From March, prices were up 2.5% for the 20-city composite index.
All 20 cities showed positive year-over-year returns for at least the fourth consecutive month.
"The recovery is definitely broad based," said David Blitzer, chairman of S&P's index committee.
That should continue, despite rising interest rates and fears of further increases, he said, in part because some banks are easing credit restrictions.
Along with Phoenix and San Francisco, Atlanta and Las Vegas also posted year-over-year gains of more than 20% in April.
San Francisco was up almost 24%; Las Vegas, more than 22%: Phoenix, almost 22%; and Atlanta, nearly 21%.
In April, 19 of 20 cities posted positive returns. Detroit was the only metro where prices were flat.
For every one percent rise in interest rates homes prices should drop 10 percent over the long haul. All the housing bulls would be sh* tting a brick if interest rates went up to 7%
According to whom?
The interest rate on my first home was 16% in the early 80's.
Inventory was low and so prices sort of flat lined for awhile.
Fast forward to the 90's when rates were falling and yet prices were declining in most areas due to a glut of inventory.
The number of unsold properties in a given area tends to impact homes values more so than interest rates.
Home prices rose a record 12.1% in the year ending in April, the Standard & Poor's Case-Shiller index showed Tuesday.
From March, prices were up 2.5% for the 20-city composite index.
All 20 cities showed positive year-over-year returns for at least the fourth consecutive month.
"The recovery is definitely broad based," said David Blitzer, chairman of S&P's index committee.
That should continue, despite rising interest rates and fears of further increases, he said, in part because some banks are easing credit restrictions.
Along with Phoenix and San Francisco, Atlanta and Las Vegas also posted year-over-year gains of more than 20% in April.
San Francisco was up almost 24%; Las Vegas, more than 22%: Phoenix, almost 22%; and Atlanta, nearly 21%.
In April, 19 of 20 cities posted positive returns. Detroit was the only metro where prices were flat.
Here we go again!! Will this madness ever stop?!!!
Some people do indeed do that as property values go up, then property taxes go up.
Actually no.
Property taxes increase because municipal spending increases. Most municipalities went on a spending spree during the 00's.
When home values went into a free fall, municipalities used a multiplier to get the funding they needed. Some municipalities with solid ratings were able to refinance their debt and in doing so, may have been able to cut the annual cost of their financing- thus lower property taxes.
Great news for middle class homeowners (or ALL homeowners) and the nation as whole. Let's not forget that 70% of Americans own a home, and that housing recovery drives recoveries in many other sectors.
This is just hilarious. If EVERYONE'S HOUSE value went up, then how exactly was the value created in that process?
This is just people blindly riding the housing boom cycles hoping to profit at exactly the right time. Some people will make a lot of money this way, most won't. Ponzi scheme - Wikipedia, the free encyclopedia
I just think that part of the problem is that people look at home ownership the wrong way.
Again, I bought my home to live in, not as an investment...and I made sure to buy no more house than what we needed.
Over time, housing generally keeps pace with inflation.
If ROI is important, the stock market is a better option.
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