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The worst part of the 2007-2008 bubble is taxes and assessed value,you can buy below assessed value and taxes are not adjusted to this figure.
We are into this situation in CT,we would like to return,can afford to purchase but taxes prevent us from returning.Some will be coming down with 5 year cycle of revaluation.
The worst part of the 2007-2008 bubble is taxes and assessed value,you can buy below assessed value and taxes are not adjusted to this figure.
We are into this situation in CT,we would like to return,can afford to purchase but taxes prevent us from returning.Some will be coming down with 5 year cycle of revaluation.
They only re-evaluate every 5 years?? That is not a good system.
Shiller: Housing Has “Chance” to Bottom But Suburban Prices May Not Recover “In Our Lifetime”
Shiller is one of the co-founders of the Case-Shiller index that tracks home prices. The shift toward renting and city living could mean “that we will never, in our lifetime, see a rebound in these prices in the suburbs.
The worst part of the 2007-2008 bubble is taxes and assessed value,you can buy below assessed value and taxes are not adjusted to this figure.
We are into this situation in CT,we would like to return,can afford to purchase but taxes prevent us from returning.Some will be coming down with 5 year cycle of revaluation.
Municipalities have debt to service, pension plans to fund, schools to operate, parks and libraries, police, firefighters, streets to plow and on and on. Regardless of decling or stabilized home values, someone has to pay the piper.
Assessed values have declined in my area. The multiplier increases to offset it to generate enough municipal income to get the job done.
That local teachers and municipal employees have a substantially better benefits and retirement packages than can be found in the private sector will need to be addressed because it is unsustainable.
Shiller: Housing Has “Chance” to Bottom But Suburban Prices May Not Recover “In Our Lifetime”
Shiller is one of the co-founders of the Case-Shiller index that tracks home prices. The shift toward renting and city living could mean “that we will never, in our lifetime, see a rebound in these prices in the suburbs.
National averages are meaningless.Some areas are recovering. Some areas have yet to bottom. Some places will recover sooner than other places. Some places may never recover in our lifetime.
What I don't get is nationwide prices are about 34% off peak (2005/2006). So assuming it doesn't get much worse (it could still sink another 5-10%). We are at 2002 levels in most parts of the country and 1999-2000 levels in the hardest hit states (2000 is about time of the boom). Even if homeowner brought at 2005 prices and put zero down. By 2015, they should have eaten into the principal by at least 1/3 (33%)? right? We are already in 2012. So who's worst off? Someone renting for the 10 years (2005-2015) or someone sitting tight and owning the home for 10 years even with the 30-40% price decrease. Money is being thrown away in rents or a declining real estate market. It's just the psychology of Americans who think being underwater is the end all. It's not. Sit tight.
Sooo......... Sit tight? Who will raise housing prices again?
Food stamp use still climbing, with no end in sight, meaning more people are making less and unemployment is much higher than the gov is reporting.
Young people have HUGE student dept payments and are not making enough to even cover the minimum payment of a student loan.
On March 25th, the Fitch Ratings Agency came out with a staggering report that shows nearly one-third (27%) of student loans are now at least 30 days delinquent in repayment, and the growing number of students unable to pay on those loans is increasing rapidly. In other words at least*$270 billion*in student loans are no longer current.
Following debt to income ratio's how much will the next generation of home buyers be able to afford? Not much.
Baby boomers downsizing homes.
As millions of baby boomers retire in near future, largest population of americans, they will be selling their homes and looking for smaller ones. When excess inventory hits the housing market, what happens? Prices go down as sellers race to find a buyer, any buyer.
Last edited by 399083453; 03-30-2012 at 12:16 PM..
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