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Pricing is a function of sentiment. Sentiment can change overnight. It is very hard to measure, and predict, because it is a function of human emotion. When people are euphoric, the sky is the limit. When they are scared, for whatever reason, you can't sell them squat.
The one thing I did notice with the last market correction is that it rolled from the bigger/more densely populated metro areas to the more rural locales over a period of a couple of years. While people were well into the throes of collapse in NY/NJ, folks in the Carolinas were "what correction". Then they found out!
Who cares if there are no jobs. You buy that $20k house flat out, rent each unit for $450 a pop. Make it a section 8 and get a local property manager. You're clearing $500 a month after expenses.
There must be hidden costs there (otherwise everyone would be doing it, no?) Perhaps it's hard to find decent tenants in economically depressed areas? Eviction costs? Maintenance?
I am pretty sure they do...do you mean listed on those sites for sale or just listed in terms of their "estimates" of value/market price?
Listed for sale (if they are for sale). I think all houses are listed in terms of "estimated value", but that's often inaccurate.
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The town I was referring to is Denmark, SC, which is in Bamberg County, SC..its quite far from any major highway, though it is near some other smallish towns.
On Zillow, there are no listings for 4+ BR houses in Denmark, SC, for any asking price. The 3BR ones are listed for $60K+. Maybe I'm missing something here.
On the East Coast, you are either paying for the heat or AC. There's no place where you can avoid paying for both, is there?
But in south Florida I can run a window and spend $75 a month on electric, I don't need heat besides a space heater a few days a year. My father live in north Jersey and some months his gas heat is $400 a month and old people have bad circulation, so I wouldn't be surprised if he turns it on later this month and runs it until May.
The bubble in 1988 was far worse. My old coop building in Queens NY one bed coops sold for 115K spring 1988 and I bought my first place Nov 1991 in building for 27K. Yes an almost 80 percent drop in prices in 36 months. By 2000 when I sold I got $86,000 and today they go for $225k.
Coops crash in early 1990s was amazing. I even say a full floor coop by central park high floor for sale for 100K.
Keep this in mind...... historically this always happens...
Interest rates go down, home prices go up.
Interest rates go up, home prices go down.
So we are now in a period of the lowest interest rates we have ever seen. What happens next? Interest rates go up. When will they go up? No one knows and "Yellen aint tellin"
Well home values certainly stalled back when rates went beyond 9%.
I had a 16.5% mortgage on my first home. Property taxes aside, the monthly P&I on that property was higher than it would be today at current rates, despite 30+ years of modest appreciation.
The bubble in 1988 was far worse. My old coop building in Queens NY one bed coops sold for 115K spring 1988 and I bought my first place Nov 1991 in building for 27K. Yes an almost 80 percent drop in prices in 36 months. By 2000 when I sold I got $86,000 and today they go for $225k.
Coops crash in early 1990s was amazing. I even say a full floor coop by central park high floor for sale for 100K.
There have always been regional bubbles/ busts. The NY tri- state area was seriously hurting for a decade.
Back then, people did not use their homes as ATMs to live beyond their means.
People tended to have equity back then so foreclosures were not significant.
Listed for sale (if they are for sale). I think all houses are listed in terms of "estimated value", but that's often inaccurate.
On Zillow, there are no listings for 4+ BR houses in Denmark, SC, for any asking price. The 3BR ones are listed for $60K+. Maybe I'm missing something here.
Well, my friends house is definitely six bedrooms, so either Zillow is listing them wrong (which I wouldn't be surprised at) or something else isn't right....the house next to his is also 6 bedrooms. These are all old Victorian homes, back when people had 8 children
In my friends case, about half of the house he just uses as storage now due to its large size.
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