http://money.cnn.com/2005/12/29/real_es...ping_housing_markets/index.htm?cnn=yes
I hope you don't live in California or Florida!
I hope you don't live in California or Florida!
Is your house overvalued?
- Thread starter Taggart
- Start date
Skunkwourk
Diamond Member
- Dec 9, 2004
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I agree. I'm not in much of a hurry to buy. It would be awesome to scoop up a good bargain after the bubble bursts.
Even if it bursts, prices will not come down to any reasonable level.
Population keeps on growing.
HeroOfPellinor
Lifer
- Dec 27, 2001
- 11,272
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+44%? Wtf?? Only? Then again I'm using San Jose which has houses like half the price as those in Cupertino, CA...
I don't really give a sh1t about this, since we bought the house for $175,000, and can go for $800,000 minimum to $1 million on the real estate market today.
Southern California FTW.
Southern California FTW.
Originally posted by: Xyclone
I don't really give a sh1t about this, since we bought the house for $175,000, and can go for $800,000 minimum to $1 million on the real estate market today.
Southern California FTW.
When did you buy?
The vast majority of the country is not overvalued like these areas.
The "bubble" is only going to "burst" in very select areas. The reality is that in most of these areas the market and it's constituents can bear the higher prices the houses are demanding. If they could not then you would see an exponential rate in foreclosures and a gradual to abrupt halt in appreciation rates for these areas.
For thoes of you waiting for the "bubble to burst" to buy a home you are going to be disappointed. Home prices in these desireable areas are not going to drop so drastically that it will be free game for every joe schmoe to go buy his dream house. Most of these properties will be bought up by investors with huge amounts of capital backing them and connections in the banking/foreclosure market. Real estate prices are not going to drop dramatically, ever, unless someting catastrophic happens. Sure you will find a good deal here and there, but there are millions of people looking for the exact same thing, and many of them have a much more keen sense of what they are doing.
You must also take into account the HUGE baby boomer generation that is nearing/entering retirement stage. These people generally have a lot of money to play with and time to wait. They are seeking out the very desireable areas of the south and southwest and are not going to let prices plummet.
Money is stupid cheap right now and there is about 5 solid years left of a excellent market left. Reality is that you really should be considering borrowing now, or you're going to be waiting for a while.
The "bubble" is only going to "burst" in very select areas. The reality is that in most of these areas the market and it's constituents can bear the higher prices the houses are demanding. If they could not then you would see an exponential rate in foreclosures and a gradual to abrupt halt in appreciation rates for these areas.
For thoes of you waiting for the "bubble to burst" to buy a home you are going to be disappointed. Home prices in these desireable areas are not going to drop so drastically that it will be free game for every joe schmoe to go buy his dream house. Most of these properties will be bought up by investors with huge amounts of capital backing them and connections in the banking/foreclosure market. Real estate prices are not going to drop dramatically, ever, unless someting catastrophic happens. Sure you will find a good deal here and there, but there are millions of people looking for the exact same thing, and many of them have a much more keen sense of what they are doing.
You must also take into account the HUGE baby boomer generation that is nearing/entering retirement stage. These people generally have a lot of money to play with and time to wait. They are seeking out the very desireable areas of the south and southwest and are not going to let prices plummet.
Money is stupid cheap right now and there is about 5 solid years left of a excellent market left. Reality is that you really should be considering borrowing now, or you're going to be waiting for a while.
mugs
Lifer
- Apr 29, 2003
- 48,920
- 46
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This study took into account the population levels to determine the "appropriate" price levels for each area, so theoretically the prices "should" come down to a reasonable level... but I doubt it.
You never know though, with all the people in CA with interest-only options that they can barely afford, a chain reaction could be devastating.A house is worth what someone is willing to pay for it. If someone is willing to pay you the 'overpriced value' of your house, then that IS it's value; at least to that person.
Skunkwourk
Diamond Member
- Dec 9, 2004
- 4,662
- 1
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Originally posted by: mugs
This study took into account the population levels to determine the "appropriate" price levels for each area, so theoretically the prices "should" come down to a reasonable level... but I doubt it.
sadly in terms of housing, Im actually hoping that someone else's loss will be MY gain.
- Mar 20, 2000
- 102,402
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it isn't overvalued if the market is willing to pay those costs.
i live here. the real value of housing on a square foot basis has declined in houston over the past couple decades. the reason is that there is pretty much limitless flat land south, west and north of houston. so people just keep buying houses further and further out. so none of the houses out in the boonies ever appreciate (because one could always drive another mile or two down the road and buy a new one for less). not even the worst traffic on the planet keeps people from living out there (going from exit 747 to exit 763 on I 10, 16 miles, would take me an hour and a half at 7 am. the housing market inside loop 610 is generally increasing in value, but it isn't enough to offset the decline in value for the rest of the metro area, and has only been happening for a decade.
mugs
Lifer
- Apr 29, 2003
- 48,920
- 46
- 91
Originally posted by: Xyclone
I don't really give a sh1t about this, since we bought the house for $175,000, and can go for $800,000 minimum to $1 million on the real estate market today.
Southern California FTW.
So when you sell your house for $800,000, it'll cost you an *extra* $350,000 to buy a house that only cost $250,000 when you bought yours. Lucky you. :thumbsup:
Originally posted by: mugs
Originally posted by: Xyclone
I don't really give a sh1t about this, since we bought the house for $175,000, and can go for $800,000 minimum to $1 million on the real estate market today.
Southern California FTW.
So when you sell your house for $800,000, it'll cost you an *extra* $350,000 to buy a house that only cost $250,000 when you bought yours. Lucky you. :thumbsup:
Unless he moves to an area that isn't so overvalued...
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