Um yeah. Im not going to spend $875,000 on a stupid house, ok?

[dr150]

Originally posted by: FelixDeKat
Not $525,000,

Not $375,000,

Not even $215,000...

$150,000 take it or leave it. Thats right - I said $150 and your lucky I dont make it $125.

So stop thinking you can charge what-ever-the-fook you want for your stinkin' crown molding and wood flooring - 'cuz I aint payin for it, aight? I dont care if you resodded the yard or redid the kitchen or what ever. I dont care. So you can take your dream number and go jump in the lake. :laugh:

Am I crazy or what? Or do you agree that even with property values on the decline everything out there is still waaaaay overpriced.

EDIT:

EUREKA!! IVE GOT IT - THE SOLUTION TO THE MADNESS: An 85% Federal Excise Tax on Capital gaines on non primary residences purchased and then sold under 12 months! That'll put a cap on irrational housing exuberance!

AGREED!

That is why I rent. I'll take my money pot and buy/build something high quality and cheap abroad for retirement.

 

[ponyo]

Originally posted by: dullard

Originally posted by: HeroOfPellinor
You almost got my point. It was that if prices drop down anywhere close to where they were 4 years ago, demand will increase exponentially because not just first time owners will be interested, which is why they will never drop that low.

As prices drop, demand will increase. However, there is a massive housing glut. In other words, supply is high. Even a big uptick in demand might not be enough to stop prices from falling for a while.

If you're suggesting to wait to see if a 300K houses is gonna drop another $10,000 over the next few months then......I don't know what to say. A fraction of a percentage interest rate increase would wipe any savings you'd have wrought. Plus, any house currently dropping isn't likely to suddenly skyrocket when things pick up a bit.

Interest rates have also been dropping for a few months. Slightly lower prices plus lower interest rates. It is a win/win situation for those who waited the last few months. Most likely, in the short term, it'll still be win/win to wait A LITTLE BIT. But don't wait too long (hoping in vain for a massive price drop) and miss the boat.

I expect the prices to fall and then stop and rise a bit again as the first wave of sideline buyers who missed the runup try to get in thinking they are getting a bargain. I expect this to be short-lived and then the real bottom fall out dropping lot more and taking the first wave buyers with it. The real bargains will be had by the second and third wave buyers. If it's like any other bubble popping, we should tread water for long time after we bottom giving any real buyers plenty of opportunities to get in.

 

[Eos]

Originally posted by: Naustica


I expect the prices to fall and then stop and rise a bit again as the first wave of sideline buyers who missed the runup try to get in thinking they are getting a bargain. I expect this to be short-lived and then the real bottom fall out dropping lot more and taking the first wave buyers with it. The real bargains will be had by the second and third wave buyers. If it's like any other bubble popping, we should tread water for long time after we bottom giving any real buyers plenty of opportunities to get in.

I'd really be appreciative if you could give me SOME idea of a timeline for this to happen.

4-5 months ago, my area (35k population) was doing well. Meidan price is about 180k now. But, homes are sitting longer now. Nice homes. 2-4 years old and within 2% of median value. Across the street from me. Built in 2002. Started at $219k, dropped to $215k, dropped to $204k, now at $195k. 2 story, 1475 sq ft. 2 car garage. No one wants it. Look at the link I posted; we're now the number retirement destination :shocked:. Any idea on when I should move to purchase? Now? Wait a couple months? This second and third wave thing; maybe it woni't affect us if the geezers start moving up here.

Your thoughts?

 

[g8wayrebel]

Originally posted by: Slew Foot

Originally posted by: FrankyJunior
That's why you buy a hosue is its value always goes up (at least under normal circumstances).

Wrong-o. House prices fluctuate like anything else. Up some years, down some years, just like the economy. On average, a house increases about 1% above the rate of inflation, a piss-poor return for an investment.

Actually , it is a fabulous return for and investment. If you rented , you would spend more and have absolutely nothing to show for it...DUH!
If you figure what you would have paid in rent into the end result and recompute you might get a lesson in economics in a hurry.

 

[Smartazz]

I heard that really expensive houses didn't change much in value recently. It's a lot of the affordable houses that are very expensive now.

 

[Slew Foot]

Originally posted by: g8wayrebel

Actually , it is a fabulous return for and investment. If you rented , you would spend more and have absolutely nothing to show for it...DUH!
If you figure what you would have paid in rent into the end result and recompute you might get a lesson in economics in a hurry.

Im sure this guy who bought for $2 million earlier and is now selling for $1.4 million (a 600K loss), is pretty damn glad he bought that house.

http://flippersintrouble.blogspot.com/

In a falling market tis better to rent than buy. No ones waiting for things to be free, people are waiting for prices to reach an econoomically justifiable level. WHen the price to rent is 1/3 to half the price to buy, there's NO reason to buy, especially when prices are in free fall mode.


For all you idiots Ill repeat this for the third time in this thread. The house I currently rent sold last year for 450K, after tax, insurance, and i/o mortgage (i.e. no equity) the owner forks over around 3k/month (assuming a 33% tax break on the whole thing even though the insurance is not deductible that's $2000/mo out of pocket). I pay $1800 to rent thus I save $200 a month. The same floor plan is on sale a couple streets over for $395K, the guy is losing at least $200 mo in cash flow and $4K/mo in "equity". Who's the sucker now 🙂

I'd like to know that housing market. Florida is still stupid on housing appreciation.

I posted earlier, DR Horton chopped 30% off thier housing prices in areas of Florida.

 

[LegendKiller]

http://www.nytimes.com/imagepages/2006/08/26/weekinreview/27leon_graph2.html


Thats all I am gonna say. Anybody who thinks we aren't in for either a very steep drop, an extended level period, or a combination of the two is a fekkin idiot.

Wake up and smell what the BS realtors have been cooking.

 

[Eos]

Originally posted by: LegendKiller
http://www.nytimes.com/imagepages/2006/08/26/weekinreview/27leon_graph2.html


Thats all I am gonna say. Anybody who thinks we aren't in for either a very steep drop, an extended level period, or a combination of the two is a fekkin idiot.

Wake up and smell what the BS realtors have been cooking.

So, I look at this graph and I have no idea what to take away from it besides that it appears as if home values have increased a bit in the last 9 years.

Anything else? 😀

 

[Slew Foot]

Originally posted by: eos

Originally posted by: LegendKiller
http://www.nytimes.com/imagepages/2006/08/26/weekinreview/27leon_graph2.html


Thats all I am gonna say. Anybody who thinks we aren't in for either a very steep drop, an extended level period, or a combination of the two is a fekkin idiot.

Wake up and smell what the BS realtors have been cooking.

So, I look at this graph and I have no idea what to take away from it besides that it appears as if home values have increased a bit in the last 9 years.

Anything else? 😀

That EVERY previous boom was followed by a crash to pre boom levels.

 

[LegendKiller]

How about that prices increased 4x the amount in 1/11th the time? From 1890-1995 = 20%, from 1996-2006 = 80%. 115 vs 10 years. 20% vs 80%. Yeah, that's a mean-fitting appreciation for ya!

 

[voodoodrul]

Houses around where I live in Montana, of all places, where median household income is $24,000/year are completely out of control. My parents bought their place in 1978 for $44k. Now the same house is worth over $350k. At this point, you can't find a shack to be demolished for less than $150,000 and it's not uncommon to see houses in the $650k-$1.5mil range.

Now someone explain to me how anyone making $24,000/year as a couple is going to afford food let alone the house.

It's impossible and in my opinion, this is all planned. Get the serfs out of the idea of land ownership and rent to them their entire life. Good plan..

My dad made $26,000/year in 1978. The house cost $44k. So two years salary would pay for the house. Today, to afford a typical $350k, built in 1975 government house, you would have to make $175k/year to have it as good as my parents did. My dad worked a crappy job for the railroad at the time.

And oh yeah, it's impossible to find a job that pays better than $15/hour here.. They literally do not exist.

So someone please explain this all to me. It's all rooted in greed.. And those who argue "I can get mine, so quit crying to me about it" are going to get theirs.

What goes around comes around..

 

[ultimatebob]

Heh, I hear ya man. I needed to get a special government housing assistance mortgage (The CHFA program) to afford my new place in Connecticut, and I make over $70K a year.

 

[HeroOfPellinor]

Originally posted by: Slew Foot
For all you idiots Ill repeat this for the third time in this thread. The house I currently rent sold last year for 450K, after tax, insurance, and i/o mortgage (i.e. no equity) the owner forks over around 3k/month (assuming a 33% tax break on the whole thing even though the insurance is not deductible that's $2000/mo out of pocket). I pay $1800 to rent thus I save $200 a month. The same floor plan is on sale a couple streets over for $395K, the guy is losing at least $200 mo in cash flow and $4K/mo in "equity". Who's the sucker now 🙂

You're assuming he put nothing down.

Also you're forgetting that in addition to equity he may or may not accrue, there is also amortization which for him is probably over 2K a year by now and will increase every year.

And "a couple streets" can be a world of difference, so 50K isn't much of a swing.

 

[voodoodrul]

Originally posted by: FelixDeKat
Not $525,000,

Not $375,000,

Not even $215,000...

$150,000 take it or leave it. Thats right - I said $150 and your lucky I dont make it $125.

So stop thinking you can charge what-ever-the-fook you want for your stinkin' crown molding and wood flooring - 'cuz I aint payin for it, aight? I dont care if you resodded the yard or redid the kitchen or what ever. I dont care. So you can take your dream number and go jump in the lake. :laugh:

Am I crazy or what? Or do you agree that even with property values on the decline everything out there is still waaaaay overpriced.

EDIT:

EUREKA!! IVE GOT IT - THE SOLUTION TO THE MADNESS: An 85% Federal Excise Tax on Capital gaines on non primary residences purchased and then sold under 12 months! That'll put a cap on irrational housing exuberance!

Dat Kat is my hero..

 

[GasX]

Originally posted by: voodoodrul

Originally posted by: FelixDeKat
Not $525,000,

Not $375,000,

Not even $215,000...

$150,000 take it or leave it. Thats right - I said $150 and your lucky I dont make it $125.

So stop thinking you can charge what-ever-the-fook you want for your stinkin' crown molding and wood flooring - 'cuz I aint payin for it, aight? I dont care if you resodded the yard or redid the kitchen or what ever. I dont care. So you can take your dream number and go jump in the lake. :laugh:

Am I crazy or what? Or do you agree that even with property values on the decline everything out there is still waaaaay overpriced.

EDIT:

EUREKA!! IVE GOT IT - THE SOLUTION TO THE MADNESS: An 85% Federal Excise Tax on Capital gaines on non primary residences purchased and then sold under 12 months! That'll put a cap on irrational housing exuberance!

Dat Kat is my hero..

you have low standards....

 

[glugglug]

Originally posted by: mattocs
I just bought a house for $63k. We also borrowed another $10k for some improvments.

Is it an out-house?

 

[FelixDeCat]

Originally posted by: voodoodrul
Houses around where I live in Montana, of all places, where median household income is $24,000/year are completely out of control. My parents bought their place in 1978 for $44k. Now the same house is worth over $350k. At this point, you can't find a shack to be demolished for less than $150,000 and it's not uncommon to see houses in the $650k-$1.5mil range.

Now someone explain to me how anyone making $24,000/year as a couple is going to afford food let alone the house.

It's impossible and in my opinion, this is all planned. Get the serfs out of the idea of land ownership and rent to them their entire life. Good plan..

My dad made $26,000/year in 1978. The house cost $44k. So two years salary would pay for the house. Today, to afford a typical $350k, built in 1975 government house, you would have to make $175k/year to have it as good as my parents did. My dad worked a crappy job for the railroad at the time.

And oh yeah, it's impossible to find a job that pays better than $15/hour here.. They literally do not exist.

So someone please explain this all to me. It's all rooted in greed.. And those who argue "I can get mine, so quit crying to me about it" are going to get theirs.

What goes around comes around..

Amen brotha! :thumbsup:

 

[smack Down]

Originally posted by: eos

Originally posted by: Naustica


I expect the prices to fall and then stop and rise a bit again as the first wave of sideline buyers who missed the runup try to get in thinking they are getting a bargain. I expect this to be short-lived and then the real bottom fall out dropping lot more and taking the first wave buyers with it. The real bargains will be had by the second and third wave buyers. If it's like any other bubble popping, we should tread water for long time after we bottom giving any real buyers plenty of opportunities to get in.

I'd really be appreciative if you could give me SOME idea of a timeline for this to happen.

4-5 months ago, my area (35k population) was doing well. Meidan price is about 180k now. But, homes are sitting longer now. Nice homes. 2-4 years old and within 2% of median value. Across the street from me. Built in 2002. Started at $219k, dropped to $215k, dropped to $204k, now at $195k. 2 story, 1475 sq ft. 2 car garage. No one wants it. Look at the link I posted; we're now the number retirement destination :shocked:. Any idea on when I should move to purchase? Now? Wait a couple months? This second and third wave thing; maybe it woni't affect us if the geezers start moving up here.

Your thoughts?

It is simple just compare rent to housing cost if it is much cheaper to rent then rent if not it is the time to buy.

 

[Slew Foot]

Originally posted by: HeroOfPellinor

You're assuming he put nothing down.

Also you're forgetting that in addition to equity he may or may not accrue, there is also amortization which for him is probably over 2K a year by now and will increase every year.

And "a couple streets" can be a world of difference, so 50K isn't much of a swing.

He told me he put nothing down, his payment is jumping next year, and every street around here is virtually the same. Guess again.

And even if he did put something down, that $$$ would be gone now as the price declines (assuming he has to sell, which Im guessing he will next year).

 

[Fritzo]

Originally posted by: DougK62
Why do so many people think that if you spend less than $500k on a house you're living "in the middle of nowhere"? lol

I'm in the 'burbs, but I'm 15 minutes from any store and business you can imagine. People on the coasts think all houses have to cost over $500K to be any good, when for the majority of the country, that would buy you a HUGE house on an acre or more of land.

 

[topslop1]

I'm going to buy and sell houses when i have money. They're $$$ for the win.

 

[FDF12389]

Im 18 and me and my older brother own a income property we bought for 47,000 last year, after doing some work(new carpet, paint, few new windows, new kithchen floor) its worth about 55-65 now. My dad owns many rentals and co-signed for us, its self sustaining with rent, so I dont see why anyone would say real estate is a bad investment. Its a perfect investment for us because my dad manages it while we are in school.

EDIT, In Adams, WI look at the market before calling shens.

 

[ultimatebob]

Originally posted by: smack Down

It is simple just compare rent to housing cost if it is much cheaper to rent then rent if not it is the time to buy.

Don't forget that you're building equity when you own a house, though. Even if your mortgage cost is a bit higher than the rent you would pay, at least you're making an investment in property that will probably increase in value. That beats helping your landlord make his next Lexus payment.

 

[Abel007]

$150-200k will buy a very reasonable home here in Georgia. The $500k+ is considered mansions 😀

 

[HeroOfPellinor]

Originally posted by: Abel007
$150-200k will buy a very reasonable home here in Georgia. The $500k+ is considered mansions 😀

Right. People think a house in CanadasAss, Minnesota should be worth the same in Santa Barbara. But there's huge incentive for people to live in places like California with nice weather and high end jobs and vicinity to the coast and Tahoe and whatnot.

Also, what you see a lot now are 1.5-2 families living in a house in some parts of CA. So long as people are willing to stretch as far as possible to live in a premium location prices will hold.