When will the housing market bottom out?

[necine]

Originally posted by: Greenman
I don't agree with the assessment that the market will bottom out when prices come in line with income, not here in the land of fruits and nuts anyway. Were talking about a trillion dollars (pulled that number out of my ass, but I'll bet it's not far off) worth of equity evaporating. I just don't see how the CA economy could take that kind of hit and keep going. And where the hell would all the people walking away from their homes live? Seems like the rental market would explode with the greatest demand seen since the end of WWII

If that were the case I'd be able to find a roommate. You fail.

 

[fLum0x]

well, the housing market is likely to bottom out in the next 12 months. Although, what about interest rates and such? The gov is trying to lower them to increase the market, but what are they countering it with?

 

[ChaoZ]

Originally posted by: Capt Caveman

Originally posted by: Greenman

Originally posted by: Capt Caveman
Reports say that prices should continue to fall and possibly bottom out at the end of the year. However, it really varies by location. I know in Boston/Cambridge, MA area, prices have actually been very stable and going up for new construction/newly renovated properties.

Inflation is also expected to increase which will raise interest rates on fixed mortgages. A lot of variables and no easy answers.

Ain't it the truth.
It's a lot easier to speculate when it's not my money, funny how that works.

fwiw - I left the Bay Area a couple of years ago b/c the housing prices were so whacked. Sadly, I can probably afford to live there now.

If you couldn't afford it then, you can't afford it now.

 

[Delta6Echo]

Originally posted by: ChaoZ

Originally posted by: Capt Caveman

Originally posted by: Greenman

Originally posted by: Capt Caveman
Reports say that prices should continue to fall and possibly bottom out at the end of the year. However, it really varies by location. I know in Boston/Cambridge, MA area, prices have actually been very stable and going up for new construction/newly renovated properties.

Inflation is also expected to increase which will raise interest rates on fixed mortgages. A lot of variables and no easy answers.

Ain't it the truth.
It's a lot easier to speculate when it's not my money, funny how that works.

fwiw - I left the Bay Area a couple of years ago b/c the housing prices were so whacked. Sadly, I can probably afford to live there now.

If you couldn't afford it then, you can't afford it now.

:laugh:

 

[Capt Caveman]

Originally posted by: ChaoZ

Originally posted by: Capt Caveman

Originally posted by: Greenman

Originally posted by: Capt Caveman
Reports say that prices should continue to fall and possibly bottom out at the end of the year. However, it really varies by location. I know in Boston/Cambridge, MA area, prices have actually been very stable and going up for new construction/newly renovated properties.

Inflation is also expected to increase which will raise interest rates on fixed mortgages. A lot of variables and no easy answers.

Ain't it the truth.
It's a lot easier to speculate when it's not my money, funny how that works.

fwiw - I left the Bay Area a couple of years ago b/c the housing prices were so whacked. Sadly, I can probably afford to live there now.

If you couldn't afford it then, you can't afford it now.

Wrong. Speak when you have a clue.

 

[SampSon]

Real estate markets cannot be accurately analyzed on a macro level.
It all depends on where you're located (obviously). In my area there is no bubble and there is no falling market.

If you want a ballpark, 2009. Regardless of the falling markets the typical holding periods for single family real estate, 5-7 years, will be reaching the point where it cycles in 2009.

 

[spittledip]

Question: How do lower prices effect those who already own a house? Do they effect taxes? Do the dropping prices have any benefit or harm for the home owner who has no intention of selling?

 

[Greenman]

Originally posted by: spittledip
Question: How do lower prices effect those who already own a house? Do they effect taxes? Do the dropping prices have any benefit or harm for the home owner who has no intention of selling?

If you're in a state that adjusts your homes value every year or two, then your tax bill should go down. In California the tax basis on a house is set by the sales price, and only allowed to increase 2 or 3 percent a year. If prices drop you can have it reassessed. And you're allowed to take that tax basis with you when you move if you're over 55.
Prop 13 was without doubt the smartest ballot measure ever passed in CA.