Ummm....housing prices SHOULD be falling! They were artificially high for years!

borndead1 wrote:

Eureka we agree !!!!🇨🇮

wheelrite wrote:

My ex wife's mom bought a 2 bedroom, 1 bathroom house with a 1 bedroom guest house (on top of the garage) and a small inground pool in La Crescenta, CA back in 2001. She paid $314K for it. In 2006 her house was appraised at almost $600,000. WTF!!!!!!!! DOUBLED in value in 5 years????? Housing prices are a joke.

borndead1 wrote:

agreed...

wheelrite wrote:

Ummm....housing prices SHOULD be falling! They were artificially high for years!

borndead1 wrote:

absolutely. this is a market correction. my home was purchased to be my home, no one assured me it would also fund my retirement

frankj1 wrote:

Mine will, if only because it will be paid off in full. Next time there is hyperinflation in housing (e.g. 5-10 years from now) I amgoing to sell high and then rent until prices crash- like I wish i had this time around. My house is down 60% from its peak...

rfenst wrote:

well, it will help fund my retirement if I sell after paying off the mtg in a way...instead of rent that would have vaporized it will be like I have been making monthly payments to the bank that I will be getting back when I sell. If the house goes up in value it will enhance my lifestyle in retirement. If not, then I got to live where I liked with a big rebate at the end. Maybe made no interest, but interest paid out was deductible and the principle comes back if the market is flat. But there was no promise of it being an investment that must turn a profit, just a home. Currently my house is worth more than I paid 11 years ago but I bought low at the time for what I have.

We must realize that part of the "market correction" is that we are finishing a cycle in which jobs and income were lost...purchases (especially huge ones like homes) slowed down... less product demand then caused more layoffs...

though not everyone will be happy, that cycle is reversing ever so slowly now. there has been hiring for a while and lots of newly lost jobs are actually government(s) related which people were demanding. But it is unlikely that the economy trend will bring back the housing cost frenzy that was artificial in the first place. Rising with the economy maybe, but rising insanely is doubtful...I hope.

Now if only colleges and health insurance could stay within the parameters of the normal marketplace...

frankj1 wrote:

There has never been a promise that homes would appreciate and that they represent a "hidden" investment, but they have historically appreciated about 3-4%. When they appreciate faster than general inflation, homeowners could be making money- so to speak- leaving out the complications of interest and leverage for the sake of discussion.

Right now,however, it is less expensive to rent than it is to own a home here in Orlando. So, lots of people have stopped making their mortgage payments. Apartment occupancy rates are at all time highs, but so too are the number of homes with loans in default, that have never been occupied (overbuilding) and/or are vacant due to foreclosure. The only thing that will clean up the glut will be dilapidation due to long-term vacancy and real population increase over time. At least that's the way I see it.

rfenst wrote:

High demand for apartments will push rent prices higher, and at the same time artificially inflated home prices will keep falling. Then people will start buying houses again.

borndead1 wrote:

High demand for apartments will push rent prices higher, and at the same time artificially inflated home prices will keep falling. Then people will start buying houses again.

borndead1 wrote: