housing makt still in the pits

[ddthetide]

the market was WAY overpriced to start with. there are pockets that are starting to rebound.

[dalakhani]

wait till the unemployment foreclosures start to hit.

The good news? In many major areas, average house prices are now at about 3-4 times income.

More good news? with rates below five percent, investors can buy and rent out places and make a profit again.

Real estate is local and its a shame people pay so much attention to averages.

[ddthetide]

Originally Posted by dalakhani

wait till the unemployment foreclosures start to hit.

The good news? In many major areas, average house prices are now at about 3-4 times income.

More good news? with rates below five percent, investors can buy and rent out places and make a profit again.

Real estate is local and its a shame people pay so much attention to averages.

great just what we need. more slumlords making $$ off the gov't by taking section 8.

[dellinger63]

Originally Posted by dalakhani

wait till the unemployment foreclosures start to hit.

The good news? In many major areas, average house prices are now at about 3-4 times income.

More good news? with rates below five percent, investors can buy and rent out places and make a profit again.

Real estate is local and its a shame people pay so much attention to averages.

Forget about averages. Averages are ajar because high end properties have decreased in value far less than med-low end real estate both commercial and residential, regardless of location.

[dalakhani]

Originally Posted by dellinger63

Forget about averages. Averages are ajar because high end properties have decreased in value far less than med-low end real estate both commercial and residential, regardless of location.

This is simply not true. Real Estate is local. a 1,000,000 dollar property in loudon county virginia 3 years ago is now 650,000k. That same 1,000,000 dollar property in downtown DC (30 minutes away and same MSA) is worth 1,100,000. Location, location, location.

Rates of decline are certainly going to vary depending on locality and obviously some localities are actually increasing despite what the rest of the country is doing.

[dellinger63]

Originally Posted by dalakhani

This is simply not true. Real Estate is local. a 1,000,000 dollar property in loudon county virginia 3 years ago is now 650,000k. That same 1,000,000 dollar property in downtown DC (30 minutes away and same MSA) is worth 1,100,000. Location, location, location.

Rates of decline are certainly going to vary depending on locality and obviously some localities are actually increasing despite what the rest of the country is doing.

properties that were 150- 200K 3 yrs ago in each area. How are they today?

[dalakhani]

Originally Posted by dellinger63

properties that were 150- 200K 3 yrs ago in each area. How are they today?

Depends on the area. Again, if you are talking downtown DC, it was rare to find a place that cheap so the ones that were there have at very least maintained value. In Loudon VA? The percentage of drop has mirrored that of the higher end homes. In PW and loudon counties and PG county across the bridge, the 500-700 range has just gotten throttled. From what ive seen, that range has been the hardest hit across the board. Still, it depends on the area.

I had it beat into me not to think of a house
as an investment way back in the Savings and Loan
crisis.
A house is a place to live.

Much better than an apartment in
that you will get something back if
you can pay for it.

People taking other loans against houses
that were way overvalued have learned
a very hard lesson.

[dalakhani]

Originally Posted by ddthetide

the market was WAY overpriced to start with. there are pockets that are starting to rebound.

Thats true and that was exasperated by the fact that wages had been relatively stagnant over the same period of time that housing was booming.