Mr Housing Bubble

[brewer12345]

Stolen from http://patrick.net/housing/MrHousingBubble2.gif

Humor mixed in with schadenfreude, but its still humor...

 

[Brat]

Won't burn the eyes unless you open them.

 

[justin]

I can't seem to find that product locally. Must be a regional thing?

 

[73ss454]

Justin, just hang out. It get's around to everyone eventually.

 

[twaddle]

Do not fear the bubbles. Let them wash over you.

Who, besides a few speculators, actually gets hurt from the popping of the bubble?

If you're a wannabe new home owner, lower prices are obviously good for you.

If you own a $500K home, and you've been eyeing that $1M McMansion over at the next cul de sac, what happens if both of you get cut in half? You sell your place for $250K less, but you upgrade to the McMansion for $500K less. You save $250K in the end!

Let the popping commence!

 

[73ss454]

Since everyone has to live somewhere it makes me think that it's better when the prices of houses go down. Everyone's house goes down together so as twaddle say's what's the difference.

When the prices go down so does your taxes in most cases and home owners ins is also less. My taxes in Fla. just went down based on the properties going down in value. My assessed value went down from 378K to 308K which lowered my overall taxes. Perhaps this is all a good thing.

 

[W2R]

Do not fear the bubbles. Let them wash over you.

Who, besides a few speculators, actually gets hurt from the popping of the bubble?

If you're a wannabe new home owner, lower prices are obviously good for you.

If you own a $500K home, and you've been eyeing that $1M McMansion over at the next cul de sac, what happens if both of you get cut in half? You sell your place for $250K less, but you upgrade to the McMansion for $500K less. You save $250K in the end!

Let the popping commence!

Yeah, but what if you're planning to downsize for retirement? Besides, it's not just the prices that are a problem - - houses aren't selling as well and in some areas, inventories are growing fast.

 

[W2R]

Since everyone has to live somewhere it makes me think that it's better when the prices of houses go down. Everyone's house goes down together so as twaddle say's what's the difference.

When the prices go down so does your taxes in most cases and home owners ins is also less. My taxes in Fla. just went down based on the properties going down in value. My assessed value went down from 378K to 308K which lowered my overall taxes. Perhaps this is all a good thing.

If most assessed values in your county went down, and it still costs about the same amount of money to run the country, then your millage rate is likely to go up (meaning that your taxes would be about the same).

 

[73ss454]

Well, everything sells at a price. I found that out last year when I had to reduce the price of my NY house from 725K to 570K before it sold.

Once you sell your McMansion you'll be able to buy the downsized home also at a reduced price.

 

[W2R]

Well, everything sells at a price. I found that out last year when I had to reduce the price of my NY house from 725K to 570K before it sold.

Once you sell your McMansion you'll be able to buy the downsized home also at a reduced price.

Everything sells at a price, true - - but what we are hearing here, is that due to the very high inventory, even with reduced prices it takes a very long time to sell. When you have a lot more houses for sale than you have buyers, some just aren't going to sell that year.

Also, you might lose more on your larger house than you will recoup in buying a smaller, less expensive house, if both are reduced in price by the same percent.

 

[73ss454]

Want2retire, there was such a large increase in home prices in Fla. that the county was making all kinds of money from the increased prices. Yes they can increase the millage rate and I'm sure they will at some point. In Fla. the taxes got so crazy that the government stepped in and now there's to be a vote on Jan 29 next year to reduce the taxes that people are paying.

Each state has some type of problem with this but as long as everything is equal it all works out in the wash.

If you didnt have to live anywhere then the higher prices are good when you sell. But if you have to buy again it sort of all works out. The only ones making money is the government and the ins. companies with increased prices.

 

[W2R]

Want2retire, there was such a large increase in home prices in Fla. that the county was making all kinds of money from the increased prices. Yes they can increase the millage rate and I'm sure they will at some point. In Fla. the taxes got so crazy that the government stepped in and now there's to be a vote on Jan 29 next year to reduce the taxes that people are paying.

Each state has some type of problem with this but as long as everything is equal it all works out in the wash.

If you didnt have to live anywhere then the higher prices are good when you sell. But if you have to buy again it sort of all works out. The only ones making money is the government and the ins. companies with increased prices.

Let's see... if housing is hypothetically selling for 70% of its prior value, and you are selling a (previously) $400K house, you would get $280K. If you buy a (previously)$200K house, then it would cost $140K. So yes, you still get your house, but instead of $200K profit in the bank, you have $140K. Guess it's not the end of the world!

Actually in my case, I'd be selling a $200K house for whatever, and buying a $150K house for whatever, most likely. If the profit is less, I would just spend less on furnishing the new house, and that would probably make up for it. Hey, you're cheering me up!!! Thanks!

Also, regarding the millages there was a recent reassessment in New Orleans. Many/most property owners were hit with double the assessed value compared with what it should be. The city council "promises" to reduce the millages. Uh huh. Yeah, sure. Luckily, I am a mile over the city line in a suburb, so my own assessed value is just going to revert to what it was before Katrina (or so our assessor says - we shall see).

 

[73ss454]

There are 2 type's of sellers on the market. The one's who don't care if they sell and the one's that will do what it takes to make a deal. So if your the one who want's to sell just do what it takes and you'll sell the house.

I also found that brokers would take people into my house and the folks would make offer but there was always some type of problem. Mostly the folks wanting to buy my house had to sell the one they own first. Once you sell your house your the perfect buyer and when making offers on the new new house you want to buy there won't be any BS and the people will listen. You'll be in the drivers seat when making offers.

Good luck, it can be done.

 

[W2R]

There are 2 type's of sellers on the market. The one's who don't care if they sell and the one's that will do what it takes to make a deal. So if your the one who want's to sell just do what it takes and you'll sell the house.

I also found that brokers would take people into my house and the folks would make offer but there was always some type of problem. Mostly the folks wanting to buy my house had to sell the one they own first. Once you sell your house your the perfect buyer and when making offers on the new new house you want to buy there won't be any BS and the people will listen. You'll be in the drivers seat when making offers.

Good luck, it can be done.

Thanks! I am really hoping it can. If I can get this one sold (in a couple of years), and approach the sellers with cash in hand and no excessive delays, they might cut me some slack just as you said. Since I plan to move to another state, I won't want to make my offer contingent on selling. I'd rather sell, move, rent, look, then buy.

 

[haha]

Since everyone has to live somewhere it makes me think that it's better when the prices of houses go down. Everyone's house goes down together so as twaddle say's what's the difference.

If houses were financed by cash up front, there would be no problem. But since they are debt financed, and aggressively so, when the collateral loses value the whole credit system based on it is in trouble.

Ha

 

[73ss454]

Ha, I agree but most of the people on the forum that are downsizing are not in that position. They usually own the McMansion outright or owe a small amount so taking less is not that critical.

 

[haha]

Ha, I agree but most of the people on the forum that are downsizing are not in that position. They usually own the McMansion outright or owe a small amount so taking less is not that critical.

I agree with you. I thought we were discussing the housing bust in general, not only as it pertains to this this forum Sometimes I miss posts even in threads that interest me.

Ha

 

[Moemg]

[ My taxes in Fla. just went down based on the properties going down in value. My assessed value went down from 378K to 308K which lowered my overall taxes. Perhaps this is all a good thing.[/quote]


My assessed value in Florida went up by $100,000 but because I'm homesteaded my taxes went down by $300

 

[honobob]

I can't seem to find that product locally. Must be a regional thing?

Well here in the San Francisco where the median price is $665,000 a new development has placed new construction on the market at HALF PRICE!!! There was even a news story on them. Of course they are only selling half the product!! 400 sf studios for $380,000 (that's $950sf) And there was a four hour line waiting to buy them!!I took a look cause they were advetising in the 300's and wouldn't give you the price or even let you look at them until you got your financing preapproved. After I looked I didn't think I'd be interested. Their floor plan showed the "bedroom" across from a 8 foot strip of kitchen cabinets. The bedroom space was 5 feet same as a queen bed, then 4 foot to kitchen cabinets. They're called the Symphony on Van Ness.Still looking though. Anybody find a deal in SF give Honobob a call.

 

[honobob]

Well here in the San Francisco where the median price is $665,000 a new development has placed new construction on the market at HALF PRICE!!! There was even a news story on them. Of course they are only selling half the product!! 400 sf studios for $380,000 (that's $950sf) And there was a four hour line waiting to buy them!!I took a look cause they were advertising in the 300's and wouldn't give you the price or even let you look at them until you got your financing preapproved. After I looked I didn't think I'd be interested. Their floor plan showed the "bedroom" across from a 8 foot strip of kitchen cabinets. The bedroom space was 5 feet same as a queen bed, then 4 foot to kitchen cabinets. They're called the Symphony on Van Ness.Still looking though. Anybody find a deal in SF give Honobob a call.

Won't let me edit Advertising!!

 

[happy2bretired]

I've been thinking about if and when I ever sell my house that maybe moving into a rental for a few months would be the best thing. Save the $$ from selling your house for a few months and taking your time in buying something else. I sure would hate being trapped in the middle of selling and buying right now.

 

[HFWR]

S&P Says Housing Prices Fell in 2Q by Steepest Rate Since Its Index Was Started in 1987

NEW YORK (AP) -- U.S. home prices fell 3.2 percent in the second quarter, the steepest rate of decline since Standard & Poor's began its nationwide housing index in 1987, the research group said Tuesday.

Home Prices: Steepest Drop in 20 Years: Financial News - Yahoo! Finance

 

[Rich_by_the_Bay]

My assessed value in Florida went up by $100,000 but because I'm homesteaded my taxes went down by $300

Down $700 here (homesteaded, too). Should help with the high insurance premium.

I once added them all up and compared it to other states which have state income tax. Florida come out pretty well if you count that in, and why not - it's all fixed, real cost of living wherever you are.

 

[hova22]

I'm closing on a 1 br condo right now. Originally listed at 265k. Reduced to 250k. My offer was accepted for 220k. 12% off the current list price.

Maybe it was overpriced to begin with, but last year another sold for 265k. However, the unit was Completely renovated. Mine only has a newer carpet, paint and central a/c unit. I'm happy. For just me, I don't need the newest of everything. Just things that work.

*sidenote* - This is in NJ and a very accessible location to NYC, hence the high price (when compared nationally). Ideally, one day in 5-7 years I'll move up to a house in NC or CO...

 

[Moemg]

I've been thinking about if and when I ever sell my house that maybe moving into a rental for a few months would be the best thing. Save the $$ from selling your house for a few months and taking your time in buying something else. I sure would hate being trapped in the middle of selling and buying right now.

That's exactly what happened to my sister .Her house in Long Island ,Ny has been on the market for over a year and she bought a house in Florida at the top of the bubble .Ouch !