20 replies to this topic

[Chilidawgz]

Prices for my local community are off 15% to 19% from the highs of late 2005. It looks like it has further to go here in the northern SF Bay Area.

[securelstmile]

My friend sold her house for 760,000 6 months ago. I just heard a similar house in the same neighborhood sold for 670,000.

[OEXCHAOS]

Sort of related: A friend of ours bought a pretty nice, pretty big house outside Atlanta about 3 years ago. Then her husband got really busy in his job (odd hours) and she got really busy in her job (more odd hours). They were hardly seeing each other let alone having lots of leisure time. They also were finding the added expense and worry and hassle of home ownership to be stressful. The thought about it and about how they might want to pursue jobs elsewhere and how little they were enjoying their house anyway so...they sold it at the beginning of the year. Took about $1000 haircut and moved into a really nice apartment. They have a pool and no worries and have saved several times their haircut. I have to say, for folks who don't have much money savvy, they showed impressive insight and financial wisdom. Despite what various (idjit) financial guru's might say, a house is a lifestyle choice, NOT an investment. To the degree that it might be an investment, that investment can go down in value. They saw that, and they saw that a home wasn't consistent with their lifestyles and values, so they dumped their house...and they didn't feel like the world owed them a profit! Smart kids. Mark

[calmcookie]

Sort of related:

A friend of ours bought a pretty nice, pretty big house outside Atlanta about 3 years ago. Then her husband got really busy in his job (odd hours) and she got really busy in her job (more odd hours). They were hardly seeing each other let alone having lots of leisure time. They also were finding the added expense and worry and hassle of home ownership to be stressful.

The thought about it and about how they might want to pursue jobs elsewhere and how little they were enjoying their house anyway so...they sold it at the beginning of the year. Took about $1000 haircut and moved into a really nice apartment. They have a pool and no worries and have saved several times their haircut.

I have to say, for folks who don't have much money savvy, they showed impressive insight and financial wisdom. Despite what various (idjit) financial guru's might say, a house is a lifestyle choice, NOT an investment. To the degree that it might be an investment, that investment can go down in value. They saw that, and they saw that a home wasn't consistent with their lifestyles and values, so they dumped their house...and they didn't feel like the world owed them a profit!

Smart kids.

Mark

FWIW ... I agree. I've owned a few houses in my life, and a condo. Now I rent the top of a great duplex ... no hassles ... secure ... wonderful gardener ... no maintenance headaches or costs. Walk or bike everywhere. I'd never go back to a home ownership lifestyle ... just not worth the trouble. And with home taxes, where I am, it doesn't make sense to own. So many other things to do with available time and funds. Owning is NOT for everyone, although I do still have some land on the Pedernales river. Not sure what I'll do with it. But my Uncle used to say, the more you own, the more trouble you have. True.

Best, C.C.

Edited by calmcookie, 27 September 2007 - 01:39 PM.

[nimblebear]

Sort of related:

A friend of ours bought a pretty nice, pretty big house outside Atlanta about 3 years ago. Then her husband got really busy in his job (odd hours) and she got really busy in her job (more odd hours). They were hardly seeing each other let alone having lots of leisure time. They also were finding the added expense and worry and hassle of home ownership to be stressful.

The thought about it and about how they might want to pursue jobs elsewhere and how little they were enjoying their house anyway so...they sold it at the beginning of the year. Took about $1000 haircut and moved into a really nice apartment. They have a pool and no worries and have saved several times their haircut.

I have to say, for folks who don't have much money savvy, they showed impressive insight and financial wisdom. Despite what various (idjit) financial guru's might say, a house is a lifestyle choice, NOT an investment. To the degree that it might be an investment, that investment can go down in value. They saw that, and they saw that a home wasn't consistent with their lifestyles and values, so they dumped their house...and they didn't feel like the world owed them a profit!

Smart kids.

Mark

Truly a lifestyle choice. I agree 100% with your view. Some baby boomers could really be bummed when they go to cash in on it.

My property taxes are sort of high, but I am in an excellent school district for my kids. The taxes pay for the school. It would be much, much more for private. If the house appreciates thats good. It helps cover mtc. - on paper it about doubled from 8 years ago. and my fixed loan is dirt cheap, and my only debt. Its what I call solid leverage. At least I'm not in Memphis where house prices have gone nowhere for 10 years.

Edited by nimblebear, 27 September 2007 - 01:51 PM.

[eminimee]

Numbers came out today in Canada on home prices...Toronto's average 2 story is up another 9% over this time last year. . . .

[calmcookie]

Numbers came out today in Canada on home prices...Toronto's average 2 story is up another 9% over this time last year. . . .

I'm glad ... still have friends there. No idea what my former Toronto condo is worth now ... maybe it went up ... but still glad I got out. Toronto winters suck ... and besides, there's no Willie Nelson!

Edited by calmcookie, 27 September 2007 - 02:02 PM.

[SimpleTone]

Prices in portland oregon were slightly up YoY. Who knows if they will hold? I agree with most on the lifestyle choice for houses. With people changing jobs faster, it may not make sense for many. However, for a lot of folks it is a forced savings plan. If history is any judge, it is likely a decent investment until the population turns. Just got way ahead of itself. Problem is..a 50% haircut wipes out a 100% equity gain. I would be in favor of eliminating the mortgage deduction over time so the market better reflects reality.

[Sentient Being]

Housing didn't go up as much around here so it doesn't seem to have that far to drop. The last house that sold in this neighborhood sold for more than it was worth, they waited 6 months and found the right (idiot) buyer. Something odd though. Two house went up for sale by owner. Usually when I see that it's some owner who wants to cut out the broker and feels his house is worth far more than it is. Or they couldn't get a broker to list it at the outragous amount they want. Sure enough, both houses sat on the market for a few months then the owners took down their signs. Neither one sold. I heard one was going to try again in the fall, which is now so that sign will probably be back up in a few weeks. It's not unusal for "by owner" houses to not move...but to have two houses in this neighborhood that did not sell is something new (in the 13 years we have lived here everthing has sold in very good time). We will own our house in 6.5 years so I don't give a crap what it's worth on the market. I know what it's worth to me, its where I live. My mortgage is lower than it would cost me to rent same space, and in a few years there will be no mortgage.

[OEXCHAOS]

"Prices are falling, but not here..."

Southwest Ohio home prices remained relatively flat, posting a median sale price in July of $145,250, compared with $144,900 for the same period last year, according to the Cincinnati Area Board of Realtors and the National Association of Realtors. The median is where half of homes sell for more and half for less.

Northern Kentucky posted a 1.4 percent increase in home prices in July compared with the same month in 2006, according to the Northern Kentucky Association of Realtors. The median sale price rang in at $140,000, compared with $138,000 a year ago.

They're "lying". Actually, it's just that folks haven't given up on their prices yet. The bid didn't hold, it's that lower and mid end homes just didn't sell.

The place across the street is now on the market 360 days. They have come down 10% so far, and no nibbles. In reality, real prices have fallen almost everywhere and by quite a bit. It's just that they don't price houses like the stock market.

Mark