housing cost back in line with reality

[Truthmatters]

Case Shiller 100 Year Chart (2011 Update) | The Big Picture

 

[Truthmatters]

This is part of the reason we are seeing a recovery

 

[Ernie S.]

So you're good with the fact that millions of people are under water on their mortgages and their largest asset is now worth 1/3 of what they paid for it? Why do you hate senior citizens?
Actually I made out very well as a result of the housing crunch. I bought my current home for 28% of what it sold for in 2006.
My late father's house, however is rented out now, at least until the market recovers because it's value is roughly that same 28 to 30% of what it was at the peak.

 

[percysunshine]

Barney Frank was a genius.

 

[Truthmatters]

Now look at the chart and see where it starts its precipious rise.

Right when Gramm Laech Blialey was implimented.

Corrections when some fo GLB was implimented.

The protections written into the laww were not implimented for YEARS

 

[percysunshine]

In May 2007, Truthmatters joined USMessageboard....and housing prices immediately plummeted. I wonder why.

 

[TakeAStepBack]

"The most misleading assumptions are the ones you don’t even know you’re making."
Douglas Adams

In this case, important variables go to the wayside in favor of a-priori judgements. The chart "looks" great, though.

 

[editec]

housing cost back in line with reality
Case Shiller 100 Year Chart (2011 Update) | The Big Picture

I don't think so.

RE is still over-priced in comparison to wages.

 

[Dont Taz Me Bro]

So you're good with the fact that millions of people are under water on their mortgages and their largest asset is now worth 1/3 of what they paid for it? Why do you hate senior citizens?
Actually I made out very well as a result of the housing crunch. I bought my current home for 28% of what it sold for in 2006.
My late father's house, however is rented out now, at least until the market recovers because it's value is roughly that same 28 to 30% of what it was at the peak.

I'm not sure it's an issue of being "OK" with it, but the prices should have never run up as high as they did in the first place.

Actually, I don't think we've seen the bottom yet. I read something about a week ago speculating that prices will continue to fall slightly more in 2012. I may move out west later this year and if I do I'm going to rent first for a year and wait until '13 to buy a place. Meanwhile, I'll have to rent my house here in SC because I am also underwater, but only by about $10 grand, much better off than most.

 

[editec]

The ONLY WAY that the median market value of RE is going to start climbing again is if

1. We have massive INFLATION (then people will rish to buy any REAL assets) or

2. If the median incomes in the USA starts rising.

Right now, neither of those events looks likely in the near term.

 

[EdwardBaiamonte]

I read something about a week ago speculating that prices will continue to fall slightly more in 2012 .

there is a good chance they may fall alot. I just read about a 3 family house selling for 500K. There is no way to rent it out, pay the mortgage, taxes, and expenses and make a profit.

 

[Quantum Windbag]

This is part of the reason we are seeing a recovery

Politicians don't want housing costs to be realistic, they prefer higher costs in order to get more taxes from people who own houses.

 

[Quantum Windbag]

Now look at the chart and see where it starts its precipious rise.

Right when Gramm Laech Blialey was implimented.

Corrections when some fo GLB was implimented.

The protections written into the laww were not implimented for YEARS

GLB was signed in 1998, the price increase you are pointing to started in 1997.

 

[syrenn]

Now look at the chart and see where it starts its precipious rise.

Right when Gramm Laech Blialey was implimented.

Corrections when some fo GLB was implimented.

The protections written into the laww were not implimented for YEARS

GLB was signed in 1998, the price increase you are pointing to started in 1997.

poor poor liesmatters

 

[expat_panama]

Case Shiller 100 Year Chart (2011 Update) | The Big Picture

Your chart is a year out of date. Here's an update:

 

[Article 15]

housing cost back in line with reality
Case Shiller 100 Year Chart (2011 Update) | The Big Picture

I don't think so.

RE is still over-priced in comparison to wages.

Agreed.

It sucks for people who bought their home during the peak of the wayyyyyy overinflated housing market but prices will probably still go down a bit in the near future.

And rightfully so.

 

[editec]

This is part of the reason we are seeing a recovery

Politicians don't want housing costs to be realistic, they prefer higher costs in order to get more taxes from people who own houses.

That typically isn't how real estate taxes are assessed.

It really doest matter what the towns RE is worth on the market.

The city will set the mill rate according to the city's needs.'

If the value of all real estate goes down, but the cost of government does not, the mill rate goes up.

 

[sparky]

what is this mill rate Editec?

~S~

 

[editec]

what is this mill rate Editec?

~S~

The rate per thousand dollars of assessed real estate values that imposed as local taxes.

If the value of a town real estate goes down, but the cost of maintaining the town doesn't?

Then the mill-rate has to go up to cover the shortfall.

 

[sparky]

Gotcha, never heard the term before, thanx

that said, let's say there's a townwide devaluation of property

the $$$ per thousand would most likely be elevated to assume the a mill rate of revenue the municipality had prior, as i've been made to understand they can't run a deficit (unlike the feds)

an inversely proportional relationship, (if i have it right) that worked in reverse when the bubble was blooming....

btw, this is where town meetings are still the best show all year...

~S~