What is going on in the housing market, I bought a home 4 years ago that is
now doubled in price and I would have been priced out from buying it if I
wanted to today, nobody in my neighborhood is selling at all except once and
it sold real quick for double what my house cost and it was similar to mines
etc.. In general it looks like prices are rising much higher than the cost
of living/raises etc.. and most of my friends etc.. are stuck renting now.
(Boy I am glad I put the down towards a home and not a car 4 years ago heh)
in 10 years will young workers be stuck renting for life??


Pretty soon if things keep up we will end up in some kind of feudal society.

In article , mike wrote:

What is going on in the housing market

Many pundits feel that it is in a bubble, much like stocks in 2000
and Tulip Bulbs in Holland. Except in a few rare places, look for
prices to come down at some point. Many places have already seen
time on market go up, and 10% price reductions this year.

If you don't think that this can happen, talk to people in
Florida and Southern California that saw real estate prices
collapse about 15 years ago.

These high house values are marginal prices. For example, there
might be 100 homes in an area that are worth $200K on the market.
If one sells for $250K, the other 99 people all think that their
homes are worth $250K. In reality, there was not a creation of
$5-million in real estate, rather, the cretion was $50K. The
next seller might get $245K, the next seller $230K, and the next
seller $220K. It depends on how many buyers and sellers there
are. Look at places like Flint, Michigan. The number of buyers
went to zero while the number of sellers grew large. One could
not sell a house for any price since they could not recover the
cost of taxes. Many folks simply abandonded their homes when
they moved out of the area.

I bought a home 4 years ago that is
now doubled in price and I would have been priced out from buying it if I
wanted to today, nobody in my neighborhood is selling at all except once and
it sold real quick for double what my house cost and it was similar to mines
etc.

Keep in mind that this is a paper gain, not a real gain, until you
sell and actually have the money in had. If this is true, why not
sell now, cash out, and move some place that is far cheaper to live
in. Here in the midwest, you can get nice new homes for just over
$100K, and great 4 bed 3 bath homes in the outskirts of a major
metro area for just over $200k.

In general it looks like prices are rising much higher than the cost
of living/raises etc.. and most of my friends etc.. are stuck renting now.
(Boy I am glad I put the down towards a home and not a car 4 years ago heh)
in 10 years will young workers be stuck renting for life??

Supply and demand will fix that. If there gets to be too few buyers,
the prices will drop off quickly. And like stocks, it only takes a
very small shortage of buyers to cause the prices of a large number
of houses to drop.

-john-

--
================================================== ==================
John A. Weeks III 952-432-2708
Newave Communications http://www.johnweeks.com
================================================== ==================

"John A. Weeks III" wrote in message
...
In article , mike wrote:

What is going on in the housing market

Many pundits feel that it is in a bubble, much like stocks in 2000
and Tulip Bulbs in Holland. Except in a few rare places, look for
prices to come down at some point. Many places have already seen
time on market go up, and 10% price reductions this year.

If you don't think that this can happen, talk to people in
Florida and Southern California that saw real estate prices
collapse about 15 years ago.

These high house values are marginal prices. For example, there
might be 100 homes in an area that are worth $200K on the market.
If one sells for $250K, the other 99 people all think that their
homes are worth $250K. In reality, there was not a creation of
$5-million in real estate, rather, the cretion was $50K. The
next seller might get $245K, the next seller $230K, and the next
seller $220K. It depends on how many buyers and sellers there
are. Look at places like Flint, Michigan. The number of buyers
went to zero while the number of sellers grew large. One could
not sell a house for any price since they could not recover the
cost of taxes. Many folks simply abandonded their homes when
they moved out of the area.

Flint Michigan, I saw a docuentary about GM leaving that area and the place
becoming a ghost-town. Scary.

I bought a home 4 years ago that is
now doubled in price and I would have been priced out from buying it if I
wanted to today, nobody in my neighborhood is selling at all except once
and
it sold real quick for double what my house cost and it was similar to
mines
etc.

Keep in mind that this is a paper gain, not a real gain, until you
sell and actually have the money in had. If this is true, why not
sell now, cash out, and move some place that is far cheaper to live
in. Here in the midwest, you can get nice new homes for just over
$100K, and great 4 bed 3 bath homes in the outskirts of a major
metro area for just over $200k.

It is cheap for me too live since my payments are not bad and its paid off
in 13, besides I like the weather down here in
southflorida and having waterfront+big yard,pool etc.. When I did buy it was
not a well known area I guess so I got it for 175K but now the area is being
yuppiefied with the waterfronts and vicinity to good schools.

In general it looks like prices are rising much higher than the cost
of living/raises etc.. and most of my friends etc.. are stuck renting
now.
(Boy I am glad I put the down towards a home and not a car 4 years ago
heh)
in 10 years will young workers be stuck renting for life??

Supply and demand will fix that. If there gets to be too few buyers,
the prices will drop off quickly. And like stocks, it only takes a
very small shortage of buyers to cause the prices of a large number
of houses to drop.

-john-

I would not be surprised it has to happen the average homes in southflorida
re selling at high prices, every new home now is a Mcmansion tracthome in
zerolot selling for 350K and up. At somepoint the glut will hit, I really do
know know where people are getting the money for these expensive homes since
southflorida is not a dotcom haven etc.. like california, this is the part
that I find real strange.

Pretty much depends where you are located. I always laugh a those
"make your house pretty to sell" TV programs. People offering more
than the asking price? I guess California is LALA land.. Asking price
in many place is where you start and go down on, no up.

"mike" wrote in message ...
What is going on in the housing market, I bought a home 4 years ago that is
now doubled in price and I would have been priced out from buying it if I
wanted to today, nobody in my neighborhood is selling at all except once and

(Gary) wrote in message m...
Pretty much depends where you are located. I always laugh a those
"make your house pretty to sell" TV programs. People offering more
than the asking price? I guess California is LALA land.. Asking price
in many place is where you start and go down on, no up.

Yeah, it's weird to me, to. Around here, asking price is like the MSRP
on a car, not the opening bid on an auction. Thank God.

I can tell you guys/gals that in Texas, especially Houston, home
prices have been going up dramatically since 1999. A bubble is not
expected here at all. Prices are still climbing. It is a good time to
be a real estate agent in Houston.

(Tracy) wrote in message . com...
(Gary) wrote in message m...
Pretty much depends where you are located. I always laugh a those
"make your house pretty to sell" TV programs. People offering more
than the asking price? I guess California is LALA land.. Asking price
in many place is where you start and go down on, no up.

Yeah, it's weird to me, to. Around here, asking price is like the MSRP
on a car, not the opening bid on an auction. Thank God.