OT: Drop in value of homes

Page 2 of 4  


Now I do agree that the compensation of the CEO at Countrywide was totally out of line and had no relation to his actual performance. However, here's the problem with populist notions about things like this. How, exactly would you propose to fix it?
I wouldn't propose to fix it. It is not a problem. It is, if anything at all, a matter between the board of directors and the stockholders, nothing else. And if the stockholders don't like it, they know how to fix it. Apparently, they must like it. So why should anyone else be concerned, except out of pure jealousy?
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
if you look at a chart of oil use growth over the last 20 years another 20 years the curve will rise exponentially exhausting all the worlds usable oil.
meanwhile we enrich the terrorists
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Agh, I hate you so much right now. Not that you've been offensive in any way, but we're trying to refi about $400K... I just can't understand how people are buying all the McMansions around here when an old, modest three (tiny) bedroom house is going for almost half a mil...
nate
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
"N8N" <wrote

Sorry there! It's all about location. I live in a cheaper housing area (Norfolk) than you do obviously.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
on the cost of gasoline, we cant produce our way out of this. alterntives must be found. because we are shipping billions weekly to oil rich mid east terrorist breeding grounds. they love our money but hate us as a people
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Another populist misconception. Oil is a worldwide commodity. If the US reduced it's dependence on oil from mideast countries, that oil would just be sold elsewhere to places like China and India. How much money do you think it takes to finance terrorism? It's not billions and doesn't require vast oil revenues. Iran is on the short list of the top terrorist financiers. How much oil does the US buy from them? Zilch!
And the notion that you could then just ignore what goes on anywhere and they won't bother you because you don't need their oil ignores the lessons of history. How much oil did Germany have?
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
I guess my house dropped 50K or more, but it doesn't matter because it's not for sale. In many locations it is a very bad time to sell--if you can put off moving for a couple years you'll likely be in a better position as a seller.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Location is one key factor in home valuation. If you have a small no frills house in a desirable neighborhood it is worth way more than an overbuilt luxury home in a slum.
Location and square footage being equal, a house in good shape and built to last will always bring more money than one with sagging roof timbers and cracked plaster.
On a general note, the folks taking it in the shorts are the folks that bought to speculate, and those that bought that had no business buying a house they could not afford. If a buyer purchased a home at the top of the market and has a fixed mortgage that they could afford the payments, then even though the present value of the home may be less than they paid, time cures all wounds.
As an example When I moved to this area in 1995 I was talking to a guy that was grousing that he had paid $75k for his home and he could not get that back at present so he was thinking about walking away from the home.
At the recent top of the market, the same home was going for over $300k. Assuming a 15% drop from the top, the $300k home would be worth $255k, giving the $75k buyer a nice chunk of change anyway.
The places that really take big hits is when the reason for living in a place goes away. There the markets do not rebound for a long time because there is a big lack of demand. Think about the rust belt as an example. While $300k would not buy much of a house here, you could buy an older 2 bedroom home in some places in Indiana for less than $20k.
--

Roger Shoaf

About the time I had mastered getting the toothpaste back in the tube, then
  Click to see the full signature.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Sat, 23 Feb 2008 15:58:30 -0800, Roger Shoaf wrote:

Roger:
That's about what I was thinking when I wrote my original post. I live in a suburb of Detroit, and while there is a drop in home value across the board here, it seems that the homes Way, WAY, out in the ex-brubs with 50 minute drive time (one way) to work are dropping in value more than the small lot, 1950's, 60's and 70's single family homes in the close in suburbs of Detroit.
But it could also be the homes in many of this suburb are better built that some of the housing building tacks further out from the jobs.
I take a tank of gas about once every 7 or 8 days. Some others I know, do 3 tanks of gas per week; they are noticing neighbors leaving their homes. My neighborhood has not a single vacant house; homes from the 1960's.
I was just asking because the Cable TV news story was talking about some California communities being hit very, very hard by drop in value of homes, homeless (from other communities) taking up residence in abandoned houses, and so forth. These development tract communities are way out in suburbs.
Phil
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
Phil Again wrote:

the housing food chain, a lot of the 1955-1975 era houses have better interior finish since anything built since then, short of a high-end custom house. Hardwood floors, clear-grain casings and trim with tight corners, even the occasional built in cabinet was not unknown in that era.
But having said that- I think the McMansions and more recent cookie-cutter 'house of many gables' subdivisions are taking the biggest hits, especially the ones with the long commutes and huge lots. The most recent half-dozen or so subdivisions around here are hurting big-time, with deep, deep discounts on the new spec houses fighting the fire-sale prices some of the upside-down first wave buyers are offering. Many of the later phases in these subs are years behind schedule- the banks won't write the paper when half the lots in the first phase aren't even sold, much less built on. With the number of jobs around here going down, some of these subdivisions never WILL get built out all the way.
But this is NOT a new phenomena. I see traces of the same thing in some older subdivisions around here (and in other cities I have spent time in), from 20, 40, even 60 years ago. Little stub streets ending in dirtbanks, obvious infill houses with styles 20 years newer than their neighbors, the legal plat name not matching the sign out by the road, etc. It all goes in cycles. The trick is to make the high and low points in the cycle match the points in your life when you need to buy and sell. And if you live in a balloon area, never try to ride the bubble all the way to the top.
aem sends...
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
On Sat, 23 Feb 2008 15:58:30 -0800, "Roger Shoaf"

Saw a real nice 40s era house in NC at the height of the housing market. . But five blocks away was the low rent type. It looks like creeping ghetto-ization. That house remained listed for a long time.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
when the feds in pure greed removed the credit card interest deduction it pushed many into rolling debt into their home.
know people who have done that over and over.
that explains how people can live in a home for 10 to 20 years and still owe more than its worth.
greedy credit card companies, greedy mortage companies, often the same companies looking only to boost the short term bottom line can sink our economy.
i am mnone of these, our mnortage is paid off, very little overall debt.....
not everyone is overspending, but all pay the price when things go bad
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Why are they greedy? People sign up voluntarily to use their services. No one forces people to pay 21% interest. Cash still works.
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
wrote in message

I see a proliferation of "pay day check services" in my town. Las Vegas. I even see them in very conservative Southern Utah. These people are the kings of legal loansharking, and they get away with it, and are condoned by government because they pay a fee or % to the state. Anyone who walks into those places are surely brain dead, yet they go in there and sign up for loans at high rates.
It's just the new morality. Get it now, pay for it later. No waiting. No delayed gratification. You "need" that new car NOW, and you need to be paying $500 a month for it plus insurance, even though you'll still be upside down in it in two years.
But you look good.
You need new socks, haven't had your teeth cleaned in three years, and don't have a penny in any form of savings/investment. But you need to look good and feel good about yourself.
Steve
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

well since companies like citibank lost billions they are upping credit card rates, late fees, penalties and interest without warning. this will only make the economy worse.
gasoline is costing me a fortune, $3.20 a gallon and rising. i have no choice i drive all day repairing office machines
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Boy, your cup sure is always half empty, ain't it? Credit card companies have been charging high rates for ever. I guess you don't think anyone ever defaults on those credit cards and they never get paid. If you think you can earn a profit and do it for less, go start one. The fact that there are plenty of smart people with a lot of money that aren't running up to do so suggests that the rates are probably about right.
And if this economy is so damn bad, what did you think about the late 70's?

You think any of that gas price might be due to the fact that the politicians won't allow drilling off the coast in most areas of the US? Or allow drilling in ANWR? Or that no new refineries have been built in the last 25 years?
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
wrote in message

There's an ad for one of those "cash now" services on TV, and in microscopic print it says 99.5% APR. No, that's not a typo. I did the math on that for the "average" loan amount they listed of $2,500.00 for their "average" loan length of 42 months. There's a $75 loan origination fee (an origination fee for $2,500!), $9,025 in total payments ($215 per month), so you end up paying $9,100 on a $2,500 loan. Who on earth could be that stupid?
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
wrote:

They can charge whatever they want. People agree to pay when they sign the credit-card agreement. People also have the choice to pay off the credit card balance in full at the end of the month. Greedy comes to mind when I think about oil companies, insurance companies and pharmaceuticals. It's about time people (and the US government) took financial responsibility and buy only when you have the cash to cover your purchase. I think my home dropped 50K, but I don't care since I'm not selling in the near future. Truly, it's a bad time to sell a house. I wish the government would stop trying to control the economy (rah rah for Ron Paul!).
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload
snipped-for-privacy@aol.com wrote:

Credit card interest was _NEVER_ deductible so you'll have to find another excuse for the poor decisions made by consumers.
--
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

it was deductible up till 5 or 10 years ago. to help the government deficit it was moved to non deductible
Add pictures here
<% if( /^image/.test(type) ){ %>
<% } %>
<%-name%>
Add image file
Upload

Site Timeline

Related Threads

    HomeOwnersHub.com is a website for homeowners and building and maintenance pros. It is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.