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We aren't dealing with it anything like the Japanese did. The analogy is bad. The market is finding its clearing price in typical American fashion -- relatively promptly.
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I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891 -
Interesting read, thanks! Sounds like there'll be plenty of deals to be had in NoVA -- but since that'd involve living in NoVA, I'll pass.Originally posted by DanS
It's tough to say. I was hoping for a bigger fall in my neighborhood, so that I could move into a bigger place. But I'm in the city (Logan Circle) and while the market is off its highs, my sense is that it's only about 10% off its highs -- at least in the resale market. Maybe a little more.
This is surprising to me, considering that much of the market in Logan Circle-ish areas is condos -- you would expect a bust after the boom (I can tell you some stories that are surreal -- and show you new condos and prices). There are factors that appear to be making some big cities more resilient. New York and Boston seem to be weathering the storm better than others. DC appears to be benefitting from that.
In the Washington metro area, the outer suburbs are being savaged -- the WaPo has dubbed it a "ring of fire." The tipping point appears to have been when the illegal immigrants with Alt-A mortgages stopped making their payments. Apparently, some are moving home after an unsuccessful stab at the American Dream.
As you get closer to the center of the city, the prices are holding up better, unfortunately. Here's WaPo's article from several months ago that describes what is happening.
http://www.washingtonpost.com/wp-dyn...032300183.html
Yup, rented a place about 1/2 block from the DuPont metro. We'll be there after Labor Day. I haven't spent any real time in DC since 2004, so I'm really looking forward to exploring the city.Which reminds me. Aren't you going to be in town soon? I remember you mentioning a rental in DuPont. If you haven't been in DC in a while, you may be surprised at the changes."I have as much authority as the pope. I just don't have as many people who believe it." — George CarlinComment
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Well, we'll have to get together for drinks and I'll tell you a couple of stories. 2004 was when things started to get crazy real estate-wise, as I recall.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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Average one year fall in housing prices across Southern California is 29.3%. OUCH! My city held up better then average with just a 25% drop in prices but we're still talking about a blood bath.
Home equity is being eviscerated at a rate not seen since the 1930's.Try http://wordforge.net/index.php for discussion and debate.Comment
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A big question this whole thing has raised for me is: is the idea of your home as an appreciating asset a thing of the past?The undeserving maintain power by promoting hysteria.Comment
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No, just not right now. There will be a botton to the price fall and a recovery. Hell, if you can guess as to the bottom it could be the best appreciating asset purchase of all time."The DPRK is still in a state of war with the U.S. It's called a black out." - Che explaining why orbital nightime pictures of NK show few lights. Seriously.Comment
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In case anyone cares: Indymac's corporate headquarters are just two blocks from my favorite burger joint hangout.
Does anyone care? Anyone???Comment
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Why do people think that they can build homes and have them appreciate when somebody else can just build an identical house for the same price it cost to build theirs?VANGUARDComment
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Population increase & inflation I guess.Try http://wordforge.net/index.php for discussion and debate.Comment
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Building a house also takes time and is a pain in the ass. It is also hard to find sites for new constuction depending on where you live, and you might not mind spending a little more to live in a better school district or what have you."The DPRK is still in a state of war with the U.S. It's called a black out." - Che explaining why orbital nightime pictures of NK show few lights. Seriously.Comment
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Sooo insane. You paid 400k for a condo?!My $400,000 house is now worth around $285,000 (it's really a condo in a complex instead of a real detatched single family home though at least it has no shared walls) but the projections right now are for another $80,000 drop at least. $180,000 is a lot of money so a short sell and getting back on at the bottom floor in a few year just might be a good idea.
I could buy like two houses for that money.
This drop in prices is a good thing, if you ask me.Scouse Git (2) La Fayette Adam Smith Solomwi and Loinburger will not be forgotten.
"Remember the night we broke the windows in this old house? This is what I wished for..."
2015 APOLYTON FANTASY FOOTBALL CHAMPION!Comment
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In certain areas I could understand that, but not here. This city still hasn't recovered from the beating we took in 2000.Population increase & inflation I guess.
My old landlady is trying to sell her place, I tried to tell her that was a bad idea as she will have to absorb the loss, but whatever. She's been paying two mortgages now for 5 months, and now she doesn't have any rental income to offset the second mortgage.
There are more then a hundred homes on the market right now, it's insane. I wish I had more saved up so that once the sellers finally get it I'll be able to get a good deal.Scouse Git (2) La Fayette Adam Smith Solomwi and Loinburger will not be forgotten.
"Remember the night we broke the windows in this old house? This is what I wished for..."
2015 APOLYTON FANTASY FOOTBALL CHAMPION!Comment
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Wow, you're just . . . wow. Soooooo not getting the whole "economics" thing.Originally posted by Kidicious
Price drops are not a good thing. It's not going to result in more people owning homes, but less.John Brown did nothing wrong.Comment
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Houses have never been a really good investment. They return 4-5% on your money -- even government bonds earn better.Originally posted by DirtyMartini
A big question this whole thing has raised for me is: is the idea of your home as an appreciating asset a thing of the past?
However, they have some attractive features, such as the fact that you can live in the house while earning the return and the fact that it's forced savings -- many people will not save unless they set up mechanisms to force themselves to do so. Also, houses are known to be low-risk investments, the recent downturn in most areas notwithstanding.I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891Comment
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I've ridden 2 bubbles to the top and got out on time thank God.Long time member @ Apolyton
Civilization player since the dawn of timeComment
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