Of course no one can time a market bottom. But all indications are that the housing market still has a ways to go; I wouldn't be a hurry to buy were I in his shoes, that's all I'm saying.
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Finally. This is good news. I'm waiting for the prices to crash here, the sellers still haven't gotten the point that they should be waiting rather then dumping their places on the market.
The good thing is that rents are down. My apt is only 300 a month.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!
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They can't give away houses in Detroit any more. Literally people are just abandoning them including banks who went to all the trouble to foreclose and kick people out.Try http://wordforge.net/index.php for discussion and debate.
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Yes, but you have to live in a crappy placeScouse 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!
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Originally posted by Guynemer View PostOf course no one can time a market bottom. But all indications are that the housing market still has a ways to go12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio Regum
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Still only down to 2003 levels.
Wow, if the stocks fell to 1997 levels, housing still has quite a ways to fall. They could probably halve again and still be overpriced.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!
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The prices to average family income are still much higher then historical averages in many areas. That would seem to indicate prices are likely to fall further until they get closer to the historical ratio of price to average income.Try http://wordforge.net/index.php for discussion and debate.
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Originally posted by Oerdin View PostThe prices to average family income are still much higher then historical averages in many areas. That would seem to indicate prices are likely to fall further until they get closer to the historical ratio of price to average income.
That would put this ratio close to its historical average for DC (~3). Some housing markets are still far overpriced by this measure. Some are not.
12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio Regum
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Originally posted by KrazyHorse View PostThen your house was almost certainly bought prior to some substantial and unexpected increases in local property values which the recent housing downturn have not wiped out.
You could say that he has opportunity costs, but I don't believe that is what he means.One day Canada will rule the world, and then we'll all be sorry.
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By the way, here is some ACTUAL advice for people thinking of the rent/buy split:
a) avoid buying in markets which are OBVIOUSLY overpriced by historical ratios
b) in other cases, don't worry too much about it; for most people the net benefit/loss between buying and renting probably amounts to <5% of a home's value
c) if you're exceptional in some way then the difference can be more important; if you might have to move then buying can open you up to all sorts of transaction costs, and exposes you to greater price movement risk; if you have a poor credit history then you will pay more of a premium than most others to buy a house. In all cases, remember that the market has already done the calculation for you; in a certain sense, the average individual in the market for housing in your price range and area should be ambivalent about buying or renting; if one was much cheaper relative to the other then the relative prices would adjust. Compare yourself to this average individual (this already assumes that the average individual is pricing in, for example, tax subsidies on mortgage interest).12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio Regum
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Sadly enough it's a lot better than what he's likely to get from most financial "professionals".12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio Regum
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