Xlnt Real Estate Analysis

[KGW]

http://seekingalpha.com/article/2096...inue-to-weaken




Why Many U.S. Housing Markets Continue to Weaken

It's in the details. . .

[don]

Re: Xlnt Real Estate Analysis

Two of my all-time sheeple favorites:

"I know for a fact that what my house is worth. I don't care what Zillow says. My neighbor's house sold 2 years ago for XXX and I have a pool. He doesn't."

"A realtor called me at the top of the market and said he could get me $600,000 for my house. Now that was too high. $550,000...yes, that's more like it." (house currently worth about $300,000)

[c1ue]

Re: Xlnt Real Estate Analysis

The Federal Reserve data is clear:

http://www.itulip.com/forums/showthr...in-One-Picture

The friend who bought almost exactly at the peak in May 2007 was telling me that his home had only dropped about 9% in value. Of course, Zillow's Zestimate was saying more than 15%.

But I pointed out that if the price is falling despite record low mortgage rates plus a $8,000 tax credit - where exactly is the upside? In other words, how possibly can the value increase?

Then of course he fell back on the inflation argument.

But I then pointed out that since he put down more than $500K in cash (for a $1.51M house), inflation would reduce the pain of the mortgage - assuming his pay raises match inflation - but that it would equally reduce the value of the cash he's parked into the house.

In the meantime houses in the exact same area and same schools, similar number of bedrooms, size, etc are renting for between $2500 and $3500.

[cjppjc]

Re: Xlnt Real Estate Analysis

LOL that's so true. More people than we can imagine are very fortunate not to have had their homes decline in value......... Unlike everyone else.