Home property value survey

<p>“Sorry for the family. Sorry for the shareholders of this bank, Sorry for the taxpayer who bails the bank out. Not sorry for him.”</p>

<p>There must be a lot of pressure on Congress by the banks and maybe some homeowners to get a mortgage bailout bill signed. President Bush said that he’d sign it if a few conditions are met. So it looks like it will happen. Some of the concerns are that people that can manage their mortgages will try to get in the program just to get a better mortgage situation and that banks will try do dump their worst risks on the taxpayer.</p>

<p>We went through a very tough real estate correction in the 1980s and our communities didn’t get any kind of bailout. The best bailout is to let the market work its way through so that the bankers learn to be bankers and homeowners learn to be homeowners and so those that shouldn’t be homeowners rent.</p>

<p>I read that a few asian governments are looking into bailing out their stock market with “stabilisation” funds. Got to love those free markets.</p>

<p>No such thing as a “free market”. But if we wanted it to be “more free”, we could start by eliminating the mortgage interest tax deduction.</p>

<p>Lost at least 20% of value in our home in the past three years. I think we could get what we paid for it in 1999, but maybe not much more. Home prices here are the lowest they have been in a decade.</p>

<p>In NJ prices in more the more affluent areas around here have not dropped, but are also not selling overall. I say overall, because I have seen a couple of homes sell. Homes near us that are less affluent areas have dropped in price by 10-15% and are still not selling. I know this through a broker that I see about once a month. She tells me that nothing is selling. She is only collecting listings at this time.</p>

<p>“No such thing as a “free market”. But if we wanted it to be “more free”, we could start by eliminating the mortgage interest tax deduction.”</p>

<p>Definitely agree with you on that one. It distorts the market and rewards borrowers and prices out prospective homebuyers that want to play by traditional and prudent lending rules.</p>

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<p>Happened to us in Houston in the 80’s. We sold for 30% less than what we paid 4 years earlier. Many forclosures in our neighborhood (including the realtor who sold us the house!) so we felt lucky to get out just losing money not our good name and credit as well. Didn’t see Congress bailing homeowners out then…</p>

<p>Central NJ the house next door sold in 3 days for 443k the asking price was 449k it is a 3br 2000sq ft.- across the street was asking 490 for a 5br 3200 sq ft got 480 but deal fell through. No new offers yet- new price is now 479,000</p>

<p>I found this interesting map. It looks like California, Florida, and Michigan (including our Toledo area) are suffering the most this year. </p>

<p>[Quarterly</a> Home Value Reports | Zillow Real Estate](<a href=“Zillow: Real Estate, Apartments, Mortgages & Home Values”>United States Home Prices & Home Values | Zillow)</p>

<p>Interesting map.
Other than Michigan and a few other smaller spots, the drops pretty much matched the places that spiked in the last few years. Grand Junction and OK city got a boost from the oil and gas markets. Can anyone else pick smaller trends?
Here in Texas, prices are still plodding slowly upwards. I don’t see more houses for sale in our neighborhood. Of course we’ve been here nearly 15 years and value isn’t even twice what we paid. Plodding… slowly… (Thank heavens since we pay huge property taxes on the real value! Would hate to have paid for a hyperinflated valuation for 3 or 4 years, then back to reality but no rebates for the excess taxes paid!)</p>

<p>Houses in our neighborhood have gone down about $100,000 in the last year, but that was after they increased in value by $400,000 to $500,000 over five years. So most people are fine. It’s still a popular neighborhood - houses are still selling pretty quickly. We’re in Westchester too.</p>

<p>Mind you our neighbors are living in lala land. They’ve got their house on the market for at least $100,000 more than I think they’ll get.</p>

<p>I have a sister in one of the best school districts in Mass and it’s been interesting to see her neighborhood change over the years. It was a neighborhood of small houses built in the 1940s, about 1200 square feet. Over the years, there have been many teardowns replaced with huge and nicely done houses. It’s odd to see the old, small and rundown houses next to the new and bigger houses next to them. At some point I expect the whole neighborhood to turn over.</p>

<p>There’s still a lot of money flowing into the Boston suburbs.</p>

<p>SF Bay area. According to Zillow my home has declined in value by $13.5K in the past 30 days, by $22K over the past year. (So its been a bad month, ha, ha). But I have been in the home 20 years and even with the down market it is now worth about $400K more than what I paid for it. So as a long term investment that also provides a roof over my head, I’m not complaining. </p>

<p>There is a house across the street from me that has been remodeled and the interior is absolutely gorgeous – it has been on the market for ages – the asking price is more than $200K above the Zillow estimated value. Unfortunately the owner purchased it fairly recently and put a lot of money into the remodel – and there is no way they will ever get what they are asking. It’s still as small house in a kind of run down working class neighborhood – quiet & very safe, but not the type of place where you want to pay a premium just to have the prettiest house on the block. Plus we are in the burbs with lousy public transportation so the gas prices (probably around $4.70 gallon for regular right now) don’t help.</p>

<p>my client in VA is only looking at foreclosures, mostly to tear down and rebuild. One property they are looking at 75% of the homes were bought in the boon and torn down, even in the downturn, the new props sold last May 07 for 1.4 mill. I have been fortunate, many of clients have the money and now are getting in low! IMHO for NO VA we are starting to see the cycle begin to turn. Major builders are not opening new subdiv., and now the GCs and small builders can afford to buy, tear down and still turn a profit. Also the person who has been in their property for 10 yrs can take their time, sell their home and upgrade at a fire sale price.</p>

<p>The very worst thing the govt can do is get involved. The newest proposal is 4 Billion will be given to each state to buy foreclosed props. In Va., that wouldn’t even cover 1 county! (Saw 30 foreclosures in 2 days with 100k <a href=“mailto:spread...@350K…10”>spread…@350K…10</a> mil, that is just for props between 300-400K that they wanted to see, there were at least 123 props in forclosure, thus in total = 400Mil Dale City is listed as top 10 in the nation for active, so lets say 500 million…now add in higher or lower price ranges and the 95 Beltway Bandit corridor would most likely be at 4 Bil for 2 counties. Add in Richmond, Frederickburg, Petersburg, Norfolk, the state probably has 12 Billion active foreclosures. Now the state owns homes, what are they going to do with them our govt is not in the bus. of owning homes!he state and how do they decide which one will be sacrificed and which one will be bought by the state?</p>

<p>The same is true for the banks, they own mtgs, but they don’t want to be in the real estate bus. By creating a moratorium on foreclosures will not help either. The banks will still have the note, taxes will have to go up to absorb costs, and banks will pass on the debt to new home owners in funding fees, thus, the only person really hurt is the one that didn’t cause the problem.</p>

<p>This is a free market society, let the pieces fall where they may, the market will correct itself and then it will go in an upturn. When the fed govt gets involved it only creates more problems. I am a Realtor with @30 mil in sales under my belt, I make my living in selling homes, if I thought the bail-out program was a good idea I would be on board. However, I do not know 1 realtor who believes this will help, it is the exact opposite, everyone believes it will kill real estate.</p>

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<p>With that data, suppose the avg mtg is 300K…unrealistic, but use it as a starting point. Virginia has 17.4 Billion, or over 4 times as much then what the fed is anteing up. </p>

<p>Again who gets saved, who is left at the side of the road?</p>

<p>Mid NJ, upper class town with a train station, short commute to NYC. Prices down an average of 10%.</p>

<p>We’ve been in our house almost 15 years, and the value has gone up roughly 75%. Very slow appreciation here, outside of waterfront. If I had to sell today, I would probably get 10% less than 2 years ago. But on the plus side, there are very few houses for sale in my neighborhood.</p>

<p>The foreclosures here have hit the poorest hard. The neighborhood behind us is primarily small single family homes and patio houses. Average price even now is only about 100K, they are going into foreclosure like gangbusters.</p>

<p>Sarasota, FL</p>

<p>Home value rocketed up, more than tripling to 4x value in less than 5 years. Prices have fallen back about 25%, where they have remained stable, as far as I can tell.</p>

<p>Speculators rushed in and bought everything in sight at the peak of the market. Sellers had buyers in bidding battles for average properties during the run up. Aggressive mortgages enticed those with bare abilities to pay to buy as well. Foreclosures now fairly common among those whose financial durability was inflated to qualify for huge mortgages.</p>

<p>Many of the poor live out from the coast (the most expensive areas) and are getting clobbered by high gas prices in their commutes to work.</p>

<p>In other words, if you road the bubble up, you get to ride it down. In areas where values weren’t inflated to begin with (Dallas), values are pretty stable.</p>

<p>We paid about $300,000 for our house in 1988. Prices in our subdivision had been reaching 500K and a couple even 600K a few years ago. Now the house next door is listed at 425K and there’s no way he’s selling for that. Others in the sub have sold in the 300K range in the last six months. Luckily we don’t want or need to go anywhere. This is in the same affluent county of MI as Kelsmom.</p>

<p>It’s been great for my kids though. Both bought way more house than they would have been able to afford a couple of years ago. With conventional 30 yr mortgages, they will be able to afford it until prices go back up.</p>

<p>In in a borough of NYC. We bought four years ago with 20% down. The next year we had over $100k in equity. Now we have zero.</p>