Home Prices what the hell is going on?

tom3

Veteran Member
Aug 1, 1999
14,935
ohio
And put this in the garage:

amphibi race car.jpg
 

Zstar

Veteran Member
Mar 23, 2014
3,128
Ocala, Florida
If we sold our house, we could actually afford this island home in Ontario,


View attachment 148137

Not too far north of where we currently live. I kind of always wanted my own island!
I could live there quite happily.
 

8pack

Veteran Member
Lifetime Gold Member
Aug 29, 2007
3,048
Western, MA
Where I am you can’t find anything under 1,000,000 and that’s 45+ min east and 45+ min west of me. And Toronto, forget it. A shack will cost you $1.5 million. And you thought Vancouver was high.

The Millennials and up may never be able to afford a home unless they get in now since the bidding wars have stopped and prices and come down a bit but the interest rates have gone up. So either way your screwed.

My 1st house in ‘83 cost I think $83,000 and interest rates were 14.75 I think. I paid it off in 5 yrs. New houses in 1973 for an example a bungalow cost you $27,000.

My bungalow with 2600 sq ft finished basement, main floor all hardwood floors, huge 3 car garage and close to a 1 acre lot in 2010 cost us $600,000 and change, and today it’s worth $2.5 million.
Just to keep things in perspective….

$83k in 1983 is about $275k in todays dollars. I am not saying housing prices aren’t crazy when the average mortgage is over $400k but time value of money is an important thing to keep in mind when making comparisons.
 

tom3

Veteran Member
Aug 1, 1999
14,935
ohio
Got everything there. Open concept, huge bathrooms, privacy, low upkeep, great for outdoor entertaining.
 

danbrennan

Veteran Member
Lifetime Gold Member
Mar 13, 1999
4,964
Brighton, MI
For what it's worth. Not quite sure how to interpret this. I think they're still going up, just not as fast.


"U.S. home prices cooled in July at the fastest rate in the history of the S&P CoreLogic Case-Shiller Index, according to a report released Tuesday."

"Home prices in July were still higher than they were a year ago, but cooled significantly from June gains. Prices nationally rose 15.8% over July 2021, well below the 18.1% increase in the previous month, according to the report."

"The 10-City composite, which tracks prices in major metropolitan areas such as New York and Boston, climbed 14.9% year over year, down from 17.4% in June. The 20-City composite, which adds regions such as the Seattle metro area and greater Detroit, gained 16.1%, down from 18.7% in the previous month. July's year-over-year gains were lower compared with June in each of the cities covered by the index."
 

76z28

Veteran Member
Jun 29, 2009
2,693
bakersfield
For what it's worth. Not quite sure how to interpret this. I think they're still going up, just not as fast.


"U.S. home prices cooled in July at the fastest rate in the history of the S&P CoreLogic Case-Shiller Index, according to a report released Tuesday."

"Home prices in July were still higher than they were a year ago, but cooled significantly from June gains. Prices nationally rose 15.8% over July 2021, well below the 18.1% increase in the previous month, according to the report."

"The 10-City composite, which tracks prices in major metropolitan areas such as New York and Boston, climbed 14.9% year over year, down from 17.4% in June. The 20-City composite, which adds regions such as the Seattle metro area and greater Detroit, gained 16.1%, down from 18.7% in the previous month. July's year-over-year gains were lower compared with June in each of the cities covered by the index."
I read something similar last night or this morning.
My house on zillow and redfin has been holding steady so far. With interest rates at 7%, for what I paid for my house and my current interest rate... it would be 600 more a month just in interest!

I don't see how prices aren't falling like a sack of potatoes... could be people trying to "get in before it gets worse"

If it maintains this.. I'm happy. If prices increase in the next wave then I could be set to sell it and buy a house cash where I realllllly want to live!
 

Gary S

Administrator
Lifetime Gold Member
Apr 14, 1999
24,663
Bismarck, North Dakota
The economy is like a runaway train. You can't stop it on a dime. The past couple of years set us up for a bad economy by lowering interest rates to almost nothing. People thought they could get something free. Free always costs later, and "later" has arrived where everyone pays from here on.

I see house prices sliding down a bit, and that is good news. Higher interest rates should help lower house prices.
If the Fed stays the course and reverses their mistakes of the past few years and raises the interest to a sensible level and sticks with it, the "runaway train" can be slowed down and stopped. That means that borrowers need to start paying their fair share for money they borrow, and investers need to see higher interest rates paid to them for supplying the money.

If you have money invested in the Stock Market right now, do nothing. The Market should continue to slide a bit more and slowly recover. If it recovers too fast, the economy crashes even deeper into the hole the Fed and Congress and President have created. We need a slow turnaround. The other option is a bad crash.

If you want a good economy, expect to pay your fair share for borrowed money and push for the Government to stop giving away money they don't have. Stop stimulus money and other giveaway programs like Student loan forgiveness.

Everybody needs to learn the difference between "need" and "want". Stop spending money you don't have and thinking you can live on credit.
 

72BIGBLOCK

Veteran Member
Feb 2, 2008
2,941
SF
I smell foreclosures in the future! Who can afford the payments!!!
Everyone who’s buying for the most part can afford it or has equity. Market won’t crash might have a soft landing but no more 2006-2010. Plus rent in some cases ain’t cheap like it used to.
 




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