September 07, 2006

• One thing they're not making anymore of is land. And you have a roof over your head. As long as you aren't way upside down on your mortgage, you'll probably be ok. Dunno if any of these statements make you feel any better, but as far as devaluation goes, one word: Katrina.
• A History Of Home Values
• But it's not about Katrina. That ultimately gets handled administratively, which means it's lost in the shuffle, but can be blamed on the administration. The housing disaster is about the bankruptcy of the middle class, which means there's no more money to fund anything. Just my take.
• You're upset because of what some website said about your house? If it makes you feel any better, zillow says mine doesn't even exist. Literally. It says there are no homes at my address. News to me. A website coughing up some number doesn't mean anyone will actually pay it for your house. It could sell for more or for much less. We have some friends who sold their house in LA during the height of that market (maybe it's still rising, I dunno). They were shocked (shocked!) when they actually had trouble selling it. Welcome to reality. As for the market, if you're using your house as a place to live and not as an investment with some goofy mortgage, you should be fine. The gains and losses are all on paper. Personally, we've been in our (nonexistent) house since 1998, have a 30-year fixed, and plan to stay here for a long time. The market can take a hike.
• cynnbad, don't panic.
• What Chyren said.
• If you bought in the last couple years, intend to sell in the next couple, and took an adjustable-rate mortgage and/or a mortgage that negatively amortizes: Run. Worry. Panic. If none of the above things is true: what does it matter how much the market fluctuates under your feet? If you didn't buy at the ridiculously inflated prices of the last couple years, or have a fixed interest/fixed payment that you can afford throughout the duration of the mortgage, there's nothing to worry about. However, up to 80% (here in LA) of the houses sold in this boom time had adjustable rate/negatively amortized loans, and a very large portion of those people are absolutely, positively screwed. I seriously hope you didn't buy the last couple years with an adjustable rate whose payment you could just barely afford, hoping that you could roll your equity against the outstanding amount owed.
• I can't even get Zillow to tell me what this place, which it clearly sees, is worth. Is that a CA-only thing?
• I know better than to base my worth on a website. What is troubling to me is the fact that home "value," which used to be based on what a property is worth in a realistic "realtime" market rather than as a speculative "future" value, is now the norm. No, I am not in a panic. I am pissed as hell, if only I could figure out who to be mad at.
• I know better than to base my worth on a website. What is troubling to me is the fact that home "value," which used to be based on what a property is worth in a realistic "realtime" market rather than as a speculative "future" value, is now the norm. No, I am not in a panic. I am pissed as hell, if only I could figure out who to be mad at.
• Oops, sorry about the double post. Cheap rhetorical trick on my part, really.
• I think if you had to pick someone to be mad at, it would probably be all the people who took a beating in the dot com boom (and bust) and figured that they'd all get out of stocks and into real estate. Then add atop that the major interest rate drops post 9/11 based on the Fed's desire to keep the economy liquid, and you get an inflated real estate market.
• Maybe if you moved out it would be worth more?
• Stay cool, Cynn, it always comes back up. Take a longer view.
• These neighbourhood info sites are interesting. UpMyStreet says that my 'hood in Tooting has an Acorn Class 18 rating. Young, converted flats, multi-ethnic, low instance of satellite TV.
• I think that everyone needs to spend some time being distraught. It clears the veins.
• It's like the stock market. You haven't lost until you've sold. And when in doubt, blame quid. He thrives on your negative energy.
• Tempest in a teapot, really. The market's softened considerably and prices are definitely inflated (especially around here, where things got really silly), but those people running around screaming OH NOES ITS TEH DEPRESHUNZORZZ!!11!π! are just so many Chicken Littles. If you got an ARM loan, you're basically fucked and need to get out of it stat. Otherwise, mow your lawn, plant some flowers, do the dishes, fuck someone, bring that someone a clean towel, and sleep soundly in the knowledge that you're holding something very valuable.
• My House is Worthless I'll give you a dollar for it.
• MCT slipped in some pi[e]. Tease.
• I have *such* a crush on middleclasstool
• And now my day is officially made. 'Tis mutual, darlin'. ;)
• *blushes*
• cynnbad, I am not familiar with these sites, but how reliable are they, really? I looked at zillow and it said my house is worth $669k, which I would love to believe, but it makes NO sense. everyother house around mine is in the $450-525ish range and there is nothing about my house that would value it higher than the neighbors.... so I seriously question the accuracy of these numbers...
• Typically, the housing market is held in balance by two forces; the creation of new Hey Medusa's back! *pounce*
• "Well, Frankie Lee, he panicked, He dropped ev'rything and ran Until he came up to the spot Where Judas Priest did stand. "What kind of house is this," he said, "Where I have come to roam?" "It's not a house," said Judas Priest, "It's not a house . . . it's a home."
• hi petebestest!
• It's like a friggin singles bar in here
• *offers to buy Fes a drink*
• *wobbles onto a bar stool wearing too much makeup and a halter top*
• *quicky checks breath in cupped hand*
• Okay, I just checked my house on zillow.com, and it's full of shit. Not only is its value waaaaay off (it says $57/sq.ft., we bought in at about $75 and houses in the neighborhood are now selling for around $100), but it doesn't even have the calculated square footage right -- it's almost 100 sq.ft. short of the house's actual size.
• *mistakes cute bartender's attention for genuine affection once again*
• Hey, I'm not even on the maps! Still keeps the rain off, so not too worried. Cynnbad: All you say it true, but I'm sure Katrina folks just want their house back, and wouldn't give a rat's brass kidneys what either website said.
• mct, did zillow.com find out you moved into the neighborhood, perhaps? But I tend to think you're right about the assessment of the site's actual worth. For example, I've apparently made a cool $35K since the purchase a year ago. Um, no way. *tips way too much on a Corona*
• cynnbad: at least zillow's reported valuations are just general ideas, not final judgements. Their valuation of where I live was well under 200K a year ago, but it was based on assessment value since there hadn't been many sales in the last bunch of years. (California Proposition 13, way back when, mandated that assessed values wouldn't go up until a property was sold.) The best way to check your property value is to get in touch with a real estate agent and ask them to let you know what "comparable" prices are. And, checking on a daily basis will only drive you nuts. It's all bad statistics, and dependent on the state of the sold property, not on what you have. Relax.
• If you're really worried, get hold of an housing agent and get him/her to assess your property. They usually do it for free (IIRC), in the hope that you'll take them on when you do decide to sell. Of course, you might risk getting bugged from time to time by the agent as they check on you, but it's probably a small price to pay if you want some peace of mind.
• Thanks, guys for great advice. Sorry for the meltdown. Funny, I went to unload on the one place I felt safest. My apologies, and thanks for being the refreshing yet kind kick in the butt I needed.
• I feel your pain, cynn. I bought my house in NorCal a little over a year ago with a 5/25 loan and now maybe taking a job in the Puget Sound area. I'm positively freakin' out over the thought of selling my house, plus the fact it seems 1/2 my neighborhood has For Sale signs on it...damn you housing bubble!!!
• Don't worry - a lot of these values are waaaaaay off. My mother and sister are both realtors in northern NJ, and are thus well acquainted with the housing values in that area. They both assure me that the valuations on zillow are only vaguely in the ballpark of reality. What's important to remember is that the value of a house is derived from many subjective qualities, as well as quantifiable things like number of bedrooms, square feet, lot size, etc. When people buy a house, they're often just as concerned with layout, what kind of light the house gets, how recently the kitchen was updated, how is the house decorated, etc. Sometimes, things as simple as a fresh coat of paint and some new pulls on the cabinet doors can increase the value of a house by thousands of dollars. No website can ever accurately determine the value of your house. Besides, ultimately the "value" of your house is what someone will pay for it. You can't quantify what some random person who walks into your house decides they want to pay for it.
• my sister is a realtor in northern NJ. jaypro22, are we the same person???
• Whiskey Tango Foxtrot Medusa has been a sockpuppet this entire time??????
• *Medusarita spit-take*
• *Summons busboy to Pete's table*
• no, jaypro22 is my sockpuppet, duh!! YOU ARE ALL MY PUPPETS, ALL OF YOU!! I PULL THE STRINGS AND YOU DANCE TO MY TUNE!! DANCE, LITTLE PUPPETS, DANCE!
• dang, I forgot to cue the maniacal laughter!
• I'm dancing but i don't know why
• yay, zillow says i am underpaying for my house i am about to close on. *pats self on back*
• *waits for burp*
• This just in: The Nightmare Mortgage. And you can check to see if you're nightmare-prone with the Map of Misery.
• Something's wrong with California.
• What was your first clue, peteykins?
• Something is always wrong with Cali. Something I have always been curious about: what about the next huge techtonic orgasm that plays along established fault lines and dumps the coast into the sea? Where's the beach?
• Downtown Lexluthorville
• Don't get it, but I'll buy it. And that's how stupid I am.
• Don't get it, but I'll buy it. And that's how stupid I am.
• Something's wrong with California. ROTFL!
• House prices in the Seattle area are fooked and way too high. I grilled my real estate homey about it, but he just said it was the evidence of a booming economy. Oh great. The problem is, even a house worth a half million (which is just above the median price) is only about 1500 square feet and is at least ten or more years old. So for cynn, just wait it out. The economy and prices *will* rebound. Paint a little. Change that old faucet for something new and cool. Enjoy. My apartment faces a busy road and the facing neighbor is a cheap tramp with new boyfriends every quarter, and two very noisy kids.
• ball point head, you hurt me. I live in an 85-year old, 980 square foot Craftsman in a "marginal" neighborhood in West Oakland. I think my house may be approaching the half-mil mark (it was $305 when we bought 3.5 years ago)... however, according to some handy-dandy global warming sea-level chart that I saw somewhere, even the worst case scenario will leave me a few blocks walk to the beach...
• what about the next huge techtonic orgasm that plays along established fault lines and dumps the coast into the sea? The morlocks would never let such a thing happen.
• 980 square foot I think my house may be approaching the half-mil mark *is glad to live in flyover America*
• My apartment faces a busy road ... The calculation that folks aren't making but should is to compare the cost of renting vs the cost of that $500K house. Here locally, the renter wins hands down, which suggests that housing prices are priced irrationally.
• Rent prices however are on an upward trend, so its going to normalize from both directions. My goal in buying my condominium is to soon be paying less on monthly interest than I would have to pay in rent on an equivalent apartment, and that happens in about 6 months of ownership where I am. On the other hand, you have to factor in whatever depreciation we go through; if I have to move soon, it may have been cheaper to rent. (Las Vegas, 1100 sq. ft. apartments are going for $850 a mo. and rising // condominiums in the high 100s/low 200s and falling)
• If rent prices are MUCH lower than interest on the mortgage, then its very nice of the mortgage holders to subsidize the renters. That won't last.
• Wow, the prices sound good in LVegas. Here in Ottawa, you won't get an 1100 sq ft apt for less than $1300. Condos downtown, start at around $220K.
• Medusa, here in much more sane Sacto(tongue in cheek) you could live in my palatial 1108sqft mansion and only pay 400k.
• grover, isn't it sick? the condos in Emeryville start at over 500k. FOR A CONDO!!! but hey, you sactomerians have such great weather ;)
• 'Round here, anything over $100 per square foot is considered rich folks territory.
• In the short run, the devaluation is mostly affecting a few bubble markets--are you in one of those? If so, take the long term look, that any investment is going to rise and fall, but over a few decades it is hard not to make money on real estate.