Original Message: ----------------- From: David Hobby [email protected] Date: Mon, 23 Feb 2009 00:08:53 -0500 To: [email protected] Subject: Re: On the Housing Market
Rceeberger wrote: > http://www.businessinsider.com/the-housing-chart-thats-worth-1000-words-2009 -2 > > > Housing prices may still have a ways to fall. Rob-- >Wow. That's certainly what the chart shows. >Is it really that clear? If it were, you'd >think that enough investors would have bet >against the housing bubble that it never >would have happened. The bubble was that clear, particularly where housing prices skyrocketed up on the coasts, in NV, etc. There is no way that a doubling in price is anything but a bubble. But, the house I sold, I had to put in about $10k of upgrades and sold at about 10k over what I bought (in inflation ajdusted dollars), so the bubble isn't everywhere. But, we're now starting to drop in value as the market dries up. Houses are now much bigger than they were in the '50s, GDP per capita is much higher, etc. So, a rise in inflation adjusted home prices is not inherently inappropriate: one would not expect to pay the same price for a 3000 sq. ft. house as for a 1500 sq. ft. house, especially if the 3000 sq. ft. house is much nicer. The rent vs. own question is still important. Right now, we're living in a 1350 sq. ft. apartment that costs more than our mortgage payments were on our 3000 sq. ft. house. Working it all out, if it wasn't for the value of getting our appreciation while we did and the relative ease of leaving an apartment when Teri got called, it would have been cheaper to stay in the big house, maintaince costs and all. Dan M. So, home prices could now be 10% overvalued. -------------------------------------------------------------------- mail2web - Check your email from the web at http://link.mail2web.com/mail2web _______________________________________________ http://mccmedia.com/mailman/listinfo/brin-l_mccmedia.com
