Some shitty housing stats in my area.

Miscellaneous and Personal Stuff I Must Share
1

According to this article, most people who bought houses in 2005 have negative equity.

Here’s what they say about the town directly north of me:

77.3 percent!!! PSL was marketed as one of the fastest growing cities in the nation. :rolleyes:

How’s your area doing?

2

I’m over on the gulf coast and we have you beat on the bad housing situation. For several months Lee County led the nation in foreclosures. And the fast growth is what put us (and you) in this bad situation.

3

I know that it sounds bad, but the valuation is a fluid thing, as shown be recent events. Although the homes may not quickly regain all their value, things will improve, I’m sure. And the negative equity only matters when you’re trying to sell or borrow against those assets. If you’re just living in your house, chances are the value will have improved in the future. Of course, if you’re financing your life on a HELOC, you’re SOL.

I look at it like my 401K. I’m not going to touch that money for 20 years. A lot will happen in 20 years, and this blip will barely be remembered. My house is affordable and provides me and my animals shelter. I’d be paying more if I was renting an apartment and paying horse board, and it’ll be paid off in 10 years. So I’m ahead of the game.

StG

4

Some of my coworkers bought houses or condos just as the market started it’s collapse. This has not bothered them financially. Sure, they wish now that they had waited a few months and gotten even better deals. But they sure aren’t hurting over it. I keep telling myself that this all-over drop in prices is good for me since it means that my mutual fund is buying stocks at a low price. It’s true, but I still get itchy worrying about it.

5

But…my question is, if you bought an overly inflated home in the last year or two, and now it drops down to it’s true uninflated value, will it go back up to that overly inflated amount in a reasonable time? My guess is that you’d have to stay in the home for 30 years to break even. I’m talking in Florida or California where they were getting $500K for a house that’s worth less than half that.

What’s the skinny on this?

6

I bought a condo back in 2002 and I need to sell it to make my new town home livable. When I contacted a realtor yesterday I was told that most people in Denver who bought after 2000 have less then 6% equity in their homes so sale are a net loss after commission and fees.