Homeowner Denial: My Home Is Gaining Value

[hausdok]

An interesting article at MSN.com finds that a large percentage of homeowners is still not willing to face reality and is pricing homes beyond what they can expect to sell them for in this market.

To read more, click here.

[kurt]

There are interesting dynamics in play. Depending on a wide array of variables, some folks homes are worth more than before, but the variables have absolutely nothing to do with all the stupid crap realtors talk about.

Value equates to good paying job availability in the "neighborhood". If there are no jobs to support mortgage payments, values cannot rise. This is a vast realignment of value systems and realities, something the dipsquat realtor approach doesn't recognize, because they can't.

Several studies have shown that we are on track to being several billions of square feet short of what all population projections indicate we are going to need in < 10 years.

In short, housing values will decline in areas without jobs, and rise in areas with jobs simply because there has to be housing. It will take a few years, but some areas will again see appreciating housing value.

[SonOfSwamp]

Here in my little old-house enclave, a RE lady gussied up a 90+ year-old house, and put it on the market at $1.3M. Now, about nine months later, she's reduced the house price to $1,249,900.

Zillow's got it at $500,500.

It's funny and painful to watch.

WJ

[kurt]

I am enjoying watching some of these dirtbags eat it right now, especially the ones that continue to flog the "luxury condo" market.

Folks with reasonable expectations will have those expectations met. Folks that were living in LaLaLand in the first place are having a hard time of it in the second place.

The new/younger generation is going to affect this stuff in ways most realtors don't even begin to recognize, let alone understand. They don't necessarily want what all the dipsquat baby boomers thought was so wonderful.

My prediction is for there to be a lot of really big stupid houses on the market that don't sell for anywhere near what folks think they're worth.

[SonOfSwamp]

I'll consider sanity to be making a comeback when people stop buying enourmous slabs of shiny rock for their countertops, and go back to perfectly good (and cheap) Formica.

Another good sign will be when the woman with the enormous 12mpg Mercedes SUV -- the one who picks up her kid every day at the fancy private school -- peels off her "How many lives per gallon" bumpersticker. (I am not making this up.)

WJ

[Brian G]

Realtors and slimy appraisers have worked hand-in-glove around here to foster the totally false notion that property always appreciates at fairly brisk pace; it doesn't. This ain't Dallas, and even if it were, this ain't boom-time we're looking at. Reality is making a crash landing, and a lot of poor fools will be mangled in the wreckage. [:-splat]

originally posted by SonofSwamp

I'll consider sanity to be making a comeback when people stop buying enourmous slabs of shiny rock for their countertops, and go back to perfectly good (and cheap) Formica.

Amen to that too. Will this recession/depression/whatever bring back the sensible idea of "plenty good enough" about such things, or will many continue to mindlessly overreach as soon as it passes?

Brian G.

Realism on the Rebound [8]

[davidlord]

There is a particular neighborhood over on the island that shot up during the height of the market. I'm in there almost weekly inspecting short sales and foreclosures. The last one the original purchaser paid $570,000.00. The nice young couple I inspected it for paid 280,000.00.

[kurt]

There's a good graphic in the NYTimes of the locations of the big fallouts.

Southern Florida and Southern Cal are bottom dead center.

[Jack Ahern]

Recently moved out of Needham,Ma. In my old neighborhood 4 houses sold during the summer.

One at list price---2 days on market.

Mine near list price---2 weeks on market.

Bigger house! sold $150,000 off list price---6 months on market.

Another big house sold $160,000 off list price---8 months on

market

Some real pain. There was a time when auctions were conducted at the bottom of driveways after an open house. Not now!![:-banghea