Why is real-estate so unbelievably ridiculously priced?
Answers:
I know, I feel the same way, it sucks. Friends and I don't even feel that we'll ever be able to afford our own homes... : (
I mean...the houses in my parents neighborhood have gained about $200,000 in the thirty years my parents have been here. And these are just small-ish houses built around 1950...a CAR can now cost what they got this house for! How could I afford that, let alone the kind of home I'd like to have??? Scary.
Other answers:
It is higher than previous years and has been going up. It looks like we are in a cooling off period though.
Depending on where you live, you will see certain effects on this.
It's called inflation. The house I paid $200k for 12 years ago is now worth about $500k.
It is higher than previous years and has been going up. It looks like we are in a cooling off period though.
Depending on where you live, you will see certain effects on this.
It's called inflation. The house I paid $200k for 12 years ago is now worth about $500k.
It has been a great time for investors in real estate but I think this market is self-correcting and will follow the supply and demand laws of economics. If prices were to continue to climb as they have in some areas, eventually only the very rich could afford houses and demand would drop off to almost nothing. Since that would destroy businesses in the home building industry and leave many owners with houses they can't sell, prices will have to remain in a range where most people can buy. Even so, those of us who don't earn so much will have to look a little harder and a little farther to find one that's affordable.
Don't expect to get your dream home on the first try. Get something small and work your way up.
The main reason real estate prices go up is the fact that people are willing to pay more and more each year for the same properties. I spent some time and a small amount of money on research and found a 3/4 acre lot in town for $8000 in forclosure. The lot had a 14x80 mobile home in fair shape with a seperate workshop and storage shed. Another $7000 in remodel expense and now the same deal is worth $48,000. Talk to the banks and real estate people. You may even be able to 'work' off some or all of the down payment by doing repairs and improvement. Keep at it and you are bound to find something just right for you if you just have enough patience.
WHEN PEOPLE CONTINUE TO PAY THESE PRICES AND ONLY THE REALTORS WILL GET RICH; QUIT MOVING; ARE YOU LISTENING CALIFORNIANS....,
Keep in mind...........
Times and markets are changing!
In California with average homes selling well over $500,000, a 20% decline is $100,000! In any market 'timing is everything'! So, could you afford a loss of 25% of your investment all because of poor timing???
This last up cycle was 10 years in many parts of the country. The downcycle now started in CA, Wash DC, NYC, Vegas and other hot areas of the past are all soft and getting softer.
From 1990 to 1996, the average home in San Diego lost 20% of its' value! The cycle we are now enterng looks like it could well exceed that on the downside!
With all the 100% financing, interest only loans, EZ qualifing etc...even a slight decline will cause many to be unable to sell for the amount due on their loans!
For some great 'insider' articles on the San Diego real estate market, which I believe will apply to any of the hot real estate markets of the past five years.....visit:
Times and markets are changing!
In California with average homes selling well over $500,000, a 20% decline is $100,000! In any market 'timing is everything'! So, could you afford a loss of 25% of your investment all because of poor timing???
This last up cycle was 10 years in many parts of the country. The downcycle now started in CA, Wash DC, NYC, Vegas and other hot areas of the past are all soft and getting softer.
From 1990 to 1996, the average home in San Diego lost 20% of its' value! The cycle we are now enterng looks like it could well exceed that on the downside!
With all the 100% financing, interest only loans, EZ qualifing etc...even a slight decline will cause many to be unable to sell for the amount due on their loans!
For some great 'insider' articles on the San Diego real estate market, which I believe will apply to any of the hot real estate markets of the past five years.....visit:
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