Housing was, and still is, in most of this country grotesquely overpriced, driven up by way way to loose lending... now that the contraction is happening, those artificial prices are evaporating.
Posted on 08/15/2007 7:29:38 AM PDT by Hydroshock
NEW YORK (CNNMoney.com) -- The price of a typical home in the United States continues to drop but at a slower pace, according to a new survey.
During the second quarter, the median single-family home price was $223,800, 1.5 percent less than a year ago, according to the National Association of Realtors (NAR). It was the fourth consecutive quarter of price declines. Condo prices rose 1 percent to a median of $226,800.
Despite the continued drop, NAR's senior economist, Lawrence Yun called the results, "encouraging."
"Although home prices are relatively flat, more metro areas are showing price gains with general improvement since bottoming-out in the fourth quarter of 2006," he said. "Recent mortgage disruptions will hold back sales temporarily, but the fundamental momentum clearly suggests stabilizing price trends in many local markets."
Looking ahead, Yun's forecast is one of the most optimistic among economists. He predicts home prices will turn slightly positive again by spring of 2008 and rise about 2 percent that year. He said prices will pick up more in 2009.
(Excerpt) Read more at money.cnn.com ...
Let me know when the headline is:
“Property taxes drop for fourth straight quarter”
or
“Homeowners insurance rates drop for fourth straight quarter”
......
bttt
In related news a new species of avian hogs have been discovered.
“Buy land, they’re not making it anymore.” ~ Mark Twain
“Although home prices are relatively flat, more metro areas are showing price gains with general improvement since bottoming-out in the fourth quarter of 2006,” he said. “Recent mortgage disruptions will hold back sales temporarily, but the fundamental momentum clearly suggests stabilizing price trends in many local markets.”
The meat of the article. Undeserving of the headline, I guess.
This is the NAR stating this. That is like listning to the FOrd Motor company on the quality of GM cars. I take whatever their cheerleaders say about the future as suspect they have been wrong to many time in the past.
The time has long passed when cops can get automatic pay increases every year. This will help allow for taxes to drop. I do not give a rats ass about these Click it or ticket types.
LOL...
It’s not easy to write apocalyptic articles about this sector every day when the main trend is to remain about where we were last week and the week before. Where are the investments with 20-50% annual increases?
Thanks for sharing this good news with us:
“Although home prices are relatively flat, more metro areas are showing price gains with general improvement since bottoming-out in the fourth quarter of 2006,”
So here:
http://realtytimes.com/rtmcrcond/Texas~Houston~megjimzoller
is some good news for you:
“...Houston housing has avoided the big declines which other cities have experienced. Although the number of single family homes [sales] declined in June for the second consecutive month, prices increased. If you break it down, most of the decrease in number of homes sold was in the $80,000 and $140,000 price range and probably due to the sub prime lending restrictions. The median price which is a price where half the homes sold for more and half sold for less was $160,000, a 2.6% increase over June 2006 and an all-time Houston record. The average sales price was $220,217. This is a 3.7 % increase over last year’s value, and a Houston record high.
In closing, the Houston housing market is strong in pricing...foreclosures and the sub prime lending problems appear to have affected Houston less than the rest of the country...Houston has avoided the national “bubble” effect and remains one of the more affordable national markets.”
The local county commission is whining about a BUDGET SHORTFALL. They were quick to increase spending when property values were going up, but now that they have fallen (slightly) they want to raise the millage rates. I bought my home, single story brick ranch style, for $69k in July of ‘02. The tax appraisal was for $50k. NOW my tax appraisal is for $125k, and accordingly, my taxes are more than doubled. ADD this to the TRIPLING of our homeowners insurance from $550 per year to nearly $2000 per year and you can see why Florida homeowners are fit to be tied! We don’t live near the water, either........
Then move to the greater Seattle/Tacoma area.....where you can have the privilege of buying a home for, oh, a minimum of about 200,000......but our insurance rates aren’t quite as high (no hurricanes here, usually, although last winter was close).....but, the taxes on a 1700 sf condo are about $2700 a year.....a 3100 sf house....about $8000/yr.
Just curious, what city is this in Florida? And is there some process in place when the value of the homes drop, you get property tax relief?
You’ll just have to work harder/longer for the government, that’s all.........
And is there some process in place when the value of the homes drop, you get property tax relief?
Yes, it's called "elections"..........
And yes, I think Washington does have one of the highest state tax burdens in the US...
Housing was, and still is, in most of this country grotesquely overpriced, driven up by way way to loose lending... now that the contraction is happening, those artificial prices are evaporating.
Excerpt:
* * * Linda Setterlund, 61, owns a pristine three-bedroom, two-bath, Cape Coral house that has been on the market for about a year.At a reduced asking price of $183,900, she said the house had been priced to match what she and her husband owed on it, after moving in three years ago with a 30-year fixed mortgage.
Setterlund said she and her husband had decided to leave the area to join family in Tennessee, but their decision was also prompted by growing real estate taxes and skyrocketing homeowner insurance rates after an active 2005 hurricane season.
"They're saying that we're heading for a recession but I think we're past that," said Setterlund, referring to the housing glut and its effect across much of south Florida. "I think we're headed more into a depression."
I'm already in a depression........and it ain't a Tropical Depression!...................
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