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Housing boom could be history soon, experts say
Signonsandiego.com ^ | 12/08/2004 | David Washburn

Posted on 12/10/2004 9:05:07 PM PST by nanak

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I can see a clear parallel between 20ies and 90ies.
1 posted on 12/10/2004 9:05:07 PM PST by nanak
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To: nanak
I don't think we necessarily have to endure a depression or recession. But it is clear that home prices can't just keep going up and up while wages remain relatively stagnant. I feel really bad for the first-time homebuyer today. When I bought my first house in 1992, I paid $95,000 for it. First-time homebuyers today aren't going to find anything under $200,000 in my area.

In fact, I'm in the ridiculous position of not even being able to afford to buy my own house. I paid $262,000 for my present house in 1998 and it is assessed at $450,000 just six years later. This rate of appreciation just isn't sustainable.

2 posted on 12/10/2004 9:14:26 PM PST by SamAdams76 (No intolerant liberal is going to take my Christmas away from me)
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To: nanak

It's already happening. There are more million dollar homes around here then there are multi-millionaires to buy them. Folks are building these huge homes with little down and low adjustable rates, but a half-point upswing on a very expensive home can make you homeless overnight.


3 posted on 12/10/2004 9:17:12 PM PST by quantim (Victory is not relative, it is absolute.)
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To: nanak

house prices are nutz in alot of states.


4 posted on 12/10/2004 9:17:33 PM PST by atari
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To: SamAdams76
In fact, I'm in the ridiculous position of not even being able to afford to buy my own house.

You're not alone in that.

5 posted on 12/10/2004 9:17:50 PM PST by skip_intro
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To: nanak

Five years into a 30 year fixed at 7.125%, refinanced to 15 years at 4.5%, with additional monthly principal. Looking forward to being mortgage free in 10 years.


6 posted on 12/10/2004 9:17:54 PM PST by NautiNurse
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To: nanak
I agree that prices in SoCal can't continue to increase at the recent rate.

One thing I don't see discussed in these articles is demand. Demand continues to be high in SoCal. Driven by population and the old reasons, weather, location etc. Demand my reduce the increase and not result in too drastic of a drop in values.

7 posted on 12/10/2004 9:20:11 PM PST by verifythentrust
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To: nanak
I agree that prices in SoCal can't continue to increase at the recent rate.

One thing I don't see discussed in these articles is demand. Demand continues to be high in SoCal. Driven by population and the old reasons, weather, location etc. Demand my reduce the increase and not result in too drastic of a drop in values.

8 posted on 12/10/2004 9:21:24 PM PST by verifythentrust
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To: nanak
"Six months ago, if you had a house at $900,000, you would have gotten it," Teak said. "Now you're lucky to get $850,000."

Yeah, I hate it too when my little 3 bedroom townhouse rental property that I bought for $90,000 ten years ago drops to $850,000. What a pisser...

The market will do what it always does. Dip a little, stay flat, then take off in 10 to 20 years. Over, and over, and over, it does this...

9 posted on 12/10/2004 9:25:14 PM PST by 69ConvertibleFirebird (Never argue with an idiot. They drag you down to their level, then beat you with experience.)
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To: NautiNurse

Cute, then you'll only have to pay ever-increasing property taxes to keep from being put in the nursing home where you once might have worked.


10 posted on 12/10/2004 9:28:44 PM PST by Old Professer (The accidental trumps the purposeful in every endeavor attended by the incompetent.)
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To: verifythentrust
Demand continues to be high

Bingo! The Washington D.C. area has 3% unemployment and is projected to be SHORT 220,000 houses by the year 2020. Prices won't be dropping. If telecommuting takes off and everyone can live wherever they want to do their job then big city housing (read TERRIBLE traffic) is in trouble.

11 posted on 12/10/2004 9:29:38 PM PST by 69ConvertibleFirebird (Never argue with an idiot. They drag you down to their level, then beat you with experience.)
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To: Old Professer
Gee, OP...nobody could be as smart and sassy (crusty) as you.

Never worked in a nursing home--are you disappointed?
Here in FL, we have a cap on tax increases--max 3% annually. Property value has tripled in the past 5 years--waterfront, no bridges to the GOM. Have already done the math.

12 posted on 12/10/2004 9:35:39 PM PST by NautiNurse
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To: nanak; Howlin; marty60

This does not apply to the housing boom that has happened since Bush came into Office in 2000. That housing boom was lower and middle income class families buying homes as a result of his tax breaks. This "study" or opinion of "economists" is just that, and is not the result of anyone being queried in the housing industry.

More lies from the liberal media; anything to try to tear down what President Bush has accomplished. If the people on here agree with them (liberals) so readily, then why the hell did you pretend to vote for him in the first place??


13 posted on 12/10/2004 9:39:55 PM PST by RedBloodedAmerican
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To: Old Professer

Yea, it's all Bush's fault, isn't it?


14 posted on 12/10/2004 9:40:52 PM PST by RedBloodedAmerican
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To: nanak

Median price of $489,000. That means a family has to make close to $125,000 a year (if I did my math correctly) to be able to realistically afford that house. How many families in California make that much?

BTW, what's property tax in California? Does prop 13 protect homeowners from ever rising property tax?


15 posted on 12/10/2004 9:41:52 PM PST by Fishing-guy
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To: nanak

What goes up must come down.

I kinda feel sorry for those folks in extremely overinflated areas, places like Seattle, Chicago, New York and San Fran.

Maybe I should just say in the blue counties.


16 posted on 12/10/2004 9:43:16 PM PST by proudpapa (of three.)
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To: Fishing-guy

prop 13 protects those who don't move. If you stay the assessment doesn't increase. If you move it's based upon value of home you purchased. There is a one time exemption for seniors who move to an equal value or les property.


17 posted on 12/10/2004 9:45:03 PM PST by verifythentrust
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To: NautiNurse

Just funnin' ya; did the water ever recede?


18 posted on 12/10/2004 9:45:26 PM PST by Old Professer (The accidental trumps the purposeful in every endeavor attended by the incompetent.)
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To: RedBloodedAmerican

Give it time, it probably will be seen that way.


19 posted on 12/10/2004 9:46:21 PM PST by Old Professer (The accidental trumps the purposeful in every endeavor attended by the incompetent.)
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To: Old Professer
Honey, I'm on high ground. The water across the canal did recede, and the neighbors are fine.

I figure my property value can only increase after surviving Hurricane Season 2004 relatively unscathed.

20 posted on 12/10/2004 9:47:58 PM PST by NautiNurse
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