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cyberdude557

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: May 11, 2009, 03:07:56 AM

With the housing market mired in a historic slump, a survey from real estate Web site Zillow.com shows that nearly 22 percent of American homeowners owe more on their mortgages than their homes are worth.

That 21.8 percent of U.S. homes equate to more than 20 million residences, according to Zillow. Those households fell into negative equity after prices dropped more than 14 percent nationally in the 12 months ended March 31.

Zillow.com based the numbers on its home price estimates, which it obtains by collecting sales records and applying price trends to other homes in the community.

http://www.bizjournals.com/pacific/othercities/phoenix/stories/2009/05/04/daily27.html?s=smc:3

Many expect this to continue to worsen until real estate values become stable again. Some areas of the country have already lost more than 30% of value.

If this country goes into a depression and these values continue to fall, we are facing a VERY serious problem.

original

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#1 : May 11, 2009, 08:17:19 AM

From my experience I can tell you that some homes have lost more then 30% value.  My home was worth $300,000 in 2006 and is now worth $125,000 according to similar sales in the same neighborhood.  That is a loss of over 50%.

dalbuc

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#2 : May 11, 2009, 08:31:38 AM

I just got my tax assessment and my house went down by 1.5%. Dallas just hasn't been hit by the housing balloon, our prices never went nuts here.

All posts are opinions in case you are too stupid to figure that out on your own without me saying it over and over.

cyberdude557

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#3 : May 11, 2009, 09:50:15 AM

On the other hand, if the economy improves and banks begin to losen the purse-strings somewhat, prices will rebound some. I think a lot of places are starting to get undervalued right now as some are going lower than the 2002 prices which was before the big boom.

Demand really isnt the problem. It is foreclosures and short-sales, plus hesitation among buyers, combined with nervous lenders that are putting downward pressure on home values. Once those main problems are eliminated, values should begin to climb although much slower this time.

JavaBuc

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#4 : May 11, 2009, 10:17:28 AM

I just got my tax assessment and my house went down by 1.5%. Dallas just hasn't been hit by the housing balloon, our prices never went nuts here.

Houston is similar.  Houses were and still are cheap.   I think because nobody wants to live there.

bradentonian

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#5 : May 11, 2009, 01:02:58 PM

My house has actually increased in value (knock on wood).  Dal is right that the DFW market is a lot more stable.

Housing is partly a supply and demand issue.  The gov't is trying to increase demand with low rates and first-time buyer incentives, but I don't think it's enough.
As for supply, I'm surprised they aren't trying to stall new home building (although all the developer bankruptcies are helping there).


Morgan

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#6 : May 11, 2009, 11:17:49 PM

From my experience I can tell you that some homes have lost more then 30% value. My home was worth $300,000 in 2006 and is now worth $125,000 according to similar sales in the same neighborhood. That is a loss of over 50%.

I saw stucoo cookie cutter homes in 2006 selling for over $200k. They were worth no where near that amount -everyone knew it.

cyberdude557

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#7 : May 11, 2009, 11:58:35 PM

From my experience I can tell you that some homes have lost more then 30% value. My home was worth $300,000 in 2006 and is now worth $125,000 according to similar sales in the same neighborhood. That is a loss of over 50%.

I saw stucoo cookie cutter homes in 2006 selling for over $200k. They were worth no where near that amount -everyone knew it.

Well what the house is made of doesn't impact price all that much. It is the value of the land the house is built on that changes the value more than the house by itself. A 3 bed, 2 bath cement block and stucco house alone costs $100,000 maybe... that price doesnt change a whole lot. But you got to pay for the dirt under and around the house as well. Then you have to pay insurance, taxes, interest. It doesn't take long to get up to a $200,000 mortgage.

But get used to it because that's pretty much the only way they make homes these days. Especially in Florida. Cement block and stucco exterior, wood frame, and drywall inside. Why? Termites and hurricanes. If you want to get more creative, be prepared to overpay the builder. That's when they will rape you with all sorts of extra costs and fees.

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#8 : May 12, 2009, 09:15:18 AM

It was cheaper to build my custom home then it was to buy an existing home at the time.  Were not going anywhere, we can't,  but it does stink to see the lower class of neighbors moving into the foreclosed and/or short sale homes.  My neighborhood is turning into the neighborhood we were trying to escape.  Best laid plans...

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#9 : May 12, 2009, 10:27:27 AM

Being upside down in your mortgage is only an issue if you want to sell it or need to refinance.

House prices are particularly down now because a lot of the pick up in recent sales are distressed or foreclosed. The bank simply wants to get it off their hands so it doesn't go for true market value. That then effects the median price in your area because that is what Realtors base the asking price on. A vicious circle but once the distressed sales are out of the way things should balance out a bit. I don't think they will bounce back to what they were but if the supply is anything like reasonable they will pick up.

Morgan

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#10 : May 12, 2009, 12:27:44 PM

There's a rule of thumb that if you don't plan on living in a house for at least five years, you'd be better off no buying it. I don't feel sorry for people who bought thinking they could sell in a couple of years or tried to flip it for a profit.  And people who have professions/occupations that are transient by nature with frequent relocations shouldn't have bought if there was a chance of having to relocate.

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