Housing doom and gloom - ENOUGH already !!

Quote from balda:

Exactly, who cares about "Estimated value".

This is REAL info:

Last sale info

Sold 09/02/2005: $699,000


2008 offered at: $395,000

Discount from 2005 price is $304,000

Hope that helps.
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Then look at

Sale History
09/02/2005: $699,000
10/17/2000: $230,000

So the house is probably worth more along the lines of 230k since most of the rest of the US housing is around the 2000-2001 levels. That house needs to come down 165k at least. Not to mention the house looks like a fixer just by looking at the outside. Honestly...I would not be interested in buying a house as ugly as that unless the price was under 150k. Thats obviously a working class family house and should be priced accordingly.
 
Quote from Smart Money:

I would have never guessed it. I think a lot of it was our faith in our fellow man. My thoughts on real estate stemmed from an assumption that people would be prudent and rational. I'm an real estate investment bull, and I made money and continue to make money. But this is because I was prudent and didn't over-extend, and used fixed rate loans to safeguard against the downside risk.

But there were people out there...many more than I would have ever thought...who were buying properties they couldn't afford with stupid or shoddy financial instruments. And those instruments were often sold to banks or investment firms that should have done more due diligence, but they had their own element of trust. I think what got most people is that when the prices were going up, there was a mindset that valuation increases erased buying mistakes. And this feeling create buying mistakes replaced prudence and wariness...people dropped their guard Maybe this is true of all bubbles...stick to fundamentals and be cautious, no matter how it seems like you shouldn't be.



FWIW, I'm a hopeless real estate bull...perhaps because its changed my life for the better...and I still see a silver lining in this. To clarify, I'm talking about income producting properties here. Real Estate has always been a traditional hedge against inflation and is now out of favor. I think its been so battered that people have forgotten what a good inflation hedge it is. Rents are going higher. Prices and rates can't fall too much lower. I think that right now is a heck of a buying opportunity on because we're setting ourselves up to inflate our way out of economic turmoil and then you just can't recall all those dollars. Those dollars will be out there, and inflation will be hard to rein in. Perhaps that is why some restraint is being used even when things look deflationary right...they know it can get bad later. This may be why commodities just had a bubble...because there was one less option on the table for investing for inflationary times. Anyway, when inflation does rear its ugly head, I'll be chasing the bankers down the street and putting money in their pockets to pay off my mortgages with what a loaf of bread might cost. :) Hey, I can dream, can't I?

Hammer me if you want, but I'm being honest here.

SM
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Thanks, Smart Money for the interesting reply. A good one :)
 
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