What Slump? HomeOwner in Denial....

**BraggSurvivor** · 02-11-2008, 09:49 PM

"Survey shows 3 of 4 homeowners believe their home has gained or retained its value, despite evidence of price decline."

Lies, damned lies, and National Realtor statistics:

"And those price readings under represent declines in the nation's weakest markets, which have taken a big hit to sales volume."

"The S&P Case/Shiller, a closely watched index that tracks home values of all homes in the nation's largest markets, not just those that are sold, showed about an 8% drop in home values in November compared to a year earlier, the worst on record."

http://money.aol.com/realestate/arti...08132609990001

And these people are allowed the right to vote?

**Chris** · 02-11-2008, 10:28 PM

You hear the one about the statistician who drowned in a river with an average depth of 2 feet?

**BraggSurvivor** · 02-11-2008, 10:34 PM

Are you talking about the 30% who can count?

**FVR** · 02-11-2008, 11:14 PM

Alot depends on location, location, location.

Of course there is a promoted increase in home values. I can tell you my home has increased, but not as much as the auditors calculate. Why is this?

Because of sold debt. Ya see, the banks want to get you into more credit debt. How do they do this, oh, your house is worth more. So, if they want to get you into more debt, they falsly increase the value of your house. I really don't know how they do this, but can tell you it's bogus calculations. Most houses when they get appraised will not sell for that amount, but, the banks will extend you credit on that amount. Hmmmmmm.

Some so called banks will give you one and a half times the value of your home. Can you say, I just got ripped off?

A house is a long term investment for me. I am not going anywhere for another 10 years. In 10 years, I will def. make a good chunk of change on the house as I go back to location, location, location, and I got a good deal. Another reason, how the neighbors built their houses. My house is on a reg. size lot, my neighbor purchased two lots, and moved his house half on one, half on the other.

Yeh, that means I have some supper privacy in a subdivision.

Next house, log cabin on the side of a mountain. Or a beach house, where I can spend my days surf fishing in the summer and duck hunting in the winter. Purchased with cash.

**Rick** · 02-12-2008, 07:38 AM

House value has to be defined. Has my house increased in value? Of course. Has it lost value? Of course. Just asking the question is a bit misleading because it depends on when the person bought the house and why they bought it. I'm similar to Frank. I bought for the long term not to flip the house. So, has it increased in value from when I purchased it, you bet, a lot. Because I bought it in 1990. Has it lost value from it's high dollar mark, sure.

And Frank is correct on location. Home value is based on what other similar homes in the area are selling for so if the market is still decent in your area then an equivalent home will go for more than an area where the market is depressed or where location simply commands a higher price (like a beach house).

**RobertRogers** · 02-12-2008, 08:43 AM

Many people thought the new paradigm was 20% per year increases in value. It is difficult for them to grasp the concept that it was irrational exuberance...much of it fueled by investors buying homes from investors to sell to investors

**BraggSurvivor** · 02-12-2008, 08:54 AM

It's been recently forecast that forecloser rate will be 6-8% by end of 2009. That has to affect the price of housing across the board.

**Rick** · 02-12-2008, 01:20 PM

I agree on both your statements. 1. It attests to the hazards of short term investing in a single commodity 2. It shows what happens when people don't manage their finances pro-actively.

**Rick** · 02-14-2008, 02:05 PM

Interesting comments on the credit scene:

http://money.cnn.com/2008/02/14/news...ion=2008021412

**dilligaf2u2** · 02-14-2008, 10:33 PM

I have seen it more then once! A house that would sell for say $60,000 has a morgage of $75,000 on it. If it is sold for top price the seller would still owe money on it.

My house payments are still lower then rents in the area. I am ahead.

When I pass on to my just rewards? I will still have one payment left to make.

Don