Real Estate Madness
 

"Homes from: the 130s"
(one week passes)
"Homes from: the 160s"
(another week passes)
"Homes from: the 190s"
(another week passes)
"Homes from: the 240s"

The prices have been jacked up again this week, I've heard, but the sticker on the sign in front of the subdivision hasn't been updated, yet. These are two bedroom ranches seperated by the minimum required distance from their neighbor and are considered to be some of the cheapest homes up for sale in the area, even at last check.

This is in a county where the average income is $30,000/year.

I officially have very little hope of ever owning a home at this rate and it looks to be much worse in other cities around the country.

A home in the city of Alexandria sells in one day at a price $100,000 over the asking price.

This isn't foolish, anymore, but bordering on the insane. I didn't major in economics, but something seems slightly wrong to me when incomes don't see a huge jump, the majority of America's credit is overextended, the economy hasn't been hot, and houses continue to be bought and sold for far more than they're worth. How, exactly, are people able to afford these overpriced piles of lumber? Who, in their right mind, are granting loans? This was considered a bubble in 2002 but that word was quickly dropped. Why isn't this monstrosity of artifical scarcity still considered one?

"If you didn't buy two years ago, you're simply not going to be able to."

Yeah, nothing like living in an area where housing prices have never fallen. But, really, judging by the quality of the homes they are building, what the neighborhoods are like, etc, I don't think I'll mind renting. :dead:

Yah. Mad-NESS
 

And the interest rates will surely rise.

http://www.bankrate.com/brm/news/bank/20050128b1.asp

"more aggressive Fed action" == rates rise.

I heard on the radio this morning that it is not uncommon for some couples to pay 5, 6, or 7 times their annual gross income for a house!!

/faints/

Seattle is insane.

Alexandria? Alexandria where?

oops, I forgot to say good luck. I mean it sincerely. Owning is waay way better than renting, which you know of course.

we pillaged the retirement account, penalties and all to scrape together the downpayment. but to buy today, I'd have to go an hour out of town. To buy my own house today and current prices is Just. Not. Possible.

Alexandria? Alexandria where?

Alexandria, VA, according to the article.

San Francisco has to be the aboslute worst, though. Two bedrooms, I've read, are going from between $500k-600k or worse.

The same is happening in Australia, and I'm told it's also happening in Britain. It's craziness. I'm going to make an appointment with a mortgage advisor very soon to see if I can buy a house before it's too late and I never have the chance again.

This is really interesting stuff to research. You're right, Wombat, this is an international problem, from what I'm reading. Even in Ireland

Although some places are showing some decline?

Florida has it particularly bad, since prices have never gone down and no matter how many hurricanes/fires/people from New York/floods we see, people just won't stop moving in. But, as discussed on the NPR show BigV mentioned, its unlikely that many people have looked at what their deductible is on their house now that prices have skyrocketed.

Mother nature's gonna fix it all soon...

Hum... my dad lives in Alexandria VA..... him and his military bonuses...

I think Honolulu has that distinction in the US. But I think the most expensive housing in the world ($/sf) is in Hong Kong and/or Tokyo. At least that was the case a few years ago.

But, my brother and his wife just bought a gorgeous brand new two-story 4 br, 2 car garage house in Douglasville, GA (about 40 miles west of ATL) for the high 100s. On a modest income and not perfect credit.

Just keep going further out. That's pretty much the answer. And rent a room or a basement apt to someone to help with the mortgage.

I'm in DC, which is experiencing a similar phenomenon. But I was lucky enough to buy before it started.http://www.cellar.org/images/smilies/yelgreedy.gif

Of course, it's only real money if I sell it, and at that point, I'd need to buy another place, probably with an even higher price. http://www.cellar.org/images/smilies/frown.gif

I'm about 8 miles west of Alexandria. Thankfully, I bought in 1995. I'm not sure I could afford to buy my own house now.:eek:

I'm in Arlington Virginia, just across the river from D.C. It's insane here.

I live in the ugliest, most run-down house on the block. I'm happy with it, but it really is an eyesore in the neighborhood, and much less of a house than everyone else's. We bought it in 1997 for $194,000. It was assessed for tax purposes last month for $452,400. That would be great news for me if I was selling my house and moving to rural Georgia, but I'm not. Since property tax is based on a percentage of the value of the property, my property taxes keep going up. From 2004 to 2005 my assessment went up about 25%. That means my taxes will go up 25% unless the County lowers the tax rate.

A 25% increase in one year is insane. I got a 5% raise in salary last year. The inflation rate is even less than that. And my property taxes are going up by 25% in one year?!

Here's a breakdown of my house's assessed value over the last 7 years since I bought it in '97 for $194K:

Year / Land / Structure / Total Value
2005 $367,500 $84,900 $452,400
2004 $294,000 $74,400 $368,400
2003 $242,400 $75,300 $317,700
2002 $181,800 $72,300 $254,100
2001 $136,400 $69,500 $205,900
2000 $104,900 $84,100 $189,000
1999 $101,800 $81,100 $182,900
1998 $101,800 $81,100 $182,900
1997 $101,800 $81,100 $182,900

It's looking almost like an exponential curve. No way could we afford to buy this house now. I'm damn lucky we bought when we did.

My folks bought their house in 1970 for $60k total, 2 acres included. It's valued today at about $385,000. If they sell it at that price, then move back to rural central Texas, they can buy about 30 acres and a really nice brick house. I mean, really nice.

If they decide to do it, I hope prices don't come down to a reasonable level until they sell. My dad worked loooong years to feed us young'uns and did all the upkeep on the house himself. I wish he could cash in on it. The people who deserve that kind of luck rarely get it, but I'm hoping...

Out here in Utah the construction is going insane. They can just keep building and buildings as there is nothing but the Great Salt Lake and Salt Flats out west as far as the eye can see. Of course an occasional wetland or two but screw the fowl who need them to procreate and sustain their species. We are talking about Wal-Marts and Del Taco's, Kohls and PetsMarts for everyone. Right now there is a huge debate about transit systems. The guys with money want to build roads and subsequently franchises along these roads to cash in on all their otherwise useless land. The rest of us want a mass transit system. We bought our home 9 years ago. Just a little starter home for 120,000.00 987 finished square feet on .08 acres. Fargin' neighbors are close enough you can count the pores in their skin. We finally finished the basement last year and have some breathing room. My dream would be getting the hell outta here and moving to the middle of nowhere in the Northwest. I am not a city girl.

Keep spending, everyone. It will all be over, soon.