Interesting housing value graph

[oestek]

https://static1.pt-content.com/images/pt/2007/11/a_history_of_home_values-1.png

[Bill Howell]

LOL, and people wonder what happened and why houses are not selling. There is nothing wrong with houses,they are just overpriced right now and until the prices "adjust" (read come down) the market will be slow.

[68Formula]

Wow, I didn't even know you could get a jacuzzi tub, multi-car garage, masterbath, walk in closets, electricity, and central air in 1890.

[4birdman]

They just reassessed my tax value on my house. It was 60k higher than I paid for the house 2 years ago. I wonder if the market adjusts if they will redo my tax values. :(

[High Plains Mopars]

Wow, I didn't even know you could get a jacuzzi tub, multi-car garage, masterbath, walk in closets, electricity, and central air in 1890.

No, but you could get indoor plumbing, multi-horse carriage houses, decorative armoires, tube and nut electricity, servents quarters, 10 foot tall ceilings, and functional shutters.

[68Formula]

Darn, I thought my servents quarters were a modern touch. :hand:

[harshman]

What i am reading is that the prices of homes have relatively never changed based on inflation. Remaining the same value for so long is a bad thing. I'd suggest that this is a good market change. Values based on inflation rates are of no value. If it were the case then we would all be watching the inflation percentages hoping for a rise. You wouldn't buy stock in hopes to get a net gain of inflation would you? Same ought to go for land.

[WS6]

That's pretty interesting. I think what would be a great companion graph would be one that shows how much house you got for your dollar. Yes, the modern electronics and jacuzzi make a big difference in price, but since houses are advertised based on square footage, it would be good to see sq ft per dollar. Adjusted for inflation of course.

[High Plains Mopars]

Looking at that graph something just looks amiss.

If you look at the specifics of price, very, very few people could afford a $100k house in the 1890s. In my neighborhood, those houses that sold for $100k 115 years ago are now selling for 2.5-4.5 million. So looking at the comparative amenities for square footage and the related lifestyles that could afford housing equal to the base year and relating that to a comparable buyer's purchasing power and desire today, I don't think he is comparing apple to apples.

Locations have a huge impact on the values and since he didn't specify, I'd say his graph is an overall composite of the whole US housing market. Individual markets won't necessarily adhere to this graph as some have taken huge dumps and some have had huge gains.

[andrewb70]

Looking at that graph something just looks amiss.

If you look at the specifics of price, very, very few people could afford a $100k house in the 1890s. In my neighborhood, those houses that sold for $100k 115 years ago are now selling for 2.5-4.5 million. So looking at the comparative amenities for square footage and the related lifestyles that could afford housing equal to the base year and relating that to a comparable buyer's purchasing power and desire today, I don't think he is comparing apple to apples.

Locations have a huge impact on the values and since he didn't specify, I'd say his graph is an overall composite of the whole US housing market. Individual markets won't necessarily adhere to this graph as some have taken huge dumps and some have had huge gains.

The 100K is in todays dollars.

Andrew

[indyjps]

interesting graph. I dont think the info going back to 1890 is very valid. If you concentrate on the boom 1997 to current is where it becomes interesting. you also have to consider the market, where was the basis for this study taken. If it was nationwide the east and west coast markets water down the data and make it useless for a midwest comparison. it would be interesting to see a chart on the same timeline that shows avg interest rates. I think you'll find a correlation to the interest rate and the recent boom.
I read a few days ago that the fed is going to cover home buyers who bought in to subprime and arm mortgages and are now getting their asses handed to them. I think its a pretty pathetic that this is what its come to. the people in those situation need a lesson in cutting back their spending, the banks need to get a nice little burn and weed out the lesser quality mortgage brokers, and I need to buy some foreclosures.
I dont feel like paying my mortgage either but I need to do so to keep my house.
Ive got a real estate license but dont practice the trade so I watch the markets pretty closely wherever I move, its enabled me to make $ on the last 3 houses I've owned but Ive been stuck moving every 2 years to do it.

[harshman]

I read a few days ago that the fed is going to cover home buyers who bought in to subprime and arm mortgages and are now getting their asses handed to them. I think its a pretty pathetic that this is what its come to. the people in those situation need a lesson in cutting back their spending, the banks need to get a nice little burn and weed out the lesser quality mortgage brokers, and I need to buy some foreclosures.
I dont feel like paying my mortgage either but I need to do so to keep my house.
Why should the government pay for people's mistakes? Better yet why should I pay for their mistakes in the form of taxes? I appreciate the threat of foreclosures as I am building another spec home but it is a risk that I am willing to take.

[TheRoadVirus]

Is anyone else ever enticed by "Flip That House"? Damn they make alot of cash.. if only I had the money.

[Bill Howell]

Is anyone else ever enticed by "Flip That House"? Damn they make alot of cash.. if only I had the money.

OH man, don't get caught up in that Hollywood Crap! As a builder/contractor, I laugh when I watch that show. Poor decisions on purchase price of house, lack of really knowing what was wrong with it, poor choices of sub contractors and poor decisions on what repairs to do, plus people that are clueless on what they are doing....no wonder half of them loose their ass. When people start making huge money on flips, watch out, the market is fixing to go south, I have seen it happen more than once over the years.

Yes, there are deals out there, and yes, I have made good money remodeling houses and flipping them, but for every one I buy, I pass on 15 or more. NEVER buy a house without knowing what you are getting in to, or you will soon find yourself on the short end of the stick, remember the old adage...."if it seems too good to be true, it probably is.....

[Bill Howell]

Why should the government pay for people's mistakes? Better yet why should I pay for their mistakes in the form of taxes? I appreciate the threat of foreclosures as I am building another spec home but it is a risk that I am willing to take.

EXACTLY!!!!!!
I will temper my comments so this doesn't turn political, and will tread lightly, but you are dead right. Those same politicians that forced the lending companies to lend money to undeserving and under qualified buyers at 0% down and interest only loans, etc, now say they will bail them out still.....WTH????????????? These people for the most part never had any money invested in these homes, never had equity and obviously did not make the payments. They were renters not paying the rent!!!!!!!!!!! Now, we are still going to "HELP THEM"? Why not just give them the damn house and forget it?:pat:

Now with all the reposessions, we have a flooded market, prices drop, houses don't sell.....do you start seeing the cycle here????
Market is much more sensitive than we think, throw in a increase in interest rates once or twice and we throw the entire country into a tail spin......

OK, off the soap box, back to my corner.

[MrQuick]

wait till the value of our dollar drops. :pat:

[Aceshigh]

They just reassessed my tax value on my house. It was 60k higher than I paid for the house 2 years ago. I wonder if the market adjusts if they will redo my tax values. :(

I will be complaining about it personally.

I said that in 2001 housing prices started ramping up out of control and
only 4-5 years later houses were 2x their value in 2001 :crying: I just WISH
it would have waited until I got out of my PMI. Dammit....


wait till the value of our dollar drops.

It's been dropping......the Canadian dollar is already worth more.

[indyjps]

My father has been buying rentals and flipping houses since the mid 70's, Ive been around it for a while working with him on many of them. After watching him do it for years Im not that interested in having that many properties. I just want one rental with a shop on the property.

That show is ridiculous. I still watch it though.

[Damn True]

They just reassessed my tax value on my house. It was 60k higher than I paid for the house 2 years ago. I wonder if the market adjusts if they will redo my tax values. :(

Nope.

[Aceshigh]

I wonder if the market adjusts if they will redo my tax values. :(

I just had another thought about this......

Each year IIRC you can ask to have your property taxes re-assessed.
So if your property actually DROPS in value, then I see no reason to
believe you can't ask for a reassessment to bring your taxes back
to where they SHOULD be for the value of your home.

It IS an option, you just have to request it to be done at your county tax collection office.
You KNOW they won't do it on their own.
The same place you hand in your tax exemption for living in your home. :here!:
They tried to raise my taxes $1,000 more then what they should have been.....I had to do this.