Well this post should prove to make a lot of Real Estate professionals very upset with us. You are being sold everywhere that now is the best time ever to buy a house. Interest rates have never been lower. I would rather pay higher interest rates on a property that I know will appreciate than to pay a lower interest rate on a property that will continue to depreciate especially in light of the next market bubble burst that only so called experts will tell you they saw coming after the fact. Yes there will be another bubble burst. It's already under way but gets little to no press coverage at all. After all, everyone still wants your cash.
On average, homes have fallen fifty percent of their value of a 2006 high price point. That's the national average. Prices have yet to fully fall here in this area. Don't fool yourself into thinking they won't despite stories in the press otherwise. Rental prices are at all time highs and continuing to go up as more people continue to get kicked out of their homes. There will be market adjustments in a few years here as well. Most people these days are upside down in their mortgages on their houses. Jobs are still being lost and not replaced at an alarming rate with no fix in site.
Many people are walking away from their houses and letting the banks take the eat the negative balance. Problem here is that the banks are making a profit on these homes and on foreclosures. So it's no nothing to them that you walk away. It's just your credit that takes the bath. The banks can sell these newly acquired homes in the red and still make a profit from them as you the tax payer are already paying these bailout costs. Your crying because of presently proposed tax increases? Who do you think is footing all these bills? They are coming one way or another like it or not.
Smart investors are picking up these houses for pennies on the dollar that is well below a fifty percent reduction in present prices. How long do you think this can go on before it hits the value of your home? It is without question a buyers market and a buyer can easily walk away from any deal or make offers that dramatically call into question the present value of your home and it is. You just do not know it yet. County assessments are artificially inflated to maintain the present tax base otherwise you would be screaming at the new hikes in taxes you are paying now anyway based on the real value of your home.
Want to have some real fun? Challenge your assessment with the county on your present home value. If enough people do this, values will be re done to reflect the actual value of your home and tax hikes will kick in to maintain present levels. Opps, no one else is explaining any of this to you now are they? So again, you must look at all the market forces that make up a homes value, an important one is people with enough income to pay what you are asking. Something that no longer exists as it once did. Jobs that allow enough people to make enough money to buy a home have gone into major decline with no new ones to replace them. So how long do you think it will be before a market correction on present over inflated prices hits and your home value crashes? Well Alice, you can live in dreamland for as long as you want, but you can't escape what is going on around you.
The only way we can see buying a home in the present economy is if one pays cash for it and buys it with the intent on living there and it is a dream house. Otherwise you are going to end up upside down in the home with no hope in sight. This of course is not the news that the real estate brokers want you to read, and they will do everything they can to disprove this storyline or show you the flaws. Use your own common sense and look at the economy around you asking the tough questions, then ignore what the broker has to say unless the broker is retired and has no financial interests in selling you anything.
- Animal Control Help, Gloucester, VA
- Contact Us
- E-Z Pass Web Site, Pay, Order, Accounts
- Free Area Codes And Time Zones Directory
- Free Resources And Databases
- Gift Shop
- Gloucester, VA Calendar of Events
- Gloucester, VA Jobs
- Gloucester Links and News 2
- Gloucester VA News Site
- GVLN Additional Resources
- Links Directory
- PodCasts - Old Radio & More
- Virginia 511 Traffic Alerts
- Zip Code Directory Database