First time in history, median home price likely to decline

[Cindy S.]

http://www.economicpolicymonitor.com/2007/04/ranieri-first-time-in-history-median.html

[felixthecat]

Housing is cyclical. Prices typically ramp up for five years or so then adjust. The market is leveling off. Then it starts again. What is different about this time around is more and more people are over extended. They went for the "no money down" and other creative financing. At first the interest rates are do able. Later the rates go up sharply and that's where the defaults start kicking in. The mortgages are on inflated house values and so are taxes. The over extended will lose on this.

It has always made more sense to live within your means. BUT today people want their "forever house" NOW. They don't want to work up to anything. They are impatient and want INSTANT satisfaction. It is shocking that this mentality is VERY common ... .

[Michelle95]

Felix, you are so right but I have something to add.

My mom bought a house when I was young and paid 200 a month for it. Her and my father made about 2000 a month with NO college education (other than my father learning to drive a truck). With that said...they paid 10% of their income for a decent 2 bed 1 bath house.

I have yet to find a house (even a decent 2/1) that hubby and I can pay just 10% of our income for...even with me having a college education. Housing costs are wayyy overpriced in my opinion. :ohno

That's ok...I'm looking for about 5 acres and I'll just stick a trailer on it. No way am I going to pay 1300 a month for a house like my brother does (that's highway robbery in AL).

[Vonne]

I have yet to find a house (even a decent 2/1) that hubby and I can pay just 10% of our income for...even with me having a college education.

Sure you can! You just might not like the neighborhood so much :idunno

[Michelle95]

Sure you can! You just might not like the neighborhood so much :idunno


I like letting my kids go outside, thankyouverymuch! :rolleyes

[Biblenuggetlady]

I remember the first house my mom bought was $9000, I was 9. When I was 13 they bought the house I grew up in for $33,000...when they sold it, it sold for $145,000 (12 years later).

Ok, now I bought my first house for $93,000 my daughter was 6. I bought my second for $167,000, my daughter was 12.

Today, my daughter and her husband are in escrow for their first home $590,000 for a simple old home built in 1957....that is older than the first house MY mother bought! Think of it....things cannot continue this way, they just can't. There is a condo complex being built near here...a 2 bdrm starts at $775,000 and we are not talking prime location and fancy country clubs.

[Michelle95]

I just want to know what field these folks work in to afford places like this. Being a nurse doesn't pay that much...well, unless you are willing to travel which I cannot do.

[CelticMist]

We think its bad right now, it will only get worse. Soon only the 2% wealthy people will be the only ones living in homes. The rest of us will be living in run down homes with missing windows and doors; or living on the street.

[Faline]

I remember the first house my mom bought was $9000, I was 9. When I was 13 they bought the house I grew up in for $33,000...when they sold it, it sold for $145,000 (12 years later).

Ok, now I bought my first house for $93,000 my daughter was 6. I bought my second for $167,000, my daughter was 12.

Today, my daughter and her husband are in escrow for their first home $590,000 for a simple old home built in 1957....that is older than the first house MY mother bought! Think of it....things cannot continue this way, they just can't. There is a condo complex being built near here...a 2 bdrm starts at $775,000 and we are not talking prime location and fancy country clubs.

I bought my house in 1996 for $89,900. It is now on the market for $259,000. Wish I hadn't refinanced it to death!

[Faline]

I remember the first house my mom bought was $9000, I was 9. When I was 13 they bought the house I grew up in for $33,000...when they sold it, it sold for $145,000 (12 years later).

Ok, now I bought my first house for $93,000 my daughter was 6. I bought my second for $167,000, my daughter was 12.

Today, my daughter and her husband are in escrow for their first home $590,000 for a simple old home built in 1957....that is older than the first house MY mother bought! Think of it....things cannot continue this way, they just can't. There is a condo complex being built near here...a 2 bdrm starts at $775,000 and we are not talking prime location and fancy country clubs.

On the other hand, a house I'm buying now in Hanover, PA would cost at least $400,000 more in the area I'm in now. When I walked into the house I'm currently buying I kept saying, "Are you SURE this price is correct??!!" It's all WHERE you buy.