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home prices

lilrabbit129

New member
what do you guys think of the recent boom and bust with home prices? how bad has it affected your guys area? Ive seen some crappy homes
in crappy neighborhoods spike up two times in value about a year or so ago...
 

agman

Well-known member
lilrabbit129 said:
what do you guys think of the recent boom and bust with home prices? how bad has it affected your guys area? Ive seen some crappy homes
in crappy neighborhoods spike up two times in value about a year or so ago...

What is wrong if they have significant price appreciation then go through a normal cyclical price correction? The vast majority of homes will be worth much more than their respective purchase price even in those areas suffering price depreciation.

As mortgage interest rates turn down, which they will, that will stabilize prices in those areas that were most overinflated. This is not at all like the 80's housing crunch.
 

Judith

Well-known member
An absolute dump is now selling for about 400,000 in my area. 1 Acre (bare) is selling for 600,000. It is rediculas! and box homes are going up everywhere. A dinky little condo is selling for around 350,000. And they just go up from there! These are canadian prices and they expect them to keep climbing until 2008! I don't blame the immigrants one bit for putting 20 families in one home. How else can you afford it! One bedroom apartments START at 750.00 that is no heat, power, TV nothing. I have no idea what people on welfare can even do? They get about 600.00 per month (I think) if they have no children.. Tent cities are getting huge! It's a sad state. Hong Kong is buying up most of our land at the moment.
 

Econ101

Well-known member
Tulips fall and bubbles burst.

We have a combination of low interest rates (cheap money off of foreign borrowing, in part) and a lot of money floating around in the economy. Those are ingredients for housing bubbles. And economic bubbles.
 
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