Why Houses Still So Overpriced?

[natty]

I love how everyone who reads the paper becomes a real estate professional.

The market is better, rates are the lowest they have ever been, money is fairly easy to get, down payments are very small right now.

It's not that hard to understand.

Rates are low but I wouldn't say money is easy to get.

The tax value of my house went up 110k. :(

Things are definitely turning around though.

[Ja Rhule]

Rates are low but house's are overpriced. Why would I pay 200k for a house that was worth 140k 10 year ago? And don't give an inflation lesson cause its not.

If I buy a house for 170k I still have to pay about 140k in interest. Mortgage companies make more than enough even with low percent. House prices are a real issue.

[thefuzz]

Rates are low but house's are overpriced. Why would I pay 200k for a house that was worth 140k 10 year ago? And don't give an inflation lesson cause its not.

If I buy a house for 170k I still have to pay about 140k in interest. Mortgage companies make more than enough even with low percent. House prices are a real issue.

Housing prices are high because you are living in an area where others want to live.

If you want a deal move to Detroit, things are really cheap down there.

Keep on waiting, you will be sorry.

P.S. where are you getting the data that they are overpriced?

[thefuzz]

Rates are low but house's are overpriced. Why would I pay 200k for a house that was worth 140k 10 year ago? And don't give an inflation lesson cause its not.

If I buy a house for 170k I still have to pay about 140k in interest. Mortgage companies make more than enough even with low percent. House prices are a real issue.

I'ts as simple as it gets. More people.....more houses. Good locations/climate/drive time/school zones = Higher Prices.

Why are prices higher in New York than here? Why is Wilmington more expensive than Raleigh?

[Ja Rhule]

I highly doubt I'll be sorry. Housing market will dip again. Current economic condition is just a mirage.

[thefuzz]

Rates are going up no matter of dip or not.

How are you so sure about that market condition?

Have you ever studied real estate trends?

Where do you get your insight?

[Who Dat Pat]

I highly doubt I'll be sorry. Housing market will dip again. Current economic condition is just a mirage.

Current situation is a mirage? Based on what? Just because bank don't dump their foreclosures en mass at one time doesn't mean there is an artificial price point. There are places where the banks did mass listings of all the foreclosures, in Flint Michigan for example. It destroyed the value of the entire community and the people in those neighborhoods that were not in mortgage trouble saw there property all but lose its value and their situation turn to one where they owe more than value of house which caused even more people to walk away from their properties and take out entire neighborhoods. For that reason, banks will continue to list properties at a rates keeping within supply/demand levels of area. That preserves the housing advancements of past two years.

Another thing you might want to consider is that rates are close to historical lows, as market continue to move in direction of recovery, those rates will go up and possibly eat up any savings you think waiting could save. If you can afford it, a 10 year or 15 year loan will save you an amazing amount in interest payments and lets you build up principal a lot faster. In a typical 30 year mortgage, the way it amortizes, you will only have a few hundred dollars of principal paid the first few years.

[Ja Rhule]

I finished college with international finance, international economic, and accounting degrees. I had poo load of case studies and I have common knowledge of how global markets work. US debt is growing rapidly while government refuses to cut costs. If you think US economy is in a safe zone than you're crazy. The only reason we still doing alright is because we printing money like crazy. Increasing our inflation at record pace. Wait until Europe recovers, it will drive US dollar value to poo. We doing better because the rest of the world is struggling. As of now, US has the healthiest world economy but for how long? How long before educational bubble bursts? Tik-tok tik-tok.

[thefuzz]

I checked their market worth and compared it to seller's asking price. Most houses are way overpriced... I'd figure I can get a decent house in Union county but no... everyone wants almost 200k for something that worth no more than 160k...

Again, I ask how you came up with this?

[Ja Rhule]

Zillow.

[Ja Rhule]

Plus historic cost. Most of the houses that sold prior to 2000 went up in price almost 40%, right before bible burst. Why are they staying relatively at the same price after bubble burst?

[Ja Rhule]

poo, some people sale houses for 350k and Zillow estimated their value only at 240k.

[Niner National]

Wait until Europe recovers

So basically I have 50-60 years before I need to worry about it?

[natty]

Zillow is far from accurate.