bearrassler
Well-known member
The home prices here did not drop at all. I think we are to small an area to be included in Kiplingers site. There are more people in most large metro areas than what we have in our whole state.
Minnie...housing bubble??
- Thread starter anonomoose
- Start date
The home prices here did not drop at all. I think we are to small an area to be included in Kiplingers site. There are more people in most large metro areas than what we have in our whole state.
anonomoose
New member
Coming from a state that has almost no unemployment (I think it is the lowest in the country) and a oil boom going on, farming that is making money, I would not be surprised that the prices did not fall....and may have actually gone up a bit depending upon where you live.
I just have one nagging question for yah.....How's the pheasant population doing? Can you even hunt around those oil sights...or does homeland security have choppers ready to mow you down if you stray too close?
Michigan used to have huge populations, and now we have more turkey than pheasants. Reduced to tiny pockets here and there...and few and far between.
There is nothing quite like the sight of a English setter frozen on point and a wild flush of one of those beautiful birds. Makes my heart pound conjuring up an image of it.
x2 on the pheasant I miss the good old days when we had birds in just about every field.
G
G
Guest
There are a few pheasants in ND but there are a lot more in SD. Go to the Aberdeen area.
anonomoose
New member
I know S Dakota, Madison, Arlington areas have good numbers once the crops are down, but I had heard that N. Dakota has some good numbers too...
sledboy1982
New member
nd hunters dont hunt in nd we go to sd
arcticgeorge
New member
.............................I wont go on all day but i was listening to the WBBM news lunch hour that focus' on the economy/housing crisis and Howard Davidowitz said that the soaring home prices and current market values before the fall were bogus, the real estate was never worth that. So how could your home be worth what it never really was? And you could list your home for the same asking price as in 2006? Regardless of population people are not willing to pay the prices that homes are allegedly worth so they sit. Supply and demand becomes a factor with million's of homes on the market and so on...Just a few thoughts. I'am glad North Dakota is doing well when many areas are not.
anonomoose
New member
You are right when you say that supply and demand is the whole ball game. If you were in suburbs of Chicago in 2006, and sold, you got out at the top of the bubble....IF.....you didn't buy into the same market.
Most bought right back into again assuming prices would do as they have for 65 years, that is, going onward and upward.
When the hiccup came, and the job markets began to dry up, people got laid off, and could no longer afford the houses that required two incomes to keep the payments going.
If you have no income, or only get unemployment, you aren't going to be able to make payments that were based upon two incomes. Suddenly, houses sprung up for sale all over the place in the areas where the jobs just came to an end.
Now there was a huge over supply, causing prices to fall, as supply was far greater than demand. Eventually, so many homes went on the market that the market was saturated, and foreclosures started up because you could not get the home sold particularly homes that had little equity...most recently purchased.
Banks, slashed the prices....would not spend a nickle to repair or do what any other investor would do to maintain prices, and the bottom fell out of the market....there was no sense in trying to sell your home because you owed more than the bank was selling an identical home for, just down the street. Not a big problem until YOUR job dried up too, then YOU were NOW in the same market and HAD to sell. It becomes a vicious cycle....
Can you say the homes were over priced?? Not really, they went for what homes were selling for at the time....a deal was sucked up and if you over priced as at any time of the year and market, it would not sell. Though there was a time you could over price a home and let someone bargain the price down...those days are gone....you either are the price leader, or you're wasting time.
If the demand was never there to begin with, the prices didn't rise as much and if the demand is still there today, then they didn't fall as much.
Anyone who says that prices were too high doesn't understand the supply demand laws.
Today, 1 in 5 homes has a mortgage(s) that is more than the value of the home, on average (across the country).
That is huge. Only reason that we are not in a full scale melt down is because most of those people still have jobs and continue to pay the mortgage....for now. As the pay scales dwindle across America and afford-ability shrinks, this will continue to play out and increasing numbers of homes will be foreclosed on....which will continue to diminish values putting more and more homes under water to the mortgage.
So even if you are above water now, as the prices continue to shrink and as LONG as they continue to shrink faster than you can build equity...aka, pay the principle down, your home might pass to the point it is NOW under water compared to the value.
Banks and other lenders are reluctant to lend knowing that the trend in values are going down....and who can blame them? Lending is a business and like any other business, why lend if you know it is a losing endeavor.
Obviously Howard D, either doesn't understand this concept or he is an idiot.
arcticgeorge
New member
"When the hiccup came, and the job markets began to dry up, people got laid off, and could no longer afford the houses that required two incomes to keep the payments going."........................................................................................................................Yes many people could not afford these loans AND the credit cards to furnish them and the Hummer in the drive..The numbers are there that shows most were skipping the mortgage but paying credit cards to stay afloat (so your neighbors that appear to have it all...only have debt).......................................................I've heard it many times from finance experts that the main problem was sub prime loans....millions of Americans were approved for homes they couldnt afford in the first place.(At the same time our economy was slowing) Lotsa good points except that Howard Davidowitz cannot be an idiot. His company in the past 30 years has taken over hundreds of company's that were in financial ruin and turned them around, he is a business expert in all phases. Thats like saying Phelps cant swim or
Jordan cant play basketball...Howard has a proven record.
Jordan cant play basketball...Howard has a proven record.
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Guest
Here in the Red River Valley it has been business as usual from before 2008 till now. We have relatively low unemployment and there are not many more houses for sale now than there were prior to the housing crisis. However if a person goes to buy or refinance a house appraisals are coming in 20% less than they were 4 years ago. Is this because of pressure from the rest of the national housing industry or were they overvalued to begin with? The supply and demand thing is the same. Nothing changed there. There are also still building houses and condos. Building supplies have not come down very much. There seems to be some conflicting notions working here.
It is supply & demand. Government should wreck or plow over every fannie & freddie default to create jobs to wreck & then rebuild when the housing supply is reduced. Everybody wins that way & only way we can break the "moose metioned cycle" otherwise same old same old will prevail. Wasteful yes but we need to create jobs & increase house wealth ASAP.
Property values, appraisals, etc.
What in blazes are 'property values' anyway?
What's a piece of property worth: Whatever price a willing seller and willing buyer can agree on to close the deal. That's what it always has been and still is. Nothing else. Period. End of story.
I have little respect for the voodoo, witchcraft and chicanery practiced by so called 'appraisers', including the local tax assessment bureaucracy/ies. Even if they believe they are sincere, and believe they using the "best practices" of the "profession". Yeah, so's your astrologist!
"Comparables" my foot. Especially in an area with diverse properties and few recent sales. It's all purely figmentary.
Oh sure, I had a twinge of greed, and even for a few fleeting seconds contemplated a "cash out" mortgage when, in 2006, the "value" of my little piece of da Arizony desert reached near 12 times what I originally paid for it (at twice the rate of inflation!). But knowing the neighborhood, and with a reasonable notion of "comparables", all of which were equally astronomical, I concluded that those extremely inflated "property values" were utterly 'nucking futs', and very quickly decided to 'fuggeddaboutit'!
Just as well, if I had done that, I'd be under water by over 50% now, swimmin' wit da sharks!
The real estate collapse? It's all about greed!
What in blazes are 'property values' anyway?
What's a piece of property worth: Whatever price a willing seller and willing buyer can agree on to close the deal. That's what it always has been and still is. Nothing else. Period. End of story.
I have little respect for the voodoo, witchcraft and chicanery practiced by so called 'appraisers', including the local tax assessment bureaucracy/ies. Even if they believe they are sincere, and believe they using the "best practices" of the "profession". Yeah, so's your astrologist!
"Comparables" my foot. Especially in an area with diverse properties and few recent sales. It's all purely figmentary.
Oh sure, I had a twinge of greed, and even for a few fleeting seconds contemplated a "cash out" mortgage when, in 2006, the "value" of my little piece of da Arizony desert reached near 12 times what I originally paid for it (at twice the rate of inflation!). But knowing the neighborhood, and with a reasonable notion of "comparables", all of which were equally astronomical, I concluded that those extremely inflated "property values" were utterly 'nucking futs', and very quickly decided to 'fuggeddaboutit'!
Just as well, if I had done that, I'd be under water by over 50% now, swimmin' wit da sharks!
The real estate collapse? It's all about greed!
anonomoose
New member
Good point.....what changed?
Banks know that one way to control risk is to keep a 'thumb' on appraisals.
If an appraiser, which in SE Michigan is on a very short list of companies the bank will consider, keeps his price down...which is easier than ever to do with numbers all over the boards these days, then you can point to the appraisal and say, "see....the appraiser says..." and the price gets adjusted down if the deal is going to go, or it dies if the Seller can't go there, or get the lien holding bank decides to cough up some of the existing loan.
With a relative in the biz....I hear about it. One appraisal went back to the appraiser 4 times...that's FOUR...times til the "number got right" and that adjustment went down each time.
This so called arms length the bank and appraiser are supposed to have is a joke.
While a Bank (aka finance company) can't just come out and say... "hey, we don't want a loan over there, or in that region, or even State" anymore, they absolutely mandate that if an appraiser is not on THEIR list you can't use them, despite all appraisers being required to conform to same government standards, and licensed by the state which replicates those Fed standards.
So you wonder why a place like ND where unemployment is low and housing never took the big flight has numbers coming in lower....???
Not me....it is clear as a bell, if you are going to finance and run the Juggernaut of the appraisal, you will just have to lump it. Talk about government knee jerk reactions and control.... whatever happened to the days that they looked at the party as much as the income/stability and said, "you're okay....we will give you a loan"???
Nash, had you dumped, like a friend of mine did, and not jumped back in, you would be doin pretty good...but then, your tea leaves would be a very valuable commodity, eh?
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