2007-04-10 08:47:03 · 10 answers · asked by Anonymous in Politics & Government ➔ Politics
Nationally it is declining, but in California not much is noticeable, people are crazy here.
2007-04-10 08:53:31 · update #1
Nationally it is declining, but in California not much is noticeable, people are crazy here.
2007-04-10 08:53:42 · update #2
This is complex, but here is the short answer.
Greed caused the market in the last few years.... Speculators buying and flipping drove up prices. Also, a lot of people who could not afford a home bought in on the high side with an interest only mortgage. Now, they are having to lock in on a regular loan and seeing their payments going up by hundreds or thousands and they can't make it.
Bottom line..... GREED by buyers, sellers and lenders.
2007-04-10 08:53:04 · answer #1 · answered by Dog Lover 7 · 1⤊ 0⤋
It would honestly be nice if they did decline some.
Real estate price increases have been rising at ridiculous rates... way faster than inflation. Maybe not everywhere but in many places at least.
Where im at the average new home increased in price 26% in one year. Not many can afford to buy a home in some places. Even the middle class salary wouldnt qualify in many cases without a second income or hefty downpayment.
I am right about dead center of middle class in income, I have almost no debt except a small balance on a student loan, car is paid for, and I couldnt qualify for an average new home here I would have to buy something a little used.
2007-04-10 16:05:59 · answer #2 · answered by sociald 7 · 0⤊ 0⤋
If you are a buyer and can get the money it is heading in the right direction. If you are a seller looking to get out of the house what you have invested you may be disappointed.
In California prices are high because people want to live there and there are not that many new houses being built for a number of reasons. Population growth limits imposed by towns, lack of jobs in one location or another, people can't afford the adjustable mortgages they got because their income is not keeping up with inflation and sluggish economy of some areas.
2007-04-10 15:58:42 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Sales and house prices are declining because the market is flooded with real estate now. So many people lost their houses because of those crazy mortgages. Is this the right direction? I think not. When the market is flooded with houses, interest rates are high also.
2007-04-10 15:50:22 · answer #4 · answered by true blue 6 · 0⤊ 0⤋
They aren't declining in the East Beach or Virginia Beach areas. The housing market is overinflated so some decline is in order. It won't be enough to affect our economy as a whole though.
2007-04-10 15:52:11 · answer #5 · answered by Mother 6 · 0⤊ 0⤋
For now, it's in a good place for those who are buying. Summer is right around the corner, so prices and sales will rise, but probably not as much as they did last year.
2007-04-10 15:54:59 · answer #6 · answered by JY. 4 · 0⤊ 0⤋
it's not going up if that's what you're asking.
housing prices have been drastically inflated the last 10 years. now is the time when the market adjusts itself and prices level off and less homes are built.
this year and the next will be a housing market hangover.
2007-04-10 15:51:36 · answer #7 · answered by Diggy 5 · 0⤊ 0⤋
In the last five years values have reached quarter and half million dollar levels for average homes. It either means that they are incredibly over priced or your dollar is now worth 20 cents.
2007-04-10 15:55:02 · answer #8 · answered by Rja 5 · 0⤊ 0⤋
I don't know where you live but in Los Angeles, they aren't declining much at all.
2007-04-10 15:48:44 · answer #9 · answered by Anonymous · 0⤊ 0⤋
The housing boom is collapsing with a 40% bankruptcy and repossession rate right now with Bush's economy.
2007-04-10 15:50:35 · answer #10 · answered by Eddie 2 · 1⤊ 1⤋