The media has made much to-do about the housing crisis but is it really a crisis at all? Yes real estate sales have been down slightly in the Rochester area for about the past 18 months but that is coming off the heels of almost 10 years of unprecedented growth. Prices in the Rochester area are down about 5% overall from the 2006 highs. Some markets are better than others but overall we are doing fairly well. For a really good perspective on this issue see Dennis Kneales commentary on the subject at: http://www.cnbc.com/id/15840232?video=780461999
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4 responses so far ↓
1 yanni raz // Jul 30, 2008 at 10:17 am
How much is your home worth? Well, it all depends where you live.
The real estate market is still shaking. New data suggests that home prices have hit a new record low. In every new study that comes out, homeowners from Miami, to Las Vegas, Phoenix and Los Angeles, have seen their home value go lower every time.
Is that disappointing? Of course it is.
Should we sell? Is not a good time.
Should we stick to it? Yes, if you can.
Have we hit bottom? Nobody knows.
Banks are facing their worst foreclosure crisis.
Don’t take me wrong, it’s good if you are in the market to buy a home for yourself or if you are an investor, but if you are not, and you own a home, most likely the value of your property is down at least 15 %.
Why do banks care if you are loosing your home? By having to sell repossessed homes, banks have to literally slash their prices down. It gets very costly for them, after all, they have to pay property taxes, maintenance costs, and whatever utilities that need to be paid, all of this expenses for a house that it’s just sitting there, vacant, and the bank is getting nothing in return.
The latest study by the S&P/Case-Shiller Home Price Index of 20 cities, revealed the news that for 22 consecutive months home prices dropped. Only from April to May, 2009 the decline was of 0.9 %
2 Property in Brazil // Aug 8, 2008 at 4:52 am
Hi,
I think this is more of done by the media, otherwise there is not a some great crises like they are saying. The prices are lower to a small percent to those of previous year’s. I think the things are not too critical and will be settled down soon.
3 Jim Johnson CRS // Aug 9, 2008 at 9:46 pm
I enjoy following your blog! The Bend Oregon real estate market continues to slow. It looks like a good time to buy in your market.
4 Pierre // Sep 19, 2008 at 10:40 pm
I know the market is bad now even for builders… but builders must still be honest and ethical and do what they say they are going to do, take Dan Mogen Homes for example… http://danmogenhomes.wordpress.com
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