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Home prices finally returning to normal

Home prices finally returning to normal

Ebeneezer Lucky
March 5, 201 So basically the author conceedes that nothing is near normal except the expected 3.3% gain in prices? Sorry but there is no reason to expect a return to `normal` when the gains in 2012 were produced by investors and not individuals. 34 Reply

parishmp Ebeneezer Lucky
March 5, 201 What they are hinting at but not FULLY revealing is that only a handful of areas have seen price increases, and many of those were the hardest hit and frankly way oversold (there were blocks of homes in Vegas that never saw an owner). The majority of the country where people actually live and work haven`t seen any increases. In the Chicago Metro suburban areas there are two areas where prices have increased, all with homes over a million. The suburbs with affordable homes for the middle class continue to go down because of the large number of homes that are vacant since they were built on spec. In fact we have an entire mid-sized shopping mall standing completely empty and has NEVER had a tenant since it was built in 2006. Frankly, I`m not unhappy, since any increase in price would mean higher real estate taxes for this bankrupt state. 4 1 Reply

SecularPatriot parishmp
March 5, 201 Case-Shiller publishes both national and regional figures. The national figures are the ones cited. 1 Reply

Roger Johnson parishmp
March 5, 201 So wait, you are saying that you don`t want housing prices to go up because you dont want to have to pay more taxes?!? That makes no sense. Home equity is a net positive for every homeowner. Sure you pay more taxes, but you also have more liquidity (assuming you are smart about using it, not getting an equity loan to go on vacation) and can reinvest in your house. It also gives the entire market more liquidity as you can sell you house if you wish to move. It ALSO gives the owners flexibility to move for jobs, schools, etc. 0 Reply

rickcain2320
March 5, 201 Normal as in "overpriced". I`m sure the Real Estate industry is happy, the cities are happy because they get to charge more property taxes, and of course the bankers are happy. The only unhappy folks are the buyers, priced out of the market yet again by speculators. 16 Reply

Sandy Koufax rickcain2320
March 5, 201 I second this opinion. "normal" should mean `affordable for median income`. Median income in the US is at around 50K. Try buying a house in any major metropolitan area in the US with 50K/year. In the context of this ridiculous report `normal` means home buyers are back to `normally` getting screwed. 15 Reply

blindliberal rickcain2320
March 5, 201 Yeah you got it... who would be happy about record low interest rates, cheap houses ( compared to what it use to be), and getting a new home... It all the corporations fault, they should pay for everything so i can sit home and complain on cnn`s comment section 2 Reply

Vserp blindliberal
March 5, 201 Why should I have to take out a loan to buy a home? One third of all home purchases were cash even leading up to the bubble bursting. Normally it`s much higher than that, and in countries without government controlled corporate welfare the housing ownership is much higher than here. Our government agencies and their aristocrat kids placed into these positions have destroyed the rest of us, and people cheer? Get the government out now, and housing prices return to normalcy. A home should never have been an "investment" it should just be a "place to live in." We need to change things back to sanity. Work hard and you get to live reasonably. Not this ridiculous crap where the lazy 47% don`t work at all, and then the lazy 5% collect 40% of the profits (Finance in general, historically, only skimmed off 5%, now it skims off 40% of production, and government takes 65%, and yes that adds up over 100% because that money doesn`t exist and that`s why we`re in debt). 2 1 Reply

blindliberal Vserp
March 5, 201 I agree with most of what you say. But lets face it, loans are definitely a great option for a responsible individual. Instead of paying rent for tens of years and struggling to save up 200k to buy a house, one can put down a sizable down payment and build equity to help prepare for retirement. If you have the cash to pay for a house upfront then that is definitely what you shoud do. Most Americans dont have that kind of disposable cash on hand so they take a loan. 1 Reply

farmer1March 5, 201 This is especially true since wages are also rising 3.3% a year...oh wait. 20 1 Reply

Bobsomeguy farmer1March 5, 201 That`s going to be the interesting part to watch over the next few years. For almost 3 decades we had nearly stagnant wages while home owners leveraged their "ever" increasing home values to give themselves the illusion they were doing better than they really were. That kind of thing can change peoples thinking for a long time. For instance, we still have seniors that stash lots of cash all over their houses in fear of another run on the banks. If people don`t go back to their old assumptions about a home being the single best investment that a middle class earner can make, then I have to wonder if the housing market will ever be what it was before 2008. 6 Reply

Vserp Bobsomeguy
March 5, 201 Who is going to buy these houses? The broke college grads that are unemployed or have crappy temp jobs? And who are also possibly drowning in loan debt? There is a natural progression for these things. With the higher education scam, that progression is now gone. We simply do not have a functioning economy. We are Japan. 9 Reply

MikeH Bobsomeguy
March 5, 201 I hope the housing market is never again what it was the years leading to the crash. The crash is the result of the market and people`s (banks and buyers) mentality creating the bubble. It`s bad business and bad for people, and not just those directly involved. 6 Reply

Bobsomeguy MikeH
March 5, 201 I couldn`t agree more. I`m just saying it`s interesting from a human behavior standpoint. I want to see if people learned their lesson and I`m even more curious about whether or not the middle class will attempt to recoup some of their losses by demanding more from their employers when things pickup more in the rest of the economy. . 1 Reply

TomInRochNY Bobsomeguy19 March 7, 201 They can demand all they want, but as long as they don`t control the profits they generate nothing will ever change. 0 Reply

Sharkmann
March 5, 201 What is left unsaid is that many middle class people lost their homes. The high end homes never suffered a slump and now cheaper houses are being bought again. By who though? Middle class people cannot get a loan so I think it is the investor class that is causing the price recovery. We are going from a nation of home owners to a nation of renters. I had to sell my home, not because I got some silly loan, but because the value went up so much that the insurance and property taxes got to be so high that I could not afford to pay them. They were more then my mortgage. So? Sell it and buy another house! But they all were over valued, now I am a renter. 8 Reply

Ian Sharkmann
March 5, 201 I respectfully disagree with you. I am a recent college graduate making 55k/year with 40k in student loans and in Nov. 2012 I was able to get a 180k loan @ 2.8% interest rate in order to purchase my first home. Middle Class can get a loan, you just need to save for the 3.5% down payment. 4 Reply

pycryon Sharkmann
March 5, 201 I am middle class and just bought a home at 3.25%. I take care of my credit, that is the difference. 3 Reply

Sharkmann
March 5, 201 Ian and py, Thank you for the replies, there are plenty of exceptions, but for those who lost their homes, they do not have good credit. That means that even though homes are cheaper, they will not be homeowners ever again.And many people have bad credit as that helps the banks and there is no force making them raise your score. I am late on a payment and pay the late fee (which should make it OK as I paid for my mistake) or get a parking ticket and my score goes down. A parking ticket? 1 Reply

Nucklecheese Sharkmann
March 5, 201 Yes, investors are buying them up. They`re running through my neighborhood buying up houses at 25% their original prices. They slap some paint on `em and rent `em to hooligans. The hooligans then turn around and break into the neighbors` houses and steal their stuff. I just got hit three weeks ago. It`s a good thing it`s "back to normal", eh? I`m one of very few in the area who never missed a payment. Never late, even though I was unemployed for two years, I did what I had to do. Apparently getting broke into and shot at is my reward for honoring my contract and paying my bills. Oh, and additional payroll tax when I was promised it wouldn`t happen. That`s helpful too. 1 Reply

LeAin Carter Scott
March 5, 201 well let me know when housing is normal again, I can regain my $40,000, that my property has lost in value 16 2 Reply

bugaloo10 LeAin Carter Scott
March 5, 201 housing will be normal when people see it as a place to live and not as an investment. The equity gained becomes an investment so one must be cognizant of the cost to purchase and be smart about add-ons and upgrades that do not add value. To see a primary property is strictly an investment will be counter-productive and lead us to another decline in home values. Plan wisely! 7 Reply

achuzzlewit bugaloo10
March 5, 201 Out of curiosity, did you ever watch the TV show "The Bugaloos"? Fantastic, especially if you watched while drunk/high. 0 Reply

Jane Dough LeAin Carter Scott
March 5, 201 Consider yourself lucky to still be a homeowner at all! 4 Reply

Lobelia LeAin Carter Scott
March 5, 201 The real question is whether your property ever had that $40,000 of "value" to lose. Your home didn`t "lose" any value because it was never in reality valued $40,000 above what it is valued today. It`s "value" at the height of the bubble was an illusion, not reality. 4 Reply

SecularPatriot LeAin Carter Scott
March 5, 201 I`m sure you mean equity and not value... 3 Reply

blindliberal LeAin Carter Scott
March 5, 201 consider yourself lucky it was only 40k 2 1 Reply

laxMarch 5, 201 What a ridiculous headline. How can anything be classified as "normal" when the 30 year bond is clinging to 3%? 6 Reply

AdmlShake
March 5, 201 I was hoping they would stay low for another year. I`ll be looking to buy my first house about this time 2014 or so. 6 Reply

Guest AdmlShake
March 5, 201 I would like to point out that in some areas it`s a sellers market, here in Seattle, Sellers are getting multiple offers on the first day of listing. From my limited experience, if housing prices weren`t recovering more houses wouldn`t be on the market...the logic being if I owned a home that I was underwater on I likely wouldn`t list it for sale until the market recovers (unless other circumstances force me to, which i realize is the case in a lot of the examples we read about). Other options that make more sense (if I am underwater) is stay in the residence, or rent it until the market recovers. But the fact that more homes are becoming available (in my area) is indicative that the market is recovering/recovered in my area. I think all would agree that real estate is about location, thus the economy of a location is a major driving force on real estate values/availability. In my particular area, a lot of the houses are owned by the original purchasers (1992 construction) and while they saw their house prices "sky rocket" in 2007, now in 2012 the price of these homes is about double what was paid in `92, thus i think these original owners are willing to sell to move to other retirement areas because they are still making money (but again, if all prices are up from `92 then one might say they are just breaking even...but there are too many "if`s" that i can go down w/ this thought). 1 Reply

Nucklecheese AdmlShake
March 5, 201 Making any such investment in this economy is a fool`s errand. Despite the hype, it really hasn`t gotten any better beyond the stock market. We will dip again soon. Maybe even crash, depending on how much more BS we have to absorb from Obama and Congress. 1 Reply

notabadguy AdmlShake
March 5, 201 They`ve been low for almost six years. What`s taking you so long? You`re missing a good opportunity. 0 Reply

Reconmarine7
March 5, 201 When will the propaganda end? Home prices returning to normal? In Beverly Hills maybe. 9 2 Reply

SecularPatriot Reconmarine7
March 5, 201 The country is not limited to your neighborhood. 6 Reply

rushthis Reconmarine7
March 5, 201 There`s the can`t do attitude that made America what it is today. 3 2 Reply

sevensins rushthis
March 5, 201 So when the BS comes out we all go... Yippie!!! everything is back to normal!! Thats the America that got us into this mess in the first place 0 Reply

blindliberal sevensins
March 5, 201 i dont know if you are aware but any normal economy has its ups and downs its a fact 1 Reply

Robert MacKay rushthis
March 5, 201 oh please, you don`t have any clue what your talking about, if you had the can do attitude you would have more than one home you fool! 0 Reply

Nucklecheese Reconmarine7
March 5, 201 And if you believe that, let`s talk about how GM has "repaid their debt to the taxpayers"! Same vein. 0 Reply

CitizenXXX
March 5, 201 Since they were way, way, over valued when the bubble burst, that was really the return to normal. 4 Reply

Roscoe Chait
March 5, 201 Home prices are rising artifically because mortgage companies are holding back inventory. They are preventing foreclosures, waiting for a better time to put derelict homes back on the market. 4 Reply

HincEtInde Roscoe Chait
March 5, 201 Yes, they are slowly releasing houses into the market at better prices and the markets seems to be absorbing it fairly well. Supply vs demand and not necessarily "artificial". If you don`t get want you want, then you don`t sell. 1 Reply

Starfly Roscoe Chait
March 5, 201 It may be artificial but all homeowners as well as banks benefit from this shorter supply. They are in the business of making money too, so to let them come out slower is better in general for everyone. Plus, this allows for new homes to be built, allowing more skilled laborers having jobs and appliance purchases. I do not see how this is a negative. 1 Reply

farmer12 Starfly
March 5, 201 The negative is that artificial markets are not infinitely sustainable. 1 Reply

Starfly farmer1March 5, 201 It won`t be infinite. It`s a slow release, the cycle won`t come back for decades, with low interest rates and tighter lending standards, people will not default near as heavily as they did during 2007-2009+. 1 Reply

farmer12 Starfly
March 5, 201 I have a hard time believing banks will hold on and maintain all of these foreclosed properties for decades...or for that matter let people squat for decades. Besides, who is going to buy all these old foreclosed homes years from now after new construction has already satisfied demand? Are we not going to have a huge oversupply at some point which puts tremendous downward pressure on prices? Especially considering the young generation is poor and not as "house crazy" as the boomers. 2 Reply

rs120March 5, 201 I`m presently losing over $320,000 in equity on the two homes I own in NY and CT. I expect to sell them at a major loss. Nothing is back to normal. 4 Reply

rushthis rs120March 5, 201 You have TWO homes? I have NO sympathy for you. 10 3 Reply

Bugmetoo rushthis
March 5, 201 There`s that "rich must die" attitude the democrats cling to. 4 Reply

Sharkmann Bugmetoo
March 5, 201 − I guess there would have to be a lot of suicides as most democratic politicians are millionaires.






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