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Existing home prices in Albany fell nearly 4% in first quarter of 2008 | 5 comments (5 topical, 0 hidden)
Good points (none / 0) (#4)
by AlfredMoisiu on Wed May 14, 2008 at 08:19:28 PM EST
When I moved back to the area in 2004, the market was insane -- so much cheap money was available that you needed to make a home purchase decision within minutes of the property going on the market.

Today, in this area, I think we're in a normal real estate market. Sellers aren't desperate, and buyers aren't in a frenzy. Houses are moving when they are priced appropriately.

In California, it's a totally different situation. The market is in free-fall, and anyone who has purchased a home since 2002 has the double whammy of being underwater on their mortgage AND being fleeced on property taxes. (In CA, assessments adjust no more than 1%, unless it changes hands) Otherwise upstanding people are defaulting, because selling their home could leave them $100,000+ in the hole.

So I don't think the threat of price depreciation is a factor here. If anything, monetary inflation makes buying fixed assets a better deal today.

[ Parent ]

alfred and me (none / 0) (#5)
by DIA on Thu May 15, 2008 at 06:23:58 PM EST
the way things are going, alfred, soon people will have to check to see who is writing the posts.

Borrow as much as you can in 2008 dollars and buy good quality fixed assets.   Sit back and watch inflation make your loan payments smaller and smaller.    Let the bankers eat it.   2008 dollars at 6%?   It is like knowing the numbers to the lottery the night before.

[ Parent ]

Existing home prices in Albany fell nearly 4% in first quarter of 2008 | 5 comments (5 topical, 0 hidden)
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