PDA

View Full Version : How Low Can Home Prices Go?



michaelwise
03-22-2008, 10:53 PM
Florida is a disaster area. 1 year ago I said everything would be 1/2 price, buy one get one free. California, Arizona, Nevada, and many other places will be the same way. What happens when property tax collections are cut in half? This is an election year so it will be difficult to raise millage rates because it is political suicide to do that.

Real Estate Nightmare, Paradise Lost in SW Florida
http://www.youtube.com/watch?v=VgTdxEGauok
LibertiORDeth
03-22-2008, 11:07 PM
the way I understand it,as long as the Fed can lower the interest rate, prices will go down.
runderwo
03-22-2008, 11:39 PM
the way I understand it,as long as the Fed can lower the interest rate, prices will go down.

No. Fed lowering the interest rate is a price support, preventing a credit crunch that will cause asset value deflation, but at the expense of the price inflation caused by the increased money in circulation.
LibertiORDeth
03-22-2008, 11:46 PM
No. Fed lowering the interest rate is a price support, preventing a credit crunch that will cause asset value deflation, but at the expense of the price inflation caused by the increased money in circulation.

I thought it encourages borrowing.
FrankRep
03-22-2008, 11:57 PM
Florida is a disaster area. 1 year ago I said everything would be 1/2 price, buy one get one free. California, Arizona, Nevada, and many other places will be the same way. What happens when property tax collections are cut in half? This is an election year so it will be difficult to raise millage rates because it is political suicide to do that.

Real Estate Nightmare, Paradise Lost in SW Florida
http://www.youtube.com/watch?v=VgTdxEGauok

Great buying opportunity for investors.
ghemminger
03-23-2008, 12:09 AM
Top of the bubble and Divide by Half? Good General Guide.....Thats for prime property
thuja
03-23-2008, 12:20 AM
Great buying opportunity for investors.

i wish i could buy them and give them back to the people the belonged to.
ghemminger
03-23-2008, 12:22 AM
i wish i could buy them and give them back to the people the belonged to.


lol - socialism at it's finest....lol ...how about the Federal Reserve just stop inflating the prices and debasing the currency...in a "real" free market - we'll all live fab.:D
libertythor
03-23-2008, 01:51 AM
It is a much needed correction. For many years the prices were rising faster than wages.
amy31416
03-23-2008, 04:24 AM
lol - socialism at it's finest....lol ...how about the Federal Reserve just stop inflating the prices and debasing the currency...in a "real" free market - we'll all live fab.:D

So you think charity is socialism?
m72mc
03-23-2008, 04:41 AM
92-93 Sweden had a similar financial crises. Real estate then dropped 50-60 %.
on top of that unemployment went up 8 % and the currency lost most of itīs value.
savings went from negative to about 8 %.
Effects of the crises lasted well 10 years.
If u donīt know history, you are doomed to repeat it.
MozoVote
03-23-2008, 08:19 AM
Go on Realtor.com and look at the prices of homes in Buffalo NY or Detroit... you can buy houses all day long for $25,000 because there is an oversupply of housing that is decades old, and numerous slums.

And it can get worse. In an area with no employment, home prices go to zero, the local government cannot collect any tax revenue, the infrastructure is not maintained, then vandals burn it all down. That's what a "ghost town" is!