Seeing lots of articles on house prices falling

[Fat_ninja]

Sounds like this is concentrated in the high end.

Just curious, anyone worried or bothered? Most people have a good amount of their wealth in their house... so a $500k drop vs what they originally thought is a big deal, no?

How does one adjust their lifestyle in a scenario like that?

[Art 1]

I don't worry at all about things like that. Money is very very low on my list of worries.

[brandrea]

I suppose it depends where you are located. Our prices are up about 1.5% over last year.

Like Art, I don’t focus on it tho, as you have to have a place to live and we plan to stay in our house till the grim reaper calls

[.brian.]

Originally Posted by Fat_ninja

a $500k drop vs what they originally thought is a big deal, no?

I would venture to say that for most Americans, a $500k reduction in the value of their home would be a very big deal. Maybe not to the majority of posters on this particular forum, but yea, people on here make up a very small percentage of how people actually live.

FWIW, a $500k drop in the value of my home would mean I would be in big big trouble

[Art 1]

Originally Posted by brandrea

I suppose it depends where you are located. Our prices are up about 1.5% over last year.

Like Art, I don’t focus on it tho, as you have to have a place to live and we plan to stay in our house till the grim reaper calls

Yes the house there keeps going up and probably will for awhile.

[brandrea]

Originally Posted by Art 1

Yes the house there keeps going up and probably will for awhile.

I think so too, but who really knows. With Amazon coming to the area, a booming high tech sector and 2 world class universities people keep coming.

We like the village, they’ve still managed to keep it low key

[Etschell]

Originally Posted by .brian.

I would venture to say that for most Americans, a $500k reduction in the value of their home would be a very big deal. Maybe not to the majority of posters on this particular forum, but yea, people on here make up a very small percentage of how people actually live.

FWIW, a $500k drop in the value of my home would mean I would be in big big trouble

most Americans dont own a 500k house let alone absorb a 500k drop.

[SearChart]

Nothing but rising house prices here, hoping it will crash/dip somewhere in the next 5 years, I want to buy!!

[beshannon]

Originally Posted by Fat_ninja

How does one adjust their lifestyle in a scenario like that?

Are you planning on selling?

Do you need the money?

I do not understand the question.

[Art 1]

Originally Posted by brandrea

I think so too, but who really knows. With Amazon coming to the area, a booming high tech sector and 2 world class universities people keep coming.

We like the village, they’ve still managed to keep it low key

I agree. I love that area. It's amazing there really.

[keithl]

I had to look and see if this was an old posting, because this is the opposite of what's happening in the housing market. Prices are at an all time high, but because of this and because interest rates have risen people have just started to slow down the buying frenzy that was taking place. Maybe it's a little different where you live but currently this is the best sellers market this country has ever seen.

Originally Posted by Fat_ninja

Sounds like this is concentrated in the high end.

Just curious, anyone worried or bothered? Most people have a good amount of their wealth in their house... so a $500k drop vs what they originally thought is a big deal, no?

How does one adjust their lifestyle in a scenario like that?

[Etschell]

a primary residence is rarely a profitable investment.

espeically for those using mortgages to finance them.

run the math. of course you need a place to live.

increases or decreaes in market value should be irrelevant

[pickettt]

Unless your house is on the market or you’re borrowing against it, I think it’s totally inconsequential. My house has swung by as much as $300k in the last 12 years.....didn’t affect me at all. Don’t get me wrong, it’s nice to think you’ve got an expensive house, but it’s just academic unless you sell it.

[derekhayden]

Where I am it's also a sellers market so no drop in values. It also depends on what you consider high end. In my area the higher end would be 2 - 3 million. I am guessing this $500K drop would be effecting the double digit millions areas which is fairly common since your target purchase audience gets significantly smaller. As others have said it means nothing if you aren't selling or renting the property.

[christianj]

I agree that the answer to this is market specific and also depends on the overall price of the home. In the area of MD we lived in we never really saw a big drop. When we bought in CT last year it seemed like the prices had dropped significantly from a couple of years ago and I think they have leveled off now or are still decreasing slightly. Realtor told us that anything less than $500k flies off the market but anything over $1 mio sits for a while.

FYI, the average price of a home in the US is around $190k based on a quick Google search.

[Pix]

Good luck getting the local Govt. to drop the property tax bill.

[Spartacus]

In my area, the home could be a dumpster, but if it’s in the right school district, it’s going to sell for a premium, regardless.

[gmh1013]

I have talked to a few realtors in my area and home over 250k are not selling....unless you offer some big percs. My house is the smallest one in the hood at 2080 sq ft. and the lot is a corner with a lot size of 10020 sq ft and 210k is the market value of it. I want to sell it yesterday and move to 55 and over apt. House is WAY to big for me plus waste of elec cooling it for one person.
She said if I listed at 195k I MIGHT have a chance of selling it.....if I go to 190k or bellow. and leave all the washer and dryer I just bought last year for 2200. Im lucky that i own the house but dont want to give it away either.....sad part is she said just 4-5 months ago I would have got 210k easy.....maybe more.

[93vtech]

After harvey, a high percentage of home were flooded; imo it triggered a price increase on this end.

[Fat_ninja]

Originally Posted by beshannon

Are you planning on selling?

Do you need the money?

I do not understand the question.

I was more curious than anything.

Just seeing lots of articles and wasnt surewhat to think about it. Last article i read was about scarsldale NY and then i was watching TV and they were mentioning NYC and Uk.

[Wesley Crusher]

In some areas, prices are still on the rise. Especially when there is a lot of foreign investment. You see a lot of cash buyers in these places, too.

In the areas where prices are cooling off, I suspect that it’s a matter of inventory finally catching up to demand. In part, at least. Also, rates are up quite a bit from last year so that people aren’t as eager to buy.

[SDRider]

The value of my house doesn’t matter at all. We bought it almost twenty years ago when the market was just starting to pick up after decades of slow growth. It has never been worth less than what we paid for it and it only matters if we were to sell it, which we aren’t. Honestly, you couldn’t rent a two bedroom apartment for what our mortgage payment is and we have a pretty nice house.

[Grnvette65]

In nyc the higher end is seeing price drop, this will lead to pressure on the less priced units. I agree w above, it’s all academic if your are not selling.

[GoingPlaces]

There are SO many reports on housing today that one really needs to take a closer look. In our area, DC Metro the market is very healthy and we are seeing very little discounting even in the high end (2-4M). There are some local areas that are softer than others so I can see how numbers/data is confusing.

Housing reports really need to be more localized, process is dated. I wouldn't worry, housing goes up and occasionally down, but always long term up. Unless you are looking to sell, does it matter?

[Boothroyd]

If my house goes up in value substantially, it means whatever I would replace it with has gotten more expensive as well. When I think of net worth, I always put home equity off on the side, as I can't (won't) monetize it by borrowing against it, and have no plans to sell soon.

[V25V]

Falling where? Not here..... or other major cities.

[singe89]

My primary residence is my family home and necessity so I don't consider it an investment. I don't plan on moving but if I it lost $500k in value it wouldn't worry me because chances are other homes I would want to move into would be down by a similar percentage.

Now if one of my investment properties was down $500k that would hurt but it wouldn't be a realized loss unless I sold. As long as rental rates stay strong and its producing income then it really doesn't matter.

Not too worried because according to Zillow Orange County was up almost 6% last year and they predict 12% increase within the next year.

[SDRider]

Originally Posted by singe89

My primary residence is my family home and necessity so I don't consider it an investment. I don't plan on moving but if I it lost $500k in value it wouldn't worry me because chances are other homes I would want to move into would be down by a similar percentage.

Now if one of my investment properties was down $500k that would hurt but it wouldn't be a realized loss unless I sold. As long as rental rates stay strong and its producing income then it really doesn't matter.

Not too worried because according to Zillow Orange County was up almost 6% last year and they predict 12% increase within the next year.

Same here. Our investment properties are all paid off so it really doesn't matter what happens to their value either. Apartment buildings are a hot commodity though so I can't imagine them losing value. My biggest concern right now is rent control.

[Chewbacca]

Are and will they correct, yes.

Is it a material issue for most, no.

Lose the $800 pm car because you feel house rich and you’ll be fine making the house payments.

[fusionstorm]

Real estate is millions of micromarkets. What happens in your micromarket may not necessarily apply 2.5 blocks away, much less 25, 250 or 2500 miles away.