Comments on: Yes, Housing Prices Can and DO Decline http://www.biggerpockets.com/renewsblog/2005/09/20/yes-housing-prices-can-and-do-decline/ Learn, Network, Invest Mon, 23 Nov 2009 17:19:26 -0500 http://wordpress.org/?v=2.8.5 hourly 1 By: D ROWAN http://www.biggerpockets.com/renewsblog/2005/09/20/yes-housing-prices-can-and-do-decline/comment-page-1/#comment-146 D ROWAN Thu, 06 Oct 2005 19:54:36 +0000 http://biggerpockets.com/renewsblog/index.php/2005/09/20/yes-housing-prices-can-and-do-decline/#comment-146 Nice to read that I am not the only one who sees troubling signs in the real estate market. Living in Maui, median home prices here have skyrocketed over the last several years, and are now hovering @ 1 million....(MEDIAN!). No one here belives these houses can ever decrease in value. Interest rates are in an area where we have no historical data to suggest what might happen in the future, only that lenders are now willing to do whatever they can (interest only!, 110% financing, ARM's w/ balloons....etc), to make you feel you can afford the unaffordable...to keep this upward trend alive. RE is cyclical...and nothing goes up forever. But try to convince those who have EVERYTHING tied up in a 700K mortgage and a 60k/year job. I am truly amazed at how short-sighted and debt-unconscious most adults are today. But, I've been saying this for the last 5 years...and everyday...there are 100 more real estate guru's telling me how wrong I am. I guess time will tell...but I favor what history tells me as opposed to what my neighbor's blind faith. Nice to read that I am not the only one who sees troubling signs in the real estate market. Living in Maui, median home prices here have skyrocketed over the last several years, and are now hovering @ 1 million….(MEDIAN!). No one here belives these houses can ever decrease in value. Interest rates are in an area where we have no historical data to suggest what might happen in the future, only that lenders are now willing to do whatever they can (interest only!, 110% financing, ARM’s w/ balloons….etc), to make you feel you can afford the unaffordable…to keep this upward trend alive. RE is cyclical…and nothing goes up forever. But try to convince those who have EVERYTHING tied up in a 700K mortgage and a 60k/year job. I am truly amazed at how short-sighted and debt-unconscious most adults are today. But, I’ve been saying this for the last 5 years…and everyday…there are 100 more real estate guru’s telling me how wrong I am. I guess time will tell…but I favor what history tells me as opposed to what my neighbor’s blind faith.

]]> By: empty spaces http://www.biggerpockets.com/renewsblog/2005/09/20/yes-housing-prices-can-and-do-decline/comment-page-1/#comment-140 empty spaces Tue, 04 Oct 2005 00:53:29 +0000 http://biggerpockets.com/renewsblog/index.php/2005/09/20/yes-housing-prices-can-and-do-decline/#comment-140 3 cheers for "regression to the mean"! everything works in cycles. humans are wired to forget that and generally believe that the present state[whether good or bad] will continue indefinitely. 3 cheers for “regression to the mean”!

everything works in cycles. humans are wired to forget that and generally believe that the present state[whether good or bad] will continue indefinitely.

]]> By: Administrator http://www.biggerpockets.com/renewsblog/2005/09/20/yes-housing-prices-can-and-do-decline/comment-page-1/#comment-119 Administrator Wed, 28 Sep 2005 04:26:34 +0000 http://biggerpockets.com/renewsblog/index.php/2005/09/20/yes-housing-prices-can-and-do-decline/#comment-119 Glad you enjoyed the post! People are often afraid to see the truth sometimes when they are blinded by the premise of money. Glad you enjoyed the post! People are often afraid to see the truth sometimes when they are blinded by the premise of money.

]]> By: Jim Stein http://www.biggerpockets.com/renewsblog/2005/09/20/yes-housing-prices-can-and-do-decline/comment-page-1/#comment-118 Jim Stein Tue, 27 Sep 2005 21:48:43 +0000 http://biggerpockets.com/renewsblog/index.php/2005/09/20/yes-housing-prices-can-and-do-decline/#comment-118 When I jumped into the commercial appraisal field in 1991, everybody thought the ship had sunk, but low and behold, the Southern Californa Real Estate Market had more room to plummit and it continued to decline until 1994 when it flattened out and remained relatively flat until 1996/1997. People seem to have forgotten those days. When I hear people say that the real estate market is solid and will NEVER drop I am reminded of the days between 1992 and 1995 associates were saying the Southern California Real Estate Market is DEAD and will NEVER come back. Never say never!!! Good article! Thanks for posting it! Jim <a href="http://www.commercial-appraisal.net/jasvaluation/index.htm" rel="nofollow">http://www.commercial-appraisal.net</a> When I jumped into the commercial appraisal field in 1991, everybody thought the ship had sunk, but low and behold, the Southern Californa Real Estate Market had more room to plummit and it continued to decline until 1994 when it flattened out and remained relatively flat until 1996/1997.

People seem to have forgotten those days.

When I hear people say that the real estate market is solid and will NEVER drop I am reminded of the days between 1992 and 1995 associates were saying the Southern California Real Estate Market is DEAD and will NEVER come back.

Never say never!!!

Good article! Thanks for posting it!

Jim

http://www.commercial-appraisal.net

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