Skip to comments.Home Value Depreciation Accelerating Across S. Fla
Posted on 11/10/2010 9:59:41 AM PST by Mojave
The housing market across the nation, including here in South Florida, is seeing home value depreciation accelerate. The latest numbers from Zillow.com show that the current housing recession is quickly approaching the Depression-era housing collapse from 1928-1933.
Nationally, home values are 25 percent below their peak after 51 months of declines. The worst long-term home price appreciation was from the end of 1928 to the end of 1933, or 60 months.
(Excerpt) Read more at cbs4.com ...
Need to get a new roof in a couple of weeks. At this rate, the roof is going to cost more than my house is worth.
Zillow.com as a source? They can’t be serious. That website is so out of touch with market conditions it is laughable.
Appreciation is bad for homeowners. It hands the government more money to pave the same number of streets, brokers more money for selling the same house, sets up people who bought at the wrong time to be upside down, and tempts people to borrow against their house to pay for non-durable purchases (analogous to eating one’s own children).
How so? It's comp driven.
Doesn't look like they'll be seeing much of it for a while.
This depreciation is a bad thing in the same way that having your body temperature go from 103 degrees down to 99 is a bad thing.
Good. Though I do feel sorry for those who bought in on the bubble.
Oh, and it also limits entry of time buyers into the market, because as they’re trying to save a down payment, the prices are moving up at the same time.
I wouldn’t want it to go so far down that I was under water, but I’d be happy as a clam to see it below what I paid for it. Starve the goobermint (who never bothers to lower rates when values skyrocket), and changes houses for a much more reasonable cost.
If they go down another 50% maybe a normal person could actually afford to live there.
Didn't a massive drop of property values in FL precede the market crash of ‘29 by about 6 months?
Home values have not decreased. The value of money has decreased thanks to Bernake violating the Hippocratic oath: First do no harm.
As Bernake prints more money it has the paradoxical impact of increasing the price of oil and other imports while destroying the market for domestic products that cannot be imported, such as existing homes.
I might have been a bit hard on Zillow in my original post but as I have checked Zillow price estimates to what I see in my local market, it has been both much higher and much lower. That could have been due to rapid market fluctuation and Zillow not keeping up but I would not rely on it for anything more than the most general guide.
For example, a house Zillow shows as $115,000 has a lot of comps at $95,000 in better condition. It shows one house that is a near total wreck (needing $70,000 of repairs) at market price.
This is painful but necessary. Housing is still far overvalued, and so his commercial real estate. The nasty fact of the matter is that a lot of people and companies will have to take even bigger losses before things flatten out.
It has always been about 10-15K+ less appraisal value than ours until about 2 months ago and now all of a sudden it's worth (according to Zillow) 1K more than ours. The only thing we can think is that some how their Realtor was able to go into Zillow and fiddle with the numbers.
They still aren't selling their house but I have lost faith in the accuracy of Zillow.
Florida crash ping.
In some areas the market is crashing so fast the AVM’s and Zillows can’t keep up with it.