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).
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.
http://www.tampabay.com/news/business/tampa-bay-home-values-drop-still-among-worst-in-nation/1133436
cool.
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.
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.
Florida crash ping.