Must See: Howard Davidowitz Destroys The Recovery Illusion, Debunks The Consumer Renaissance

ZeroHedge | 12/30/2010 | Tyler Durden

[bruinbirdman]

"What can we do to correct it and bring recorded values down to honest levels?"

It seems the market is taking care of that.

Anecdote: FO knows where I live. $285K cash was a reasonable price in 2000. The previous owner continually lowered the price over 2 years.

The property assessment, mainly the lot, ballooned to $698K (+145%) in 2006.

Currently, Zillow.com values it at $350K, a 23% increase in 10 years.

Now, this property was up 145%. Did I lose $345,000? I think not.

yitbos

[familyop]

"Now, this property was up 145%. Did I lose $345,000? I think not."

No, you didn't lose anything. It's a nice place in a good area. They've been over-assessing properties in my neighborhood, too, and are wringing their hands about likely devaluations to come. Most real estate here will be very low in value (very remote, bad roads, extreme weather, etc.), and that's fine with me (more peace and quiet).

[bruinbirdman]

Like a share of stock. No one makes or loses anything until they sell.

yitbos

[familyop]

Well said.