How much has your home value depreciated?

Discussion in 'Et Cetera, Et Cetera' started by faceking, Apr 6, 2008.

  1. faceking

    faceking Well-Known Member

    Joined:
    Nov 14, 2004
    Messages:
    7,535
    Albums:
    1
    Likes Received:
    110
    Gender:
    Male
    Location:
    Mavs, NOR * CAL
    Curious how folk here have taken a hit on their home, condo, property value.

    In my area, I'm pretty fortunate as there so much unbelievable restriction on building, combined with a handful of mill/billionaires buying up huge swaths of surrounding open land in the name of "land preservation". While outlying areas of the SF Bay Area that just kept seeing bands and bands of tract development just take a swift and humiliating beating.

    I've owned 6 years now at my current location... and property value dropped about 10-15% over the last year, but over the 6 years am still way up, so am thankful, but regardless don't have any plans/need to move. An old friend who lives out in those "bands of tracts" is down 40%, needing to move, and competing with 107 homes in his area up for sale as well.
     
  2. Pecker

    Pecker Retired Moderator
    Gold Member

    Joined:
    Mar 5, 2002
    Messages:
    83,922
    Likes Received:
    34
    As of last year my home's value had tripled since 1992. Since then it may have dropped only 3-5% but I've never borrowed against the equity so a few percents here or there won't hurt me at all.
     
  3. BearGut340

    BearGut340 New Member

    Joined:
    Jun 3, 2006
    Messages:
    6
    Likes Received:
    0
    Gender:
    Male
    Home prices on my street (VA suburb of DC) have dropped 50% from the mid 400K to the mid 200K. But no one can get their asking price becuase at least half of the houses on the street are up for auction as the starting price is 50K.

    My sister lives in Florida (Gulf side) and they have the same problem. Prices were artificially run up and now that the market has crashed, no one can afford to sell at a loss.
     
  4. Industrialsize

    Staff Member Moderator Gold Member

    Joined:
    Dec 23, 2006
    Messages:
    24,341
    Albums:
    2
    Likes Received:
    2,199
    Gender:
    Male
    Location:
    United States
    bought my house(I own a B&B) in 1995 for 300,000.......Currently assessed at 1,200,000......On the market at 1,195,000
     
  5. rexcasual

    rexcasual Member

    Joined:
    Dec 17, 2006
    Messages:
    220
    Likes Received:
    2
    Gender:
    Male
    Location:
    Southern Ontario
    Hence the mantras from old time real estate advisors:

    Location. Location. Location.

    Invest for the long term.

    If someone hangs on they'll probably be fine, over the long term. It is unfortunate when someone has no choice but to sell in a down market.

    It happened to me in the early 90s. I had purchased at the peak in the late 80s, paid too much, and I was wiped out as far as preserving any equity when I had to sell. I lost 75G (my cash investment) on the sale. Had I been able to hold on to that house I would now hypothetically have over $250G in equity in today's market.

    Toronto's market has not experienced any depreciation yet. There has been a 24% slowdown in sales compared to last year's record breaking first quarter, but average prices are still up 2% from a year ago.
     
  6. Drifterwood

    Gold Member

    Joined:
    Jun 14, 2007
    Messages:
    15,725
    Likes Received:
    388
    Location:
    Fingringhoe (GB)
    Negative equity? Hand the keys back and go rent. I used to work for a bank.
     
  7. FuzzyKen

    FuzzyKen New Member

    Joined:
    Nov 10, 2006
    Messages:
    2,116
    Likes Received:
    6
    Gender:
    Male
    The fall in real estate depends on where you are. My California home has lost about $200,000.00 in value and I am selling at this time with what will be an incredible loss. It was appraised 2 years ago at over $550K and since that time in hopes of maximizing the sale dollar we invested about $65,000 in the kitchen, bathrooms and xeriscape landscaping. This hurts.....
     
  8. Ethyl

    Gold Member

    Joined:
    Apr 5, 2006
    Messages:
    5,476
    Albums:
    2
    Likes Received:
    495
    Gender:
    Female
    Location:
    Philadelphia (PA, US)
    I am SO glad I rent at the moment. I may not be accumulating equity but landscaping, home improvement, repairs, parking, heat and hot water are all included every month. I'll buy when it's worth my time and money.
     
  9. THEDUDEofDestiny

    Gold Member

    Joined:
    Apr 6, 2008
    Messages:
    1,274
    Likes Received:
    3
    montgomery county, maryland loves restricting development so no big losee yet. the metro area is about to put heavy tolls on all the roads and i live close to the city, so that should help to keep them high.
     
  10. canuck_pa

    Gold Member

    Joined:
    Jan 28, 2007
    Messages:
    2,198
    Likes Received:
    125
    Gender:
    Male
    Location:
    Beautiful Vancouver Canada
    I'm sorry to hear the stories coming out of the States. Thankfully we in Canada aren't experiencing the same downturn in the property market.

    Here in Vancouver we've had an enormous problem with leaky condos. My current condo was one. I had to come up with $56,000 as my share to get the building fixed. The value of my condo dropped from about $200,000 to $ 135,000 in one year. Thankfully now that its fixed, and with the increase in the BC market, its worth $ 435,000.
     
  11. kalipygian

    Gold Member

    Joined:
    Dec 3, 2005
    Messages:
    1,982
    Albums:
    1
    Likes Received:
    35
    Gender:
    Male
    Location:
    alaska
    No downturn in Alaska. My tax appraisal is 6x the 1990 purchase price, the appreciation is just 2% over last year. I had a fifteen year mortgage, it is paid off. No plans to sell.

    Have some land in Florida that has dropped about 25% in the last year. Wish I'd put up for sale three years ago.
     
  12. th3on3

    th3on3 New Member

    Joined:
    Aug 20, 2007
    Messages:
    46
    Likes Received:
    0
    Gender:
    Male
    i live in north jersey the prices around here have gone up
     
  13. transformer_99

    Gold Member

    Joined:
    Aug 5, 2006
    Messages:
    2,466
    Likes Received:
    1
    Gender:
    Male
    Real estate has dropped around 25 % in Miami, S FL. It's still 3X higher than it's really worth in the area I live. Last time something like this happened, 2nd Reagan term and Daddy Bush had the S&L bailout/Crisis. "W" won't be around to see the real estate market bottom out, so it's a matter of whether McCain or a Democrat inherits the bail out. What to do though, local taxing authorities have raised property taxes here. FL government has tried to pass tax relief, but it's not much relief for homeowners. FL taxes won't go down in that regard, so that might hold home prices up a little more and the fact so many people were duped into buying when homes were at their highest selling prices. Simply put incomes for the working class haven't gone up enough to handle the inflation. Home prices tripled and quadrupled, while most incomes have gone up at a much lower cost of living increase adjustment rate. I suspect many more will either flat out be foreclosed upon and yet others will simply burn their houses down to get insurance to pick the tab up on it. Either way, foreclosure or unprosecuted arson, the banking and insurance industries will need to be bailed out by the Govt/taxpayer.
     
  14. VeeP

    Gold Member

    Joined:
    Sep 3, 2005
    Messages:
    1,787
    Albums:
    1
    Likes Received:
    2
    Gender:
    Male
    This year it declined for the first time since I bought it in '02... but only about 4%.
     
Draft saved Draft deleted