homeowners: has your home value recovered

  • Posted by a hidden member.
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    May 15, 2015 5:31 PM GMT
    has your home valuation recovered and reached exceeded its peak 2006 value?
  • Posted by a hidden member.
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    May 15, 2015 8:08 PM GMT
    Yes - I'm an hour outside Manhattan.
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    May 15, 2015 8:09 PM GMT
    We have received 25 unsolicited offers.
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    May 15, 2015 8:40 PM GMT
    How would I determine that? Is there some web site I can use?
  • rnch

    Posts: 11524

    May 15, 2015 8:40 PM GMT
    In this close to the river area, unflooded of New Orleans, property values never went down all that much, has steadily increased in value since purchased in January of 2005.




    icon_biggrin.gif





    (In all fairness I should add that, although prices have steadily risen in my area, New Orleans, in general, didn't have the spectacular spikes in gains and losses other areas did before 2006.)
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    May 15, 2015 9:14 PM GMT
    http://www.brookings.edu/research/interactives/metromonitor#/M10420
  • ChicagoSteve

    Posts: 1277

    May 15, 2015 9:33 PM GMT
    No, not yet. I am in the Gold Coast/Old Town area of Chicago. I have a one bedroom condo. It has improved in the last couple of years, but despite being in a great area, it has not gone back to 2006 levels. I've been in this unit since 2002.
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    May 15, 2015 10:06 PM GMT
    eagermuscle saidYes - I'm an hour outside Manhattan.


    There may be pockets that have done better than general areas and you might have lucked into one of those but also don't forget to factor in about 10 years of inflation.

    Even by the lowballing CPI figures, $100 in 2006 (peak housing bubble) dollars is $116.43 in today's dollars.

    So if your house would have sold for $1 million at peak and would get $1 million today, even that is not recovery. That's down 15% from peak.

    Brookings (link provided in post above) shows the metro NY down 26.8% from peak.
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    May 15, 2015 10:55 PM GMT
    Lumpyoatmeal saidHow would I determine that? Is there some web site I can use?

    You can get a rough guesss from Zillow.com and various other real estate websites.

    If you just entered you exact street address as a "phrase" in google search, along with the name of the town, most likely a half dozen real estate sites with values would pop up.
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    May 15, 2015 11:01 PM GMT
    This condo has doubled in price since the Bush Great Recession and real estate crash in 2007, when its value plummeted. Not that we're planning on selling, but nice to know the Obama recovery is showing results. icon_biggrin.gif
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    May 16, 2015 2:27 AM GMT
    HikerSkier said
    Lumpyoatmeal saidHow would I determine that? Is there some web site I can use?

    You can get a rough guesss from Zillow.com and various other real estate websites.

    I bought my place in 1991, for 177; according to zillow a similar house is going for 399. But I still can't answer the OP's question because I don't know what mine was going for in 2006.

    I just had a good laugh with a friend; she and her husband bought their house, same city, definitely bigger than mine, in the 1970s and paid 48 for it.

    Where you guys are do they do "staging" when the house is sold? It's the big thing here. Staging is where a consultant comes in and completely remodels the place with their own furniture, paintings, bric-a-brac, etc. They'll have you paint it and redo the floors and so on; it makes a huge difference in what you'll get when it sells.
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    May 16, 2015 4:13 AM GMT
    Lumpyoatmeal said
    Where you guys are do they do "staging" when the house is sold? It's the big thing here. Staging is where a consultant comes in and completely remodels the place with their own furniture, paintings, bric-a-brac, etc. They'll have you paint it and redo the floors and so on; it makes a huge difference in what you'll get when it sells.

    My friends were having trouble selling their house in Fargo, several months on the market, barely a nibble. I said let me take advise you.

    I cleared out the closets in their bedrooms, which were packed with boxes of school text books (one of them was a PhD college professor). "You've gotta make your closets look bigger." I put all the boxes in my garage until they relocated to their new place. I also uncluttered their basement.

    Next I moved this huge TV they had, from the living room to their basement rec room. "This thing makes the living room look small. Get it outta here." Next I had them move their big stereo speakers out of the living room as well, to my garage.

    "But we like our music." "Do you like it better than selling this place? For a month you can live without music."

    I also pulled out a few chairs to my garage to further lessen the clutter, and helped them refinish all their kitchen cabinets. I also installed an electric garage door opener myself with remote control, something everyone wants in the harsh North Dakota winter.

    The place sold in 3 weeks. Presentation is everything, as you say.
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    May 16, 2015 1:54 PM GMT
    I bought my first house in Shreveport, Louisiana in December of 2006. Unknowing anything about housing market or the impending doom of it all.

    I bought my 3BR/1BA house for $115,000. I was so excited because most homes I had been looking at were around 125k, and this was more affordable. my mortgage interest rate was 6.5% and i was 24 years old. I thought this was going to be such an investment.


    When I went to move two and a half years later, I realized what had really happened shortly after I bought my house. its value was now only around $80k. And so I couldn't sell it....and putting it on the rental market, the rent wasn't even covering the mortgage.

    In 2011, I refinanced to a 4.5% rate, but in doing so, that reset the 30 year mortgage over. i couldn't do a 15 year loan because i couldn't really afford a higher mortgage payment. but a lower payment did help make the rental income cover the mortgage and allowed me to pay more on principal out of pocket, vice interest.

    Now, in 2015, according to Zillow, I'm about even with what is remaining on the mortgage and what the home's value is. If I were to sell now, I would probably break even, or lose just a little bit due to real estate fees.

    My goal is to get rid of this thing next year.

    In 2009, I bought a house in Enid Oklahoma, and was able to sell it for profit in 2012.
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    May 16, 2015 3:11 PM GMT
    I bought my 1 bedroom flat in Tampa Bay area in 1990 , when my ex-wife decided she didn't fancy Australia and wanted to come back near her family ..

    In 2006 the value plummeted to the 40's , now-days it is back in the 90's , i didn't get screwed with the mortgage note as i had to pay cash for it , as i was a foreigner without credit history

    I have been renting it for the last 2 years , since i moved to Atlanta , the rent i get , minus the realtor fee , covers insurance , maintenance fees and 3/4 of the rent i pay in Atlanta ... Is it a good investment ? , it might be if it keeps its value when the time come to sell it .

    The value of my flat in Australia has steadily increased for the last 35 years and i expect the trend to continue .
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    May 16, 2015 3:14 PM GMT
    willular said... My goal is to get rid of this thing next year
    all good if you want to sell. try to avoid capital gains tax if there is any gains. Also there may be state taxes too. there is a federal $250K exclusion that within 5 years you need to have stayed in the house 2 years. The 2 years need not be continuous. Re investing in a higher priced house no longer qualifies. take the exclusion as many times as you need.

    you pay cap gains on your basis of the house. calculate the basis starting on the initial cost than minus closing costs, taxes, additions you made. Maintenance disnt count. All this is bro advice since i am not a tax accountant.

    i was recently doing the googles on cap gains tax law on line:
    long term capital gains are dependent on the tax rate
    generally the same for single and married filing single)
    tax rates for 2015 (singe tax payer):
    0-9225 0%
    9226 - 37450 15% 15% of the amount over 9225 0%
    37451 - 90750 25% 25% of the amount over 37450 15%
    90751 - 189300 28% 28% of the amount over 90750 15%
    189300 - 411500 35% 33% of the amount over 189300 15%
    if single or married filing single
    you are in a 10% bracket if taxable income (line 43 in the 2014 tax year 1040) is <$9075
    you are in a 15% bracket if income is < $9075 -> 36900
    long term capital gains rate is:
    0% capital gains tax for folks in the 10% and 15% federal income tax brackets
    15% capital gains tax for those in the 25%, 28%, 33%, and 35% brackets
    20% capital gains tax for those in the highest 39.6% federal tax bracket
    if in the 25% tax range (likely since income <$413,200.00) the cap gains is 20%

    note: state taxes may apply

  • Hypertrophile

    Posts: 1021

    May 16, 2015 3:38 PM GMT
    I first looked at my house around 2004. Someone paid way too much and abandoned it a year before I bought at less than a third of the earlier asking price. Now it's more than double what I paid and almost where it should be value wise, but it will be a long time before it reaches 2006 levels when everything was overpriced.
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    May 16, 2015 4:21 PM GMT
    neffa said...1 bedroom flat in Tampa Bay ... been renting it for the last 2 years ... the rent i get ... covers insurance , maintenance fees and 3/4 of the rent i pay in Atlanta...
    be sure your taking all the deductions on your US federal and state taxes. For example HOA and building special assessments could be tax deductible. Get a tax adviser.

    get on TampaBay.craigslist.com and figure if your current rent is appropriate. Your not in the business of offering sub value rent to your tenants. Than again if they plan to leave because your rents go up have a plan.
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    May 16, 2015 4:26 PM GMT
    Physiqueflex said... but it will be a long time before it reaches 2006 levels when everything was overpriced.
    i read an article that most of N America will have caught up to the 2006 levels by 2017. Again not counting the +15% inflation loss. The Denver area caught up in 2013 and last year showed a nice 13% increase above 2006 levels so anything is possible if not already is happening.
  • SilverRRCloud

    Posts: 874

    May 16, 2015 5:55 PM GMT
    The truth is that every market is slightly different.

    All of my properties except for one have not only recovered their pre-2008 (European market crash) but made considerable increases.

    I was buying top-notch in top-notch locations here, and am enjoying a bit of the San Francisco syndrome here. No matter what they do, the PacHeights are not going to get any bigger. What is here is here, and that won't change much.

    Savvy sellers know that haste is their enemy. If you want a quick sale, the frequency you are raising via advertising simply does not have the time to kick in, and you are going for the first, half-way acceptable offer. If you play it cool, and show patience, the players realize that you are in no dire need, and the game gets tilted in your favor.

    I have been receiving completely unsolicited offers, and that is a clear sign that the sellers' market is here again.

    SC
  • metta

    Posts: 39134

    May 16, 2015 6:03 PM GMT
    More than half of the potential loss has been recovered. My home is still about $100k-$200k down from the peak. That is just a guess. I don't know how much it would actually go for unless I put it up for sale. Some areas are way above the previous peak. The recent forest fires in my area and a lot of new homes being built may be holding it down still. Many other areas are way above the previous peak. I think that Venice Beach, CA is a bubble.
  • bobbobbob

    Posts: 2812

    May 16, 2015 6:20 PM GMT
    I never noticed a drop in property value after 2006 mainly due to Hurricane Ivan in September 2007 that boosted home prices in prime locations. I've got a nice home on one lot with a well landscaped and maintained lot directly across the street with waterfront on the bayou, with a gazebo, and pier with berths. I have no intentions of selling or moving but that doesn't stop realtors and developers from trying to talk me into it.
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    May 16, 2015 6:27 PM GMT
    Yes, values have done nothing but increase over the years.
    We've paid ours off and rent out 2 others, also paid off.
    If you buy right, property can actually make you money in the long run vs. renting.
  • Unnamed6

    Posts: 1145

    May 16, 2015 8:35 PM GMT
    pellaz saidhas your home valuation recovered and reached exceeded its peak 2006 value?


    Should a personal home ever be considered an asset and not simply be something of intrinsic value for the homeowner? Should one ever actually care if one's home ever declines in market value? And why should anyone want to actually promote higher property values when it usually comes at high social costs?
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    May 16, 2015 10:04 PM GMT
    Bought my home 9 years ago and never intended for it to be an investment, just wanted my own place. The value went up a lot the first three years. Each year since then it has steadily gone down in value. It is especially demoralizing because the assessments done by the city don't reflect all the work I have put into the home and property over the years. So many people around me foreclosed that it has hurt the overall value of homes in my neighborhood. I appreciate what I have, just wish those damned assessments would go up for once.
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    May 16, 2015 10:20 PM GMT
    PatrickRyan saidBought my home 9 years ago and never intended for it to be an investment, just wanted my own place. The value went up a lot the first three years. Each year since then it has steadily gone down in value. It is especially demoralizing because the assessments done by the city don't reflect all the work I have put into the home and property over the years. So many people around me foreclosed that it has hurt the overall value of homes in my neighborhood. I appreciate what I have, just wish those damned assessments would go up for once.


    Ha, clearly someone doesn't have Austin size property taxes--cuts both ways.