Big Houses Selling....at big discounts

[spartonboat1]

I notice that houses in the 600k-11mil ranges are selling, providing their prices are very discounted. An associate at work said his daughter and SIL scored a 900k house +10 acres for 330k. Another 900k property on Lk, MI sold for about 330k as well. Next door neighbor bought a 4,280sqft house, I am guessing for a very good price, because he tight with a nickel. His wife said the master bath had $3k 'waterfall' water fixtures, but had 3 of those fixtures in that bathroom no less.

I also see in the Detroit papers that multi-million $ homes were selling at up to 80-90% discounts. E.g. 11m sold for 1.2M, 4.5m sold for 850k. Nephew bought a Grosse Pte. Farms 900k house for about $300k.

So I'm not so good on the Hope thing. Unfortunately the Change part is in the wrong direction. Thankfully Grand Rapids (MI) is the #1 job market in the US next quarter this year (Fall I think), for what that's worth. Some houses selling quickly here in town and at premiums. House down street from my son sold in 3 days. Next door neighbor's house sold in 7 days, catching them off guard and at better price than expected; they had to rush their move to their new house.

Hope I don't get flamed for this post, as the political posts have been quiet.

 

[rsmith]

Were they ever realy worth that much or was that just the top of the bubble overinflated hype?

 

[krush]

And what if somebody said they are still overpriced????

 

[saltshaker]

And what if somebody said they are still overpriced????

Many still are. It's still hard to find a nice home under 850-900K here in Northern NJ. Starter homes are still in the low 400's. That will get you a 1200-1300sqft Cape that will need updating, on a 50x100 lot in an ok neighborhood.
I'd say that's still way overpriced.

 

[spartonboat1]

Were they ever realy worth that much or was that just the top of the bubble overinflated hype?

I think that was the bubble top. All I saw on the list were 5 year or so listings, before sold.

Here in GR in a nice area, 1,900-2,200 sqft is going for $200-225-240k. Condition is also a factor. Roofs, furnace, electrical, flooring, kitchens, baths are factored in price, plus newer homes can be quite higher. Maybe always true, but more so now. I think most of the decent repo's are gone around here.

 

[krush]

Well, since I'm young and don't have the uhmm "wisdom" of some of the elders here (LOL)...what were house prices like in the 40, 50, 60, 70's? What was the multiple of house price vs a) average income and b) total household income?

Until houses, cars, boat, etc return to those level.....I was looking at that old Popular Science from the 70's somebody posted. It had a new Cessna 150 for $14,000.

 

[garyd]

I was working at a Cessna dalership (FBO) in the 70's yep c-150 14k new government regulations in place by about 1980 they were 2 to 3 times that amount. Nothing really changed in the plane however. They did rename it a Cessna 152.

Big brother stepped in and killed the general aviation business. So I went into the boat business. Remember the luxury tax yep big brother killed that business and fuel prices have finished it off. Now big brother is trying to kill all business.

Love this country hate the government!

 

[Robby]

And small priced houses are selling very slowly.At 160k we have a 20 year ranch that we FSBO for 6 months.We showed it nine times with many postive comments and no offers.All showings were to professional black couples as this neighborhood is changing.Sooooooooo when a very Pretty smart Black realtor stopped by the other day we listed it with her.I just feel she has a better chance of selling it than some 25 year old white dude.This house is one of two" ball in chains" stopping us from starting the Loop.

 

[rsmith]

General aviation is pretty much done unless avgas and jet-a get back to under $3/ gal most places its $6-8 now. Vero Beach is home to Piper aircraft and their pretty much done. Vero used to be loaded with private and corperate jets during the season, last year maby you would see 1 or 2 on the ramp. Most of the people I would concider "rich" that I personaly know are either broke or the stress of trying to keep their bussiness and lives going has killed them. The highest suicide rate in our county is not in the poor or middle class area but the in the areas of $million homes.
Now I'm not going to feel sorry for the Bill Gates,Warren Buffets or some overpaid CEO or sports star. The people who are being killed off in this country are the guys with their own biz with that work 24/7 and thru the fruits of their labors can buy a new caddy every couple years live in a nice house send their kids to college (without loans) and maybe buy a new Hatt once or twice in their lives. Kill that guy and you kill the engine that drives the country not only because he is gone but the guy that looks at him and says "I may not ever be a Bill gates but if I work my ass off I can be like that guy" Thats the end of the American dream right there.

 

[spartonboat1]

Well, since I'm young and don't have the uhmm "wisdom" of some of the elders here (LOL)...what were house prices like in the 40, 50, 60, 70's? What was the multiple of house price vs a) average income and b) total household income?

Until houses, cars, boat, etc return to those level.....I was looking at that old Popular Science from the 70's somebody posted. It had a new Cessna 150 for $14,000.

In 1967 a Harvard MBA would expect to make $15k in their first job!! In 1967, I worked virtually all the OT I could get at Proctor and Gamble and made $10.2k- that was knocking the ball out of the park. But then a brand new Chevy was about 1.3k back then!!!

When I graduated with a BA in 1972, an 1,5-1,800 sqft home was $30k, and I made $14k. But this was when the auto industry was the best paying job around. Rough rule of thumb is inflation is a multiple of 20 for the 1940's and 10x for the 1960's.

So when all said an done, I have lost ground and make less than I did in 1972, although I do well in my field.

Reagan was right on one thing- inflation eats the working and middle class alive!

 

[DeeRow]

I was working at a Cessna dalership (FBO) in the 70's yep c-150 14k new government regulations in place by about 1980 they were 2 to 3 times that amount. Nothing really changed in the plane however. They did rename it a Cessna 152.....

What specific government regulation caused the price to double?

This is the greatest country on earth and the government works for us. I have recently started to call and email my Congressman's local office. My opinion is only one opinion, but if I do not tell my representative my opinion, then he will do what he wants or what he believes his constituents want, or what some political contributor wants. Unfortunately, most people just make statements like "its the government" rather than "law xyz requires that 25 planes be crash tested before the model can be sold to the general public". Let's be specific and work to change the laws one at a time.

Edit: I see that Garyd's thread, http://www.samsmarine.com/forums/showthread.php?t=18119 , has a list of "laws" that raise the cost of doing business.

 

[Robby]

General aviation is pretty much done unless avgas and jet-a get back to under $3/ gal most places its $6-8 now. Vero Beach is home to Piper aircraft and their pretty much done. Vero used to be loaded with private and corperate jets during the season, last year maby you would see 1 or 2 on the ramp. Most of the people I would concider "rich" that I personaly know are either broke or the stress of trying to keep their bussiness and lives going has killed them. The highest suicide rate in our county is not in the poor or middle class area but the in the areas of $million homes.
Now I'm not going to feel sorry for the Bill Gates,Warren Buffets or some overpaid CEO or sports star. The people who are being killed off in this country are the guys with their own biz with that work 24/7 and thru the fruits of their labors can buy a new caddy every couple years live in a nice house send their kids to college (without loans) and maybe buy a new Hatt once or twice in their lives. Kill that guy and you kill the engine that drives the country not only because he is gone but the guy that looks at him and says "I may not ever be a Bill gates but if I work my ass off I can be like that guy" Thats the end of the American dream right there.

I CHECKED THE Garmin when I was down at the hanger two days ago.Money is tight for us and I Haven't flown the airplane sence May 11.Not good for me and certianly not for for the airplane.We have self Service fuel at St Elmo and it was $4.96.for 100LL Thursday.Luckly the Airplane is paid for and I consider it an asset.The fixed cost are low;I cut some grass and our 172 lives in it own enclosed hanger and Ins is less than $600 per year.As an A&P I can do all of my own work and that sure helps.We have an STC,an FAA permission to burn regular 87 octane ethanol free fuel and that sure helps out.When I finished the rebuild of our 64 172 6 years ago They were in Trade mag "Trade A Plane" for about 36K.I checked the other day and it about the same.So we will be keeping the airplane,Like Y Bill I have too much of my self invested.At 6-8GPH at 90Kts its still a good deal for a 350 mile trip.Your right though ;Who in his right mind would want to pay up thru A Comm/Int Multi rating these days.This is gonna bite us in the ass in our life time,A pilot Shortage is on the horizon.And if Fuel prices arn't controlled in someway alot more linemen and Marina workers will loose their Jobs.Afordable fuel would drive us out of this depression we are in.

 

[rsmith]

What specific government regulation caused the price to double?

This is the greatest country on earth and the government works for us. I have recently started to call and email my Congressman's local office. My opinion is only one opinion, but if I do not tell my representative my opinion, then he will do what he wants or what he believes his constituents want, or what some political contributor wants. Unfortunately, most people just make statements like "its the government" rather than "law xyz requires that 25 planes be crash tested before the model can be sold to the general public". Let's be specific and work to change the laws one at a time.

Edit: I see that Garyd's thread, http://www.samsmarine.com/forums/showthread.php?t=18119 , has a list of "laws" that raise the cost of doing business.

Write your Congressman? I'm sure he called you right up and wants your opinion. NOT! unless your stuffing his warchest with big$$$, hanging out with him in DC and supplying him with hookers, or controlling a voting block societile leaches.
Lack of serious tort reform is one of the major reasons that has jacked up the costs and killed GA. My mechanic spent 5 years in litigation because one of his customers (a VFR only pilot) flew his Mooney into a line of heavy thunderstorms on his way back from the Bahamas. 2 boats saw the plane in a inverted spin come out of the bottom of a cell. Of course the family sued the mechanic since Mooney is basicly defunct. Naturally they went after Lycoming and some of the acessory mfg's. But in the end somebody has to pay for all this and thats the rest of GA.

 

[Finalee]

The three most important things about Realestate continue to be the same.
A lot of areas over corrected, some are still correcting, a couple actually increased . If your market is declining because of a loss of industry it will continue to. People still need to live somewhere. Housing will continue to be a good investment over the long haul.

 

[garyd]

I believe two things happened in the Governments involvment in GA.

1. You had to give them three airframes for certification.

2. The airframe and all manufacturers of all parts had to have insurance for just about ever.

This caused the prices of the planes to go up 2-3 times.

It was years ago so I would check to be exact if you want to spread the information around as gospel.

 

[TopHattandTails]

The three most important things about Realestate continue to be the same.
A lot of areas over corrected, some are still correcting, a couple actually increased . If your market is declining because of a loss of industry it will continue to. People still need to live somewhere. Housing will continue to be a good investment over the long haul.

In my mind, anything that does not pay you on a monthly basis is an expense. Homes that are owner occupied are not assets. I also understand you need to live somewhere, but understand homes are expenses before you buy, and buy within your means.

 

[DeeRow]

...Lack of serious tort reform is one of the major reasons that has jacked up the costs and killed GA....

If everybody wants tort reform AND they all called their congressman to tell them that they want tort reform, then we would have tort reform! If you don't communicate with your representative, how do they know what you want? Without input from us, they will listen to any other source of information, like lobbyists, or special interest groups.

Heck it may not do anything, but sitting on my butt and complaining hasn't changed anything so I'm trying something different!

I was very unhappy with an amendment that my congressman made to a bill and I called his local office. His action caused a huge flood of calls to his office and the local office's phone system failed. I had to call an office in a different town. I talked for 20 minutes with a staffer who told me that they tabulated all calls and it did affect his opinion on the issues.

Try it! Just be aware that if you are in the minority, you will not affect the outcome.

 

[SeaEric]

If you'd like to understand how Government regulation affect the cost of everything starting from the local town level on up, I would suggest that you read: Economic Facts and Fallacies by Thomas Sowell http://www.amazon.com/Economic-Facts-Fallacies-Thomas-Sowell/dp/0465003494

 

[Trojan]

And you still must pay the 1 mil taxes on the 1/4 mil house you just purchased. Such a deal. If we make it through this leadership we will be lucky. You have not seen anything yet. If your feeling a little wobbly with your finances just hold on its your country and government going down the drain. This guy has got to go he's not on our side...........................

BILL

 

[spartonboat1]

Since I have an update, thought I'd post it.

I watched some Grand Rapids area realtor/managers on some area talk show last night
(7/20/2100). They said that the market here is about back to normal at about a 5 month inventory of homes; at the worst in 2008-2009 it was up to 12-13 months inventory. The Detroit area was worse, at the worst time, and has not come back to near normal yet.

I was out driving around in what I call the high rent disrict and I notice 'sold in 10 day' signs, which reflects the recent sell rate in our neighborhood. This is a very conservative area, so the POTUS will get zero props for any good economy here, at least I think so. This good local economy is all local money that is being invested. I saw on evening news that the Silicon Valley real estate is great guns again. But they are a very localized market, in my opinion.

Tiny political remark. I think Speaker Boehner is right on the money (pun?) that that raising taxes will kill the small business class that risks and invests and increases hiring. I agree with him that raising taxes now would be insane or at least very ill advised.