Cheap Home Sweet Home

[marmar]

via Truthdig:



Cheap Home Sweet Home
Posted on Dec 30, 2008



Houses were once thought to be one of the safest and most secure refuges for investment, but a key index is debunking that notion: The price survey shows that housing prices in 20 major U.S. cities fell by a record 18 percent over the past year.


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The BBC:

House prices in 20 US cities fell by a record annual rate of 18.04% in October, according to a closely-watched home price survey.

The index shows that prices of homes (are) continuing to fall across the US with many areas showing record price falls.

David Blitzer, of Standard & Poor’s said: “Home prices are back to their March 2004 levels.”

The S&P/Case-Shiller index measures the prices of existing family homes in 20 metropolitan areas across the US.

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http://www.truthdig.com/eartotheground/item/20081230_cheap_home_sweet_home/

[virgogal]

1. In many areas they had doubled in about five years---I have

a daughter who's house doubled in 2 1/2 years (Eastern MA)----the prices are just settling back to a more realistic level.

The folks are bought high (I have a son who did)are the ones paying the penalty I'm afraid.

[SoCalDem]

2. Housing used to be a smart "investment" from this standpoint

You would PAY OFF A MORTGAGE for THE house you bought, and when you retired, you would have a FREE place to live (as long as you kept up with the taxes on it)..

A small pension would work for most people , as long as they had a PAID OFF home..

In recent years, housing was seen as a slot machine/ATM with bedrooms & attached garage..

Equity lines/loans, re-fis, and flips were not the norm, until recently.

People hoarded that equity, and paid EXTRA on the principal, so they could pay it off sooner..

[Skittles]

3. good

they are STILL too ridiculously expensive