The bloggers on this site didn’t create Alt A, Interest Only, Sub-prime, and Negative AM. You’ve just gone through a period of time when you’ve had a whole society forget about sales prices and instead focus only on the immediate monthly payment of homes. On a Negative AM, anyone can buy a nice place in Greenwich CT. So prices haven’t reflected ability to pay since everyone believed that real estate can’t go down. Now that it has and Wall Street has lost billions, lending standards have tightened and PRICE and DOWN PAYMENTS magically matter again.

In the long run, real estate should yield about 8 percent per year on a comparative basis to renting the equivalent home. Thus, if you look at a place that would rent for 3,000 (36,000 per year) per month and a similar home has taxes of 6,000 per year, it’s present value should be equal to a 30 year annuity of 2,500 per month using an 8 percent discount rate. This works out to a price of $340,000. If the place costs less, it’s cheap relative to the long run equilibrium; if it’s more it’s expensive.

If you look around, I think you will find property is extremely overvalued relative to rents and over time things revert to the mean. All the complaining in the world about bloggers won’t change this fact and attempts by the fed to cut rates won’t make 30 year mortgages cheaper because they will inject inflation into the economy and thereby reduce affordability for people who purchase homes prudently and fix their rates.

Before you make a comment like you did, you might want to consider educating yourself a bit about the markets.

Too dang funny.

Are you F[BLEEEEEEP] kidding me?!

NYC 2012
English is now a second language….
subway fare: $5
Verrazanno bridge crossing: $20
Bridges and tunnels: $15
Starbucks latte: $6
Milk: $9 gal
Gas: $4
quality of life: none

and oh yeah check this out….

“Oops. We’re sorry, we goofed. Please invest with us in the future.”

http://www.marketwatch.com/news/story/tetragon-says-68-mln-mortgage/story.aspx?guid=%7B52BD7F16%2D0415%2D4056%2D9280%2D434CC9F30E3C%7D

Seller is thrilled, BTW. Thirty other competitors sit there tonight with no offer at all.

Thanks for correcting the misinformation gang on the mb.
It appears from my standpoint that prices are starting the next leg down, the the spring leg is just around the corner. It will be un watching the prices spiral downward.

http://newjersey.craigslist.org/rfs/455767044.html

Here are the sales from the last month..

Address OLP Sales Price DOM
  33 Sandra Ln. 499900 416000 57
  60 HIGH AVE 529000 371000 500?
  245 DOVER CHESTER ROAD 424900 424000 29
  77 Center Grove Road 569000 450000 320?
  61 RIDGEWOOD DR 499999 475000 50
  121 PARK AVE 599000 485000 360?
  8 Beaver Dam Road 549900 510000 360?
  73 LAWRENCE RD 624000 556000 82
  59 Calais Rd. 595000 575000 108
  5 Calais Road 699900 583000 280?
  16 JAY DR 689000 630000 180?
  5 LEWIS HOLLOW RD 928000 903500 40
  14 TROUT BROOK LN 1288000 1040000 87

“Bidding wars seem to be alive and well in Randolph. Everyone talks about the terrible market and how it is a buyers market–but it seems very competitive in Morris county to get houses. Does anyone know if things are really slowing down? The prices in Morris county still seem pretty high.”

“Yes-you are right. It was a house in a very nice open and quiet neighborhood, that had not been upgraded in 50 years. Very mid sixties style kitchen and basement. No central AC. No gas line. 3 beds, 2 baths. All floors needed to be refinished. A very old furnace and oil tank. 11 year old roof. Exterior needed cosmetic work. Needed landscaping. But it was a very spacious feeling house selling for 439. I bid 430, because of all the work that it would take to get it up to date-easily 40 thousand. Houses in the area were for 460–470. I had a cut off amount-kind of sorry I lost it but relieved about doing all that work as I don’t make a high salary.”

I would love this, raise them up to $50. How soon can they do it?

Wasn’t it Duck’s first post?

95 Rivervale Rd – Park Ridge
Purchased: 7/14/2005
Purchase Price: $592,000

Currently listed at: $545,000 (Reduced from $612,000)
==
now just subtract another 100k and just maybe someone will bid.

Stunning reversal.

Steep toll hike possible for NJ-NY crossings

The Port Authority plans to seek a toll hike of at least $2 on its Hudson River crossings and an increase in PATH rail fares after next week’s state legislative elections, The Star-Ledger has learned.

Current peak-hour tolls of $6 per vehicle at the George Washington Bridge and Lincoln and Holland tunnels are expected to jump to at least $8 early next year – the first hikes since 2000, according to officials who spoke on the condition of anonymity because of the sensitive nature of the subject.

While a toll and fare hike proposal likely will be presented at the Port Authority’s Nov. 15 board meeting, the agency’s leadership has not yet settled on the exact amount of the increases, the officials said.

They explained there are some within the agency who would like a $3 increase, while others want to limit the hike to $2 on the Hudson River crossings and the Staten Island bridges – the Outerbridge Crossing and the Goethels and Bayonne bridges. Tolls are charged only one way.

There also is talk of eliminating the $1 E-ZPass discount for drivers.

No decision has been reached on a PATH increase, though a 25- to 50-cent jump on the current $1.50 fare is being discussed, they said.