Bubble sitters just as unrealistic

From MarketWatch:

Post-bubble buyers more likely to overprice home

People who bought their homes after the housing bubble burst are more likely to have an unrealistic view of their home’s worth than those who bought before the housing downturn, according to a report released by Zillow this week.

The analysis found that people currently selling their homes who bought in 2007 or later are overpricing them by 14%. In contrast, those who bought before 2002 are overpricing by 12% and those who bought between 2002 and 2006 are overpricing by 9%.

“Post-bubble buyers seem to believe they escaped the worst of the housing recession, as evidenced by how they price their homes today,” said Stan Humphries, chief economist for Zillow. “But 2006 was just the beginning of the housing recession, and it is continuing in earnest to this day. That means that even people who bought after the bubble burst need to break out the pencil and paper and do serious research into what has happened in their market since they first bought their home, whether it was four years ago or six months ago.”

Of homeowners who said they intend to sell their home in the next four years, people who purchased their home after the bubble were also more likely than those who bought earlier to base their asking price on the price they originally paid for the home, according to Zillow.

No one likes to admit their home has gone down in value — especially when it hasn’t been that long since you moved in. But if you need to sell that home after living in it for just a few years, take a deep breath and price it right, otherwise it could end up costing you even more.

“Overpricing homes causes them to stagnate on the market and keeps inventory from decreasing — not a desirable outcome for either the sellers or the market as a whole,” Humphries said.

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104 Responses to Bubble sitters just as unrealistic

  1. Confused In NJ says:

    Good Morning NJ

  2. Confused In NJ says:

    A scare in Japan over radioactive beef spread on Sunday with more parts of the country reporting contaminated meat, four months after March’s quake and tsunami triggered a nuclear disaster.

    Meat from 132 cattle that ate straw tainted with high levels of radioactive caesium are known to have been shipped across the country, according to local media including national network NHK and the Asahi Shimbun.

    Of the 47 prefectures in Japan, contaminated meat is believed to have been shipped to 36 of them and consumed in 31, NHK said, including Tokyo.

    Some supermarkets in the capital have put up signs warning about radioactive beef.

  3. Some yakitori joint in NYC will probably get away with charging more for cesium-laced Kobe.

  4. Food/drink pairing: Wagu with cesium and a glass of strontium-fortified milk.

  5. grim says:

    Family from Japan in town for a wedding. They didn’t seem all too concerned.

  6. gary says:

    No one likes to admit their home has gone down in value — especially when it hasn’t been that long since you moved in. But if you need to sell that home after living in it for just a few years, take a deep breath and price it right, otherwise it could end up costing you even more.

    Any Questions?

  7. gary says:

    “Overpricing homes causes them to stagnate on the market and keeps inventory from decreasing — not a desirable outcome for either the sellers or the market as a whole,” Humphries said.

    Do I still need to buy now or be priced out forever?

  8. Looking like I’m going to be doing a turnaround job on a retail wine store. Can’t divulge a lot of details yet, but all here are welcome to view this as my vote on the current (and future) state of NJ real estate.

  9. grim says:

    Good god, Paterson fighting to keep a jail? Opposing the closure like it’s a slight on the community?

    From the Record:

    Officers spread out to oppose closing of Passaic County Jail

    About 15 officials from Passaic, Essex and Bergen counties — from wardens to freeholders to administrators — attended a meeting Thursday night to discuss closing the jail. The plan calls for sending about 40 percent of Passaic’s nearly 1,000 inmates to the Bergen County Jail and 60 percent to Essex County, whose jail is the largest of the three.

    The news media were not invited to Thursday’s meeting, nor were union representatives or community leaders. The exclusion has outraged religious leaders, including the Rev. Michael McDuffie, president of the Paterson Pastor’s Workshop/Clergy on Fire and senior pastor of the Mighty Sons of God Fellowship Church in Paterson.

    McDuffie said he and other Passaic County clergy leaders were uniting with the 325 members of the PBA local to oppose the closing.

    “There are 21 counties in New Jersey, and Passaic County would be the only one without a jail,” the minister said. “Why does this always come down on the backs of the people of Paterson? I want to know who is behind this. We’re going to fight this with all our heart.”

  10. chicagofinance says:

    There Went Meat says:
    July 17, 2011 at 9:05 am
    Looking like I’m going to be doing a turnaround job on a retail wine store. Can’t divulge a lot of details yet, but all here are welcome to view this as my vote on the current (and future) state of NJ real estate.

    Can we have a GTG at the store?

  11. chi (10)-

    Probably best that I have a few days under my belt before hosting a drunken mob. ;)

  12. Chi- this is the deal I was telling you about offline. Please don’t tell anyone yet.

  13. gary says:

    Hobo,

    A drunken, violent mob… get it straight! ;)

  14. gary says:

    Hobo,

    Also, I can’t find your email address. Do you have a link or still have mine?

  15. gary (14)-

    reeveshughesatyahoodotcom

  16. gary says:

    thank you!

  17. Orion says:

    From Friday-

    Shore- Yes, we’re between 6th-8th, north of Sunset.

    Actually, we’ve been looking in Asbury since 2004 and have bought two condos and now a house.

    Nothing domestic about hubby, but he does have a list of contractors to call. Besides, I look better wearing a tool belt. Heck, I’m the one who just finished bringing down a few 40lb. bags of salt to the basement’s water softener gizmo.

  18. Shore Guy says:

    “between 6th-8th, north of Sunset.”

    That part of town stayed nice even during Asbury’s darkest days.

  19. Shore Guy says:

    “he does have a list of contractors to call. ”

    Always a good thing to have, even if one is handy.

  20. Hmmm…..Orion in a Tool Belt. Now there’s a mental picture that will carry me thru the rest of the day.

    Can you hear the rehearsals at Convention Hall from your new place ?? Remember, white Box Trucks at the side entrance are a pretty good indicator the Springsteen is getting ready to use the Hall as his own personal rehearsal space. Please alert us if you see such activity ;-)

  21. Shore Guy says:

    Bachman is even more bizzare than I thought:

    http://www.theatlantic.com/politics/archive/2011/07/michele-bachmanns-church-says-the-pope-is-the-antichrist/241909/

    Michele Bachmann’s Church Says the Pope Is the Antichrist
    The Iowa front-runner for the GOP nomination was a longstanding member of a strict Lutheran synod with controversial views of Catholicism
    snip

  22. Shore Guy says:

    “Please alert us if you see such activity ;-)”

    Do this in a timely way and there will no doubt be offerings of water-softener salt piled in your yard as thank-you offerings.

  23. scribe says:

    Chi,

    You beat me to it.

    GTG at Chip’s House of Fine Wines!

  24. still_looking says:

    The still_lookings will bring the smoked ribs!

    :)

    sl

  25. NJCoast says:

    The Happy Together Tour cast and crew were mourning the passing of Rob Grill as they played the Paramount last night.
    Mark Lindsay (Paul Revere & the Raiders) got a kick (pun intended) out of a book that was written by him by one of his ’60’s era roadies that was brought backstage. At 69 yrs. he can still kick above his head.

    Flo & Eddie (The Turtles) were in rare form as Mark did a spoof of Springsteen at sound check. Had us local crew members hysterical. The Buckinghams, The Association, The Grass Roots brought me back to another time. Fun times.

  26. Fiddy Cents on the Dollar says:

    When I think back to the day, I remember a carful of Testosterone-laden guys singing the lyrics to The Association……How did some of those lyrics make it past our gaydar ?!?!?

    Thanks to Paul Simon “I have my books, and my poetry to content me” That’s a little frightening for a 19 year old to be “singing” at the top of their lungs.

  27. Shore Guy says:

    Njc,

    Sounds like a great evening.

  28. Shore Guy says:

    This is pathetic:

    http://online.wsj.com/video/georgia-police-shut-down-lemonade-stand/F530F842-2057-4315-A47E-157EAB89B8E3.html?mod=business_video_newsreel

    Georgia Police Shut Down Lemonade Stand 7/16/2011 1:09:54 PM
    Police in Midway, GA shut down a lemonade stand, all because three little girls didn’t have a business license. Video courtesy Fox News.

  29. NjescaPee says:

    Some heatwave you guys are having it’s hotter in Jerzee than down here in the Keys.

  30. jj says:

    hope solo, yikes

  31. chicagofinance says:

    They have well water in AP? No f-ing way….or is it just softening?

    Orion says:
    July 17, 2011 at 10:50 am
    From Friday- Shore- Yes, we’re between 6th-8th, north of Sunset.
    Heck, I’m the one who just finished bringing down a few 40lb. bags of salt to the basement’s water softener gizmo.

  32. chicagofinance says:

    Found some footage of clot outside the Plucky….
    http://www.youtube.com/watch?v=W5PItDrtjOA

  33. Fabius Maximus says:

    Nom, just for you.

    Wealthy Britons Prepare To Flee
    http://www.huffingtonpost.co.uk/2011/07/17/wealthy-britons-prepare-t_n_900863.html

    But the survey of more than 500 UK-based millionaires, carried out for investment firm Skandia, found that only 2% were thinking of moving to a tax haven such as Switzerland or the Cayman Islands.

    Preferred destinations were France, the USA, Spain and Australia.

  34. Shore Guy says:

    I wonder if Tiger will b e downsizing:

    http://features.blogs.fortune.cnn.com/2011/07/15/is-tiger-woods-running-out-of-money/
    snip

    As Tiger’s revenues have declined, his expenses have only climbed. To begin with, there’s the reported $100 million divorce settlement. And last August, Woods took out a $54.5 million mortgage on his home in Jupiter Island, Florida. According to the public document, Woods is required to pay off the mortgage in full by January of 2016, giving him a mere five and a half years to shed the debt. He’s therefore paying more than $10 million each year, including his $431,042 in annual property taxes.

    That 2010 property tax information comes from the district offices of Martin County, FL, where the home Woods now occupies alone is located. The property, which Woods purchased in 2006 for $44.5 million, is valued at around $47 million (the county values the house at $26.48 million, the land at $20.5 million). His 2010 improvements to the dwelling and the property cost him $6 million, including three separate residential pools, a tennis court, a golf green with a few holes, an elevator, and a 14,736-square foot improvement to the interior of the house — evidence that Woods is not used to living cheaply. But the pace of his home improvements has slowed, according to online records of the county appraiser’s office. So far there have been none in 2011.

    Mark Steinberg says simply that there is no debt on Woods’ Jupiter Island home, and declined to elaborate. But the Martin County clerk’s office confirmed that their records show that the mortgage has not been paid off.

    The Jupiter Island mega-mansion isn’t the only Woods property. Among others, in 2007 he bought his mother property near his own, in Jupiter Island, for $2.4 million. In 2010, construction on that cost him another $2.6 million. Presumably, it’s Woods himself that pays and will continue to pay all taxes on the home.

    Between the divorce settlement and his recent mortgage, Tiger has faced recent debts to the tune of at least $160 million, though it’s unknown how much of this he has now paid down. His endorsement earnings will not come close to this in 2011, and he’s no longer adding much to his pot with golf winnings. Nike’s decisive slash to his contract has not helped matters.

    snip

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