Forum Archive

Right now everyone is rightly worried about the state of the economy and real estate values, but I think people have an extremely inflated view of the “value” of their homes. Here is a real-life example: person buys an apt for 180k in 2001 in a hot brroklyn neighborhood and is selling it in 2008 for 490k–that is a 270% increase in price in 7 years. I feel like it is delusional for someone to expect to get that price, given the irresponsible practices that created all the froth in the housing market. Recent comps can’t be dependable barometers in my opinion, because they took place in a climate of much looser credit standards. So why are home prices remaining so high? Is it too emotional for the seller to not make the 270% profit they feel entitled to? The person who pays that price now is FOOL in my opinion.