There is no housing bubble in the DC area so get over it

[Anonymous]

Personally, I think the last bubble is part of the reason we are experiencing this current bubble.

Let me clarify, the reason for the run up in prices over the last year is limited inventory. The reason for the limited inventory is partly due to the fact that there are *still* people underwater who aren't willing to sell for a loss, even though they would sell now if they could.

Cash investors are buying up the foreclosures, which makes it difficult for buyers with financing to buy them. And then the investors flip the house for a huge markup (after hobbling together some renovations).

I do believe that if interest rates weren't kept artificially low, then we wouldn't be seeing as much activity as we're seeing. In fact, I would say that the reason that the last bubble didn't result in a true bottoming out is because rates were kept so low.

I don't know where this is all going to go, but it is indeed scary. Every indication is that salaries in the region are either going to remain stagnant or actually decrease. I can't imagine that the run-up in prices for houses is actually sustainable. It's sort of a game of musical chairs.

But if you can afford your monthly payment, have a fixed rate loan, don't expect to have to move any time soon, don't expect pay cuts or significant furloughs, and have a little wiggle room (disposable income), then I wouldn't be worried.

But I can't imagine anyone really believing this is all sustainable and that the increases are just going to keep going up the way they are.

[Anonymous]

Anonymous wrote:Personally, I think the last bubble is part of the reason we are experiencing this current bubble.

Let me clarify, the reason for the run up in prices over the last year is limited inventory. The reason for the limited inventory is partly due to the fact that there are *still* people underwater who aren't willing to sell for a loss, even though they would sell now if they could.

Cash investors are buying up the foreclosures, which makes it difficult for buyers with financing to buy them. And then the investors flip the house for a huge markup (after hobbling together some renovations).

I do believe that if interest rates weren't kept artificially low, then we wouldn't be seeing as much activity as we're seeing. In fact, I would say that the reason that the last bubble didn't result in a true bottoming out is because rates were kept so low.

I don't know where this is all going to go, but it is indeed scary. Every indication is that salaries in the region are either going to remain stagnant or actually decrease. I can't imagine that the run-up in prices for houses is actually sustainable. It's sort of a game of musical chairs.

But if you can afford your monthly payment, have a fixed rate loan, don't expect to have to move any time soon, don't expect pay cuts or significant furloughs, and have a little wiggle room (disposable income), then I wouldn't be worried.

But I can't imagine anyone really believing this is all sustainable and that the increases are just going to keep going up the way they are.

BINGO!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Sorry a PP here. If we are middle class buyers who are able to afford to buy into an amazing school cluster and the house we buy has appraised higher than we bought at, I don't see how this makes us stupid. We had a ton for a down and low interest rates got us into a wonderful house in a beautiful neighborhood inside the beltway. We were looking to buy anyway so why not buy now instead of waiting? Serious question. The size is fine for us too, and we plan to stay very long term. Should we have waited or something? Why miss out on the lower interest rate?

There are certainly deals to be found out there. And if you don't care whether or not your home appreciates in value, then more power to you. I have a question for you though...how are local schools funded again?

I get this but the neighborhood we bought in has had amazing schools for ages. There is big money there. So unless you are suggesting that all of a sudden an amazing school cluster is going to go right down the tubes when it didn't sink an inch after the big bubble burst, then I don't get the danger. We certainly are aware that property taxes will rise, and while nobody wants to pay more taxes, that is something we will do eagerly since good schools are one of the biggest drivers of home values.

First off, the risk is called the "death spiral". Here's how it works...when incomes in an area remain stagnant or decline, house prices decline because fewer people are moving into the area for well-paying jobs.

Local taxes, which pay for schools (as you rightly noted, are a primary driver in an area's house value), are assessed on local home valuations. Lower prices, at the same tax rate, equals lower tax revenue. Lower tax revenue, equals lower funding for schools, less programs, less qualified teachers, etc.

Local taxes, as a percentage, get raised to recoup the loss.

People, as a whole, don't like paying taxes. This reduces the marketability of any given area over another, again, whether or not that's enough to dissuade them from moving is another point entirely. All other things being equal, home prices decline again.

Property taxes get raised.

Home prices decline again.

Property taxes get raised, again.

See the cycle?

The reason the DC area has been immune from this effect over the past decade is because the DMV benefits from Federal budgets more than any area in the country. The Federal government has the magical ability to make money appear out of thin air, via government debt and money-printing. However, this is getting a lot of press lately and getting a lot of calls to stop. Frankly, the DMV economy has been an anomaly over the past decade because of these government deficits, once you throw that out the window...suddenly things get a LOT more fair to the rest of the country really quick, wanna bet on which way that's gonna turn out for the local economy that's already been in this position for a little under a decade?

sO uEmploYment MusT be VerY HIGH in tHe Dc Area and Low elesWHERe?

Not at all. Unemployment has remained relatively stable over the past year.

What we're not seeing however is job GROWTH and/or income GROWTH. That's the key driver, without that growth, then there is no fundamental reason for this housing rally to be supported.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Sorry a PP here. If we are middle class buyers who are able to afford to buy into an amazing school cluster and the house we buy has appraised higher than we bought at, I don't see how this makes us stupid. We had a ton for a down and low interest rates got us into a wonderful house in a beautiful neighborhood inside the beltway. We were looking to buy anyway so why not buy now instead of waiting? Serious question. The size is fine for us too, and we plan to stay very long term. Should we have waited or something? Why miss out on the lower interest rate?

There are certainly deals to be found out there. And if you don't care whether or not your home appreciates in value, then more power to you. I have a question for you though...how are local schools funded again?

I get this but the neighborhood we bought in has had amazing schools for ages. There is big money there. So unless you are suggesting that all of a sudden an amazing school cluster is going to go right down the tubes when it didn't sink an inch after the big bubble burst, then I don't get the danger. We certainly are aware that property taxes will rise, and while nobody wants to pay more taxes, that is something we will do eagerly since good schools are one of the biggest drivers of home values.

So, let me get this straight...you don't care about the home's intrinsic value, because you're willing to pay more in taxes to maintain it's intrinsic value? Are you serious? Tell me you see the flaw in this logic...

Okay let me be clearer, I am willing to pay a lot more money for amazing schools because of the value that I place on education for my child. That is the biggest driver of a home's intrinsic value to me. My son will be getting great schools. Now, it follows that I am willing to pay more in property taxes to maintain the quality of those schools so that my son will get a great edication. And, good schools help property values; so while we are not looking to flip the house for a profit, it is good to know that there is a lower risk of the area losing values in homes because of that factor. That is pretty logical to me.

So you're saying that spending more on schooling results in better education?

I'm finding it extremely ironic that along with a housing crisis, we're also having a student loan crisis...why oh why can this be happening at nearly the identical time?! (hint: see individuals like the person who made the comment above)

BTW, it's spelled "education", not "edication". I realize it's a simple spelling error, but come on, you're arguing how much you value education and you misspell the word?!

I am typing on a tablet so yeah I mistyped...not misspelled. Also, no, I never said that spending more automatically resulted in better education. The other major inputs -- parental involvement, genetics, for example -- would be constant regardless of what schools my son attended. But schools in higher income areas do have better results in terms of educational outcomes than those in lower income areas -- and that is accounting for other factors like parental involvement, genetics, etc. Schools in higher income areas tend to have teachers who are more highly qualified and with more experience. Teacher quality is a huge driver of student outcomes -- again, holding all other factors equal, since you like to nitpick, and I know you would go there. They also have more enrichment programs, another driver. And students who are surrounded by peers who are higher achievers in school tend to be higher achievers as well.

Do you wonder why people with children rent in these areas and sacrifice space, commutes, etc. to give their children the chance to attend better schools? Do you wonder why people use wrong addresses for the same reason? Why wouldn't I give my son every single opportunity I was able to? That is what every parent wants to do.

[Anonymous]

Anonymous wrote:Sorry a PP here. If we are middle class buyers who are able to afford to buy into an amazing school cluster and the house we buy has appraised higher than we bought at, I don't see how this makes us stupid. We had a ton for a down and low interest rates got us into a wonderful house in a beautiful neighborhood inside the beltway. We were looking to buy anyway so why not buy now instead of waiting? Serious question. The size is fine for us too, and we plan to stay very long term. Should we have waited or something? Why miss out on the lower interest rate?

It very well may have been the right decision for you to buy. But that doesn't mean that there isn't a bubble.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Sorry a PP here. If we are middle class buyers who are able to afford to buy into an amazing school cluster and the house we buy has appraised higher than we bought at, I don't see how this makes us stupid. We had a ton for a down and low interest rates got us into a wonderful house in a beautiful neighborhood inside the beltway. We were looking to buy anyway so why not buy now instead of waiting? Serious question. The size is fine for us too, and we plan to stay very long term. Should we have waited or something? Why miss out on the lower interest rate?

There are certainly deals to be found out there. And if you don't care whether or not your home appreciates in value, then more power to you. I have a question for you though...how are local schools funded again?

I get this but the neighborhood we bought in has had amazing schools for ages. There is big money there. So unless you are suggesting that all of a sudden an amazing school cluster is going to go right down the tubes when it didn't sink an inch after the big bubble burst, then I don't get the danger. We certainly are aware that property taxes will rise, and while nobody wants to pay more taxes, that is something we will do eagerly since good schools are one of the biggest drivers of home values.

First off, the risk is called the "death spiral". Here's how it works...when incomes in an area remain stagnant or decline, house prices decline because fewer people are moving into the area for well-paying jobs.

Local taxes, which pay for schools (as you rightly noted, are a primary driver in an area's house value), are assessed on local home valuations. Lower prices, at the same tax rate, equals lower tax revenue. Lower tax revenue, equals lower funding for schools, less programs, less qualified teachers, etc.

Local taxes, as a percentage, get raised to recoup the loss.

People, as a whole, don't like paying taxes. This reduces the marketability of any given area over another, again, whether or not that's enough to dissuade them from moving is another point entirely. All other things being equal, home prices decline again.

Property taxes get raised.

Home prices decline again.

Property taxes get raised, again.

See the cycle?

The reason the DC area has been immune from this effect over the past decade is because the DMV benefits from Federal budgets more than any area in the country. The Federal government has the magical ability to make money appear out of thin air, via government debt and money-printing. However, this is getting a lot of press lately and getting a lot of calls to stop. Frankly, the DMV economy has been an anomaly over the past decade because of these government deficits, once you throw that out the window...suddenly things get a LOT more fair to the rest of the country really quick, wanna bet on which way that's gonna turn out for the local economy that's already been in this position for a little under a decade?

sO uEmploYment MusT be VerY HIGH in tHe Dc Area and Low elesWHERe?

Not at all. Unemployment has remained relatively stable over the past year.

What we're not seeing however is job GROWTH and/or income GROWTH. That's the key driver, without that growth, then there is no fundamental reason for this housing rally to be supported.

I wonder if you expressed the same sentiment back in the early 2000's? Refute any of the points made above.

Noone has, as of yet, been able to express what in the local DC economy has improved over the past year. Feel free to offer up an idea if you have one.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Sorry a PP here. If we are middle class buyers who are able to afford to buy into an amazing school cluster and the house we buy has appraised higher than we bought at, I don't see how this makes us stupid. We had a ton for a down and low interest rates got us into a wonderful house in a beautiful neighborhood inside the beltway. We were looking to buy anyway so why not buy now instead of waiting? Serious question. The size is fine for us too, and we plan to stay very long term. Should we have waited or something? Why miss out on the lower interest rate?

There are certainly deals to be found out there. And if you don't care whether or not your home appreciates in value, then more power to you. I have a question for you though...how are local schools funded again?

I get this but the neighborhood we bought in has had amazing schools for ages. There is big money there. So unless you are suggesting that all of a sudden an amazing school cluster is going to go right down the tubes when it didn't sink an inch after the big bubble burst, then I don't get the danger. We certainly are aware that property taxes will rise, and while nobody wants to pay more taxes, that is something we will do eagerly since good schools are one of the biggest drivers of home values.

So, let me get this straight...you don't care about the home's intrinsic value, because you're willing to pay more in taxes to maintain it's intrinsic value? Are you serious? Tell me you see the flaw in this logic...

Okay let me be clearer, I am willing to pay a lot more money for amazing schools because of the value that I place on education for my child. That is the biggest driver of a home's intrinsic value to me. My son will be getting great schools. Now, it follows that I am willing to pay more in property taxes to maintain the quality of those schools so that my son will get a great edication. And, good schools help property values; so while we are not looking to flip the house for a profit, it is good to know that there is a lower risk of the area losing values in homes because of that factor. That is pretty logical to me.

So you're saying that spending more on schooling results in better education?

I'm finding it extremely ironic that along with a housing crisis, we're also having a student loan crisis...why oh why can this be happening at nearly the identical time?! (hint: see individuals like the person who made the comment above)

BTW, it's spelled "education", not "edication". I realize it's a simple spelling error, but come on, you're arguing how much you value education and you misspell the word?!

I am typing on a tablet so yeah I mistyped...not misspelled. Also, no, I never said that spending more automatically resulted in better education. The other major inputs -- parental involvement, genetics, for example -- would be constant regardless of what schools my son attended. But schools in higher income areas do have better results in terms of educational outcomes than those in lower income areas -- and that is accounting for other factors like parental involvement, genetics, etc. Schools in higher income areas tend to have teachers who are more highly qualified and with more experience. Teacher quality is a huge driver of student outcomes -- again, holding all other factors equal, since you like to nitpick, and I know you would go there. They also have more enrichment programs, another driver. And students who are surrounded by peers who are higher achievers in school tend to be higher achievers as well.

Do you wonder why people with children rent in these areas and sacrifice space, commutes, etc. to give their children the chance to attend better schools? Do you wonder why people use wrong addresses for the same reason? Why wouldn't I give my son every single opportunity I was able to? That is what every parent wants to do.

Tell us, when local prices rise to the point that both parents have to be earners in order to afford to make mortgage payments, is that then worth it to move into an area with good schools?

Essentially, which is more important, parental involvement or school funding?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Sorry a PP here. If we are middle class buyers who are able to afford to buy into an amazing school cluster and the house we buy has appraised higher than we bought at, I don't see how this makes us stupid. We had a ton for a down and low interest rates got us into a wonderful house in a beautiful neighborhood inside the beltway. We were looking to buy anyway so why not buy now instead of waiting? Serious question. The size is fine for us too, and we plan to stay very long term. Should we have waited or something? Why miss out on the lower interest rate?

There are certainly deals to be found out there. And if you don't care whether or not your home appreciates in value, then more power to you. I have a question for you though...how are local schools funded again?

I get this but the neighborhood we bought in has had amazing schools for ages. There is big money there. So unless you are suggesting that all of a sudden an amazing school cluster is going to go right down the tubes when it didn't sink an inch after the big bubble burst, then I don't get the danger. We certainly are aware that property taxes will rise, and while nobody wants to pay more taxes, that is something we will do eagerly since good schools are one of the biggest drivers of home values.

First off, the risk is called the "death spiral". Here's how it works...when incomes in an area remain stagnant or decline, house prices decline because fewer people are moving into the area for well-paying jobs.

Local taxes, which pay for schools (as you rightly noted, are a primary driver in an area's house value), are assessed on local home valuations. Lower prices, at the same tax rate, equals lower tax revenue. Lower tax revenue, equals lower funding for schools, less programs, less qualified teachers, etc.

Local taxes, as a percentage, get raised to recoup the loss.

People, as a whole, don't like paying taxes. This reduces the marketability of any given area over another, again, whether or not that's enough to dissuade them from moving is another point entirely. All other things being equal, home prices decline again.

Property taxes get raised.

Home prices decline again.

Property taxes get raised, again.

See the cycle?

The reason the DC area has been immune from this effect over the past decade is because the DMV benefits from Federal budgets more than any area in the country. The Federal government has the magical ability to make money appear out of thin air, via government debt and money-printing. However, this is getting a lot of press lately and getting a lot of calls to stop. Frankly, the DMV economy has been an anomaly over the past decade because of these government deficits, once you throw that out the window...suddenly things get a LOT more fair to the rest of the country really quick, wanna bet on which way that's gonna turn out for the local economy that's already been in this position for a little under a decade?

sO uEmploYment MusT be VerY HIGH in tHe Dc Area and Low elesWHERe?

Not at all. Unemployment has remained relatively stable over the past year.

What we're not seeing however is job GROWTH and/or income GROWTH. That's the key driver, without that growth, then there is no fundamental reason for this housing rally to be supported.

I wonder if you expressed the same sentiment back in the early 2000's? Refute any of the points made above.

Noone has, as of yet, been able to express what in the local DC economy has improved over the past year. Feel free to offer up an idea if you have one.

The economy is humming along fine and confidence in the economy is better as well as the restrictions on loans are easing, that is what happened. Take your doom and gloom to your next losing bidding war.

[Anonymous]

I am typing on a tablet so yeah I mistyped...not misspelled.

Oh, ok, I see...so the medium changes whether or not something is a misspelling. At what point does that happen?

Pen and paper, misspelling.
Computer keyboard, misspelling?
Tablet keyboard, mistyping.

You wonder why people are finding it hard to take your claims of the primacy of education seriously?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Sorry a PP here. If we are middle class buyers who are able to afford to buy into an amazing school cluster and the house we buy has appraised higher than we bought at, I don't see how this makes us stupid. We had a ton for a down and low interest rates got us into a wonderful house in a beautiful neighborhood inside the beltway. We were looking to buy anyway so why not buy now instead of waiting? Serious question. The size is fine for us too, and we plan to stay very long term. Should we have waited or something? Why miss out on the lower interest rate?

There are certainly deals to be found out there. And if you don't care whether or not your home appreciates in value, then more power to you. I have a question for you though...how are local schools funded again?

I get this but the neighborhood we bought in has had amazing schools for ages. There is big money there. So unless you are suggesting that all of a sudden an amazing school cluster is going to go right down the tubes when it didn't sink an inch after the big bubble burst, then I don't get the danger. We certainly are aware that property taxes will rise, and while nobody wants to pay more taxes, that is something we will do eagerly since good schools are one of the biggest drivers of home values.

So, let me get this straight...you don't care about the home's intrinsic value, because you're willing to pay more in taxes to maintain it's intrinsic value? Are you serious? Tell me you see the flaw in this logic...

Okay let me be clearer, I am willing to pay a lot more money for amazing schools because of the value that I place on education for my child. That is the biggest driver of a home's intrinsic value to me. My son will be getting great schools. Now, it follows that I am willing to pay more in property taxes to maintain the quality of those schools so that my son will get a great edication. And, good schools help property values; so while we are not looking to flip the house for a profit, it is good to know that there is a lower risk of the area losing values in homes because of that factor. That is pretty logical to me.

So you're saying that spending more on schooling results in better education?

I'm finding it extremely ironic that along with a housing crisis, we're also having a student loan crisis...why oh why can this be happening at nearly the identical time?! (hint: see individuals like the person who made the comment above)

BTW, it's spelled "education", not "edication". I realize it's a simple spelling error, but come on, you're arguing how much you value education and you misspell the word?!

I am typing on a tablet so yeah I mistyped...not misspelled. Also, no, I never said that spending more automatically resulted in better education. The other major inputs -- parental involvement, genetics, for example -- would be constant regardless of what schools my son attended. But schools in higher income areas do have better results in terms of educational outcomes than those in lower income areas -- and that is accounting for other factors like parental involvement, genetics, etc. Schools in higher income areas tend to have teachers who are more highly qualified and with more experience. Teacher quality is a huge driver of student outcomes -- again, holding all other factors equal, since you like to nitpick, and I know you would go there. They also have more enrichment programs, another driver. And students who are surrounded by peers who are higher achievers in school tend to be higher achievers as well.

Do you wonder why people with children rent in these areas and sacrifice space, commutes, etc. to give their children the chance to attend better schools? Do you wonder why people use wrong addresses for the same reason? Why wouldn't I give my son every single opportunity I was able to? That is what every parent wants to do.

Tell us, when local prices rise to the point that both parents have to be earners in order to afford to make mortgage payments, is that then worth it to move into an area with good schools?

Essentially, which is more important, parental involvement or school funding?

I don't know. I am a stay at home mom. My husband's income is enough to pay our mortgage and bills...and put money into savings and a 529 too. And parental involvement with regards to educational outcomes does not mean parents need to stay at home to have the types of involvement that influence their child's success in school anyway. Do you want me to recommend some books on this subject to you? Ones with data points that you can read through at your leisure? Or are you too busy patting yourself on the back for thinking you won some ridiculous Internet argument? Good luck to you!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Sorry a PP here. If we are middle class buyers who are able to afford to buy into an amazing school cluster and the house we buy has appraised higher than we bought at, I don't see how this makes us stupid. We had a ton for a down and low interest rates got us into a wonderful house in a beautiful neighborhood inside the beltway. We were looking to buy anyway so why not buy now instead of waiting? Serious question. The size is fine for us too, and we plan to stay very long term. Should we have waited or something? Why miss out on the lower interest rate?

There are certainly deals to be found out there. And if you don't care whether or not your home appreciates in value, then more power to you. I have a question for you though...how are local schools funded again?

I get this but the neighborhood we bought in has had amazing schools for ages. There is big money there. So unless you are suggesting that all of a sudden an amazing school cluster is going to go right down the tubes when it didn't sink an inch after the big bubble burst, then I don't get the danger. We certainly are aware that property taxes will rise, and while nobody wants to pay more taxes, that is something we will do eagerly since good schools are one of the biggest drivers of home values.

First off, the risk is called the "death spiral". Here's how it works...when incomes in an area remain stagnant or decline, house prices decline because fewer people are moving into the area for well-paying jobs.

Local taxes, which pay for schools (as you rightly noted, are a primary driver in an area's house value), are assessed on local home valuations. Lower prices, at the same tax rate, equals lower tax revenue. Lower tax revenue, equals lower funding for schools, less programs, less qualified teachers, etc.

Local taxes, as a percentage, get raised to recoup the loss.

People, as a whole, don't like paying taxes. This reduces the marketability of any given area over another, again, whether or not that's enough to dissuade them from moving is another point entirely. All other things being equal, home prices decline again.

Property taxes get raised.

Home prices decline again.

Property taxes get raised, again.

See the cycle?

The reason the DC area has been immune from this effect over the past decade is because the DMV benefits from Federal budgets more than any area in the country. The Federal government has the magical ability to make money appear out of thin air, via government debt and money-printing. However, this is getting a lot of press lately and getting a lot of calls to stop. Frankly, the DMV economy has been an anomaly over the past decade because of these government deficits, once you throw that out the window...suddenly things get a LOT more fair to the rest of the country really quick, wanna bet on which way that's gonna turn out for the local economy that's already been in this position for a little under a decade?

sO uEmploYment MusT be VerY HIGH in tHe Dc Area and Low elesWHERe?

Not at all. Unemployment has remained relatively stable over the past year.

What we're not seeing however is job GROWTH and/or income GROWTH. That's the key driver, without that growth, then there is no fundamental reason for this housing rally to be supported.

I wonder if you expressed the same sentiment back in the early 2000's? Refute any of the points made above.

Noone has, as of yet, been able to express what in the local DC economy has improved over the past year. Feel free to offer up an idea if you have one.

The economy is humming along fine and confidence in the economy is better as well as the restrictions on loans are easing, that is what happened. Take your doom and gloom to your next losing bidding war.

Are you serious?

http://www.prnewswire.com/news-releases-test/marylanddc-manufacturing-jobs-decline-23-over-past-year-162579106.html

How about this one...?

http://www.forbes.com/sites/emsi/2013/04/02/states-that-lead-and-lag-in-job-growth-and-competitiveness/

Or how about this one...?

http://www.dailyfinance.com/2013/03/26/consumers-confidence-in-the-economy-falls-in-march/

Care to bring forward some of your sources for your sentiments? Actual numbers would be appreciated.

[Anonymous]

Anonymous wrote:
Oh, and if this low interest rate situation doesn't infuriate you, you don't know much about how our government is financing this operation. It's taxpayer dollars, which means, like it or not, you and I are supporting these artificial home prices. Money doesn't just "come from somewhere else", everyone (American man, woman, and child) owes aprox. $50,000 in taxes over their lifetime thanks to the stimulus package. Unless you're happy just forking over $50k without a say in the matter to support those who overbought on their homes, you should be mad too. Quite frankly, if you're not mad, you're either dumber than a bag of rocks, or you're not paying attention.

Your understanding of economics is truly pathetic. If I were you I would refrain from posting on the subject until you attain at least a basic grasp of econ 101.

1. The stimulus package was around $830 billion, so less than $3000 per American. Do the math!
2. Money does "just come from somewhere else" - it is printed by central banks. Research fiat money.
3. The low interest rate situation results from monetary policy decisions by the Federal Reserve, not from spending decisions by the Federal Government. In fact, it is saving taxpayers a huge amount of money by reducing the interest owed on government debt.

Quite frankly, if you're mad, it is either because you are dumber than a bag or rocks, or you are simply nuts.

[Anonymous]

Only someone in the upper income brackets can't see that there are some very real structural problems in incomes and growth.

COL is going up while real incomes remain stagnant or even fall. Study after study has shown it. Maybe some of the folks in DC region are insulated from this reality, but I know we feel it as a family making less than $150K.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Sorry a PP here. If we are middle class buyers who are able to afford to buy into an amazing school cluster and the house we buy has appraised higher than we bought at, I don't see how this makes us stupid. We had a ton for a down and low interest rates got us into a wonderful house in a beautiful neighborhood inside the beltway. We were looking to buy anyway so why not buy now instead of waiting? Serious question. The size is fine for us too, and we plan to stay very long term. Should we have waited or something? Why miss out on the lower interest rate?

There are certainly deals to be found out there. And if you don't care whether or not your home appreciates in value, then more power to you. I have a question for you though...how are local schools funded again?

I get this but the neighborhood we bought in has had amazing schools for ages. There is big money there. So unless you are suggesting that all of a sudden an amazing school cluster is going to go right down the tubes when it didn't sink an inch after the big bubble burst, then I don't get the danger. We certainly are aware that property taxes will rise, and while nobody wants to pay more taxes, that is something we will do eagerly since good schools are one of the biggest drivers of home values.

First off, the risk is called the "death spiral". Here's how it works...when incomes in an area remain stagnant or decline, house prices decline because fewer people are moving into the area for well-paying jobs.

Local taxes, which pay for schools (as you rightly noted, are a primary driver in an area's house value), are assessed on local home valuations. Lower prices, at the same tax rate, equals lower tax revenue. Lower tax revenue, equals lower funding for schools, less programs, less qualified teachers, etc.

Local taxes, as a percentage, get raised to recoup the loss.

People, as a whole, don't like paying taxes. This reduces the marketability of any given area over another, again, whether or not that's enough to dissuade them from moving is another point entirely. All other things being equal, home prices decline again.

Property taxes get raised.

Home prices decline again.

Property taxes get raised, again.

See the cycle?

The reason the DC area has been immune from this effect over the past decade is because the DMV benefits from Federal budgets more than any area in the country. The Federal government has the magical ability to make money appear out of thin air, via government debt and money-printing. However, this is getting a lot of press lately and getting a lot of calls to stop. Frankly, the DMV economy has been an anomaly over the past decade because of these government deficits, once you throw that out the window...suddenly things get a LOT more fair to the rest of the country really quick, wanna bet on which way that's gonna turn out for the local economy that's already been in this position for a little under a decade?

sO uEmploYment MusT be VerY HIGH in tHe Dc Area and Low elesWHERe?

Not at all. Unemployment has remained relatively stable over the past year.

What we're not seeing however is job GROWTH and/or income GROWTH. That's the key driver, without that growth, then there is no fundamental reason for this housing rally to be supported.

I wonder if you expressed the same sentiment back in the early 2000's? Refute any of the points made above.

Noone has, as of yet, been able to express what in the local DC economy has improved over the past year. Feel free to offer up an idea if you have one.

The economy is humming along fine and confidence in the economy is better as well as the restrictions on loans are easing, that is what happened. Take your doom and gloom to your next losing bidding war.

Are you serious?

http://www.prnewswire.com/news-releases-test/marylanddc-manufacturing-jobs-decline-23-over-past-year-162579106.html

How about this one...?

http://www.forbes.com/sites/emsi/2013/04/02/states-that-lead-and-lag-in-job-growth-and-competitiveness/

Or how about this one...?

http://www.dailyfinance.com/2013/03/26/consumers-confidence-in-the-economy-falls-in-march/

Care to bring forward some of your sources for your sentiments? Actual numbers would be appreciated.

Even better for DC. If you haven't figured it out if the economy sinks people come to DC for jobs.

[Anonymous]

uh oh 15 year mortgage rates hit a low I guess DC housing IS DOOMED

http://money.cnn.com/2013/04/25/real_estate/mortgage-rate-record/index.html?iid=Lead