Rising cost of housing

[koan]

RE/MAX's Decade in Review study finds that the average price of homes across Canada almost doubled, rising from $154,606 in 1997 to $307,265 in 2007.

source

Unfortunately wages haven't doubled in that amount of time. We're heading for a future where land owners are the people who inherited property.

[Richard Bell]

Interesting article.

Everybody knows prices have gone crazy in Vancouver, Toronto, Edmonton, and especially Calgary, but P.E.I.? Didn't know that.

Three hundred thousand will buy you a very nice house here (two hours east of Toronto, pop. 45,000).

I bought my house in 1992 for $89K.Made the last mortgage payment last July.

[Nomad]

I believe this is a worldwide phenomenon, not just selective regions. There are pockets of still affordable housing but unfortunately they're all in Kenya and Somalia.

I think the reason the market in CA is so bad is because the prices are artifically high, and dont really cost what they were appraised for.

The appraisers kept raising their appraisals based on the fact that folks would but them even though they coudl not afford the payment when it balooned.

The houses arent really worth any more money than when they were first built. In fact, unless they were improved upon they shoudlnt be worth anything more than what they were originally purchased for.

What folks need to do is sit still and save and refuse to pay for the houses that are on the market and watch the prices drop.

Boycot new or used house buying.

Houses doubled in price in america because a second spouse went to work, had the second spouse stayed home the home sellers never could have set the price so high. Now we have babysitters watching the kids so the parents can afford a median priced home that they cant afford to make continual improvements on without going into their equity to cover it. And the children dont stand a chance to obtain a home in thier home towns.

We let greed rule.

Don't forget the greed of the banking and mortgage industry who convinced people to sign up for loan amounts that were unaffordable to start with.

[koan]

Originally Posted by Jester

I think the reason the market in CA is so bad is because the prices are artifically high, and dont really cost what they were appraised for.

The appraisers kept raising their appraisals based on the fact that folks would but them even though they coudl not afford the payment when it balooned.

The houses arent really worth any more money than when they were first built. In fact, unless they were improved upon they shoudlnt be worth anything more than what they were originally purchased for.

What folks need to do is sit still and save and refuse to pay for the houses that are on the market and watch the prices drop.

Boycot new or used house buying.

Houses doubled in price in america because a second spouse went to work, had the second spouse stayed home the home sellers never could have set the price so high. Now we have babysitters watching the kids so the parents can afford a median priced home that they cant afford to make continual improvements on without going into their equity to cover it. And the children dont stand a chance to obtain a home in thier home towns.

We let greed rule.

It is a problem. I like your ideas.

The houses aren't what is assessed as valuable. It's the land.

[moonpie]

A condo, in the West End, some 20 plus floors up is selling at $28M in Vancouver. All they are doing is building in Vancouver, and even out where I live in Port Coquitlam, so many new residential buildings going up, and they are mostly unaffordable to a lot of first home buyers. Totally out of reach for many people.

Originally Posted by koan

It is a problem. I like your ideas.

The houses aren't what is assessed as valuable. It's the land.

Not really, an additional bedroom can up the appraisal price by ten grand. A landscaped yard, a fresh coat of paint, newer windows, upgraded electrical or additonal 220 outlet in the garage, cabinets, etc... all bring the houseing appraisal price up, up, up, its all about competition of a comparable house in the same area.

I am buying 400 acres of land for the same price as three standard homes in town... The homes are on 1/4 acre lots, granted they are improved lots, but Im buying 3991/4 acres more for the same money.

There is no logical reason any home in CA on a 1/4 acre should cost more than 120grand. And we are seeing prices in this area extend up from 350 grand for a three bedroom on a ZERO lot, meaning its on 1/8 of an acre.

Not that I'm for this solution but certain items should be capped at cost plus 10% profit and not taxed by the government. (or some similar capped event to ensure that families can afford to live under a base standard, but not a sudsadized method as in an intitlement)

Primary Homes.
Basic survival groceries.
Primary Car.
Healthcare.

Originally Posted by rjwould

I like your general attitude, Jester, but I think I see it in reverse in what I have highlighted in your post.

The American economy is made to constantly increase, so the parents needed to find more money somehow...working more...Families reacted to the economy rather than the economy reacting to the behavior of families.

I think theres a bit more to it than that if you consider the 'image' of the 'jones' next door... the advertisers goal is to make you disatisfied with what you have in your hand so you want another more expensive product, and they are masters at thier game. Greed drives the rapid success of capitalism. The market reacted to what the people desired based on what they were told was best for them, and they wanted it NOW! Rather than working for it, and the companies made a way for us, this recent 'baloon payment' non-ethical loan system is a typical example of the market rapidly growing in the profit-greed based system.

Resistance to advertisers and the image makers allows a more controlled slower growth to the economy, spreading goods out an finding new markets is better than reselling to old markets something they want but dont need. (How many 52" TV screen does one need?)

Im in a position next year to make a decision to get healthcare for my workers through a plan or pay them more so they can manage thier own money and buy healthcare if they choose. Knowing that they wont be able to handle thier money well Im inclinded to be the benevolent employer and make sure their families have healthcare. Its my soul decision, I could pocket the money and build unto my property and hoard it to myself. Will I put my ethics to work or be greedy? havnt decided yet.

[Scott289]

The prices are pretty outrageous around here too - for a 3-br townhouse in Northern Virginia they go for around $700,000.

What's really interesting to me is that in the DC area, most of the housing within walking distance of a Metro station has held it's value...even over the downturn these past few years.

But the houses that are 10 miles from a Metro -- tanking in value. I guess that it's worth a lot to live near public transportation!