Redneck's Wife
Wednesday, June 01, 2005
  Housing prices
A few of us at work have been having a debate about housing prices. Are they going to keep going up? Is it a bubble that's going to disastrously pop?
No question, prices in California are crazy. And more and more people are getting interest-only loans and HELOCs(Home Equity Line of Credit) so that they owe more on their house than what it's worth.
But I can't discount the fact that our house, purchased 2 years ago (and yes, with an interest-only loan) for around 370K is now appraised at $550K. This is for an 800 square foot house, mind you. So I can't really feel that we made a mistake. Plus, we like living there.
Anyway, the debate at work has been between three of us. The deal is, we check the trajectory of housing prices once a quarter or so. Whoever is wrong has to buy everyone else lunch. One guy, Gerry, is currently renting, and has been saying for at least 2 years that the housing market is going to crash (the same two years in which our house appreciated 180K). He has some good points, and I have to admit, he makes me worry a little. But, he bought lunch this time.
The other guy, Adam, owns a house and a condo which he rents out, and he is convinced the market will keep going up. I'm kind of in the middle. I can see the warning signs: rising interest rates, rising debt, riskier loans. But then I think:

So we'll see who's right in the long run. Meanwhile, I'll be enjoying my equity. And my free lunches.
 
Comments:
Yeah, I dunno - I was one of those who thought the prices would tumble at some point, but they keep going up, up and up here in Massachusetts too. I just figure what goes up must come down, eventually...
 
Jeebus. I was feeling bad about the suburban Philadelphia real estate market. I can't believe homes in CA are that expensive. Aren't you guys afraid of falling into the ocean?
 
Lori,

Yeah, it's pretty nuts out here. As far as the ocean goes, falling off hills has been more of a problem lately, but that's in Southern Cal. One thing at a time, I guess.
 
Post a Comment

<< Home
Random Ramblings on Whatever.

My Photo
Name:
Location: San Jose, California, United States

I married the rarest of creatures, a genuine redneck who was born and raised in the liberal San Francisco Bay Area. I'm a technophile married to a technophobe.

Need guitar stuff?
My favorite redneck can hook you up!
C.B. Perkins eBay Store
C.B. Perkins Website
C.B. Perkins Blog


MUST READS
The American Thinker
Jonah Golberg
William F. Buckley
Victor Davis Hanson
Mullings
La Shawn Barber
Power Line
Michelle Malkin
Vodka Pundit
Althouse
Mudville Gazette
The truly superfantastic Manolo
Clublife
Lileks' Screedblog
Lileks' Bleats


HANGOUTS
K's Cafe
Blog One Another
Birgit's blog
Blah Blah blog
Randall's blog
One Good Thing
Julie Leung
A New Life Emerging
Beth Keck
Russell Mann
Feeble Knees
Satan's Laundromat
Dizzy Girl
Lumos (Harry Potter site)
Gut Rumbles


LAUGHS
Query Letters I Love
Homestar Runner
Go Fug Yourself


ARCHIVES
01/09/2005 - 01/16/2005
01/16/2005 - 01/23/2005
01/23/2005 - 01/30/2005
01/30/2005 - 02/06/2005
02/13/2005 - 02/20/2005
02/20/2005 - 02/27/2005
02/27/2005 - 03/06/2005
03/06/2005 - 03/13/2005
03/13/2005 - 03/20/2005
03/20/2005 - 03/27/2005
03/27/2005 - 04/03/2005
04/03/2005 - 04/10/2005
04/10/2005 - 04/17/2005
04/17/2005 - 04/24/2005
04/24/2005 - 05/01/2005
05/01/2005 - 05/08/2005
05/08/2005 - 05/15/2005
05/15/2005 - 05/22/2005
05/22/2005 - 05/29/2005
05/29/2005 - 06/05/2005
06/05/2005 - 06/12/2005
06/12/2005 - 06/19/2005
06/19/2005 - 06/26/2005
06/26/2005 - 07/03/2005
07/17/2005 - 07/24/2005
07/24/2005 - 07/31/2005
07/31/2005 - 08/07/2005
08/07/2005 - 08/14/2005
08/14/2005 - 08/21/2005
08/21/2005 - 08/28/2005
09/04/2005 - 09/11/2005
09/11/2005 - 09/18/2005
09/18/2005 - 09/25/2005
09/25/2005 - 10/02/2005
10/02/2005 - 10/09/2005
10/09/2005 - 10/16/2005
10/16/2005 - 10/23/2005
10/23/2005 - 10/30/2005
10/30/2005 - 11/06/2005
11/13/2005 - 11/20/2005
11/27/2005 - 12/04/2005
12/04/2005 - 12/11/2005
12/11/2005 - 12/18/2005
12/18/2005 - 12/25/2005
12/25/2005 - 01/01/2006
01/01/2006 - 01/08/2006
01/08/2006 - 01/15/2006
01/22/2006 - 01/29/2006
01/29/2006 - 02/05/2006
02/05/2006 - 02/12/2006
02/12/2006 - 02/19/2006
02/26/2006 - 03/05/2006
03/26/2006 - 04/02/2006
04/09/2006 - 04/16/2006
04/16/2006 - 04/23/2006
04/30/2006 - 05/07/2006
05/21/2006 - 05/28/2006
07/09/2006 - 07/16/2006
09/03/2006 - 09/10/2006
09/17/2006 - 09/24/2006
11/02/2008 - 11/09/2008
11/09/2008 - 11/16/2008




Who Links Here Powered by Blogger