Check out Mark Perry’s collection of evidence that the housing market is on the mend. Interesting to me is the emphasis in the good news on high-end sales. That would imply either that there are a lot of cash buyers with big wads of cash out there or that jumbo mortgages are being offered again. Perhaps some of both.
I discovered a couple of months ago that houses in the $500,000+ range* kept getting built over the last several years here locally. That’s Orlando, Florida for those that don’t remember. (I mean in develpoments, not one off deals.) This has been going on in the area north of Disney property. There was also an article in the paper a few weeks back about the high end of condos downtown are seeing a surge in interest. The very wealthy are LOOKING to buy expensive properties to show off. The rest of the local market is still pretty weak, although better than it was a couple of years ago.
* From what I could see of the houses they would have been going for more than $800k five or six years ago. It’s a great time to buy if you’ve got a wad of cash!
As some commenters may know, I have been looking at high end property in AZ. Because we own and do the Naples, FL thing due to in law considerations, we’ve kept tabs there as well. And then we have our primary residence.
Naples is clearly getting back on its feet, but only at the high end. No econoboxes. Those folks have a problem.
AZ (Scottsdale) is also recovering but more slowly. Perhaps because they don’t have the duel influx of both Midwestern retirees and second home buyers as well as east coasters.
Dave would be better to opine on the near in state of Chicago, but in the far western suburbs where I am we actually have interest in our home at just about 98% of what we paid in 2005. (im stunned) Now, we have updated. And we bought correctly. Our back yard is more like a park than a back yard. But it’s interesting.
As for people in our area who bought in 1997 – 2007 and haven’t reinvested? Dead meat. But that is true of any capital asset.
Yeah, that’s why there’s a question mark at the end of the post title. But from the linked post:
One swallow doth not a summer make but at least it’s going in the right direction.
We bought our house in Chicago in 1987. It has appreciated substantially in real terms since then. It’s down in price relative to 2005 and it may be down relative to 2000. I really don’t know and I really don’t care. I don’t look at home ownership as investment but as consumption. Its value at time of sale will mostly be of interest to my heirs.