North Shore Overpriced

[skibum1321]

The North Shore just got voted the #1 overpriced area in America.

http://www.boston.com/business/ticker/2006/07/it_takes_lots_o.html

Massachusetts is really representing on that list (not a good thing). Cambridge and Boston also made the list.

 

[thetrailboss]

The North Shore just got voted the #1 overpriced area in America.

http://www.boston.com/business/ticker/2006/07/it_takes_lots_o.html

Massachusetts is really representing on that list (not a good thing). Cambridge and Boston also made the list.

Boston HAS ALWAYS wanted to be #1 at something, now they are. Congrats. :roll: :angry: The only word to describe it is ridiculous. GMAFB.

 

[nelsapbm]

I can attest to the property being ridiculous on the North Shore....my father's side of the family lives on Cape Ann...in fact I'm part owner of a house there and we're getting ready to sell. It's an old house which needs a ton of work, but I'm sure we'll make a pretty penny on it.

 

[ctenidae]

Real Estate Bubble
POP!

Maybe not a pop, but certainly a rapid deflation. Column in Barron's about a year ago recommended selling your house, renting for a couple of years, then buying your house back at a discount. Not bad advice, there.

 

[thetrailboss]

Real Estate Bubble
POP!

Maybe not a pop, but certainly a rapid deflation. Column in Barron's about a year ago recommended selling your house, renting for a couple of years, then buying your house back at a discount. Not bad advice, there.

ANOTHER reason why prices are so high....schemes like this. It also doesn't help when everyone thinks that they can become Donald Trump Real Estate Moguls overnight....they can't.

 

[ctenidae]

ANOTHER reason why prices are so high....schemes like this. It also doesn't help when everyone thinks that they can become Donald Trump Real Estate Moguls overnight....they can't.

Wouldn't call that a scheme, so much as financial planning. Agreed, though, that a huge part of the increase in prices comes from speculators. Low interest rates will do that to you. Loook through the homes listings, and you can pick out the places that were done by flippers- probably 80% at any given moment. Anytime you see the word "new" more than 3 times, it's a flipper. And, like any scheme, the early adopters made out huge, while the average joe came in too late, and they're now sitting on places they can't afford and can't sell.

 

[pizza]

And from the title I just assumed you were talking about the north short of LI.. which didn't even make the list.

 

[riverc0il]

The North Shore just got voted the #1 overpriced area in America.

http://www.boston.com/business/ticker/2006/07/it_takes_lots_o.html

Massachusetts is really representing on that list (not a good thing). Cambridge and Boston also made the list.

i used to live in beverly and salem as a renter. it really is way over priced and often times for run down junk homes. rent prices were rediculous which is probably because home prices were rediculous. i am surprised to see the area #1 overpriced in america, but i knew it certainly wasn't worth what people were being charged.

people seem to be fearful of anyone with any industry guru experience saying that the bubble has "popped." articles like this certainly seem to indicate that it has! and good thing too. seems like all those lowered interest rates are finally coming back to bite us on the rump. too much meddling with an economic system and trying to tempt people into living beyond their means just to stimulate the entire economy... not such a hot long term idea it seems.

 

[Marc]

I just was overnight in Hull, and even down there is insanely expensive. Cohasset? Forgeddaboudit.

 

[bigbog]

...and...

ANOTHER reason why prices are so high....schemes like this. It also doesn't help when everyone thinks that they can become Donald Trump Real Estate Moguls overnight....they can't.

Aren't there a few itemized deductions/tax exemptions somewhere...on properties yet unsold..?

 

[JimG.]

people seem to be fearful of anyone with any industry guru experience saying that the bubble has "popped." articles like this certainly seem to indicate that it has! and good thing too. seems like all those lowered interest rates are finally coming back to bite us on the rump. too much meddling with an economic system and trying to tempt people into living beyond their means just to stimulate the entire economy... not such a hot long term idea it seems.

Yeah, that popping sound really upsets alot of folks. Like you said, part of the fear comes from those living beyond their means, sweating as they watch their ARM go through the roof and interest rates on debt they already can't afford going up too. The other part of the fear comes from the flippers who now own property they never wanted to keep but can't sell. But this is the case for any form of gambling...eventually you lose and payment comes due.

I bought my house to live in, not as an investment. It is an investment of course, but not one I'm looking to make money on in the near future. I went with a FRM and got a damned good rate too, close to 5%. Of course, that was 3 years ago. It's all in the timing. The market was bound to turn and we will see the market stagnate for a while.

Works for me! I was getting concerned about all the development in my area, but that has stopped dead. Nobody buying. And just in time...the town is revaluing properties for tax purposes, but since I bought at the height of the market, it won't really affect me much. Not so for those who have been there for 10 or more years. Ouch!

 

[ChileMass]

Perhaps my town is an exception. They still can't build big, expensive houses here fast enough. There's a development about a mile from my house with 20 brand-new executive houses going in starting at $800K and almost all are already sold or being occupied. There are much larger new developments going in at either end of town (80 houses each) that are being built now. The Metrowest area of Boston (approx 35 mi west of downtown) is still OK.

 

[JimG.]

Perhaps my town is an exception. They still can't build big, expensive houses here fast enough. There's a development about a mile from my house with 20 brand-new executive houses going in starting at $800K and almost all are already sold or being occupied. There are much larger new developments going in at either end of town (80 houses each) that are being built now. The Metrowest area of Boston (approx 35 mi west of downtown) is still OK.

Amazing...wonder how much of that is speculation.

There was a similar development slated for 20 acres down the road from me. They had already put in infrastructure like roads and stop lights. Now, it's just empty lots just sitting there; not a house built or started yet.

 

[bvibert]

There's a development on my way into work that was started a while back. From what I can see they finished, or just about finished, two big houses and a third has been sitting for a few months with no siding or windows. Not sure what the story is there...

 

[skibum1321]

This whole area still can't build fast enough. There are 2 huge condo units going in on the sides of 93 and 95. I really don't understand the mentality of wanting to live on the side of the highway. Being convenient to the highway is one thing - having it in your backyard is another.

 

[John84]

Just down the street from me there's a development going up and it's monstrous. I've got no idea how many individual townhomes are going in, but if I had to venture a guess I'd say it's at least 125-150. All of those are going for a minimum of 800,000. Then there are the 3, 15 story buildings filled with condo's, that are going for at least 650,000. And all of this is jammed into an area that really isn't that big.

 

[SkiDog]

Bubble didn't bust in the part of jersey I live in....theres a house sold in my area like daily...

Its all about what its ALWAYS been about LOCATION, LOCATION, and LOCATION...thats the ONLY 3 things you need to know in the real estate business

M

 

[riverc0il]

Amazing...wonder how much of that is speculation.

i suspect a lot of it is speculation or it is too late to put the brakes on. as a developer, i would be hesitent to build major development right now unless i had either commitment upfront from buyers or a special market or special location. not matter when the bubble breaks, as another poster mentioned, those areas with good location with always do well. but when supply out paces demand and there are more sellers than buyers... POP!!!!!!

 

[ALLSKIING]

Bubble didn't bust in the part of jersey I live in....theres a house sold in my area like daily...

Its all about what its ALWAYS been about LOCATION, LOCATION, and LOCATION...thats the ONLY 3 things you need to know in the real estate business

M

Same with my area. The building is still going on.. prices are still has high as ever and houses are selling. I really don't think there is a bubble in my area. Great for resale but bad for first time buyers.

 

[JimG.]

Bubble didn't bust in the part of jersey I live in....theres a house sold in my area like daily...

Its all about what its ALWAYS been about LOCATION, LOCATION, and LOCATION...thats the ONLY 3 things you need to know in the real estate business

M

I should qualify my post a bit...my comment was directed more at brand new houses. There are alot of homes in my neighborhood up for sale and a few sell each day, many after being listed just a short time. But there is such a large inventory of existing homes for sale and sellers more willing to negotiate price that buyers for new homes have diminished greatly. They can get a better deal on an existing property.

The true indicator of this housing turn is the fact that some folks are leaving Dutchess county and returning to Westchester because they are better able to afford that county now. That's a total reversal of the trend for the past 10 years.