Community Chat

[151949]

They listed the 5 worst and 5 best places for home values.The worst seem to be in Ill. and 2 of the best are on the SW coast of florida - Ft Myers and Punta Gorda. These two cities are within 50 miles of each other - probably closer than that.The article said the home values in this area have gone up 29%. While that is great for those of us who already own a home in this area , it is a bit scary that another real estate balloon is starting here.Falsly inflated prices are never a good thing in any area.In our small plan alone there are people who paid $350,000 during the balloon and the lowest price here was $135,000 in 2010, for a very similar home. I believe that traditionally when the interest rates are low the prices go up and when the interest rates go up the prices fall. When we bought our home in Pa in 1983 the interest rates were 15% but we only paid $62,000 for a brand new home - and you could pay points to get the % down to 13%. Then the interest rates dropped and we could refinance at a lower rate, but prices were really rising. In the end - our house tripled in value in 28 years (and we sold in 2010 during the crash).