10-14-2008, 10:28 AM
(scenerio) You ONCE owned a $150K house last year, this year that same house is only worth (about) $110K to $120K. Your now 30 to 40K in further the hole. One of my prominant customers paid $360K for their house 3 years ago. This year, after rechecking with their Real Estate agent, that same house is only worth $245K. That's about 33% drop!!! It didn't matter that the house is in a well to do area, they were hit hard.
As I watch the "How to do" shows on TV and talk with other home contractors in our area, a vast majority of people do owe more than their house is worth. This unexpected loss happened when the housing industry/real estate values plummeted last year.
We remortgaged last year to take advantage of lower interest rates and some for home improvements but insisted on keeping a % of the equity in the bank. That saved equity is what's keeping our heads above water. One has to live & learn from others mistakes and misfortunes when talking to others and about whatever just so stay ahead of a game.
AND it sure didn't help with OIL/GAS prices jumping and staying high. Oil is currently about $80 a bbl, gas should be about $2.20 gallon. That includes the NORMAL cost of living increase. It's going to be tuff for everyone to recoup from this Oil industry shot. Many savings account were depleated. Others dipped in their retirement funds or cashed in some CD's & took the loss. Hence the stock market drop.
As I watch the "How to do" shows on TV and talk with other home contractors in our area, a vast majority of people do owe more than their house is worth. This unexpected loss happened when the housing industry/real estate values plummeted last year.
We remortgaged last year to take advantage of lower interest rates and some for home improvements but insisted on keeping a % of the equity in the bank. That saved equity is what's keeping our heads above water. One has to live & learn from others mistakes and misfortunes when talking to others and about whatever just so stay ahead of a game.
AND it sure didn't help with OIL/GAS prices jumping and staying high. Oil is currently about $80 a bbl, gas should be about $2.20 gallon. That includes the NORMAL cost of living increase. It's going to be tuff for everyone to recoup from this Oil industry shot. Many savings account were depleated. Others dipped in their retirement funds or cashed in some CD's & took the loss. Hence the stock market drop.