27 May 08 07:27, Cindy Haglund wrote to Roy Witt:

 TW>>>> The little 1000 Square Foot house I live in has lost $100,000 in
 TW>>>> value

 CH>>> so haven't the bigger ones. Everyone is losing. It's that dam
 CH>>> bubble of a few years ago. It's bursting.

 RW>> The guy who bought my California home lost quite a bit. $122,000
 RW>> since I sold it to him in 2006. Can you say; upside down?

 CH>  Isn't this all the reversal of the big huge bubble in 2004 though?

I don't think so. Property values in California have always been going up.
I bought that house for $176k in 1994. It was built in 1973 and originally
cost around $34 to 39k...The little 2bdr house I bought in 1967 for $12.9k
was worth as much as mine when I sold it.

 CH> When we had to sell our Fl house in 2003 the value had gone up a
 CH> modest 8% which was nice!! of course! But in the next year and ahalf
 CH> we found out houses in our area in FL had DOUBLED in value. That's
 CH> quite a leap isn't it?

Yes...a steady climb is much better to deal with.

 CH> SO now the bubble is bursting?

No, it's just adjusting. Property values in California will continue to
rise when the adjustment period is over.

 CH>  ((Meanwhile though in the DFW area values were not going up a little
 CH> bit but not much in that time period and now- they too are dropping
 CH> in value.

If they're going down, they're just adjusting to a market correction.
They'll continue to grow in value as DFW grows.

 CH>  You have to keep buying UP just to stay with the same standards of
 CH> living/type of house you like. That's crazy.

No you don't. Stay where you're at and reap off the top as your property
increases in value. Buying up isn't going to get you there.

 CH> When we had house hunted in the eastern VA area (where values are
 CH> highly inflated due to the proximity of DC)- we were shocked that a
 CH> 'starter' home started at 200K! That's crazy.

That's because of 'supply and demand'...housing in crowded communities
like DC and NY City is expensive. You can find 'million dollar' housing in
downtown San Diego too, but it's because of the location and/or view.

                R\%/itt



--- Twit(t) Filter v2.1 (C) 2000