Jim in Orlando

Homeowners Feel the Pain of Over-Improvement Syndrome

Very good article Tim! Yes, things have really changed, enough so that the HGTV shows look laughable right now!

Back in 2002 I bought a nice house, corian counters, older kitchen, etc. A neighboring agent warned me back then don't over-improve, as it was a small home for the neighborhood and was valued properly. I sold that house in 2006 due to job change; it was 6 months on the market and I sold basically for what I paid plus some minor upgrades I had completed. The new owners however immediately invested $200K in marble floors, granite kitchen, and new bathrooms - now the house is back on the market for $225K more than they paid me and I don't see how the market can support that price!

But wszwarc writes "the housing downturn completes its cycle later this year" - I don't see that at all. We are just beginning the downturn and property owners are still in the denial phase. Long long way to go here.

Housing Prices Are Still Headed Down

Expat, dude, put down the Kool Aid! There is not a pent-up demand, the population of many overbuilt areas is decreasing as folks flee to less expensive areas, and the economy is tanking! Interest rates are going up - have you looked at mortgage rates lately?

Yeah, they're not making any more land... wait a minute, don't realtors say that a lot... you wouldn't be... nah!

Ah ha - you hit the nail right on the head man - PRICES HAVE TO DECLINE 35% or 40%. I salute you!

If the buying public wasn't so stupid and gullible they wouldn't have fallen for this ponzi scheme in the first place!