That used to be how most mortgage banks felt too.

Now, it'* getting back that way down here, since many are burnt and left holding sub-prime paper that they used to be able to sell to investors and speculators.

We closed on our 1961-vintage, 1100 sqft on 0.35 acres, suburban cookie-cutter, ranch-style house, 25 miles from the coast, in April, 1999 for $192k, with a 30-year fixed at 7.75%. At that time, houses we were looking at were shooting up $15k to $20k per month, mortgage rates were dropping, absolutely anyone could get a mortgage (often getting ARM'* with no money down), and a "long time on the market" for a house was a few hours. There were literally parades of realtors driving clients around, waiting to hear on their cellphones that a house just went up for sale, then rushing into the feeding frenzy. Sellers didn't bother to spruce up the houses for showing--not even mowing the lawn--because it wasn't needed...anything would sell, no matter it'* condition. It was a crazy time, and had we not bought that very month, we'd still be renting today.

The craziness peaked in mid-2005 at $550k; at that time we refinanced and locked in a 30-year fixed at 5.75%. Many people refi'd into low-teaser ARM'*, often because their original ARM terms were beginning to come due, and they couldn't afford the balloon payments.

After mid-2005, the good times were over...mortgage rates began to climb again; those who took ARM'* in the late 90'* / early 2000'* could no longer refinance their way out of trouble, and started to default. This brought the crazy 25% to 30% per year appreciation to a screeching halt. Still, home values held fairly steady, and the mortgage and realty industries (as well as TV shows like "Flip this House") suckered more people into speculating and signing off on mortgages they couldn't afford, just ahead of a downturn anyone with any sense saw was coming.

As of mid-2007, the crap hit the fan for these suckers, and for the even larger number of folks who desperately refi'd into ARM'* in the early-to-mid 2000'*...this is fueling the current crash in home values here.

If I were to put the house on the market today, even with the $25k or so in improvements we've made, I'd list it at $450k, but expect $400k to $425k. I'd also expect to have to spend $5k+ to pretty it up, and wait possibly weeks or months for a buyer.

Of course, there are a host of other factors contributing to the downturn here in San Diego, including the realiziation that a service-based economy cannot support these housing prices (duh!!!), failing businesses, companies moving out, city budget mismanagement leaving a crumbling infrastructure and no way to incentivize new industry, etc. Indeed, I give my current employer a 3-5 year lifespan. If my current job search pans out, I'm planning to sell sometime in the next 6 months; if not, I'll ride it out and take a severance or relocation when my workplace packs up shop. Either way, it'* 99% certain that Southern California'* going to be in my past.

I have no patience or sympathy for the foolish suckers, greedy flippers, or predatory lenders that got stuck holding the bag. I say let them all hang out to dry. Heck, if I had been really smart, I would have sold two years ago and gone back to renting...who do I go to for reparations over that?

Jim, you planning on moving from a Condo to a Detached soon? What'* up bud? There has been a couple houses on our street that were in foreclosure. There is one coming up real soon about a block or 2 away. Unfortunately the previous homeowners made a mess of the inside before they were asked to leave. There still isn't a fore sale sign on the front lawn so who know what'* happening to our housing market. For me, it doesn't really matter what happens to the housing market. Been living here for over 22 years.

Your neighbourhood is ideal Frank, one of the more well established in Brampton that I really like.

The timing right now is a bit off since Angie is knee deep in college. I can't afford a house on one salary at this time. The condo suits me nicely. If we decide that building is to rich for our blood, then an area like yours is perfect.

I take it you're not moving any time soon eh?

I can give you a heads up if I hear anything about the house in foreclosure.

By the way it'* a double car garage, has a front window and approximately 2200 square feet.

The lady across the street is going to be selling her house next year since her husband passed away couple of weeks ago. Her house is approximately 2500 sq. feet and someone would save over $20,000.00 in realty fees if you purchase before she gets a real estate agent.

Mississauga is a great place to live, unfortunatley land is very expensive there. To much for my pockets. Brampton is only minutes away.

As for us moving, the only reason we have stayed her for so long is our neighbors, we couldn't ask for better people. If they were to move, we would also depending on the new neighbors.

I just caught the first part of an article on the front page of the WSJ and it said a very well known builder is set to auction off some new houses starting as low as 50% of the original price.

Home prices here in West Michigan have held steady for the most part, but really haven't gone up hardly in 4-5 years. I'm a bit nervous because we are finally going to sell in the spring, so I hope we don't have trouble. On the buying end I'm ecstatic because houses aren't selling well in the higher ranges. I think we should be good because ours is a starter type house (our first) which we bought for $81K in 2000. We've put roughly $10K in renovations and look to sell it for around $120-130K. A realtor we had over last fall (though that was almost a year ago now) said we really are in the perfect area because there will always be people needing a house in this range. What are having trouble are the higher priced houses over $200K. Anything over $250K here is considered a high end sort of home. I've been watching houses in the $175-225K range off and on for a couple years, and have seen several sit for over a year before selling. We went through the open house of one that was listed at $240K (just drove by and didn't know it was that high) a year ago, and found out recently it was still for sale, and had dropped to $200K. It finally sold recently. There is another one that we haven't seen yet, but drove by and is in an awesome area. All the houses on it'* street are valued (according to Zillow) at $275K or higher, and this one is valued at $243K, but just went up for sale at $215K. I'm anxious to see if it sticks around. If it'* still around in the spring we may lowball assuming we like the inside.

My family'* house has increased in value by about $110,000 in 10 years

Purchased in 1997 for $190k.
Can be sold today for about $300k without too much difficulty.

A semi-detached house in a more ghetto area of Toronto, nonetheless. Crazy market.