Zoning and FHA

[Randolph Kinney]

If, in the current economy, people were assured of their jobs, I believe the real estate market would quickly recover.

I don't believe that. Lending has significantly tighten loan requirements reducing the qualified buyer population.

I don't believe the real estate market will ever recover to the 2006 sales volume and price level.

 

[Mike Garrett RAA]

Lets don't bog down on this issue.

You cited the zoning. The issuing authority has said "residential use is ok and it could be rebuilt as residential if destroyed". End of discussion.

In my market it would be a conditional use. Highest and Best Use is not automatically dictated by zoning. If there is no demand for use as commercial is the highest and best use as improved? Most likely.

 

[Abester]

I don't believe the real estate market will ever recover to the 2006 sales volume and price level.

I'm sure they said that in 1931 except 2006 would be replaced with 1929.

reducing the qualified buyer population

What is the required buyer population for a particular neighborhood? Maybe the bottom tier buyers are bumped to rentals and maybe the 2008 $150,000 lookers are now looking in the $125,000 range. Price change has as much to do with supply as it does demand.

 

[Mike Garrett RAA]

The market has always recovered...unfortunately some of us are old enough to have gone through a number of recessions.

 

[Abester]

Lets don't bog down on this issue.

You cited the zoning. The issuing authority has said "residential use is ok and it could be rebuilt as residential if destroyed". End of discussion.

Do you always have to be so practical? Where's the fun in that?

 

[Randolph Kinney]

I'm sure they said that in 1931 except 2006 would be replaced with 1929.

How long did it take for real estate to recover its price?

 

[Randolph Kinney]

The market has always recovered...unfortunately some of us are old enough to have gone through a number of recessions.

The NAR standard position. At the same time out of one side of their mouth they say the bottom has been reached and out the other side of their mouth they say incentives are needed and cheaper interest rates.

What recession resembles this recession?

 

[Mike Garrett RAA]

I survived 18% first mortgage rates and Colorado Springs being the foreclosure capital of the United States in the 70s and 80s.

I do believe you are right, this one is different and that difference is the massive intervention of the federal government.

 

[Abester]

I don't believe the real estate market will ever recover

How long did it take for real estate to recover its price?

The question was not when, but IF.

Wasn't it in the early 80s when farmland prices went skyhigh? Then a good many farmers went bust. Sing it Willie. Now those prices are high again? Was I dreaming of that and John Deere combines?

 

[The Warrior Monk]

The bottom line, then, based on these posts 16-19, is that the existing inventory of nonconforming or grandfathered properties that CANNOT be rebuilt must be worth less than their otherwise rebuildable counterparts.

I certainly didn't say nor imply that. We don't have enough information to determine that. Sometimes it's more; sometimes it's less. It depends on the HBU of the property, as well as market forces.