What is a home really worth?

[Jim Kuhn]

The average home in USA is valued at around $175,000. What would the average home be worth without mortagage lenders? How much are homes overvalued?

Thank you,

Jim Kuhn
Catfish4u
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[Dynasty]

I don't think your question is clear? How are you expecting people to value homes?

It's like asking how much an apple is worth. Isn't it worth what people will pay for it? That's how capitalism works.

[TimM]

I think he is saying that relatively easy to get mortgages are inflating the prices of homes, by creating more demand. BTW, on here on Long Island, it seems you can double that 175,000 and that will be the price of the cheapest homes you could find. /images/graemlins/mad.gif

[Screwtape]

there is a good article in the economist on housing prices, if i weren't drunk I'd explain but check it out

[Dr. Strangelove]

"the value of a thing is merely what it will bring"

[Kurn, son of Mogh]

Value is subjective. If a home sells, by definition it isn't overvalued.

Whether or not the long duration of low long-term interest rates (both in home mortgages and other long-term bonds) is an economic time bomb is the real question.

Since I'm not an economist (nor do I play one on TV), I can only speculate.