Stock market/banking sector insanity

[Fr. Frank]

Housing market is slammed. I began to build a house just before Katrina. Estimated cost to build was $165K INCLUDING a 20% fudge factor. Got held up after site approval permitting because of the state planning changes to the highway by my house in 20 years. After delay and hurricane, the house cost $272K to build. 2400 sq/ ft. Certified 165 mph wind loading on a 2-story "Cracker Style" wood frame house. Exterior framing is 2x6, 4x6, and 4x12 timbers, with the roofing trusses all bolted down to the slab with 5/8" threaded rods. (I built it to last)

After construction, it appraised at $387K including the waterfront on a lake.

Replacement cost of the building alone as of 12/07 is $327K, not including personal property.

Two years later, I have had it appraised again this past December by the same company. It now appraises at only $265K, That's $77K LESS than it would now cost to build it again, and $122K less than its value just 2 years ago. That's a drop in value of 32% in just two years.

And some people have it worse than I. I have a parishioner that paid $1.1 million three years ago for a house that appraised at 1.25 mil. That house recently reappraised for only $490K.

Yeah, things are bananas.