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HLS.
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May 28, 2013 at 7:17 AM #20662May 28, 2013 at 7:25 AM #762244
desmond
ParticipantThe homeowners in this article are geniuses?
Keep pretending this is a normal housing market. I am not pretending the stock market is normal…..
May 28, 2013 at 7:47 AM #762245ParticipantMay 28, 2013 at 7:58 AM #762246outtamojo
ParticipantThose who avoided 2005-2008 and figured the turn in 2009-2011 are geniuses. Rising home prices = leave the area or keep looking for a place to rent.
May 28, 2013 at 10:04 AM #762250spdrun
ParticipantVery local. A lot of Western states have risen. NYC (area, not the central city) is actually down since last year, with a pile of foreclosures hitting the market right about now. Hope to be able to play in this cesspool soon, since once the foreclosures are sold out, the area will probably go the way of CA.
No touchy-feely homeowners’ bill of rights in NJ, thought, just a hardass Republican governor who’s letting the market take its course. Yeah, re taxes are high, but not in all towns. The ones I’m interested in tend to be about 1-2% of value per annum owing to a strong manufacturing and business base.
http://www.deptofnumbers.com/asking-prices/new-york/new-york/
May 30, 2013 at 1:07 AM #762297thebazman
ParticipantPer the article,
“Rising prices also encourage more would-be buyers to purchase homes, before prices rise further.”
If the price trends continue, people may truly be priced out of buying homes.
May 30, 2013 at 8:27 AM #762298ParticipantHopefully, we’ll be seeing a Japan-style market crash/correction soon, with home prices following back into the toilet where they belong. “Abenomics” in Japan isn’t all powerful as we’re seeing. Hopefully, neither is QE3 over here.
As far as home prices being unaffordable, they’re not even close, since people are buying.
May 30, 2013 at 9:01 PM #762321ParticipantTrue, the definition of “unaffordable” varies from person to person. For myself, being pre-approved for $250,000, single-family homes in the city are out of reach. For the average home buyers with a 300K to 600K budget, there are still plenty of affordable homes.
But I admit, I take responsibility for not buying when I had the chance. I’m just happy to still be living in San Diego.
May 30, 2013 at 9:22 PM #762322ParticipantI’m not convinced that there was a recent point where you could get a single-family home in decent shape (meaning: not needing $50k+ of work to be habitable) in an acceptable area for under $250k. Oceanside and Escondido possibly excepted. Believe me, I looked and would have bought in a second had the right deal come along.
Why not look for 2 and (if possible) 3-bedroom condos at this price point? Common charges and taxes are on average low enough in the SD area to make a condo not a bad deal.
May 31, 2013 at 12:08 AM #762328Jazzman
Participant50% of buyers think prices are increasing, so must buy now.
25% of buyers think prices have been going up so when will they come down.
The remainder of would-be buyers sit in hope that one day the world might be a sane place again.
It’s a democracy so majority rules.Statistics courtesy Robinson Crusoe Research.
May 31, 2013 at 1:52 PM #762339patb
Participantits just another bubble.
The banks want to clean up their balance sheets then the Fed will raise rates.
May 31, 2013 at 3:42 PM #762340The-Shoveler
ParticipantOK not saying your not right,
But If the fed raises rates, and the housing market crashes (Again), will that not mess up the banks once more, not to mention the economy and local municipalities coffers?
It’s kind of like “coffin corner” if you are familiar with aeronautical terms.
No easy way out!!!
Interesting times.
May 31, 2013 at 8:15 PM #762345bearishgurl
Participant[quote=The-Shoveler]OK not saying your not right,
But If the fed raises rates, and the housing market crashes (Again), will that not mess up the banks once more, not to mention the economy and local municipalities coffers?
. . .[/quote]
Mortgage interest rate hikes won’t make the market “crash.” Not when millions of buyers in recent years bought with super low fixed-rate mortgages, mostly 30 years in duration. And 95% of the rest of the buyers paid all cash when they bought.
How are all these properties suddently going to fall into “distress?”
The reality is that they aren’t. Rate hikes won’t affect the amount of buyers, either. They will only affect how much each buyer can borrow. This doesn’t mean buyers won’t buy a residence if they need one. It just won’t be the type of residence that FTB’s and STB’s have become (artificially) “accustomed to” being able to buy in recent years. It will be lesser in size, in a lesser location or in lesser condition or all three.
Buyers will have to suck it up and deal with it.
And if rents keep escalating, people who want to stay will not want to keep paying exorbitant monthly rent if they have the ability to buy.
The SD RE market will go on as it always has and all will be as it should be in a CA coastal county.
Prospective buyers who are now waiting for another “crash” to buy in SD County will find themselves waiting forever, IMO.
May 31, 2013 at 9:49 PM #762350Reality
Participant[quote=bearishgurl]
The reality is that they aren’t. Rate hikes won’t affect the amount of buyers, either. They will only affect how much each buyer can borrow. This doesn’t mean buyers won’t buy a residence if they need one. It just won’t be the type of residence that FTB’s and STB’s have become (artificially) “accustomed to” being able to buy in recent years. It will be lesser in size, in a lesser location or in lesser condition or all three.Buyers will have to suck it up and deal with it.
[/quote]So who will be buying the homes that aren’t “lesser in size, in a lesser location or in lesser condition or all three”?
I say the same type folks that are buying them now, only the principle (price) will be lower to meet the lower borrowing levels (demand). People aren’t getting more house now due to lower interest rates, only more debt.
The sellers will be the ones sucking it up.
May 31, 2013 at 11:50 PM #762355Participant[quote=JohnAlt91941]So who will be buying the homes that aren’t “lesser in size, in a lesser location or in lesser condition or all three”?
I say the same type folks that are buying them now, only the principle (price) will be lower to meet the lower borrowing levels (demand). People aren’t getting more house now due to lower interest rates, only more debt.
The sellers will be the ones sucking it up.[/quote]
No John, when rates revert to the “norm,” there will be a much wider variety of buyers buying them than the ones who are currently buying them (mainly cash investors and FTB’s and STB’s who have little to no downpayment).
Read: “Professionals” shopping in LM, LG, Linda Vista and Golden Hill, for example.
Laugh all you want. But before you lie down and start rolling on the floor, read this recent thread:
Monthly Payment Ratios, May 2013: Homes May Not Be Cheap, But Mortgages Sure Are
Buyers today are getting far more house and better area than they have EVER historically afforded in SD County when mortgage interest rates were in the (normal) 7-10% range.
Are some buyers today incurring too much debt for their families to realistically handle going forward? I would say some are but purely by choice as they DO have other alternatives. I would guess that many (most?) mortgage lenders don’t use MR and HOA monthly expense (BOTH can be exorbitant) when calculating monthly PITI in front end/back end ratios for qualification purposes.
Any mortgage brokers here, please feel free to correct me on this.
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