Everything right now is kind of situational and is a case to case basis with me. Like I conveyed in my thread. I have Investors / some buyer's who are sitting on the sidelines for opportunities that may come along over the next few months but it would have to be at no more than 60% current appraisal value to play it safe.
I can buy duplexes in Southern Ohio for $45,000 and collect $1,000 in rents every month and have the thing PAID OFF IN FULL in less than 15 years???? Why would I put an investor in this market right now?
We ALL know or should know that the fall and winter months in San Diego are very very slow. So there is ABSOLUTELY no reason to pull the trigger on ANYTHING until early next year when the psychology factor worsens over this period….and it will. Believe me, and I know you do, there will not be a lack of inventory on the market in Feb 2007 for buyer's.
I think people underestimate or rarely understand the POWER of FEAR and the POWER of MOMENTUM. We saw those powers over the last 5 yeas in this market. People didn't buy after checking the FUNDAMENTALS they bought out of speculation and irrational thinking. Their emotions got the best of them, FEAR OF LOSS, and they made a decision.
Once again, this is not everyone but MOST people in this market.
Concerning Selling, I think everyone should sell that can make over $200,000 on their property. How long would it take a middle class worker to accumulate that much in their 401 K plan for retirement??? Put the 200,000 in a CD or ING savings account and go rent from someone who can't sell their house. If they want 2000.00, offer them 1800.00.
