JWM what I consistently say is that if the decision is purely one of economics then it is 100% of a no brainer to not purchase the house. However to not say that there are other factors to consider when purchasing a home is a fallacy. I am not arguing the fact that the market will not depreciate. As I said, I do believe some areas/types of homes will get hit harder then others. What is clearly evident is that there are some people who are going to buy knowing full well of what is happening. No matter how much it grates against most people who post here, there are people who want to buy now and will buy now knowing that the market will depreciate. Evidently you don’t like that but you don’t deal with these people, I do as do other Realtors. I just got back from an appt in Escondido. This guy is selling his home and just inherited enough money to buy a home for cash in RB as he wants to get in the Poway school district. He is an engineer, and he fully understands the market dynamics. He is not postponing his purchase even though he knows what is happening. It is what he wants, and what his wife wants and it is contrary to economic wisdom. He is doing it regardless.
So if you want to call it talking out both side of my mouth, which is EXACTLY what you did call it, then fine. Talk to my buyers who just bought a home in Sabre Springs, or some other buyers of mine who bought a place up in sdr’s neighborhood off of Olivenhain. In all those cases I pointed out to them that the market is depreciating and they would get better deals in the next few years. They didn’t WANT to wait. They can afford the homes, they are buying them long term, and they don’t plan to move soon. They aren’t doing what you would do or what alot of other people who would post here do. They know I rent, they know I have advised them to hold off.
I absolutely agree with you about this bubble, the causes of it, and the declines. My postings about why it may be okay to buy are always based on the same thing, if you can afford it, if you will be owning it for a long time, and if you really love it. I don’t use the tired argument about tax breaks, I always acknowledge there will be a decline.
