I should ammend my statement to say, I don’t know if this person that owns the home is in distress or not. We only know that she has a 740k mortgage on a home she purchased for 925k. Now we don’t know if it is an ARM or not, we don’t know the rate, we don’t know her employment status, her salary, if she has a ton of cash in the bank or equities in the market. We don’t know any of these things.
Maybe she is distressed, maybe not. I tend to think she is not distressed as she would have priced in a more aggressive manner. The 740k would not require any salary at all if she had a ton of money stashed away or an ex hubby, or who knows what.
You see what I am saying?
Now realistically I could not agree more with you. I work at my enginnering job, and my real estate job, I make okay money, but not nearly enough to take on a debt load that I see many take on. So I have been pushing all money into savings… I desperately want that same drop you guys want. Do I think it will come? Well it seems that it should, most people posting here will categorically confirm that it will…Personally… well like I said, it seems that it should and it will in most spots around the county for most types of housing.
Look, my wife has a business in La Jolla in skin care and our biggest references come from plastic surgeons around the county. There is a substantial amount of money in this county that has nothing to do with salary. I am not talking like everyone is a bazillionaire but man oh man are there alot of people who really do not have to sweat working much. Can this alone prop up the market? Not a chance. However, I am exposed to so many people with so much more money then I have it makes me go crazy…Talk about hard not to get bitter. sdr posts here to and I am sure he knows and sees it everyday as well.
Now is this more the exception then the rule? Of course. Are many of us in the boat making 100-200k and frustrated as hell cuz we don’t want to plunk down 800k to live in a decent neighborhood with great schools? YES WE ARE!! Do we have no clue how some of these people can do it? I HAVE NO CLUE but some can and MANY others cannot and it will catch up with them.
Hang in there… the big drop will most likely come if you want to wait for it. Will it happen in the neighborhood you want? Most likely but as I have always said and will always say… every person has a unique situation and needs to measure their own resources against the need to own a home.
