some sellers are sitting on a lot of equity cushion. they do not have to sell unless they get the right price. The key to the housing market is the marginal buyers who bought between 2004-2006. The few sellers set the prices for all of us.

It means four homes sold.

Where the sales arms length?

Did the buyers use 100% financing?

Did the buyers get rebates on the close?

Houses will always sell. Someone will always be buying. The key isn’t whether or not they sold, the key is what did get for what it sold for and how was the purchase paid.

There will always be buyers, indeed.

I’m curious if these are cash-wealthy folks sitting on a mountain of equity that just couldn’t wait (maybe even former owners who cashed out a year or so ago) or just a second round of greater-fools with the standard toxic loan products.

A scary thought is that there is a potential for a ‘soft-landing’ if there is an adequate supply of both of the above for the indefinite future.

Again, I think we really need to have some better statistics regarding how buyers are financing home purchases currently to have a better idea what can happen in the future.

“Again, I think we really need to have some better statistics regarding how buyers are financing home purchases currently to have a better idea what can happen in the future.”
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There was a thread on this site many weeks ago that contained recent sales stats for Carlsbad (I think??) that showed some financing info. I think it was posted by one of the RE agents that surf this site. Maybe if whoever posted that info happens upon this thread they will re-post for you. I recall the stats showed minimal deals that were 100% financed (but don’t hold me to that).

“What is generally not acknowledged on any threads is that there are other factors that are not tangible or measureable in dollars and cents that may drive people to buy. There is almost a certain hostility that I read when some people post questions about buy verses rent in some of the responses.

SD Realtor”

Those reasons are emotional and not supported by financial analysis. When you can rent for half the cost of buying, how does buying make any rational sense?

With the dollars at stake, that’s just stupid.

Buying now does make sense if you believe, like many people out there, that we have hit bottom and that prices will rise again this spring. Most people I talk to (who aren’t on this web site) actually do believe that prices have leveled and that they will either be flat or begin a very slow upward trend that will continue forever. With this mentality, it is easy to see why we are seeing sales.

Furthermore, it is easy to see how shocked these people will be when the impact of possible higher rates, a possible economic slowdown, adjusting ARMS, foreclosures etc. continue to take hold and send the market down further. Last year’s depreciation was based almost entirely on subjective psychology – just wait until some of these objective issues take hold. Unlike the drop this past year, potential buyers will be able to look at objective issues like foreclosures, a stalled economy etc. as reasons for future price drops and when they see no end in sight to these issues they will not fool themselves into buying. As an added motivation, the subjective psychology will also shift downward and slam the market IMO. I suspect that in a year we wont be asking each other why people are still buying.

Some of the reasons often cited for buying is school for the kids. That’s a stupid reason since you can rent in a better school district than you could buy.

Orange County is about 6 months to a year behind SD in terms of price movements.