[quote=flu][quote=CA renter][quote=carlsbadworker][quote=CA renter]Being a potential buyer right now must be extremely frustrating and maddening.[/quote]
That’s right. I am only kidding in the other thread that after flu bought now we can see price drop. I cannot imagine how we will ever see price drop in this market…because I am a potential buyer right now, I feel the market first hand. I made bids on 4 houses in the last 3 months at the listing price. Each time, I am either being outbid or beaten by a cash buyer. Good houses go pending within 4-5 days, sometimes within one day. You have to have a right strategy to win a house, and apparently I don’t.[/quote]
Patience, carlsbadworker. I think the current interest rate environment (artificially suppressed interest rates, telegraphed over an extended time) has convinced both regular buyers and investors to pile into real estate with everything they’ve got.
IMHO, if/when interest rates rise, the 5-7% rates on rentals will no longer entice the investors who are flocking to anything with a yield. It will also make it more expensive for regular buyers to buy with a mortgage.
It’s horrible to have to wait for so long, as most of the weak hands could have been washed out by now if not for all the interventions. Unfortunately, the Fed/govt either doesn’t know what they’re doing, or they are hell-bent on destroying the entire economy for regular “working” folk. Not sure which it is, but they are really doing their darndest to make the pain as great as possible, and to spread it out until absolutely everyone is affected, as opposed to primarily affecting those who were most responsible for the housing/creidit bubble.[/quote]
The question is how long will the artificial rate suppression will last?
I mean even if it trickles .25%-.50%, rates are still ridiculously low… (unless you’re anal like me that argues over .25%)…Bond yields seems to be getting killed… Not sure really, because if the economy does/when get better, you do have folks needing housing. I wonder how many of them are primed to buy.[/quote]
Yes, that is the trillion-dollar question. Whoever gets that one right will be wealthy, indeed! 🙂
