MMW,
Loans are NOT impossible to find/fund. Your source is flawed. What IS impossible, is getting the truth about what is really going on.
Lending standards are just returning to the good old days. They are NOT getting stricter every week, and you don’t need “pristine” credit to get a loan.
There is still TONS of money available to borrow IF YOU QUALIFY.
I’m as big a bear as anybody, but the media reports flippant comments like you are stating.
There was an idiotic article the other day that states that prices are holding because the MEDIAN is about the same. Repeated by people who don’t understand what they are saying.
MOST people do not have a mortgage problem. My guess is that at least 90%-95% of San Diego county bought their homes prior to 2005. IF they didn’t use their home like an ATM machine, many have a tiny to huge amount of equity and a fixed rate loan, or no loan at all.
Many older solid neighborhoods may not fall very much.
For every person that bought at/near the top, there was a seller, many of whom made a pile of cash and timed the market perfectly, and are sitting on the sidelines. Ex-SD (On this borad) for one, was a genius, and moved to South Carolina with his stash of cash.
There are plenty of people that have a huge net worth. Many truly wealthy “old money” people live modestly
and there are a fair amount of younger professionals who make 6 figure incomes, with H&W making well over $200K a year. They may well have $200k for a down payment on a $1M house, and can afford an $800K mortgage.
Only an intelligent CHARGER player would be looking at a $1M home today. Others want McMansions. There are plenty of $3M+ homes around too.
The highest end of the market isn’t as soft as many people think. Many with $3M+ homes aren’t hurting or desperate and large estates or spectacular views are what’s most attractive to wealthy foreigners. The weak dollar represents a bargain to some. A $3M home was 3 million Euros, and today is now only 2.2 million Euros.
I’m in the lending biz. Jumbo rates are closer to 7% or under.