Oh yeah, and I didn’t want people to get the mistaken idea that I don’t think prices can’t and won’t dip again. Absolutely they could. But what I do NOT think will happen is the very extreme and rare situation of what was going on with the CDO’s/SIVs, CSIVs, and other toxic waste. The situation where banks where giving anyone with a pulse a loan.
That part won’t happen again. This is what led up to the bubble in a big way. So the crash was particularly hard.
But I honestly don’t see a situation like that again. Sure prices will fluctuate in real estate. I don’t really buy properties for capital appreciation potential. But I’m QUITE confident that in the distant future we’ll see prices in desirable areas surpass peak values.
Certainly not everywhere. Las Vegas, Miami I never see surpassing peak values but I do see it happening in San Diego. It may take many years but I do see it happening.
I don’t know the exact percentages, but BG is correct that MANY of the deals going down now here locally and also in many other cities are cash buyers. Even in my neck of the woods I’ve met a few cash buyers. They are out there.
Like I said before….what we are seeing this go around is much much different vs. what happened during the last bubble. People were also delusional. People were turning down high offers during the bubble holding out for even higher numbers.
