[quote=SD Realtor]Not sure zk. The pent up supply thing is a mystery. I think that if I were an underwater guy, and I saw other under water guys get loan mods, or forgiveness, or live for months or even years without paying a mortgage, perhaps I would think twice. Why sell? Even if the home appreciates to where you are not underwater why sell? [/quote]
I concur with all of that except maybe the last part. People sell in a normal market for whatever reason they sell for (moving, downsizing, retiring, etc.) . People seem to hesitate to sell in those situations if they’re underwater, but might sell if they’re not underwater.
[quote=SD Realtor]Sounds like we are the same. I have spent the last 3 years buying as much RE as I could however none of it is in Cali. By trade I am an engineer so it is my nature to try to figure everything out. However that is not always the case in RE especially in this situation. It could be a blend of alot of things. The stock market is rising but alot of people consider that riskier then then RE. If you buy 600k worth of equities and they depreciate by 200k you lost 200k. If the same thing happens to your home you get a loan mod or maybe some forgiveness. [/quote]
Again, mostly concur. I’m not an engineer by trade, but I am one by way thinking. And by way of social skills. (No offense, I’m sure yours are great. Just a little joke at my own expense). The stock market is rising, which is part of the reason I’m staying out of it. We all know what Warren Buffett said about that. I don’t know if I’d count on government largesse in the event that my real estate investment failed. I guess I probably should. But I probably wouldn’t. Count on it, that is. Take advantage of, yes. Count on, maybe not.
[quote=SD Realtor]
Is RE a good hedge against inflation? Maybe…. only if there is wage inflation as well. So maybe it hedges maybe the asset depreciates but you are locked into a low rate that you locked in with yesterdays dollars… [/quote]
Ah, yes. Wage inflation. I have serious doubts about wage inflation. I see everything else inflating and our standard of living declining because wage inflation doesn’t keep up.
[quote=SD Realtor]
I wish I knew the reason only because I could then give clients good advice as to when I think things will normalize again. Right now I get asked when will things normalize and all I can say is when we finish this leg. Maybe in a month or two, maybe end of summer… maybe longer. We just look at supply and DOM.[/quote]
