[quote=SD Realtor]zk I don’t think we are at peak pricing but I don’t like to speculate on something that can be verified with data. I know plenty of people who are underwater as well. Again, that is fine anecdotally but it doesn’t matter. Back in 2009 and 2010 there were WAY more people underwater and people who could have bought back then but did not were foolish. However back then we DID know that the govt would backstop the entire real estate market. I posted that routinely as well as argued back then and well before that the tsunami was a pipe dream.
If you think it is relevant then that is okay, we are all entitled to our opinions. Mine is that it absolutely has no bearing on the market and I have been consistent in that opinion.[/quote]
I’ve never been of the opinion that there’s a tsunami. I thought maybe some shadow inventory, but not a tsunami. I bought my primary residence in ’10 when the tsunami idea was still prevalent, and I’m pretty happy about it. I bought several investment properties last year (the bottom of the market (so far) in Georgia, where I bought them), and I’m pretty happy about that, too.
My point in this thread is not that I think there’s a tsunami of pent up supply due to too many potential sellers being underwater. My point is that I think there is some pent up supply for that reason. But even if there is, that would not cause a reduction in prices. Because if prices went down, they’d be underwater again, and we’d be back to where we are now.
I’m probably finished buying investment properties, at least for now. Because buying during a frenzy just seems like a bad idea. I’m trying to get a feel for what might happen next.
You mention that the real mystery is why the lack of inventory. I’m curious why are you convinced that it’s not at least partly due to underwater sellers. To me it seems as plausible as any other possible cause.
