Lastly, what you’re saying is exactly what they were saying in the 1980s. Japan will buy the US up, etc, etc, etc. Didn’t happen so fast 🙂 Cash investors aren’t as strong hands as you think, either. If the market burps, they’re actually more likely to sell at (say) a 20% loss than mortgaged investors. Why? Because they can, unlike people with 3% down which have to wait for a short sale, deed in lieu, or foreclosure. There’s really no way to manage how many people run for the hills at once.[/quote]
Exactly. It’s like BG claiming that heirs to fully paid-off homes won’t sell until they get what they want. Hogwash. Those are the very sellers who CAN sell for whatever houses are going for at that moment in time. Strong hands don’t have to wait for a rising market, and if returns on investments are far higher elsewhere, they will be quick to sell the least profitable investment (possibly houses) to free up cash for more lucrative ventures. For these owners, it’s just business…no emotions involved.
