[quote=spdrun]Why bother in SD Co? REOs and shorts are getting multiple offers within 2-3 days if they’re reasonably priced. Let the market decide what the value is, as opposed to backroom deals!
As to people (including yourself — sorry, you seem like a decent sort otherwise) who bought at inflated prices, boo hoo hoo. Cry. Me. A. River. An investment shouldn’t always be expected to appreciate, which is why it’s called an investment. Not a “sure thing.”
As far as you buying 12 years ago, if you bought at an inflated price, you took your chances and played the game. Not much sympathy from this end.[/quote]
Of late, the “market” that has been “deciding” here has consisted of “bottom fishers.” However, decreasing inventory is helping to bring prices back up to 2003 levels. FWIW, I didn’t “buy at an inflated price.” I actually got a lot of bang for the buck at the time AND managed to receive cash back in escrow from the seller!
spdrun, you may not be familiar with what happened to many areas of CA which had heavy distress. The short sales, in particular, in those areas have had the effect of causing the RE market to (artificially) over-correct.
There were never any fundamentals in place for the market to correct back to ’99-00 prices as the “loose lending” didn’t come into practice until mid-2003. Owners who bought before then did so with “normal” credit standards and qualification ratios and the sales which took place during this window were nearly all “organic, traditional sales.” And the prevailing interest rate in ’00 to’01 for a FRM was 7-8%!
It was actually the short sales of recent years which sold for less than half their “boom” prices (and well under a “rebuild” price) which caused all surrounding owners’ values to suffer. The lenders decided to accept these ridiculously low (SS) offers because they waited too long and let their FB’s screw them whilst being subsidized to do so by the PTB.
This debacle is all due to a heavily “manipulated” market.
I for one am ecstatic that inventory is currently low (even if “manipulated”) and hope it stays that way for years to come. What’s good for the goose is good for the gander.
