- This topic has 155 replies, 16 voices, and was last updated 2 years ago by
sdrealtor.
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March 21, 2022 at 11:14 AM #824473March 21, 2022 at 11:32 AM #824474
sdrealtor
ParticipantOddly enough my house keeps going up around here just like the everyone else’s. Supply and Demand
March 21, 2022 at 11:43 AM #824475Anonymous
GuestUntil it doesn’t. Rapidly rising interest rates definitely not going to increase demand in the long run.
March 21, 2022 at 12:17 PM #824476ParticipantWho cares! My house is already worth double what my wildest dreams were and its still going. You dont understand how real estate works. Wait for the adjustable loan products to deal with those rising rates. Bookmark it!
And demand is 10X or more supply. Less demand not as big an issue as you beleive. This is probably the tightest market in the country! opportunity of a lifetime missed!
March 21, 2022 at 12:20 PM #824477
CoronitaParticipantG…OOAL….!!!!
Greatest Opportunity of a Lifetime.
Just like soccer!!!
March 21, 2022 at 12:54 PM #824478Guest[quote=sdrealtor]Who cares! My house is already worth double what my wildest dreams were and its still going. You dont understand how real estate works. Wait for the adjustable loan products to deal with those rising rates. Bookmark it!
And demand is 10X or more supply. Less demand not as big an issue as you beleive. This is probably the tightest market in the country! opportunity of a lifetime missed!
Who cares? Apparently you do, or else why would you comment on this? Seems to me that deep down you are worried, very worried about this whole bubble thing going POP.
But really there is no debating someone who truly believes RE isn’t interest rate sensitive, it is like trying to argue with a flat earther.
March 21, 2022 at 1:24 PM #824479ParticipantNot worried in the least. I just met with a builder to add a 2BR/2BA unit on that will have a 5 to 6 year payback with an insane cap rate.
You do not understand how this all works which is why you missed out on the GOOAL! Its not that interest rates dont matter its that there are still lots of tools out there like hybrid adjustable rate mortgages as well as massive amounts of cash and buyers. Tightest market in the country! GOOAL!
March 21, 2022 at 2:06 PM #824480CoronitaParticipantMarch 21, 2022 at 2:26 PM #824481CoronitaParticipantSo it would be interesting to see for a list of closings in MM over $1mil what sort of loan these people are getting and the type of buyers…
March 21, 2022 at 2:29 PM #824482Guest[quote=sdrealtor]Not worried in the least. I just met with a builder to add a 2BR/2BA unit on that will have a 5 to 6 year payback with an insane cap rate.
You do not understand how this all works which is why you missed out on the GOOAL! Its not that interest rates dont matter its that there are still lots of tools out there like hybrid adjustable rate mortgages as well as massive amounts of cash and buyers. Tightest market in the country! GOOAL![/quote]
Okay we’ll see how many cash buyers are still out there later this year as interest rates keep ratcheting up.
March 21, 2022 at 2:39 PM #824483CoronitaParticipant[quote=deadzone]
Okay we’ll see how many cash buyers are still out there later this year as interest rates keep ratcheting up.[/quote]
Huh? This makes no sense whatsoever…..
Higher loan rates, you would see more cash buyers. Lower loan rates, you would see more smart money that would want to put the least amount of money into their house because rates are so cheap.
With a 3% 30 year, why would you want to own outright, unless you simply had too much money than what you know to do with it?
What I’m more curious about is out of these $1million homes, how many of them are putting 20-25% down and what sort of demographics they are.
If I were to guess I would say the bulk of them are 20-25% or round up to a $1million loan @ around 3% …enginerds at a decent company, $20-25K monthly income, carrying a $5000/month mortgage… Easy peasy…
March 21, 2022 at 2:41 PM #824484ParticipantWho said anything about cash buyers? Just did a run through recent sales in MM in the 1.2 to 1.5 range. Pretty much all of em put down 20 to 30%. Why would they put down more? A quick cross reference with LinkedIn shows lots of techy couples at QCOM, Apple, Amazon etc. Figure it costs about $5K/month to borrow $1M with rates above 4% which is not a stretch for folks with $20 to 35K monthly HH incomes. Well within ratios and most of these folks are pretty frugal otherwise. There are tons of folks like that
March 21, 2022 at 2:41 PM #824485CoronitaParticipant[quote=sdrealtor]Who said anything about cash buyers? Just did a run through recent sales in MM in the 1.2 to 1.5 range. Pretty much all of em put down 20 to 30%. Why would they put down more? A quick cross reference with LinkedIn shows lots of techy couples at QCOM, Apple, Amazon etc. Figure it costs about $5K/month to borrow $1M which is not a stretch for folks with $20 to 35K monthly HH incomes. Well within ratios and most of these folks are pretty frugal otherwise. There are tons of folks like that[/quote]
Lol, I called it…
G….OOAL…….
March 21, 2022 at 2:42 PM #824486ParticipantYes you did!
March 21, 2022 at 2:46 PM #824487CoronitaParticipantBut wait. Aren’t these buyers/borrowers remote workers that work for the bay area and now that everyone has to return back to work, don’t they need to sell?
I mean, they can’t possibly be working here locally in San Diego in one of them local offices since clearly we haven’t seen any meaningful job expansion in San Diego recently, right? I mean, these people who work at Amazon, Apple must all have to go back to work at Amazon and Apple headquarters not based out of San Diego, and it will be a firesale home prices, right?
I mean, their linkedin profile must be saying they are based out of Seattle and Bay Area, right?
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