America’s Post-Subprime Boomtowns

[Nor-LA-SD-guy]

One other thing I will add here is that at this point Comps are for the most part meaningless in TV, Maybe it will get you with in 75K of where someone would willingly sell to you, but other than that you will need to get a gun pointed at their head to get them to sell for what the foreclosure down the street sold for,

Anyway TG what did you pay 275K I think, tell you what I will give you 285K what do you say ??? (just kidding).

[temeculaguy]

patientrenter, I think what was being said about incomes in line with prices was only related to towns listed in the article, not the country as a whole. Temecula Valley is now in line with income and the two largest towns are #1 and #3 on forbes list for places with hot sales. Temecula’s median income is 67k, a condo will run you 150k, a modest 3/2 sfr is well under 200k, and mcmansions are under 300k. The median house is 3x the median income, that is equilibrium, that is the fundamental that needs to be in every town. That’s it, mystery solved, call washington, tell them we figured out the foreclosure crisis, this is a thye model. Lower prices to be fundamentally in line with income for that area and voila! Problem solved. The contracters and retail places get business because people fix up their repos and the rest of retail enjoys the disposable income freed up by a low mortgage. The rest of So Cal’s economic problems can be solved by following the canary in a coal mine, stop the bailout and begin the kick out, forclose on people, you are doing them a favor. Anectdotaly, I had a chance to meet the former owners of my pad, they were a classic example, bought a 650k pad with no down on 100k income, were strapped when the resets came and lost it. Somehow they just managed to buy in a town 20 miles north which is cheaper, got a smaller place and paid 200k, it’s what they should have done in the first place but now they can afford it. They could have been used by the media as a poor fb family being thrown out, but the follow up story is they are happier now that they have managable finances and extra to pay off some debt they incurred trying to save their original house.

[temeculaguy]

patientrenter, I think what was being said about incomes in line with prices was only related to towns listed in the article, not the country as a whole. Temecula Valley is now in line with income and the two largest towns are #1 and #3 on forbes list for places with hot sales. Temecula’s median income is 67k, a condo will run you 150k, a modest 3/2 sfr is well under 200k, and mcmansions are under 300k. The median house is 3x the median income, that is equilibrium, that is the fundamental that needs to be in every town. That’s it, mystery solved, call washington, tell them we figured out the foreclosure crisis, this is a thye model. Lower prices to be fundamentally in line with income for that area and voila! Problem solved. The contracters and retail places get business because people fix up their repos and the rest of retail enjoys the disposable income freed up by a low mortgage. The rest of So Cal’s economic problems can be solved by following the canary in a coal mine, stop the bailout and begin the kick out, forclose on people, you are doing them a favor. Anectdotaly, I had a chance to meet the former owners of my pad, they were a classic example, bought a 650k pad with no down on 100k income, were strapped when the resets came and lost it. Somehow they just managed to buy in a town 20 miles north which is cheaper, got a smaller place and paid 200k, it’s what they should have done in the first place but now they can afford it. They could have been used by the media as a poor fb family being thrown out, but the follow up story is they are happier now that they have managable finances and extra to pay off some debt they incurred trying to save their original house.

[temeculaguy]

patientrenter, I think what was being said about incomes in line with prices was only related to towns listed in the article, not the country as a whole. Temecula Valley is now in line with income and the two largest towns are #1 and #3 on forbes list for places with hot sales. Temecula’s median income is 67k, a condo will run you 150k, a modest 3/2 sfr is well under 200k, and mcmansions are under 300k. The median house is 3x the median income, that is equilibrium, that is the fundamental that needs to be in every town. That’s it, mystery solved, call washington, tell them we figured out the foreclosure crisis, this is a thye model. Lower prices to be fundamentally in line with income for that area and voila! Problem solved. The contracters and retail places get business because people fix up their repos and the rest of retail enjoys the disposable income freed up by a low mortgage. The rest of So Cal’s economic problems can be solved by following the canary in a coal mine, stop the bailout and begin the kick out, forclose on people, you are doing them a favor. Anectdotaly, I had a chance to meet the former owners of my pad, they were a classic example, bought a 650k pad with no down on 100k income, were strapped when the resets came and lost it. Somehow they just managed to buy in a town 20 miles north which is cheaper, got a smaller place and paid 200k, it’s what they should have done in the first place but now they can afford it. They could have been used by the media as a poor fb family being thrown out, but the follow up story is they are happier now that they have managable finances and extra to pay off some debt they incurred trying to save their original house.

[temeculaguy]

patientrenter, I think what was being said about incomes in line with prices was only related to towns listed in the article, not the country as a whole. Temecula Valley is now in line with income and the two largest towns are #1 and #3 on forbes list for places with hot sales. Temecula’s median income is 67k, a condo will run you 150k, a modest 3/2 sfr is well under 200k, and mcmansions are under 300k. The median house is 3x the median income, that is equilibrium, that is the fundamental that needs to be in every town. That’s it, mystery solved, call washington, tell them we figured out the foreclosure crisis, this is a thye model. Lower prices to be fundamentally in line with income for that area and voila! Problem solved. The contracters and retail places get business because people fix up their repos and the rest of retail enjoys the disposable income freed up by a low mortgage. The rest of So Cal’s economic problems can be solved by following the canary in a coal mine, stop the bailout and begin the kick out, forclose on people, you are doing them a favor. Anectdotaly, I had a chance to meet the former owners of my pad, they were a classic example, bought a 650k pad with no down on 100k income, were strapped when the resets came and lost it. Somehow they just managed to buy in a town 20 miles north which is cheaper, got a smaller place and paid 200k, it’s what they should have done in the first place but now they can afford it. They could have been used by the media as a poor fb family being thrown out, but the follow up story is they are happier now that they have managable finances and extra to pay off some debt they incurred trying to save their original house.

[temeculaguy]

patientrenter, I think what was being said about incomes in line with prices was only related to towns listed in the article, not the country as a whole. Temecula Valley is now in line with income and the two largest towns are #1 and #3 on forbes list for places with hot sales. Temecula’s median income is 67k, a condo will run you 150k, a modest 3/2 sfr is well under 200k, and mcmansions are under 300k. The median house is 3x the median income, that is equilibrium, that is the fundamental that needs to be in every town. That’s it, mystery solved, call washington, tell them we figured out the foreclosure crisis, this is a thye model. Lower prices to be fundamentally in line with income for that area and voila! Problem solved. The contracters and retail places get business because people fix up their repos and the rest of retail enjoys the disposable income freed up by a low mortgage. The rest of So Cal’s economic problems can be solved by following the canary in a coal mine, stop the bailout and begin the kick out, forclose on people, you are doing them a favor. Anectdotaly, I had a chance to meet the former owners of my pad, they were a classic example, bought a 650k pad with no down on 100k income, were strapped when the resets came and lost it. Somehow they just managed to buy in a town 20 miles north which is cheaper, got a smaller place and paid 200k, it’s what they should have done in the first place but now they can afford it. They could have been used by the media as a poor fb family being thrown out, but the follow up story is they are happier now that they have managable finances and extra to pay off some debt they incurred trying to save their original house.

[Allan from Fallbrook]

TG: Well put. Well reasoned, too, and that is what has been missing for about the last five years or so: Reason.

People lost their minds and actually came to believe that their houses would replace their jobs and savings and somehow even provide retirement income for them.

I think that the state of the economy (state and national) has injected a sobering new reality into nearly everyone’s life and people are starting to see things the way they really are, or will become shortly. The example you used of your home’s previous owners illustrates that pretty clearly. Should have bought a $200k home, but bought a $650k home and learned the hard way.

[Allan from Fallbrook]

TG: Well put. Well reasoned, too, and that is what has been missing for about the last five years or so: Reason.

People lost their minds and actually came to believe that their houses would replace their jobs and savings and somehow even provide retirement income for them.

I think that the state of the economy (state and national) has injected a sobering new reality into nearly everyone’s life and people are starting to see things the way they really are, or will become shortly. The example you used of your home’s previous owners illustrates that pretty clearly. Should have bought a $200k home, but bought a $650k home and learned the hard way.

[Allan from Fallbrook]

TG: Well put. Well reasoned, too, and that is what has been missing for about the last five years or so: Reason.

People lost their minds and actually came to believe that their houses would replace their jobs and savings and somehow even provide retirement income for them.

I think that the state of the economy (state and national) has injected a sobering new reality into nearly everyone’s life and people are starting to see things the way they really are, or will become shortly. The example you used of your home’s previous owners illustrates that pretty clearly. Should have bought a $200k home, but bought a $650k home and learned the hard way.

[Allan from Fallbrook]

TG: Well put. Well reasoned, too, and that is what has been missing for about the last five years or so: Reason.

People lost their minds and actually came to believe that their houses would replace their jobs and savings and somehow even provide retirement income for them.

I think that the state of the economy (state and national) has injected a sobering new reality into nearly everyone’s life and people are starting to see things the way they really are, or will become shortly. The example you used of your home’s previous owners illustrates that pretty clearly. Should have bought a $200k home, but bought a $650k home and learned the hard way.

[Allan from Fallbrook]

TG: Well put. Well reasoned, too, and that is what has been missing for about the last five years or so: Reason.

People lost their minds and actually came to believe that their houses would replace their jobs and savings and somehow even provide retirement income for them.

I think that the state of the economy (state and national) has injected a sobering new reality into nearly everyone’s life and people are starting to see things the way they really are, or will become shortly. The example you used of your home’s previous owners illustrates that pretty clearly. Should have bought a $200k home, but bought a $650k home and learned the hard way.

[temeculaguy]

Nor, I paid a little less than that but it’s ballpark, I’m not moving for at least a decade but you are more than welcome to move into the neighbors house on either side, I think the end is near for both. I need some cool, backyard happy hour type neighbors before summer.

Nostra, one demographic I haven’t seen or met is the get rich folks, the water cooler talk up here no longer contains the word “profit.” People are buying shelter not investments, the reality is they are setting themsleves up for a profit down the line but nobody realizes it. Most people and the media are two years behind reality, in 2006 they thought they’d make a killing and in 2009 they are certain they will lose money. I haven’t seen many investors at all, rarely does a place sell and then go up for rent, I think those folks were flushed out of the market and jumped in in 2007 for the most part. I’m going to wait 6 months to a year to see how my household economics shake out in the new pad and get all the projects done, then I’m going to start collecting rentals in the sub 100x rent multiplier range. It is neither a crap shoot or roulette, it’s card counting at this point, some study and planning and you can take a slight advantage.

[temeculaguy]

Nor, I paid a little less than that but it’s ballpark, I’m not moving for at least a decade but you are more than welcome to move into the neighbors house on either side, I think the end is near for both. I need some cool, backyard happy hour type neighbors before summer.

Nostra, one demographic I haven’t seen or met is the get rich folks, the water cooler talk up here no longer contains the word “profit.” People are buying shelter not investments, the reality is they are setting themsleves up for a profit down the line but nobody realizes it. Most people and the media are two years behind reality, in 2006 they thought they’d make a killing and in 2009 they are certain they will lose money. I haven’t seen many investors at all, rarely does a place sell and then go up for rent, I think those folks were flushed out of the market and jumped in in 2007 for the most part. I’m going to wait 6 months to a year to see how my household economics shake out in the new pad and get all the projects done, then I’m going to start collecting rentals in the sub 100x rent multiplier range. It is neither a crap shoot or roulette, it’s card counting at this point, some study and planning and you can take a slight advantage.

[temeculaguy]

Nor, I paid a little less than that but it’s ballpark, I’m not moving for at least a decade but you are more than welcome to move into the neighbors house on either side, I think the end is near for both. I need some cool, backyard happy hour type neighbors before summer.

Nostra, one demographic I haven’t seen or met is the get rich folks, the water cooler talk up here no longer contains the word “profit.” People are buying shelter not investments, the reality is they are setting themsleves up for a profit down the line but nobody realizes it. Most people and the media are two years behind reality, in 2006 they thought they’d make a killing and in 2009 they are certain they will lose money. I haven’t seen many investors at all, rarely does a place sell and then go up for rent, I think those folks were flushed out of the market and jumped in in 2007 for the most part. I’m going to wait 6 months to a year to see how my household economics shake out in the new pad and get all the projects done, then I’m going to start collecting rentals in the sub 100x rent multiplier range. It is neither a crap shoot or roulette, it’s card counting at this point, some study and planning and you can take a slight advantage.

[temeculaguy]

Nor, I paid a little less than that but it’s ballpark, I’m not moving for at least a decade but you are more than welcome to move into the neighbors house on either side, I think the end is near for both. I need some cool, backyard happy hour type neighbors before summer.

Nostra, one demographic I haven’t seen or met is the get rich folks, the water cooler talk up here no longer contains the word “profit.” People are buying shelter not investments, the reality is they are setting themsleves up for a profit down the line but nobody realizes it. Most people and the media are two years behind reality, in 2006 they thought they’d make a killing and in 2009 they are certain they will lose money. I haven’t seen many investors at all, rarely does a place sell and then go up for rent, I think those folks were flushed out of the market and jumped in in 2007 for the most part. I’m going to wait 6 months to a year to see how my household economics shake out in the new pad and get all the projects done, then I’m going to start collecting rentals in the sub 100x rent multiplier range. It is neither a crap shoot or roulette, it’s card counting at this point, some study and planning and you can take a slight advantage.

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