Coworkers argument that house prices won’t fall…

[sdrealtor]

PC
No 180 here. I have been driving in the same direction for many years and havent altered my course or opinions much at all.

sdr

[hipmatt]

sdrealtor, I rent in Harveston in Temecula, after checking the tax records for my surrounding neighbors, I saw that nearly all of them have refi-ed or owe more than 90% on their homes.

This was a few months ago, I suspect that many are now underwater. The guy across the street says its a matter of time before he hands the bank the keys to his home that he ows over $780k on. My street is lined with new cars, trucks, suvs, fancy entry ways, pools, etc. I was very surprised to find out that I have more equity than the so called “rich” people around me.

[hipmatt]

sdrealtor, I rent in Harveston in Temecula, after checking the tax records for my surrounding neighbors, I saw that nearly all of them have refi-ed or owe more than 90% on their homes.

This was a few months ago, I suspect that many are now underwater. The guy across the street says its a matter of time before he hands the bank the keys to his home that he ows over $780k on. My street is lined with new cars, trucks, suvs, fancy entry ways, pools, etc. I was very surprised to find out that I have more equity than the so called “rich” people around me.

[hipmatt]

sdrealtor, I rent in Harveston in Temecula, after checking the tax records for my surrounding neighbors, I saw that nearly all of them have refi-ed or owe more than 90% on their homes.

This was a few months ago, I suspect that many are now underwater. The guy across the street says its a matter of time before he hands the bank the keys to his home that he ows over $780k on. My street is lined with new cars, trucks, suvs, fancy entry ways, pools, etc. I was very surprised to find out that I have more equity than the so called “rich” people around me.

[sdrealtor]

Temtucky is a different world than North County SD. As I mentioned, the temptation to HELOC oneself to obtain a lifestyle you never earned is far more likely to occur in wannabe areas like San Marcos, Oceanside and Temtucky.

BTW, I have one client who bought in Harveston for all cash. He’s a retired Marine and wanted to be close to Pendleton, in a single level with room for him and his extended family. There’s at least one of them out there.

[sdrealtor]

Temtucky is a different world than North County SD. As I mentioned, the temptation to HELOC oneself to obtain a lifestyle you never earned is far more likely to occur in wannabe areas like San Marcos, Oceanside and Temtucky.

BTW, I have one client who bought in Harveston for all cash. He’s a retired Marine and wanted to be close to Pendleton, in a single level with room for him and his extended family. There’s at least one of them out there.

[sdrealtor]

Temtucky is a different world than North County SD. As I mentioned, the temptation to HELOC oneself to obtain a lifestyle you never earned is far more likely to occur in wannabe areas like San Marcos, Oceanside and Temtucky.

BTW, I have one client who bought in Harveston for all cash. He’s a retired Marine and wanted to be close to Pendleton, in a single level with room for him and his extended family. There’s at least one of them out there.

[no_such_reality]

I was just saying that, all other things being equal, our community needs more medium and high density housing in areas that have services and transportation like Mission Valley.

Unfortunately our model for mid-high density is severely flawed. Developers just replicate apartments and lob some ‘premier’ units on the top floors/corners.

Families are not going to want 500sf studios and 600 sf 1 bedrooms mixed throughout their floors. They are rentals. That’s all they’ll ever be and by mixing that garbage into the development you are banishing the whole complex to apartmenthood.

[no_such_reality]

I was just saying that, all other things being equal, our community needs more medium and high density housing in areas that have services and transportation like Mission Valley.

Unfortunately our model for mid-high density is severely flawed. Developers just replicate apartments and lob some ‘premier’ units on the top floors/corners.

Families are not going to want 500sf studios and 600 sf 1 bedrooms mixed throughout their floors. They are rentals. That’s all they’ll ever be and by mixing that garbage into the development you are banishing the whole complex to apartmenthood.

[no_such_reality]

I was just saying that, all other things being equal, our community needs more medium and high density housing in areas that have services and transportation like Mission Valley.

Unfortunately our model for mid-high density is severely flawed. Developers just replicate apartments and lob some ‘premier’ units on the top floors/corners.

Families are not going to want 500sf studios and 600 sf 1 bedrooms mixed throughout their floors. They are rentals. That’s all they’ll ever be and by mixing that garbage into the development you are banishing the whole complex to apartmenthood.

[kev374]

co-worker has a completely flawed argument. The people who don’t want to sell their houses don’t set comparables. The foreclosures that are going to be sold at greatly reduced prices and those that HAVE to sell are the ones that determine what homes are worth 😉

[kev374]

co-worker has a completely flawed argument. The people who don’t want to sell their houses don’t set comparables. The foreclosures that are going to be sold at greatly reduced prices and those that HAVE to sell are the ones that determine what homes are worth 😉

[kev374]

co-worker has a completely flawed argument. The people who don’t want to sell their houses don’t set comparables. The foreclosures that are going to be sold at greatly reduced prices and those that HAVE to sell are the ones that determine what homes are worth 😉

[one_muggle]

It seems to me that equity-rich “paper money” people are far more likely to lower their price, should they need to sell–though they may have less impetus.

My anecdotal experience is that a vast majority of the low six-figure earners ($100-150k) either own their own home with tons of intact equity or are renting. The high-end crowd is sitting even prettier, which I guess is why it is nice to be high-end P^)
Seriously, I see way more expensive cars than high incomes, but the people I know appear strangely level-headed.

Most of these people understand that if they “lose” a hundred K of equity, they still haven’t really lost anything, but really have gained only a couple hundred K, rather than a few.

I would think that this kind of person, should they decide to sell, would actually be more willing to price at market than pursue last year’s prices–though these aren’t among the horde of forced sellers.

-one muggle

[one_muggle]

It seems to me that equity-rich “paper money” people are far more likely to lower their price, should they need to sell–though they may have less impetus.

My anecdotal experience is that a vast majority of the low six-figure earners ($100-150k) either own their own home with tons of intact equity or are renting. The high-end crowd is sitting even prettier, which I guess is why it is nice to be high-end P^)
Seriously, I see way more expensive cars than high incomes, but the people I know appear strangely level-headed.

Most of these people understand that if they “lose” a hundred K of equity, they still haven’t really lost anything, but really have gained only a couple hundred K, rather than a few.

I would think that this kind of person, should they decide to sell, would actually be more willing to price at market than pursue last year’s prices–though these aren’t among the horde of forced sellers.

-one muggle

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