Coworkers argument that house prices won’t fall…

[Raybyrnes]

Perry,

Copper Prices are up. Minimum wage is going up. Enforcement of labor Laws up. Oil and gas prices are up.

Contractors might be willing to accept less but they still have to buy raw materials and if the cost of materials is up then there is less ability for them to lower costs.

[Rudee]

Radelow, I’m beginning to agree with your coworker. Californians (and San Diegans) are reselient, and the vast majority made soooo much equity on their homes in the last 5 years that they will and can stay on the sidelines, or fool around with “entertaining” offers (I love that – please sir, may I buy your house?). In an overall picture, yes, we’ll see 15 -30% declines, but most will say “who cares? I still made 80%+ over the last 5 years. No need to panic.” The low to mid income areas will have some major correction (as usual), but the majority will cruise and hunker down. I’ve been through the nineties down turn, bought and sold houses, and I’m renting now, and yes, this is different. Loan practices,( even though they are tightening) are still free money compared to 15 years ago. Psychologically peoples mindsets have readjusted – if my housing is 50% of my income, so be it. We’ll adjust. Gas goes up to $4 a gallon, everyone will keep driving. People find a way. Combine equity+cheap money+mental reset and that’s a tough nut to crack.

[Rudee]

Radelow, I’m beginning to agree with your coworker. Californians (and San Diegans) are reselient, and the vast majority made soooo much equity on their homes in the last 5 years that they will and can stay on the sidelines, or fool around with “entertaining” offers (I love that – please sir, may I buy your house?). In an overall picture, yes, we’ll see 15 -30% declines, but most will say “who cares? I still made 80%+ over the last 5 years. No need to panic.” The low to mid income areas will have some major correction (as usual), but the majority will cruise and hunker down. I’ve been through the nineties down turn, bought and sold houses, and I’m renting now, and yes, this is different. Loan practices,( even though they are tightening) are still free money compared to 15 years ago. Psychologically peoples mindsets have readjusted – if my housing is 50% of my income, so be it. We’ll adjust. Gas goes up to $4 a gallon, everyone will keep driving. People find a way. Combine equity+cheap money+mental reset and that’s a tough nut to crack.

[Rudee]

Radelow, I’m beginning to agree with your coworker. Californians (and San Diegans) are reselient, and the vast majority made soooo much equity on their homes in the last 5 years that they will and can stay on the sidelines, or fool around with “entertaining” offers (I love that – please sir, may I buy your house?). In an overall picture, yes, we’ll see 15 -30% declines, but most will say “who cares? I still made 80%+ over the last 5 years. No need to panic.” The low to mid income areas will have some major correction (as usual), but the majority will cruise and hunker down. I’ve been through the nineties down turn, bought and sold houses, and I’m renting now, and yes, this is different. Loan practices,( even though they are tightening) are still free money compared to 15 years ago. Psychologically peoples mindsets have readjusted – if my housing is 50% of my income, so be it. We’ll adjust. Gas goes up to $4 a gallon, everyone will keep driving. People find a way. Combine equity+cheap money+mental reset and that’s a tough nut to crack.

[SHILOH]

“home prices won’t fall for the simple reason that the majority of home owners out there don’t need to sell and have more than enough equity that is the market stays slow they just won’t sell.”

This could be a true statement in a different market. But it doesn’t describe what is happening in the current housing market in the entire country and around the globe.

[SHILOH]

“home prices won’t fall for the simple reason that the majority of home owners out there don’t need to sell and have more than enough equity that is the market stays slow they just won’t sell.”

This could be a true statement in a different market. But it doesn’t describe what is happening in the current housing market in the entire country and around the globe.

[SHILOH]

“home prices won’t fall for the simple reason that the majority of home owners out there don’t need to sell and have more than enough equity that is the market stays slow they just won’t sell.”

This could be a true statement in a different market. But it doesn’t describe what is happening in the current housing market in the entire country and around the globe.

[SHILOH]

Here is a link that shows some obvious numbers:
http://www.sandiegopredatorylending.com/?p=27
The article is titled “Countrywide’s REOs Up 21% in July”

[SHILOH]

Here is a link that shows some obvious numbers:
http://www.sandiegopredatorylending.com/?p=27
The article is titled “Countrywide’s REOs Up 21% in July”

[SHILOH]

Here is a link that shows some obvious numbers:
http://www.sandiegopredatorylending.com/?p=27
The article is titled “Countrywide’s REOs Up 21% in July”

[GoUSC]

PerryChase,

First phase of this project is going to be in late 2009 most likely. The first phase will have some office, retail and residential. It will be on the lower left corner of the side. Then we will move slightly east and north as time goes on with the far east side of the site the very last in 15 or so years. It’s a long process but we are putting together something very special I think.

[GoUSC]

PerryChase,

First phase of this project is going to be in late 2009 most likely. The first phase will have some office, retail and residential. It will be on the lower left corner of the side. Then we will move slightly east and north as time goes on with the far east side of the site the very last in 15 or so years. It’s a long process but we are putting together something very special I think.

[GoUSC]

PerryChase,

First phase of this project is going to be in late 2009 most likely. The first phase will have some office, retail and residential. It will be on the lower left corner of the side. Then we will move slightly east and north as time goes on with the far east side of the site the very last in 15 or so years. It’s a long process but we are putting together something very special I think.

[SHILOH]

I don’t think paying 50% for housing supports a healthy local economy –regardless of adjusting to it psychologically for survival.

[SHILOH]

I don’t think paying 50% for housing supports a healthy local economy –regardless of adjusting to it psychologically for survival.

[Author]

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