- This topic has 171 replies, 30 voices, and was last updated 16 years, 8 months ago by
cyphire.
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August 9, 2007 at 1:04 PM #72425August 9, 2007 at 1:18 PM #72311
cyphire
ParticipantTime will tell my Realtor friend!
Who has been buying those boats, motorcycles, cars, etc? I’m just saying that the chill of equity loss is on the horizon for many. The US consumer will stop spending when their equity goes in jeopardy. Do you see a ever steepening curve and long term trend downward in Real Estate here in SD?
p.s. It takes buyers to step in. What is the current cost of a super jumbo? Will that even put more pressure on home prices? At what point does the entire market move when equity is being erased?
August 9, 2007 at 1:18 PM #72429ParticipantTime will tell my Realtor friend!
Who has been buying those boats, motorcycles, cars, etc? I’m just saying that the chill of equity loss is on the horizon for many. The US consumer will stop spending when their equity goes in jeopardy. Do you see a ever steepening curve and long term trend downward in Real Estate here in SD?
p.s. It takes buyers to step in. What is the current cost of a super jumbo? Will that even put more pressure on home prices? At what point does the entire market move when equity is being erased?
August 9, 2007 at 1:18 PM #72436ParticipantTime will tell my Realtor friend!
Who has been buying those boats, motorcycles, cars, etc? I’m just saying that the chill of equity loss is on the horizon for many. The US consumer will stop spending when their equity goes in jeopardy. Do you see a ever steepening curve and long term trend downward in Real Estate here in SD?
p.s. It takes buyers to step in. What is the current cost of a super jumbo? Will that even put more pressure on home prices? At what point does the entire market move when equity is being erased?
August 9, 2007 at 1:19 PM #72314Ex-SD
Participantak1 is right on the money with his post on this page.
In his post, he said……….”If this person is desperate to sell, the other seller, 50 feet away, is going to have a heck of a time selling their house w/o reducing the price.”
The first thing that will happen is when you have two or more houses in the same neighborhood selling for “X” price, those selling prices become the new comps for the rest of the neighborhood (related to $$ per sq. foot/lot size). Unless everyone else who needs or wants to sell, they would have to either find a cash buyer who would be stupid enough to pay “X” $$$$ over the going price because they won’t be able to get an appraisal at a higher, per sq. foot price to show the lender. There are many people who are either ignorant to this fact or they simply don’t want to be objective about the true value of their properties.
August 9, 2007 at 1:19 PM #72432Participantak1 is right on the money with his post on this page.
In his post, he said……….”If this person is desperate to sell, the other seller, 50 feet away, is going to have a heck of a time selling their house w/o reducing the price.”
The first thing that will happen is when you have two or more houses in the same neighborhood selling for “X” price, those selling prices become the new comps for the rest of the neighborhood (related to $$ per sq. foot/lot size). Unless everyone else who needs or wants to sell, they would have to either find a cash buyer who would be stupid enough to pay “X” $$$$ over the going price because they won’t be able to get an appraisal at a higher, per sq. foot price to show the lender. There are many people who are either ignorant to this fact or they simply don’t want to be objective about the true value of their properties.
August 9, 2007 at 1:19 PM #72439Participantak1 is right on the money with his post on this page.
In his post, he said……….”If this person is desperate to sell, the other seller, 50 feet away, is going to have a heck of a time selling their house w/o reducing the price.”
The first thing that will happen is when you have two or more houses in the same neighborhood selling for “X” price, those selling prices become the new comps for the rest of the neighborhood (related to $$ per sq. foot/lot size). Unless everyone else who needs or wants to sell, they would have to either find a cash buyer who would be stupid enough to pay “X” $$$$ over the going price because they won’t be able to get an appraisal at a higher, per sq. foot price to show the lender. There are many people who are either ignorant to this fact or they simply don’t want to be objective about the true value of their properties.
August 9, 2007 at 1:40 PM #72333sdrealtor
ParticipantCy,
I see alot more new fancy cars in Oceanside and San Marcos than I do in Encinitas/South Carlsbad. I’m sure its out there but I havent seen the extravagent spending among my social circles. I guess that I’ve been here long enough to be able to find and surround myself with likeminded fiscally conservative folks.I see a long term downward trend in RE here in SD right now. I would be surprised to see prices in 2015 above the peak prices of a couple years ago. I would love to see increased affordability for my friends/neighbors and their children.
sdr
August 9, 2007 at 1:40 PM #72450ParticipantCy,
I see alot more new fancy cars in Oceanside and San Marcos than I do in Encinitas/South Carlsbad. I’m sure its out there but I havent seen the extravagent spending among my social circles. I guess that I’ve been here long enough to be able to find and surround myself with likeminded fiscally conservative folks.I see a long term downward trend in RE here in SD right now. I would be surprised to see prices in 2015 above the peak prices of a couple years ago. I would love to see increased affordability for my friends/neighbors and their children.
sdr
August 9, 2007 at 1:40 PM #72458ParticipantCy,
I see alot more new fancy cars in Oceanside and San Marcos than I do in Encinitas/South Carlsbad. I’m sure its out there but I havent seen the extravagent spending among my social circles. I guess that I’ve been here long enough to be able to find and surround myself with likeminded fiscally conservative folks.I see a long term downward trend in RE here in SD right now. I would be surprised to see prices in 2015 above the peak prices of a couple years ago. I would love to see increased affordability for my friends/neighbors and their children.
sdr
August 9, 2007 at 2:14 PM #72349SD Realtor
ParticipantCyphire I routinely check some of the higher end homes in my area with regards to recorded mortgages… The data supports the facts that the majority of long time homeowners indeed did not pull out money. I find that the less established homeowners are by far more aggressive in refinancing and pulling money out. I also see more aggressive (aka financially poor) decisions made by relatively less seasoned homeowners in newer purchases. (those made within the last 7 years)
I am not saying this will alter the downward spiral. I am saying that the fiscal irresponsibility is not predominant among older individuals with alot of equity in their home. They tend to buy their toys with cash rather then pulling out equity.
SD Realtor
August 9, 2007 at 2:14 PM #72468ParticipantCyphire I routinely check some of the higher end homes in my area with regards to recorded mortgages… The data supports the facts that the majority of long time homeowners indeed did not pull out money. I find that the less established homeowners are by far more aggressive in refinancing and pulling money out. I also see more aggressive (aka financially poor) decisions made by relatively less seasoned homeowners in newer purchases. (those made within the last 7 years)
I am not saying this will alter the downward spiral. I am saying that the fiscal irresponsibility is not predominant among older individuals with alot of equity in their home. They tend to buy their toys with cash rather then pulling out equity.
SD Realtor
August 9, 2007 at 2:14 PM #72477ParticipantCyphire I routinely check some of the higher end homes in my area with regards to recorded mortgages… The data supports the facts that the majority of long time homeowners indeed did not pull out money. I find that the less established homeowners are by far more aggressive in refinancing and pulling money out. I also see more aggressive (aka financially poor) decisions made by relatively less seasoned homeowners in newer purchases. (those made within the last 7 years)
I am not saying this will alter the downward spiral. I am saying that the fiscal irresponsibility is not predominant among older individuals with alot of equity in their home. They tend to buy their toys with cash rather then pulling out equity.
SD Realtor
August 9, 2007 at 2:23 PM #72363PerryChase
Participantwow, sdrealtor, you’ve made a 180 from less than two years years ago.
About NY, I agree with both Cyphire and sdrealtor. I see truths in what you guys said about back East and California.
The main thing though, is if you’re income limited then San Diego is an expensive place to be. Dallas, Nashville, Atlanta, etc.. are places that provide better value for the money.
August 9, 2007 at 2:23 PM #72478Participantwow, sdrealtor, you’ve made a 180 from less than two years years ago.
About NY, I agree with both Cyphire and sdrealtor. I see truths in what you guys said about back East and California.
The main thing though, is if you’re income limited then San Diego is an expensive place to be. Dallas, Nashville, Atlanta, etc.. are places that provide better value for the money.
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