Going on the radio this afternoon… quick questions for the piggs

[Anonymous]

If the information is available, I believe any areas that suffer from higher unemployment (or underemployment)should see a greater depreciation in home values. Would this information show up in the SANDAG numbers? Also, interest rates were much lower from 2003 to present than they were in 1999 which would translate to being able to afford a more expensive house during the later years. Otherwise, I think you are using a good general formula.

[bearishgurl]

[quote=Sifi]If the information is available, I believe any areas that suffer from higher unemployment (or underemployment)should see a greater depreciation in home values. Would this information show up in the SANDAG numbers? . . . [/quote]

I don’t know if unemployment statistics are available for each micro market. Being “employed” is obviously important for some buyers and irrelevant for others. Again, don’t know what the percentages are between these subsets of buyers. Perhaps “employed” buyers gravitate to certain areas around employment centers while other buyers have different buying criteria?

Not trying to muddy the waters here, but many, many areas of the county are largely inhabited by homeowners who don’t go to “work” every day.

I believe the level of distressed inventory in an immediate area affects RE values there more than rate of unemployment. This “distress” may or may not be caused from “unemployment.”

[bearishgurl]

[quote=Sifi]If the information is available, I believe any areas that suffer from higher unemployment (or underemployment)should see a greater depreciation in home values. Would this information show up in the SANDAG numbers? . . . [/quote]

I don’t know if unemployment statistics are available for each micro market. Being “employed” is obviously important for some buyers and irrelevant for others. Again, don’t know what the percentages are between these subsets of buyers. Perhaps “employed” buyers gravitate to certain areas around employment centers while other buyers have different buying criteria?

Not trying to muddy the waters here, but many, many areas of the county are largely inhabited by homeowners who don’t go to “work” every day.

I believe the level of distressed inventory in an immediate area affects RE values there more than rate of unemployment. This “distress” may or may not be caused from “unemployment.”

[bearishgurl]

[quote=Sifi]If the information is available, I believe any areas that suffer from higher unemployment (or underemployment)should see a greater depreciation in home values. Would this information show up in the SANDAG numbers? . . . [/quote]

I don’t know if unemployment statistics are available for each micro market. Being “employed” is obviously important for some buyers and irrelevant for others. Again, don’t know what the percentages are between these subsets of buyers. Perhaps “employed” buyers gravitate to certain areas around employment centers while other buyers have different buying criteria?

Not trying to muddy the waters here, but many, many areas of the county are largely inhabited by homeowners who don’t go to “work” every day.

I believe the level of distressed inventory in an immediate area affects RE values there more than rate of unemployment. This “distress” may or may not be caused from “unemployment.”

[bearishgurl]

[quote=Sifi]If the information is available, I believe any areas that suffer from higher unemployment (or underemployment)should see a greater depreciation in home values. Would this information show up in the SANDAG numbers? . . . [/quote]

I don’t know if unemployment statistics are available for each micro market. Being “employed” is obviously important for some buyers and irrelevant for others. Again, don’t know what the percentages are between these subsets of buyers. Perhaps “employed” buyers gravitate to certain areas around employment centers while other buyers have different buying criteria?

Not trying to muddy the waters here, but many, many areas of the county are largely inhabited by homeowners who don’t go to “work” every day.

I believe the level of distressed inventory in an immediate area affects RE values there more than rate of unemployment. This “distress” may or may not be caused from “unemployment.”

[bearishgurl]

[quote=Sifi]If the information is available, I believe any areas that suffer from higher unemployment (or underemployment)should see a greater depreciation in home values. Would this information show up in the SANDAG numbers? . . . [/quote]

I don’t know if unemployment statistics are available for each micro market. Being “employed” is obviously important for some buyers and irrelevant for others. Again, don’t know what the percentages are between these subsets of buyers. Perhaps “employed” buyers gravitate to certain areas around employment centers while other buyers have different buying criteria?

Not trying to muddy the waters here, but many, many areas of the county are largely inhabited by homeowners who don’t go to “work” every day.

I believe the level of distressed inventory in an immediate area affects RE values there more than rate of unemployment. This “distress” may or may not be caused from “unemployment.”

[lepetitangel]

One thing I’d like to add is:

It may be true that the general population income grew 50% since 1999. Then we assume housing price should only go up 50% since 1999.

However, in different areas of town where folks with different income levels buy, these people’s income appreciation can be quite diffrent.

Unfairly, rich people tend to get rich faster and that’s why the expensive area got more expensive and dipped less when the housing market crashed.

Just my thought.

[lepetitangel]

One thing I’d like to add is:

It may be true that the general population income grew 50% since 1999. Then we assume housing price should only go up 50% since 1999.

However, in different areas of town where folks with different income levels buy, these people’s income appreciation can be quite diffrent.

Unfairly, rich people tend to get rich faster and that’s why the expensive area got more expensive and dipped less when the housing market crashed.

Just my thought.

[lepetitangel]

One thing I’d like to add is:

It may be true that the general population income grew 50% since 1999. Then we assume housing price should only go up 50% since 1999.

However, in different areas of town where folks with different income levels buy, these people’s income appreciation can be quite diffrent.

Unfairly, rich people tend to get rich faster and that’s why the expensive area got more expensive and dipped less when the housing market crashed.

Just my thought.

[lepetitangel]

One thing I’d like to add is:

It may be true that the general population income grew 50% since 1999. Then we assume housing price should only go up 50% since 1999.

However, in different areas of town where folks with different income levels buy, these people’s income appreciation can be quite diffrent.

Unfairly, rich people tend to get rich faster and that’s why the expensive area got more expensive and dipped less when the housing market crashed.

Just my thought.

[lepetitangel]

One thing I’d like to add is:

It may be true that the general population income grew 50% since 1999. Then we assume housing price should only go up 50% since 1999.

However, in different areas of town where folks with different income levels buy, these people’s income appreciation can be quite diffrent.

Unfairly, rich people tend to get rich faster and that’s why the expensive area got more expensive and dipped less when the housing market crashed.

Just my thought.

[Rich Toscano]

Thanks guys for all the input. The segment was real short so this didn’t actually even come up… but it was an interesting topic nonetheless.

[Rich Toscano]

Thanks guys for all the input. The segment was real short so this didn’t actually even come up… but it was an interesting topic nonetheless.

[Rich Toscano]

Thanks guys for all the input. The segment was real short so this didn’t actually even come up… but it was an interesting topic nonetheless.

[Rich Toscano]

Thanks guys for all the input. The segment was real short so this didn’t actually even come up… but it was an interesting topic nonetheless.

[Author]

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