GSE limits slated to drop (PLUS bonus question for mortgage experts)

[bearishgurl]

[quote=jstoesz]I disagree with both of you, bg and sdr. You are focusing on comps too much. It has more to do with the buyers.

A buyer needs to decide what something is worth to them. And this is a full spectrum of fields from location and schools to home construction and lot size. But it all boils down to the simple question, is this house worth $XXXXX more than that one? If the cheaper neighborhoods get cheaper it makes the expensive neighborhoods look more expensive and thus not as worth the premium they command in turn driving down prices.[/quote]

What else besides comps is there to focus on, jstoesz?? They tell the story of what a recent buyer was willing to pay. Again, buyers purchasing in the “cheaper” neighborhoods often don’t have the wherewithal to purchase in the “expensive” neighborhoods, thus you need to take into account that we’re talking about two separate sets of buyers here. It doesn’t matter if the currently “expensive” areas “look” more expensive. They were too expensive before that buyer started shopping and they’re too expensive for him/her now. This buyer will not be able get an accepted offer in any areas in which they cannot qualify to purchase. Not only are these pricier areas “not worth the premium” to this buyer, they couldn’t afford to purchase there even if they thought it WAS “worth the premium.” If the “expensive” property is not in distress, another buyer with more resources will eventually come along who will get a successful accepted offer on the property or it will be removed from the market by the seller to await a “better day” :=]

[sdrealtor]

[quote=jstoesz]I disagree with both of you, bg and sdr. You are focusing on comps too much. It has more to do with the buyers.

A buyer needs to decide what something is worth to them. And this is a full spectrum of fields from location and schools to home construction and lot size. But it all boils down to the simple question, is this house worth $XXXXX more than that one? If the cheaper neighborhoods get cheaper it makes the expensive neighborhoods look more expensive and thus not as worth the premium they command in turn driving down prices.[/quote]

js
You can disagree all you want and you maybe correct for yourself and some buyers. I’ve done this a long time and know what I am talking about regarding buyer behavior, at least as it pertains to my area. Around here, 9 out of 10 buyers want to be specifically here. They arent looking at the neighborhoods far enough away to be significantly cheaper. If they can’t or don’t buy here, they rent here. They have that choice and that is what 9 out of 10 do. For proof look at CA renter. She could go alot of places and buy cheaper but she wants to be here so she just keeps renting until it makes sense for her to buy here if ever. Adding to that is the fact that she is more like you and not even close to being in the 9 out of 10 buyers group. It is what it is…..

[sdrealtor]

[quote=jstoesz]I disagree with both of you, bg and sdr. You are focusing on comps too much. It has more to do with the buyers.

A buyer needs to decide what something is worth to them. And this is a full spectrum of fields from location and schools to home construction and lot size. But it all boils down to the simple question, is this house worth $XXXXX more than that one? If the cheaper neighborhoods get cheaper it makes the expensive neighborhoods look more expensive and thus not as worth the premium they command in turn driving down prices.[/quote]

js
You can disagree all you want and you maybe correct for yourself and some buyers. I’ve done this a long time and know what I am talking about regarding buyer behavior, at least as it pertains to my area. Around here, 9 out of 10 buyers want to be specifically here. They arent looking at the neighborhoods far enough away to be significantly cheaper. If they can’t or don’t buy here, they rent here. They have that choice and that is what 9 out of 10 do. For proof look at CA renter. She could go alot of places and buy cheaper but she wants to be here so she just keeps renting until it makes sense for her to buy here if ever. Adding to that is the fact that she is more like you and not even close to being in the 9 out of 10 buyers group. It is what it is…..

[sdrealtor]

[quote=jstoesz]I disagree with both of you, bg and sdr. You are focusing on comps too much. It has more to do with the buyers.

A buyer needs to decide what something is worth to them. And this is a full spectrum of fields from location and schools to home construction and lot size. But it all boils down to the simple question, is this house worth $XXXXX more than that one? If the cheaper neighborhoods get cheaper it makes the expensive neighborhoods look more expensive and thus not as worth the premium they command in turn driving down prices.[/quote]

js
You can disagree all you want and you maybe correct for yourself and some buyers. I’ve done this a long time and know what I am talking about regarding buyer behavior, at least as it pertains to my area. Around here, 9 out of 10 buyers want to be specifically here. They arent looking at the neighborhoods far enough away to be significantly cheaper. If they can’t or don’t buy here, they rent here. They have that choice and that is what 9 out of 10 do. For proof look at CA renter. She could go alot of places and buy cheaper but she wants to be here so she just keeps renting until it makes sense for her to buy here if ever. Adding to that is the fact that she is more like you and not even close to being in the 9 out of 10 buyers group. It is what it is…..

[sdrealtor]

[quote=jstoesz]I disagree with both of you, bg and sdr. You are focusing on comps too much. It has more to do with the buyers.

A buyer needs to decide what something is worth to them. And this is a full spectrum of fields from location and schools to home construction and lot size. But it all boils down to the simple question, is this house worth $XXXXX more than that one? If the cheaper neighborhoods get cheaper it makes the expensive neighborhoods look more expensive and thus not as worth the premium they command in turn driving down prices.[/quote]

js
You can disagree all you want and you maybe correct for yourself and some buyers. I’ve done this a long time and know what I am talking about regarding buyer behavior, at least as it pertains to my area. Around here, 9 out of 10 buyers want to be specifically here. They arent looking at the neighborhoods far enough away to be significantly cheaper. If they can’t or don’t buy here, they rent here. They have that choice and that is what 9 out of 10 do. For proof look at CA renter. She could go alot of places and buy cheaper but she wants to be here so she just keeps renting until it makes sense for her to buy here if ever. Adding to that is the fact that she is more like you and not even close to being in the 9 out of 10 buyers group. It is what it is…..

[sdrealtor]

[quote=jstoesz]I disagree with both of you, bg and sdr. You are focusing on comps too much. It has more to do with the buyers.

A buyer needs to decide what something is worth to them. And this is a full spectrum of fields from location and schools to home construction and lot size. But it all boils down to the simple question, is this house worth $XXXXX more than that one? If the cheaper neighborhoods get cheaper it makes the expensive neighborhoods look more expensive and thus not as worth the premium they command in turn driving down prices.[/quote]

js
You can disagree all you want and you maybe correct for yourself and some buyers. I’ve done this a long time and know what I am talking about regarding buyer behavior, at least as it pertains to my area. Around here, 9 out of 10 buyers want to be specifically here. They arent looking at the neighborhoods far enough away to be significantly cheaper. If they can’t or don’t buy here, they rent here. They have that choice and that is what 9 out of 10 do. For proof look at CA renter. She could go alot of places and buy cheaper but she wants to be here so she just keeps renting until it makes sense for her to buy here if ever. Adding to that is the fact that she is more like you and not even close to being in the 9 out of 10 buyers group. It is what it is…..

[LesBaer45]

[quote=briansd1][quote=bearishgurl]
In general, folks from America’s midsection and the south are not amused that many homebuyers in coastal CA have stretched themselves to the brink.[/quote]

Do they read the NY Times? (just joking)

(I haven’t read the comments myself to see the commenters’ locations).[/quote]

We are from the south, and we are not amused.*

* By either the coastal CA buyers or the NYT.

[LesBaer45]

[quote=briansd1][quote=bearishgurl]
In general, folks from America’s midsection and the south are not amused that many homebuyers in coastal CA have stretched themselves to the brink.[/quote]

Do they read the NY Times? (just joking)

(I haven’t read the comments myself to see the commenters’ locations).[/quote]

We are from the south, and we are not amused.*

* By either the coastal CA buyers or the NYT.

[LesBaer45]

[quote=briansd1][quote=bearishgurl]
In general, folks from America’s midsection and the south are not amused that many homebuyers in coastal CA have stretched themselves to the brink.[/quote]

Do they read the NY Times? (just joking)

(I haven’t read the comments myself to see the commenters’ locations).[/quote]

We are from the south, and we are not amused.*

* By either the coastal CA buyers or the NYT.

[LesBaer45]

[quote=briansd1][quote=bearishgurl]
In general, folks from America’s midsection and the south are not amused that many homebuyers in coastal CA have stretched themselves to the brink.[/quote]

Do they read the NY Times? (just joking)

(I haven’t read the comments myself to see the commenters’ locations).[/quote]

We are from the south, and we are not amused.*

* By either the coastal CA buyers or the NYT.

[LesBaer45]

[quote=briansd1][quote=bearishgurl]
In general, folks from America’s midsection and the south are not amused that many homebuyers in coastal CA have stretched themselves to the brink.[/quote]

Do they read the NY Times? (just joking)

(I haven’t read the comments myself to see the commenters’ locations).[/quote]

We are from the south, and we are not amused.*

* By either the coastal CA buyers or the NYT.

[briansd1]

I won’t get into an argument as to which areas are “immune” but the data does show that the market is getting softer. And the lower GSE limits will be a negative in high prices markets such as Southern California.

The pricier segments of the resale market also remain weak, with the “move-up” buyer all but disappearing since the crash. The decline in home prices has left many homeowners unable to sell, and the uncertainty in the job market is discouraging others from taking on the risk of a new purchase.

“I don’t see any move-up market happening,” Gerd-Ulf Krueger, principal economist with HousingEcon.com, said. “Typically, the move-up buyer moves because there is equity. Specifically there is some kind of housing market pattern where you start out with the first-time buyer and that triggers moderate home price appreciation, and then after a while confidence comes back.”

“That process has basically gummed up.”

http://www.latimes.com/business/la-fi-spring-home-buying-20110513,0,5609736.story

[briansd1]

I won’t get into an argument as to which areas are “immune” but the data does show that the market is getting softer. And the lower GSE limits will be a negative in high prices markets such as Southern California.

The pricier segments of the resale market also remain weak, with the “move-up” buyer all but disappearing since the crash. The decline in home prices has left many homeowners unable to sell, and the uncertainty in the job market is discouraging others from taking on the risk of a new purchase.

“I don’t see any move-up market happening,” Gerd-Ulf Krueger, principal economist with HousingEcon.com, said. “Typically, the move-up buyer moves because there is equity. Specifically there is some kind of housing market pattern where you start out with the first-time buyer and that triggers moderate home price appreciation, and then after a while confidence comes back.”

“That process has basically gummed up.”

http://www.latimes.com/business/la-fi-spring-home-buying-20110513,0,5609736.story

[briansd1]

I won’t get into an argument as to which areas are “immune” but the data does show that the market is getting softer. And the lower GSE limits will be a negative in high prices markets such as Southern California.

The pricier segments of the resale market also remain weak, with the “move-up” buyer all but disappearing since the crash. The decline in home prices has left many homeowners unable to sell, and the uncertainty in the job market is discouraging others from taking on the risk of a new purchase.

“I don’t see any move-up market happening,” Gerd-Ulf Krueger, principal economist with HousingEcon.com, said. “Typically, the move-up buyer moves because there is equity. Specifically there is some kind of housing market pattern where you start out with the first-time buyer and that triggers moderate home price appreciation, and then after a while confidence comes back.”

“That process has basically gummed up.”

http://www.latimes.com/business/la-fi-spring-home-buying-20110513,0,5609736.story

[briansd1]

I won’t get into an argument as to which areas are “immune” but the data does show that the market is getting softer. And the lower GSE limits will be a negative in high prices markets such as Southern California.

The pricier segments of the resale market also remain weak, with the “move-up” buyer all but disappearing since the crash. The decline in home prices has left many homeowners unable to sell, and the uncertainty in the job market is discouraging others from taking on the risk of a new purchase.

“I don’t see any move-up market happening,” Gerd-Ulf Krueger, principal economist with HousingEcon.com, said. “Typically, the move-up buyer moves because there is equity. Specifically there is some kind of housing market pattern where you start out with the first-time buyer and that triggers moderate home price appreciation, and then after a while confidence comes back.”

“That process has basically gummed up.”

http://www.latimes.com/business/la-fi-spring-home-buying-20110513,0,5609736.story

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