Housing Crash 2.0?

[NotCranky]

I believe the bubble before this big last crash officially took SD housing down only 17%.. However there were plenty of houses down much much more. So, while the next downturn may not look to be a set up for large overall decline , it may offer plenty of opportunities in certain areas.

I don’t have any ideas on where, haven’t been thinking about it , but there will be good buying opportunities.

If it is blue collar areas , would piggs buy? Which investors would?
If it were Eastlake or Santee( just 15minutes from La jolla shores).

[an]

[quote=Blogstar]I believe the bubble before this big last crash officially took SD housing down only 17%.. However there were plenty of houses down much much more. So, while the next downturn may not look to be a set up for large overall decline , it may offer plenty of opportunities in certain areas.

I don’t have any ideas on where, haven’t been thinking about it , but there will be good buying opportunities.

If it is blue collar areas , would piggs buy? Which investors would?
If it were Eastlake or Santee( just 15minutes from La jolla shores).[/quote]I don’t doubt that there will be opportunity at the bottom of the next cycle. I just don’t think we’ll see 50-60% off peak like we did in 2008-2010. I also like to follow the lazy landlord philosophy as well, unless I’m presented with a killer opportunity further away. I wouldn’t go out of my way to look for properties in Eastlake/Santee. I like to buy where I think major job center is. It’s much easier to find renter when it’s close to jobs and university.

[flu]

[quote=Blogstar]I believe the bubble before this big last crash officially took SD housing down only 17%.. However there were plenty of houses down much much more. So, while the next downturn may not look to be a set up for large overall decline , it may offer plenty of opportunities in certain areas.

I don’t have any ideas on where, haven’t been thinking about it , but there will be good buying opportunities.

If it is blue collar areas , would piggs buy? Which investors would?
If it were Eastlake or Santee( just 15minutes from La jolla shores).[/quote]

Last time, I wasn’t ready for deals at the higher end. This time I would be. That said, I believe in the lazy landlord theory, irrespective of the kind of property…so long as I don’t get shot going there. (the lazy landlord theory= waiting for opportunities not too far from where you are willing to live, instead of trying to go out of your way to be a landlord way yonder)

On a side note, I think a lot of this is just one big mind game. I am in l.a. and traffic is bad, stores are packed, vacancy is non existence , and it wasn’t this bad just last year. Maybe now that the socal economy is better and people feel better financially with reinflated home prices, and an inflated stock market, people are just happier spending. Ah yes. Good times are back again. It will be interesting to see if the economy and the markets do turn south for the winter, who really can take advantage of it. Usually, if the market goes south like it did last time, usually that led to a pretty bad job market. So some of the very people that were hoping for a re price correction couldn’t take advantage of it anyway because they were unemployed for some time.

[poorgradstudent]

I doubt we will see another epic crash, but a dip wouldn’t shock me, and minimally I really don’t expect to see significant gains from current prices vs. inflation for the next year or two.

Basically, if I was on the fence about buying, I’d feel okay staying on the fence and watching.

[Author]

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