SD R.
I thought that was you, but I wasnt really sure. Didn’t want to claim that someone said something when they didnt.
I also agree about investors not hoarding property. The banks may be VERY slow (up until now?) repricing and accepting offers, but this amounts to feet draging before the execution. It may slow it down for a few more seconds of life, but it isnt gonna stop it.
I was just trying to think what these investors buisness plan was. Certainly it isn’t buy like it is 2005. Banks don’t (or didn’t?) give discounts that can match the market falling 5% in one MONTH!, so no money there. I could kinda see them picking up properties that were trashed and unsellable at a discount that MAYBE could return something. Need alot of really cheap labor, but the theory is there. Rents are nowhere near costs, and returns would be 10+ years away, assuming costs don’t eat them before then. Sitting on perfectly good capital without any use until this is over is just stupid. So I just dont see it.
Maybe when the OptionAdj. primes start killing banks, the despiration for capital will drive a few deals like that. I just kinda think that San Diego is an affulent area and there are people who still think this is a temporary correction. They couldnt buy before, 10% drops and 5.8% interest means they can, and the rest be damned. I also dont think there are enough people like that to save this market, but it doesnt mean that they dont exist.
