Knife catchers jump in

[hipmatt]

Home sales are up, but inventory is at an all time high. We are clearly far from the bottom. The only arguments for upwards prices are emotional and rhetorical. Fundamentally things are getting worse.

The BIGGEST driver of prices is supply and demand. Well the big news today is another record high supply. And as the knife catchers buy, the demand will weaken too. With tougher lending standardsmore people loosing jobs, and others spend more of their income on food and energy

They are helping drive prices lower in the long run. Most recent/active buyers I know will be or are stretched way to thin from their purchase. This means that after they close escrow, even less discretionary spending out in the economy. With companys big and small reporting weaker earnings, the reduction in consumer spending will only add to the unemployment.

Most knife catchers now are buying out of past regret/envy or FEAR of being priced out in the future. Both motivators are highly emotional and illogical. Usually the current buyer/k. catcher is not paying attention to the real fundamentals and economic indicators, which are poor and point to further price reductions.

[peterb]

I see way too much eagerness to buy on this site. And I would have thought it would have been more bearish. The sure sign of a bottom is improving fundementals with a high level of negative sentiment. Many people here are thinking that it’s “so cheap compared to where it was.”… Like that is how the market works. I heard the same thing about a year ago here. And this year the fundementals and outlook, are far worse!!!

So in my estimation, we’re still far away from it.

[peterb]

I see way too much eagerness to buy on this site. And I would have thought it would have been more bearish. The sure sign of a bottom is improving fundementals with a high level of negative sentiment. Many people here are thinking that it’s “so cheap compared to where it was.”… Like that is how the market works. I heard the same thing about a year ago here. And this year the fundementals and outlook, are far worse!!!

So in my estimation, we’re still far away from it.

[peterb]

I see way too much eagerness to buy on this site. And I would have thought it would have been more bearish. The sure sign of a bottom is improving fundementals with a high level of negative sentiment. Many people here are thinking that it’s “so cheap compared to where it was.”… Like that is how the market works. I heard the same thing about a year ago here. And this year the fundementals and outlook, are far worse!!!

So in my estimation, we’re still far away from it.

[peterb]

I see way too much eagerness to buy on this site. And I would have thought it would have been more bearish. The sure sign of a bottom is improving fundementals with a high level of negative sentiment. Many people here are thinking that it’s “so cheap compared to where it was.”… Like that is how the market works. I heard the same thing about a year ago here. And this year the fundementals and outlook, are far worse!!!

So in my estimation, we’re still far away from it.

[peterb]

I see way too much eagerness to buy on this site. And I would have thought it would have been more bearish. The sure sign of a bottom is improving fundementals with a high level of negative sentiment. Many people here are thinking that it’s “so cheap compared to where it was.”… Like that is how the market works. I heard the same thing about a year ago here. And this year the fundementals and outlook, are far worse!!!

So in my estimation, we’re still far away from it.

[Cosmo31]

[These are not stocks, and have an intrinsic and sentimental value beyond market price, and I’d guess the majority of those buying now are not doing so because they foresee a huge rise in prices as before, they simply want to own a house and can now finally afford it.

Just my 2 cents (a self admitted knife catcher… in escrow as we speak)] – biggoldbear

Three years ago I was at a Padres game sitting in left field occasionally gazing at the new condo conversions. I said to myself, “since we are renting anyway, maybe we should buy a microscopic, ex-apartment for an investment. We could stay until we’re ready to have kids then sell for a profit. We could do it.” My cousin’s friend’s cousin said, “No problem. I don’t care if you are both in school, have to eat Kraft mac-and-cheese two meals a day, have $50.00 in your checking account and currently live in student housing. I have your loan!” We didn’t do it, partially because of this site. Now we are buying a SFR in a nice area.

I am in the same boat with Biggoldbear.

[Cosmo31]

[These are not stocks, and have an intrinsic and sentimental value beyond market price, and I’d guess the majority of those buying now are not doing so because they foresee a huge rise in prices as before, they simply want to own a house and can now finally afford it.

Just my 2 cents (a self admitted knife catcher… in escrow as we speak)] – biggoldbear

Three years ago I was at a Padres game sitting in left field occasionally gazing at the new condo conversions. I said to myself, “since we are renting anyway, maybe we should buy a microscopic, ex-apartment for an investment. We could stay until we’re ready to have kids then sell for a profit. We could do it.” My cousin’s friend’s cousin said, “No problem. I don’t care if you are both in school, have to eat Kraft mac-and-cheese two meals a day, have $50.00 in your checking account and currently live in student housing. I have your loan!” We didn’t do it, partially because of this site. Now we are buying a SFR in a nice area.

I am in the same boat with Biggoldbear.

[Cosmo31]

[These are not stocks, and have an intrinsic and sentimental value beyond market price, and I’d guess the majority of those buying now are not doing so because they foresee a huge rise in prices as before, they simply want to own a house and can now finally afford it.

Just my 2 cents (a self admitted knife catcher… in escrow as we speak)] – biggoldbear

Three years ago I was at a Padres game sitting in left field occasionally gazing at the new condo conversions. I said to myself, “since we are renting anyway, maybe we should buy a microscopic, ex-apartment for an investment. We could stay until we’re ready to have kids then sell for a profit. We could do it.” My cousin’s friend’s cousin said, “No problem. I don’t care if you are both in school, have to eat Kraft mac-and-cheese two meals a day, have $50.00 in your checking account and currently live in student housing. I have your loan!” We didn’t do it, partially because of this site. Now we are buying a SFR in a nice area.

I am in the same boat with Biggoldbear.

[Cosmo31]

[These are not stocks, and have an intrinsic and sentimental value beyond market price, and I’d guess the majority of those buying now are not doing so because they foresee a huge rise in prices as before, they simply want to own a house and can now finally afford it.

Just my 2 cents (a self admitted knife catcher… in escrow as we speak)] – biggoldbear

Three years ago I was at a Padres game sitting in left field occasionally gazing at the new condo conversions. I said to myself, “since we are renting anyway, maybe we should buy a microscopic, ex-apartment for an investment. We could stay until we’re ready to have kids then sell for a profit. We could do it.” My cousin’s friend’s cousin said, “No problem. I don’t care if you are both in school, have to eat Kraft mac-and-cheese two meals a day, have $50.00 in your checking account and currently live in student housing. I have your loan!” We didn’t do it, partially because of this site. Now we are buying a SFR in a nice area.

I am in the same boat with Biggoldbear.

[Cosmo31]

[These are not stocks, and have an intrinsic and sentimental value beyond market price, and I’d guess the majority of those buying now are not doing so because they foresee a huge rise in prices as before, they simply want to own a house and can now finally afford it.

Just my 2 cents (a self admitted knife catcher… in escrow as we speak)] – biggoldbear

Three years ago I was at a Padres game sitting in left field occasionally gazing at the new condo conversions. I said to myself, “since we are renting anyway, maybe we should buy a microscopic, ex-apartment for an investment. We could stay until we’re ready to have kids then sell for a profit. We could do it.” My cousin’s friend’s cousin said, “No problem. I don’t care if you are both in school, have to eat Kraft mac-and-cheese two meals a day, have $50.00 in your checking account and currently live in student housing. I have your loan!” We didn’t do it, partially because of this site. Now we are buying a SFR in a nice area.

I am in the same boat with Biggoldbear.

[sdrealtor]

“The BIGGEST driver of prices is supply and demand. Well the big news today is another record high supply.”

Thats national not local news. I have the news on in the background and just heard a statement that sales are up over 40% year over year this month (admittedly it is mostly low end bargain hunters). Inventory in the MLS is down from last year. Not saying prices are going up but supply/demand certainly is not on your side right now. I have about a dozen buyers, all well qualified, with substantial down payments ( afew are all cash) looking for decent proeprties at or just below today’s prices. It has been a HUGE challenge to find what they are looking for. When we do, there is competition.

[sdrealtor]

“The BIGGEST driver of prices is supply and demand. Well the big news today is another record high supply.”

Thats national not local news. I have the news on in the background and just heard a statement that sales are up over 40% year over year this month (admittedly it is mostly low end bargain hunters). Inventory in the MLS is down from last year. Not saying prices are going up but supply/demand certainly is not on your side right now. I have about a dozen buyers, all well qualified, with substantial down payments ( afew are all cash) looking for decent proeprties at or just below today’s prices. It has been a HUGE challenge to find what they are looking for. When we do, there is competition.

[sdrealtor]

“The BIGGEST driver of prices is supply and demand. Well the big news today is another record high supply.”

Thats national not local news. I have the news on in the background and just heard a statement that sales are up over 40% year over year this month (admittedly it is mostly low end bargain hunters). Inventory in the MLS is down from last year. Not saying prices are going up but supply/demand certainly is not on your side right now. I have about a dozen buyers, all well qualified, with substantial down payments ( afew are all cash) looking for decent proeprties at or just below today’s prices. It has been a HUGE challenge to find what they are looking for. When we do, there is competition.

[sdrealtor]

“The BIGGEST driver of prices is supply and demand. Well the big news today is another record high supply.”

Thats national not local news. I have the news on in the background and just heard a statement that sales are up over 40% year over year this month (admittedly it is mostly low end bargain hunters). Inventory in the MLS is down from last year. Not saying prices are going up but supply/demand certainly is not on your side right now. I have about a dozen buyers, all well qualified, with substantial down payments ( afew are all cash) looking for decent proeprties at or just below today’s prices. It has been a HUGE challenge to find what they are looking for. When we do, there is competition.

[Author]

Posts