Move up Buyer

[admin]

I am starting to see alot of frustration from some folks I know. It seems to be a growing trend. The details vary but the story generally goes something like this…..”HELP! I’m stuck in my current condo, my family is growing{insert here…we just had a baby, 2nd kid, etc). I want to move in to a larger house, I bought a condo in(insert here 2004, 2005, 2006), expecting to sell in couple years at great profit. They told us that housing prices always rise! Mortgage rates are fantastic now but there is no way can I sell this at put down a 20% downpayment. I’m stuck with depreciating asset and now way underwater. We make a great income.”

With housing prices expected to fall in condo market next couple years, I’m expecting this story to become even more common.

Move up buyers are integral to the health of the market. Anybody want to hazard a guess at how prevalent these wanna-be move-up buyers are in San Diego? Folks with solid dual income and credit in stable jobs who want to move up but just can’t. It must be a good 25% of condo buyers in 2004-2006.

[Bubblesitter]

I agree that anybody who bought at the peak is f’d.
They will have to eat a big loss, or just stay put for the next 5-10 years. Then again, anyone buying a house should’ve planned on staying there 7-10 year minimum anyway.

I do believe that are a good number of people on the sidelines such as myself. Saving up a large downpayment, waiting to pounch when opportunity arises. Question is are there enough of us to offset the impact of the stuck “wanna be” move up buyers.

Bubblesitter

[Bubblesitter]

I agree that anybody who bought at the peak is f’d.
They will have to eat a big loss, or just stay put for the next 5-10 years. Then again, anyone buying a house should’ve planned on staying there 7-10 year minimum anyway.

I do believe that are a good number of people on the sidelines such as myself. Saving up a large downpayment, waiting to pounch when opportunity arises. Question is are there enough of us to offset the impact of the stuck “wanna be” move up buyers.

Bubblesitter

[Bubblesitter]

I agree that anybody who bought at the peak is f’d.
They will have to eat a big loss, or just stay put for the next 5-10 years. Then again, anyone buying a house should’ve planned on staying there 7-10 year minimum anyway.

I do believe that are a good number of people on the sidelines such as myself. Saving up a large downpayment, waiting to pounch when opportunity arises. Question is are there enough of us to offset the impact of the stuck “wanna be” move up buyers.

Bubblesitter

[Bubblesitter]

I agree that anybody who bought at the peak is f’d.
They will have to eat a big loss, or just stay put for the next 5-10 years. Then again, anyone buying a house should’ve planned on staying there 7-10 year minimum anyway.

I do believe that are a good number of people on the sidelines such as myself. Saving up a large downpayment, waiting to pounch when opportunity arises. Question is are there enough of us to offset the impact of the stuck “wanna be” move up buyers.

Bubblesitter

[Bubblesitter]

I agree that anybody who bought at the peak is f’d.
They will have to eat a big loss, or just stay put for the next 5-10 years. Then again, anyone buying a house should’ve planned on staying there 7-10 year minimum anyway.

I do believe that are a good number of people on the sidelines such as myself. Saving up a large downpayment, waiting to pounch when opportunity arises. Question is are there enough of us to offset the impact of the stuck “wanna be” move up buyers.

Bubblesitter

[recordsclerk]

I would have to agree that there are not going to be many move up buyers who bought at the peak. I know people that bought at/near peak with enough down that can sell a small profit, but refuse to sell until the market goes back up. They want to move up, but can’t stand selling at a loss. You can add 2002-2004 buyers to the list depending on where they bought. Some areas are already selling at or near 2001 levels. Without equity these buyers will not have a down payment. Historically move-up buyers put 10% or more down and stay for about 7 years while paying principal payments and enjoying the benefit of wage increases.

[recordsclerk]

I would have to agree that there are not going to be many move up buyers who bought at the peak. I know people that bought at/near peak with enough down that can sell a small profit, but refuse to sell until the market goes back up. They want to move up, but can’t stand selling at a loss. You can add 2002-2004 buyers to the list depending on where they bought. Some areas are already selling at or near 2001 levels. Without equity these buyers will not have a down payment. Historically move-up buyers put 10% or more down and stay for about 7 years while paying principal payments and enjoying the benefit of wage increases.

[recordsclerk]

I would have to agree that there are not going to be many move up buyers who bought at the peak. I know people that bought at/near peak with enough down that can sell a small profit, but refuse to sell until the market goes back up. They want to move up, but can’t stand selling at a loss. You can add 2002-2004 buyers to the list depending on where they bought. Some areas are already selling at or near 2001 levels. Without equity these buyers will not have a down payment. Historically move-up buyers put 10% or more down and stay for about 7 years while paying principal payments and enjoying the benefit of wage increases.

[recordsclerk]

I would have to agree that there are not going to be many move up buyers who bought at the peak. I know people that bought at/near peak with enough down that can sell a small profit, but refuse to sell until the market goes back up. They want to move up, but can’t stand selling at a loss. You can add 2002-2004 buyers to the list depending on where they bought. Some areas are already selling at or near 2001 levels. Without equity these buyers will not have a down payment. Historically move-up buyers put 10% or more down and stay for about 7 years while paying principal payments and enjoying the benefit of wage increases.

[recordsclerk]

I would have to agree that there are not going to be many move up buyers who bought at the peak. I know people that bought at/near peak with enough down that can sell a small profit, but refuse to sell until the market goes back up. They want to move up, but can’t stand selling at a loss. You can add 2002-2004 buyers to the list depending on where they bought. Some areas are already selling at or near 2001 levels. Without equity these buyers will not have a down payment. Historically move-up buyers put 10% or more down and stay for about 7 years while paying principal payments and enjoying the benefit of wage increases.

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