North Park

[Reality]

[quote=urbanrealtor]

That is not realistic.
At 15 GRM, people still go bananas even in crappier pockets. It is possible that this will change but it seems unlikely. If I could buy a place and the revenue could equal the full purchase price in 10 years (where I, the borrower, still get 30 to pay the bank), then everybody would jump in and the effective demand would drive the grm right back up.

The only places you see a grm that low is where rents are really high and interest rates are too.

Again, if rates spike (like to 15%) then that may happen.

But that seems an unrealistic projection as of today.[/quote]

Why do you think they “go bananas”? It’s not logical to buy a house that costs WAY more to buy than rent. If it doesn’t pencil out as a rental then why the demand?

To me it’s just bubble conditioning. People think buying at 30% or so off the peak is a great deal. Never mind that it’s still double the price of 12 years ago.

[blahblahblah]

Why do you think they “go bananas”? It’s not logical to buy a house that costs WAY more to buy than rent. If it doesn’t pencil out as a rental then why the demand?

Newsflash for Mr. Spock — people do not always act in a logical manner. Your guess is as good as mine as to why.

[blahblahblah]

Why do you think they “go bananas”? It’s not logical to buy a house that costs WAY more to buy than rent. If it doesn’t pencil out as a rental then why the demand?

Newsflash for Mr. Spock — people do not always act in a logical manner. Your guess is as good as mine as to why.

[blahblahblah]

Why do you think they “go bananas”? It’s not logical to buy a house that costs WAY more to buy than rent. If it doesn’t pencil out as a rental then why the demand?

Newsflash for Mr. Spock — people do not always act in a logical manner. Your guess is as good as mine as to why.

[blahblahblah]

Why do you think they “go bananas”? It’s not logical to buy a house that costs WAY more to buy than rent. If it doesn’t pencil out as a rental then why the demand?

Newsflash for Mr. Spock — people do not always act in a logical manner. Your guess is as good as mine as to why.

[blahblahblah]

Why do you think they “go bananas”? It’s not logical to buy a house that costs WAY more to buy than rent. If it doesn’t pencil out as a rental then why the demand?

Newsflash for Mr. Spock — people do not always act in a logical manner. Your guess is as good as mine as to why.

[Reality]

Are they stupid?

[Reality]

Are they stupid?

[Reality]

Are they stupid?

[Reality]

Are they stupid?

[Reality]

Are they stupid?

[blahblahblah]

I’m not so sure. Here’s the one thing that’s bugging me — money seems to be worth less every year. If you think that that trend will continue, then borrowing a bunch of money now might actually make some sense. Now you don’t want to overpay of course, but assuming that prices have come down 20% or so from the top, maybe you get in now at low interest rates and then in 10-15 years money is worth a lot less and your loan is looking like a bargain then?

Just guessing. But probably for most buyers they’re not thinking that far ahead, just “I want a house, here’s one I can make the payments on, I’ll take it.”

Or maybe they’re dumb.

[blahblahblah]

I’m not so sure. Here’s the one thing that’s bugging me — money seems to be worth less every year. If you think that that trend will continue, then borrowing a bunch of money now might actually make some sense. Now you don’t want to overpay of course, but assuming that prices have come down 20% or so from the top, maybe you get in now at low interest rates and then in 10-15 years money is worth a lot less and your loan is looking like a bargain then?

Just guessing. But probably for most buyers they’re not thinking that far ahead, just “I want a house, here’s one I can make the payments on, I’ll take it.”

Or maybe they’re dumb.

[blahblahblah]

I’m not so sure. Here’s the one thing that’s bugging me — money seems to be worth less every year. If you think that that trend will continue, then borrowing a bunch of money now might actually make some sense. Now you don’t want to overpay of course, but assuming that prices have come down 20% or so from the top, maybe you get in now at low interest rates and then in 10-15 years money is worth a lot less and your loan is looking like a bargain then?

Just guessing. But probably for most buyers they’re not thinking that far ahead, just “I want a house, here’s one I can make the payments on, I’ll take it.”

Or maybe they’re dumb.

[blahblahblah]

I’m not so sure. Here’s the one thing that’s bugging me — money seems to be worth less every year. If you think that that trend will continue, then borrowing a bunch of money now might actually make some sense. Now you don’t want to overpay of course, but assuming that prices have come down 20% or so from the top, maybe you get in now at low interest rates and then in 10-15 years money is worth a lot less and your loan is looking like a bargain then?

Just guessing. But probably for most buyers they’re not thinking that far ahead, just “I want a house, here’s one I can make the payments on, I’ll take it.”

Or maybe they’re dumb.

[Author]

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