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(former)FormerSanDiegan.
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June 1, 2009 at 8:24 PM #409485June 1, 2009 at 9:33 PM #408808
CoronitaParticipant[quote=martink110]I’m the opposite of most of you. Had a Wamu card 7.99% 12,000 limit balance at ~11,500. Wamu gets bought by Chase. My Wamu payment was always due on the 1/2/or 3rd of the month. I make my payment on the 1st. Chase changes my due date to the 28th?? so I’m “late” they jack up my rates to 20 something percent. I Go to BofA get a 0% CC(1 year) and transfer the balance :). Oh yah about 3 months ago BofA gave me a pesonal equity line for 20,000 @12.99%.
About the mortgage rates… geithner and that other person went to China, wonder what they’re taking about? “please buy more at lower rates.. we’ll give you x if you do. I expect short term for the rates to stabilize, if not go lower. Gotta keep the hope alive you know.[/quote]Well, I recall about 1 year ago, some (not all)people wanted more affordable housing and were clamoring for “bring on the pain” of a recession and with that job losses so that home prices would come crashing down. Looks like we got exactly what bargain hunters wanted. Except…Mr. President, the middle class called. They want their jobs back at all costs.
June 1, 2009 at 9:33 PM #409050CoronitaParticipant[quote=martink110]I’m the opposite of most of you. Had a Wamu card 7.99% 12,000 limit balance at ~11,500. Wamu gets bought by Chase. My Wamu payment was always due on the 1/2/or 3rd of the month. I make my payment on the 1st. Chase changes my due date to the 28th?? so I’m “late” they jack up my rates to 20 something percent. I Go to BofA get a 0% CC(1 year) and transfer the balance :). Oh yah about 3 months ago BofA gave me a pesonal equity line for 20,000 @12.99%.
About the mortgage rates… geithner and that other person went to China, wonder what they’re taking about? “please buy more at lower rates.. we’ll give you x if you do. I expect short term for the rates to stabilize, if not go lower. Gotta keep the hope alive you know.[/quote]Well, I recall about 1 year ago, some (not all)people wanted more affordable housing and were clamoring for “bring on the pain” of a recession and with that job losses so that home prices would come crashing down. Looks like we got exactly what bargain hunters wanted. Except…Mr. President, the middle class called. They want their jobs back at all costs.
June 1, 2009 at 9:33 PM #409297CoronitaParticipant[quote=martink110]I’m the opposite of most of you. Had a Wamu card 7.99% 12,000 limit balance at ~11,500. Wamu gets bought by Chase. My Wamu payment was always due on the 1/2/or 3rd of the month. I make my payment on the 1st. Chase changes my due date to the 28th?? so I’m “late” they jack up my rates to 20 something percent. I Go to BofA get a 0% CC(1 year) and transfer the balance :). Oh yah about 3 months ago BofA gave me a pesonal equity line for 20,000 @12.99%.
About the mortgage rates… geithner and that other person went to China, wonder what they’re taking about? “please buy more at lower rates.. we’ll give you x if you do. I expect short term for the rates to stabilize, if not go lower. Gotta keep the hope alive you know.[/quote]Well, I recall about 1 year ago, some (not all)people wanted more affordable housing and were clamoring for “bring on the pain” of a recession and with that job losses so that home prices would come crashing down. Looks like we got exactly what bargain hunters wanted. Except…Mr. President, the middle class called. They want their jobs back at all costs.
June 1, 2009 at 9:33 PM #409359CoronitaParticipant[quote=martink110]I’m the opposite of most of you. Had a Wamu card 7.99% 12,000 limit balance at ~11,500. Wamu gets bought by Chase. My Wamu payment was always due on the 1/2/or 3rd of the month. I make my payment on the 1st. Chase changes my due date to the 28th?? so I’m “late” they jack up my rates to 20 something percent. I Go to BofA get a 0% CC(1 year) and transfer the balance :). Oh yah about 3 months ago BofA gave me a pesonal equity line for 20,000 @12.99%.
About the mortgage rates… geithner and that other person went to China, wonder what they’re taking about? “please buy more at lower rates.. we’ll give you x if you do. I expect short term for the rates to stabilize, if not go lower. Gotta keep the hope alive you know.[/quote]Well, I recall about 1 year ago, some (not all)people wanted more affordable housing and were clamoring for “bring on the pain” of a recession and with that job losses so that home prices would come crashing down. Looks like we got exactly what bargain hunters wanted. Except…Mr. President, the middle class called. They want their jobs back at all costs.
June 1, 2009 at 9:33 PM #409510CoronitaParticipant[quote=martink110]I’m the opposite of most of you. Had a Wamu card 7.99% 12,000 limit balance at ~11,500. Wamu gets bought by Chase. My Wamu payment was always due on the 1/2/or 3rd of the month. I make my payment on the 1st. Chase changes my due date to the 28th?? so I’m “late” they jack up my rates to 20 something percent. I Go to BofA get a 0% CC(1 year) and transfer the balance :). Oh yah about 3 months ago BofA gave me a pesonal equity line for 20,000 @12.99%.
About the mortgage rates… geithner and that other person went to China, wonder what they’re taking about? “please buy more at lower rates.. we’ll give you x if you do. I expect short term for the rates to stabilize, if not go lower. Gotta keep the hope alive you know.[/quote]Well, I recall about 1 year ago, some (not all)people wanted more affordable housing and were clamoring for “bring on the pain” of a recession and with that job losses so that home prices would come crashing down. Looks like we got exactly what bargain hunters wanted. Except…Mr. President, the middle class called. They want their jobs back at all costs.
June 1, 2009 at 10:31 PM #408813ralphfurley
Participant[quote=SDEngineer][quote=sobmaz]I keep hearing that line.
Need I point out that in San Diego during the early 80’s the average home price reflected 3 to 4 times annual income? So yes, when rates went up, prices stagnated rather than declined. Stagnation during inflation has the net affect of decreasing the REAL price.
Now, in North Park for example, the average house is anywhere between 7 and 10 times average wages.
It all seems pretty simple, never before have we had housing prices so out of whack. What happened in the past cannot be a predictor of the future.
Pretty simple if you ask me, interest rates will have a far far more drasitic effect compared to any other time. [/quote]
Depends on the area, of course – some places have felt significantly less pain than others, but, at least according to research done on this site by Rich (Mr. Pigg himself), prices are no longer fundamentally out of alignment. See here:
and you’ll note on the first chart that the Case Shiller median divided by per capita income is now about where it was in ’84 – well into the decline curve and fairly close to the historical bottoms.
BTW, median prices have never been as low as 3-4x individual incomes in San Diego – about the lowest they get is about 6.5x individual, or about 4x household income. There really is a “sunshine tax”, and it’s pretty well historically documented.[/quote]
Using the median is a bad indicator of the bottom IMO. Bottom should be determined by each micro market. Some areas have bottomed, many have not. I would wager than most every area the Piggs here are looking to buy in, have not bottomed yet. Unless you had your heart set on buying a two bedroom crap shack somewhere.June 1, 2009 at 10:31 PM #409056Participant[quote=SDEngineer][quote=sobmaz]I keep hearing that line.
Need I point out that in San Diego during the early 80’s the average home price reflected 3 to 4 times annual income? So yes, when rates went up, prices stagnated rather than declined. Stagnation during inflation has the net affect of decreasing the REAL price.
Now, in North Park for example, the average house is anywhere between 7 and 10 times average wages.
It all seems pretty simple, never before have we had housing prices so out of whack. What happened in the past cannot be a predictor of the future.
Pretty simple if you ask me, interest rates will have a far far more drasitic effect compared to any other time. [/quote]
Depends on the area, of course – some places have felt significantly less pain than others, but, at least according to research done on this site by Rich (Mr. Pigg himself), prices are no longer fundamentally out of alignment. See here:
and you’ll note on the first chart that the Case Shiller median divided by per capita income is now about where it was in ’84 – well into the decline curve and fairly close to the historical bottoms.
BTW, median prices have never been as low as 3-4x individual incomes in San Diego – about the lowest they get is about 6.5x individual, or about 4x household income. There really is a “sunshine tax”, and it’s pretty well historically documented.[/quote]
Using the median is a bad indicator of the bottom IMO. Bottom should be determined by each micro market. Some areas have bottomed, many have not. I would wager than most every area the Piggs here are looking to buy in, have not bottomed yet. Unless you had your heart set on buying a two bedroom crap shack somewhere.June 1, 2009 at 10:31 PM #409302Participant[quote=SDEngineer][quote=sobmaz]I keep hearing that line.
Need I point out that in San Diego during the early 80’s the average home price reflected 3 to 4 times annual income? So yes, when rates went up, prices stagnated rather than declined. Stagnation during inflation has the net affect of decreasing the REAL price.
Now, in North Park for example, the average house is anywhere between 7 and 10 times average wages.
It all seems pretty simple, never before have we had housing prices so out of whack. What happened in the past cannot be a predictor of the future.
Pretty simple if you ask me, interest rates will have a far far more drasitic effect compared to any other time. [/quote]
Depends on the area, of course – some places have felt significantly less pain than others, but, at least according to research done on this site by Rich (Mr. Pigg himself), prices are no longer fundamentally out of alignment. See here:
and you’ll note on the first chart that the Case Shiller median divided by per capita income is now about where it was in ’84 – well into the decline curve and fairly close to the historical bottoms.
BTW, median prices have never been as low as 3-4x individual incomes in San Diego – about the lowest they get is about 6.5x individual, or about 4x household income. There really is a “sunshine tax”, and it’s pretty well historically documented.[/quote]
Using the median is a bad indicator of the bottom IMO. Bottom should be determined by each micro market. Some areas have bottomed, many have not. I would wager than most every area the Piggs here are looking to buy in, have not bottomed yet. Unless you had your heart set on buying a two bedroom crap shack somewhere.June 1, 2009 at 10:31 PM #409364Participant[quote=SDEngineer][quote=sobmaz]I keep hearing that line.
Need I point out that in San Diego during the early 80’s the average home price reflected 3 to 4 times annual income? So yes, when rates went up, prices stagnated rather than declined. Stagnation during inflation has the net affect of decreasing the REAL price.
Now, in North Park for example, the average house is anywhere between 7 and 10 times average wages.
It all seems pretty simple, never before have we had housing prices so out of whack. What happened in the past cannot be a predictor of the future.
Pretty simple if you ask me, interest rates will have a far far more drasitic effect compared to any other time. [/quote]
Depends on the area, of course – some places have felt significantly less pain than others, but, at least according to research done on this site by Rich (Mr. Pigg himself), prices are no longer fundamentally out of alignment. See here:
and you’ll note on the first chart that the Case Shiller median divided by per capita income is now about where it was in ’84 – well into the decline curve and fairly close to the historical bottoms.
BTW, median prices have never been as low as 3-4x individual incomes in San Diego – about the lowest they get is about 6.5x individual, or about 4x household income. There really is a “sunshine tax”, and it’s pretty well historically documented.[/quote]
Using the median is a bad indicator of the bottom IMO. Bottom should be determined by each micro market. Some areas have bottomed, many have not. I would wager than most every area the Piggs here are looking to buy in, have not bottomed yet. Unless you had your heart set on buying a two bedroom crap shack somewhere.June 1, 2009 at 10:31 PM #409515Participant[quote=SDEngineer][quote=sobmaz]I keep hearing that line.
Need I point out that in San Diego during the early 80’s the average home price reflected 3 to 4 times annual income? So yes, when rates went up, prices stagnated rather than declined. Stagnation during inflation has the net affect of decreasing the REAL price.
Now, in North Park for example, the average house is anywhere between 7 and 10 times average wages.
It all seems pretty simple, never before have we had housing prices so out of whack. What happened in the past cannot be a predictor of the future.
Pretty simple if you ask me, interest rates will have a far far more drasitic effect compared to any other time. [/quote]
Depends on the area, of course – some places have felt significantly less pain than others, but, at least according to research done on this site by Rich (Mr. Pigg himself), prices are no longer fundamentally out of alignment. See here:
and you’ll note on the first chart that the Case Shiller median divided by per capita income is now about where it was in ’84 – well into the decline curve and fairly close to the historical bottoms.
BTW, median prices have never been as low as 3-4x individual incomes in San Diego – about the lowest they get is about 6.5x individual, or about 4x household income. There really is a “sunshine tax”, and it’s pretty well historically documented.[/quote]
Using the median is a bad indicator of the bottom IMO. Bottom should be determined by each micro market. Some areas have bottomed, many have not. I would wager than most every area the Piggs here are looking to buy in, have not bottomed yet. Unless you had your heart set on buying a two bedroom crap shack somewhere.June 2, 2009 at 7:29 AM #408874Nor-LA-SD-guy
Participant[quote=flu][quote=martink110]I’m the opposite of most of you. Had a Wamu card 7.99% 12,000 limit balance at ~11,500. Wamu gets bought by Chase. My Wamu payment was always due on the 1/2/or 3rd of the month. I make my payment on the 1st. Chase changes my due date to the 28th?? so I’m “late” they jack up my rates to 20 something percent. I Go to BofA get a 0% CC(1 year) and transfer the balance :). Oh yah about 3 months ago BofA gave me a pesonal equity line for 20,000 @12.99%.
About the mortgage rates… geithner and that other person went to China, wonder what they’re taking about? “please buy more at lower rates.. we’ll give you x if you do. I expect short term for the rates to stabilize, if not go lower. Gotta keep the hope alive you know.[/quote]Well, I recall about 1 year ago, some (not all)people wanted more affordable housing and were clamoring for “bring on the pain” of a recession and with that job losses so that home prices would come crashing down. Looks like we got exactly what bargain hunters wanted. Except…Mr. President, the middle class called. They want their jobs back at all costs.
[/quote]
I actually think they will let rates rise a bit to cool things off, (now this is where I put on my tin foil hat), I think things are starting to take off a little sooner than the current administration wants as it kind of puts some of their plans (spread the wealth type of stuff) in a light as not being necessary maybe.
On another note looks like TG and a few others are in good company as this Sam Zell guy seems to think we are at or close to a bottom in Residential RE as well (although he is not quite as local as TG).
June 2, 2009 at 7:29 AM #409115Participant[quote=flu][quote=martink110]I’m the opposite of most of you. Had a Wamu card 7.99% 12,000 limit balance at ~11,500. Wamu gets bought by Chase. My Wamu payment was always due on the 1/2/or 3rd of the month. I make my payment on the 1st. Chase changes my due date to the 28th?? so I’m “late” they jack up my rates to 20 something percent. I Go to BofA get a 0% CC(1 year) and transfer the balance :). Oh yah about 3 months ago BofA gave me a pesonal equity line for 20,000 @12.99%.
About the mortgage rates… geithner and that other person went to China, wonder what they’re taking about? “please buy more at lower rates.. we’ll give you x if you do. I expect short term for the rates to stabilize, if not go lower. Gotta keep the hope alive you know.[/quote]Well, I recall about 1 year ago, some (not all)people wanted more affordable housing and were clamoring for “bring on the pain” of a recession and with that job losses so that home prices would come crashing down. Looks like we got exactly what bargain hunters wanted. Except…Mr. President, the middle class called. They want their jobs back at all costs.
[/quote]
I actually think they will let rates rise a bit to cool things off, (now this is where I put on my tin foil hat), I think things are starting to take off a little sooner than the current administration wants as it kind of puts some of their plans (spread the wealth type of stuff) in a light as not being necessary maybe.
On another note looks like TG and a few others are in good company as this Sam Zell guy seems to think we are at or close to a bottom in Residential RE as well (although he is not quite as local as TG).
June 2, 2009 at 7:29 AM #409362Participant[quote=flu][quote=martink110]I’m the opposite of most of you. Had a Wamu card 7.99% 12,000 limit balance at ~11,500. Wamu gets bought by Chase. My Wamu payment was always due on the 1/2/or 3rd of the month. I make my payment on the 1st. Chase changes my due date to the 28th?? so I’m “late” they jack up my rates to 20 something percent. I Go to BofA get a 0% CC(1 year) and transfer the balance :). Oh yah about 3 months ago BofA gave me a pesonal equity line for 20,000 @12.99%.
About the mortgage rates… geithner and that other person went to China, wonder what they’re taking about? “please buy more at lower rates.. we’ll give you x if you do. I expect short term for the rates to stabilize, if not go lower. Gotta keep the hope alive you know.[/quote]Well, I recall about 1 year ago, some (not all)people wanted more affordable housing and were clamoring for “bring on the pain” of a recession and with that job losses so that home prices would come crashing down. Looks like we got exactly what bargain hunters wanted. Except…Mr. President, the middle class called. They want their jobs back at all costs.
[/quote]
I actually think they will let rates rise a bit to cool things off, (now this is where I put on my tin foil hat), I think things are starting to take off a little sooner than the current administration wants as it kind of puts some of their plans (spread the wealth type of stuff) in a light as not being necessary maybe.
On another note looks like TG and a few others are in good company as this Sam Zell guy seems to think we are at or close to a bottom in Residential RE as well (although he is not quite as local as TG).
June 2, 2009 at 7:29 AM #409424Participant[quote=flu][quote=martink110]I’m the opposite of most of you. Had a Wamu card 7.99% 12,000 limit balance at ~11,500. Wamu gets bought by Chase. My Wamu payment was always due on the 1/2/or 3rd of the month. I make my payment on the 1st. Chase changes my due date to the 28th?? so I’m “late” they jack up my rates to 20 something percent. I Go to BofA get a 0% CC(1 year) and transfer the balance :). Oh yah about 3 months ago BofA gave me a pesonal equity line for 20,000 @12.99%.
About the mortgage rates… geithner and that other person went to China, wonder what they’re taking about? “please buy more at lower rates.. we’ll give you x if you do. I expect short term for the rates to stabilize, if not go lower. Gotta keep the hope alive you know.[/quote]Well, I recall about 1 year ago, some (not all)people wanted more affordable housing and were clamoring for “bring on the pain” of a recession and with that job losses so that home prices would come crashing down. Looks like we got exactly what bargain hunters wanted. Except…Mr. President, the middle class called. They want their jobs back at all costs.
[/quote]
I actually think they will let rates rise a bit to cool things off, (now this is where I put on my tin foil hat), I think things are starting to take off a little sooner than the current administration wants as it kind of puts some of their plans (spread the wealth type of stuff) in a light as not being necessary maybe.
On another note looks like TG and a few others are in good company as this Sam Zell guy seems to think we are at or close to a bottom in Residential RE as well (although he is not quite as local as TG).
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