Spring Housing Prediction

[(former)FormerSanDiegan]

[quote=cooprider]Great insight EconProf.

Maybe someday Gov’t and economists will realize low home prices are good because it means people can spend more money elsewhere.[/quote]

The fact that many people will be spending less on housing will be the stimulus that leads to economic recovery.

I don’t believe that this is the end of the business cycle.

[Fearful]

[quote=sdrealtor] a low end property in escrow that looks like it is going to sell for about 75X monthly rental income. A cash buyer would get nearly a 20% return on their cash.[/quote]
Actually, that is 16%, but still in the area in which I would imagine investors would be interested.

My profession is poking holes in financial scenarios, so it comes easy to me: How vulnerable will rental prices be to weakening economic conditions, and to increasing supply of rental housing stock purchased by investors such as this client?

I don’t know the answers to these questions, just raising them.

[Fearful]

[quote=sdrealtor] a low end property in escrow that looks like it is going to sell for about 75X monthly rental income. A cash buyer would get nearly a 20% return on their cash.[/quote]
Actually, that is 16%, but still in the area in which I would imagine investors would be interested.

My profession is poking holes in financial scenarios, so it comes easy to me: How vulnerable will rental prices be to weakening economic conditions, and to increasing supply of rental housing stock purchased by investors such as this client?

I don’t know the answers to these questions, just raising them.

[Fearful]

[quote=sdrealtor] a low end property in escrow that looks like it is going to sell for about 75X monthly rental income. A cash buyer would get nearly a 20% return on their cash.[/quote]
Actually, that is 16%, but still in the area in which I would imagine investors would be interested.

My profession is poking holes in financial scenarios, so it comes easy to me: How vulnerable will rental prices be to weakening economic conditions, and to increasing supply of rental housing stock purchased by investors such as this client?

I don’t know the answers to these questions, just raising them.

[Fearful]

[quote=sdrealtor] a low end property in escrow that looks like it is going to sell for about 75X monthly rental income. A cash buyer would get nearly a 20% return on their cash.[/quote]
Actually, that is 16%, but still in the area in which I would imagine investors would be interested.

My profession is poking holes in financial scenarios, so it comes easy to me: How vulnerable will rental prices be to weakening economic conditions, and to increasing supply of rental housing stock purchased by investors such as this client?

I don’t know the answers to these questions, just raising them.

[Fearful]

[quote=sdrealtor] a low end property in escrow that looks like it is going to sell for about 75X monthly rental income. A cash buyer would get nearly a 20% return on their cash.[/quote]
Actually, that is 16%, but still in the area in which I would imagine investors would be interested.

My profession is poking holes in financial scenarios, so it comes easy to me: How vulnerable will rental prices be to weakening economic conditions, and to increasing supply of rental housing stock purchased by investors such as this client?

I don’t know the answers to these questions, just raising them.

[Fearful]

[quote=sdrealtor]Many of the type of folks Stan refers to live in my area. Most have lived here pre bubble. Their billable hours will be done, their commissions will be done, their stock portfolios will be down, their bonuses will be down. They will be hunkering down and not looking to move but rather to maintain the status quo. My hypothesis is that the vast majority will have no problem doing so.[/quote]
If they were forced to sell, yes, that would drive prices down fast. I think the important point is they are “hunkering down” and are not out there buying. So we see sluggishness, not cataclysm. A market with falling prices but low transaction volume.

[Fearful]

[quote=sdrealtor]Many of the type of folks Stan refers to live in my area. Most have lived here pre bubble. Their billable hours will be done, their commissions will be done, their stock portfolios will be down, their bonuses will be down. They will be hunkering down and not looking to move but rather to maintain the status quo. My hypothesis is that the vast majority will have no problem doing so.[/quote]
If they were forced to sell, yes, that would drive prices down fast. I think the important point is they are “hunkering down” and are not out there buying. So we see sluggishness, not cataclysm. A market with falling prices but low transaction volume.

[Fearful]

[quote=sdrealtor]Many of the type of folks Stan refers to live in my area. Most have lived here pre bubble. Their billable hours will be done, their commissions will be done, their stock portfolios will be down, their bonuses will be down. They will be hunkering down and not looking to move but rather to maintain the status quo. My hypothesis is that the vast majority will have no problem doing so.[/quote]
If they were forced to sell, yes, that would drive prices down fast. I think the important point is they are “hunkering down” and are not out there buying. So we see sluggishness, not cataclysm. A market with falling prices but low transaction volume.

[Fearful]

[quote=sdrealtor]Many of the type of folks Stan refers to live in my area. Most have lived here pre bubble. Their billable hours will be done, their commissions will be done, their stock portfolios will be down, their bonuses will be down. They will be hunkering down and not looking to move but rather to maintain the status quo. My hypothesis is that the vast majority will have no problem doing so.[/quote]
If they were forced to sell, yes, that would drive prices down fast. I think the important point is they are “hunkering down” and are not out there buying. So we see sluggishness, not cataclysm. A market with falling prices but low transaction volume.

[Fearful]

[quote=sdrealtor]Many of the type of folks Stan refers to live in my area. Most have lived here pre bubble. Their billable hours will be done, their commissions will be done, their stock portfolios will be down, their bonuses will be down. They will be hunkering down and not looking to move but rather to maintain the status quo. My hypothesis is that the vast majority will have no problem doing so.[/quote]
If they were forced to sell, yes, that would drive prices down fast. I think the important point is they are “hunkering down” and are not out there buying. So we see sluggishness, not cataclysm. A market with falling prices but low transaction volume.

[fun4vnay2]

I think it does not matter if you have money to buy house.

I have money to buy but hell I won’t buy in this climate

[fun4vnay2]

I think it does not matter if you have money to buy house.

I have money to buy but hell I won’t buy in this climate

[fun4vnay2]

I think it does not matter if you have money to buy house.

I have money to buy but hell I won’t buy in this climate

[fun4vnay2]

I think it does not matter if you have money to buy house.

I have money to buy but hell I won’t buy in this climate

[Author]

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