Surge in recent high end activity

[desmond]

[quote=flu][quote=desmond]Do you really think that has anything to do with “the next depression or leg down?” I just saw Richard Branson on CNBC saying it is easier (for a well funded) company to expand in a recession. btw, are they getting discounts on the prices they are paying compared to 2004,5 or 6?[/quote]

Well, big companies have been gobbling up little guys during these times (at least in tech, making for a very interesting competitive almost monopolistic environment in some areas)…But, it sounds like the home buying isn’t institutional, from what sdr is saying, but rather individuals, right sdr?[/quote]

What I was referring to is that a well funded “individual” can also take advantage of today’s RE market. In down times, people, companies, etc.with money are taking advantage of the situation, and this could even show the market is worse than you think.

[davelj]

Here’s an anecdote from downtown. I apologize if this is a semi-threadjack.

I bid on a condo that I really wanted. Top floor of a mid-rise, great view of the bay and downtown, perfect size. Without getting into too many details, the list price was 60% off peak, about 9x current annual rents. I made a cash bid 10% above the list price… and lost. There were 18 other bidders. So, now me and 17 others will continue to look at other places. We’ll all buy (in my case, again – I already own a place that I’ll rent out) eventually.

My point is that at the right price, there’s TONS of demand out there. The problem is – as we all know – that most of the inventory is priced too high. Which is why sales are slowing. At the trough last year houses were reasonably priced in aggregate, particularly considering where rates were (are), and sales were strong. Now they’re too high again. I think if rates remain low, we’ll see increased home sales as prices fall (again).

[davelj]

Here’s an anecdote from downtown. I apologize if this is a semi-threadjack.

I bid on a condo that I really wanted. Top floor of a mid-rise, great view of the bay and downtown, perfect size. Without getting into too many details, the list price was 60% off peak, about 9x current annual rents. I made a cash bid 10% above the list price… and lost. There were 18 other bidders. So, now me and 17 others will continue to look at other places. We’ll all buy (in my case, again – I already own a place that I’ll rent out) eventually.

My point is that at the right price, there’s TONS of demand out there. The problem is – as we all know – that most of the inventory is priced too high. Which is why sales are slowing. At the trough last year houses were reasonably priced in aggregate, particularly considering where rates were (are), and sales were strong. Now they’re too high again. I think if rates remain low, we’ll see increased home sales as prices fall (again).

[davelj]

Here’s an anecdote from downtown. I apologize if this is a semi-threadjack.

I bid on a condo that I really wanted. Top floor of a mid-rise, great view of the bay and downtown, perfect size. Without getting into too many details, the list price was 60% off peak, about 9x current annual rents. I made a cash bid 10% above the list price… and lost. There were 18 other bidders. So, now me and 17 others will continue to look at other places. We’ll all buy (in my case, again – I already own a place that I’ll rent out) eventually.

My point is that at the right price, there’s TONS of demand out there. The problem is – as we all know – that most of the inventory is priced too high. Which is why sales are slowing. At the trough last year houses were reasonably priced in aggregate, particularly considering where rates were (are), and sales were strong. Now they’re too high again. I think if rates remain low, we’ll see increased home sales as prices fall (again).

[davelj]

Here’s an anecdote from downtown. I apologize if this is a semi-threadjack.

I bid on a condo that I really wanted. Top floor of a mid-rise, great view of the bay and downtown, perfect size. Without getting into too many details, the list price was 60% off peak, about 9x current annual rents. I made a cash bid 10% above the list price… and lost. There were 18 other bidders. So, now me and 17 others will continue to look at other places. We’ll all buy (in my case, again – I already own a place that I’ll rent out) eventually.

My point is that at the right price, there’s TONS of demand out there. The problem is – as we all know – that most of the inventory is priced too high. Which is why sales are slowing. At the trough last year houses were reasonably priced in aggregate, particularly considering where rates were (are), and sales were strong. Now they’re too high again. I think if rates remain low, we’ll see increased home sales as prices fall (again).

[davelj]

Here’s an anecdote from downtown. I apologize if this is a semi-threadjack.

I bid on a condo that I really wanted. Top floor of a mid-rise, great view of the bay and downtown, perfect size. Without getting into too many details, the list price was 60% off peak, about 9x current annual rents. I made a cash bid 10% above the list price… and lost. There were 18 other bidders. So, now me and 17 others will continue to look at other places. We’ll all buy (in my case, again – I already own a place that I’ll rent out) eventually.

My point is that at the right price, there’s TONS of demand out there. The problem is – as we all know – that most of the inventory is priced too high. Which is why sales are slowing. At the trough last year houses were reasonably priced in aggregate, particularly considering where rates were (are), and sales were strong. Now they’re too high again. I think if rates remain low, we’ll see increased home sales as prices fall (again).

[desmond]

sdr, This is picky but you are reporting what you are seeing, but with an opinion, “Sorry to fly in the face of all the start of the next depression or leg down”, nothing wrong with that, and nothing wrong with a few rebuttals. “Sorry I cant add to the world cup, new library, electric sports car and battleship deployment threads”……….

[desmond]

sdr, This is picky but you are reporting what you are seeing, but with an opinion, “Sorry to fly in the face of all the start of the next depression or leg down”, nothing wrong with that, and nothing wrong with a few rebuttals. “Sorry I cant add to the world cup, new library, electric sports car and battleship deployment threads”……….

[desmond]

sdr, This is picky but you are reporting what you are seeing, but with an opinion, “Sorry to fly in the face of all the start of the next depression or leg down”, nothing wrong with that, and nothing wrong with a few rebuttals. “Sorry I cant add to the world cup, new library, electric sports car and battleship deployment threads”……….

[desmond]

sdr, This is picky but you are reporting what you are seeing, but with an opinion, “Sorry to fly in the face of all the start of the next depression or leg down”, nothing wrong with that, and nothing wrong with a few rebuttals. “Sorry I cant add to the world cup, new library, electric sports car and battleship deployment threads”……….

[desmond]

sdr, This is picky but you are reporting what you are seeing, but with an opinion, “Sorry to fly in the face of all the start of the next depression or leg down”, nothing wrong with that, and nothing wrong with a few rebuttals. “Sorry I cant add to the world cup, new library, electric sports car and battleship deployment threads”……….

[Nor-LA-SD-guy]

hmmm, Well I still say the middle and below suffer much more during recessions than do the upper middle and above do, mostly they just end up in a better position.

I guess the moral to this story is don’t be a minion.

[Nor-LA-SD-guy]

hmmm, Well I still say the middle and below suffer much more during recessions than do the upper middle and above do, mostly they just end up in a better position.

I guess the moral to this story is don’t be a minion.

[Nor-LA-SD-guy]

hmmm, Well I still say the middle and below suffer much more during recessions than do the upper middle and above do, mostly they just end up in a better position.

I guess the moral to this story is don’t be a minion.

[Nor-LA-SD-guy]

hmmm, Well I still say the middle and below suffer much more during recessions than do the upper middle and above do, mostly they just end up in a better position.

I guess the moral to this story is don’t be a minion.

[Author]

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