Upper MId to Lower High End Market in NCC

[CA renter]

Yes, that’s correct.

We have to consider what that inflation looks like, and which sectors it did or didn’t affect. If inflation comes from credit, there is an equal amount of debt + interest that has to be paid back in the future. If there is literal “money printing” with no debt offset, we have to consider the different areas that money would have gone to because it doesn’t necessarily have to be spent in a proportional way.

Housing is largely affected by credit, and it afford the greatest number of people to leverage the greatest amount of money possible. Because of this, a credit expansion can cause housing prices to rise without a commensurate increase in wages.

Also, inflation may have caused the prices of other basic goods to rise to such an extent that there is less money left over for housing.

If we look at the history of housing prices you’ll see that the some of the greatest price increases happened in the 70s. I think this is largely due to two things: a fairly sudden increase in dual-income households, along with the movement of the Baby Boomers into their peak home buying years.

Still want to continue this, but have to run and pick up the kids. Will be back. 🙂

[bearishgurl]

[quote=CA renter]. . . Housing is largely affected by credit, and it afford the greatest number of people to leverage the greatest amount of money possible. Because of this, a credit expansion can cause housing prices to rise without a commensurate increase in wages. . . [/quote]

CAR, I think we touched on this before somewhere on the boards, but in SOME areas of SD County, the price of housing is NOT so much affected by the availability or price of credit and/or whether or not workers are getting wage increases.

IMHO, many established areas in CA on or <5 mi from the coast, some areas <1.5 mi from a bay, or properties which are situated within covenants or exclusive resort areas do NOT fit into your credit availability/worker-status mold. In these areas, value is determined by exactly how much a buyer is willing to pay, period.

[bearishgurl]

[quote=CA renter]. . . Housing is largely affected by credit, and it afford the greatest number of people to leverage the greatest amount of money possible. Because of this, a credit expansion can cause housing prices to rise without a commensurate increase in wages. . . [/quote]

CAR, I think we touched on this before somewhere on the boards, but in SOME areas of SD County, the price of housing is NOT so much affected by the availability or price of credit and/or whether or not workers are getting wage increases.

IMHO, many established areas in CA on or <5 mi from the coast, some areas <1.5 mi from a bay, or properties which are situated within covenants or exclusive resort areas do NOT fit into your credit availability/worker-status mold. In these areas, value is determined by exactly how much a buyer is willing to pay, period.

[bearishgurl]

[quote=CA renter]. . . Housing is largely affected by credit, and it afford the greatest number of people to leverage the greatest amount of money possible. Because of this, a credit expansion can cause housing prices to rise without a commensurate increase in wages. . . [/quote]

CAR, I think we touched on this before somewhere on the boards, but in SOME areas of SD County, the price of housing is NOT so much affected by the availability or price of credit and/or whether or not workers are getting wage increases.

IMHO, many established areas in CA on or <5 mi from the coast, some areas <1.5 mi from a bay, or properties which are situated within covenants or exclusive resort areas do NOT fit into your credit availability/worker-status mold. In these areas, value is determined by exactly how much a buyer is willing to pay, period.

[bearishgurl]

[quote=CA renter]. . . Housing is largely affected by credit, and it afford the greatest number of people to leverage the greatest amount of money possible. Because of this, a credit expansion can cause housing prices to rise without a commensurate increase in wages. . . [/quote]

CAR, I think we touched on this before somewhere on the boards, but in SOME areas of SD County, the price of housing is NOT so much affected by the availability or price of credit and/or whether or not workers are getting wage increases.

IMHO, many established areas in CA on or <5 mi from the coast, some areas <1.5 mi from a bay, or properties which are situated within covenants or exclusive resort areas do NOT fit into your credit availability/worker-status mold. In these areas, value is determined by exactly how much a buyer is willing to pay, period.

[bearishgurl]

[quote=CA renter]. . . Housing is largely affected by credit, and it afford the greatest number of people to leverage the greatest amount of money possible. Because of this, a credit expansion can cause housing prices to rise without a commensurate increase in wages. . . [/quote]

CAR, I think we touched on this before somewhere on the boards, but in SOME areas of SD County, the price of housing is NOT so much affected by the availability or price of credit and/or whether or not workers are getting wage increases.

IMHO, many established areas in CA on or <5 mi from the coast, some areas <1.5 mi from a bay, or properties which are situated within covenants or exclusive resort areas do NOT fit into your credit availability/worker-status mold. In these areas, value is determined by exactly how much a buyer is willing to pay, period.

[Ren]

[quote=bearishgurl]In these areas, value is determined by exactly how much a buyer is willing to pay, period.[/quote]

I know what you were trying to say, but this sentence is actually true for every square inch of privately held land in the country. Better to say that highly desirable locations are less affected by other economic influences. However, no location, no matter how perfect, is immune to economic pressure from outside the area.

As for value, let’s say a beach property sells for $2m in 2006, then sells again today for $1.5m. The buyer was willing to pay $2m in 2006, and that’s how much it was worth in 2006, but today’s buyer was willing to pay no more than $1.5m. The value can (and will) still change over time, regardless of what people are willing to pay at this moment and regardless of salaries in the area. Much of this change is likely due to outside influences. No one questions that Dr. Feelgood in Del Mar is capable of paying $2m for that house, he just isn’t willing to. In a year, he may not be willing to pay $1.4m.

[Ren]

[quote=bearishgurl]In these areas, value is determined by exactly how much a buyer is willing to pay, period.[/quote]

I know what you were trying to say, but this sentence is actually true for every square inch of privately held land in the country. Better to say that highly desirable locations are less affected by other economic influences. However, no location, no matter how perfect, is immune to economic pressure from outside the area.

As for value, let’s say a beach property sells for $2m in 2006, then sells again today for $1.5m. The buyer was willing to pay $2m in 2006, and that’s how much it was worth in 2006, but today’s buyer was willing to pay no more than $1.5m. The value can (and will) still change over time, regardless of what people are willing to pay at this moment and regardless of salaries in the area. Much of this change is likely due to outside influences. No one questions that Dr. Feelgood in Del Mar is capable of paying $2m for that house, he just isn’t willing to. In a year, he may not be willing to pay $1.4m.

[Ren]

[quote=bearishgurl]In these areas, value is determined by exactly how much a buyer is willing to pay, period.[/quote]

I know what you were trying to say, but this sentence is actually true for every square inch of privately held land in the country. Better to say that highly desirable locations are less affected by other economic influences. However, no location, no matter how perfect, is immune to economic pressure from outside the area.

As for value, let’s say a beach property sells for $2m in 2006, then sells again today for $1.5m. The buyer was willing to pay $2m in 2006, and that’s how much it was worth in 2006, but today’s buyer was willing to pay no more than $1.5m. The value can (and will) still change over time, regardless of what people are willing to pay at this moment and regardless of salaries in the area. Much of this change is likely due to outside influences. No one questions that Dr. Feelgood in Del Mar is capable of paying $2m for that house, he just isn’t willing to. In a year, he may not be willing to pay $1.4m.

[Ren]

[quote=bearishgurl]In these areas, value is determined by exactly how much a buyer is willing to pay, period.[/quote]

I know what you were trying to say, but this sentence is actually true for every square inch of privately held land in the country. Better to say that highly desirable locations are less affected by other economic influences. However, no location, no matter how perfect, is immune to economic pressure from outside the area.

As for value, let’s say a beach property sells for $2m in 2006, then sells again today for $1.5m. The buyer was willing to pay $2m in 2006, and that’s how much it was worth in 2006, but today’s buyer was willing to pay no more than $1.5m. The value can (and will) still change over time, regardless of what people are willing to pay at this moment and regardless of salaries in the area. Much of this change is likely due to outside influences. No one questions that Dr. Feelgood in Del Mar is capable of paying $2m for that house, he just isn’t willing to. In a year, he may not be willing to pay $1.4m.

[Ren]

[quote=bearishgurl]In these areas, value is determined by exactly how much a buyer is willing to pay, period.[/quote]

I know what you were trying to say, but this sentence is actually true for every square inch of privately held land in the country. Better to say that highly desirable locations are less affected by other economic influences. However, no location, no matter how perfect, is immune to economic pressure from outside the area.

As for value, let’s say a beach property sells for $2m in 2006, then sells again today for $1.5m. The buyer was willing to pay $2m in 2006, and that’s how much it was worth in 2006, but today’s buyer was willing to pay no more than $1.5m. The value can (and will) still change over time, regardless of what people are willing to pay at this moment and regardless of salaries in the area. Much of this change is likely due to outside influences. No one questions that Dr. Feelgood in Del Mar is capable of paying $2m for that house, he just isn’t willing to. In a year, he may not be willing to pay $1.4m.

[sdrealtor]

I’ll add that nominal incomes have increased pretty dramatically which we have shown on this thread. if nominal incomes were unchanged or minimally changed you might have a case but we seen very substantial increases across the board.

[sdrealtor]

I’ll add that nominal incomes have increased pretty dramatically which we have shown on this thread. if nominal incomes were unchanged or minimally changed you might have a case but we seen very substantial increases across the board.

[sdrealtor]

I’ll add that nominal incomes have increased pretty dramatically which we have shown on this thread. if nominal incomes were unchanged or minimally changed you might have a case but we seen very substantial increases across the board.

[sdrealtor]

I’ll add that nominal incomes have increased pretty dramatically which we have shown on this thread. if nominal incomes were unchanged or minimally changed you might have a case but we seen very substantial increases across the board.

[Author]

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