Upper MId to Lower High End Market in NCC

[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.

[bearishgurl]

[quote=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.[/quote]

Agree Ren, I never said that those properties situated in areas I mentioned were immume to a downturn in value, only that a buyer will pay what he/she thinks their worth at the time of purchase. If “Dr. Feelgood” thinks a $1.5M property is now only worth $1.4M, it is because that’s all Ms. Starlet, Mr. CEO (ret), and Mr. Nobel Prize were recently willing to pay in that area. These values have little to NOTHING to do with local worker-bee wages and current mortgage interest rates.

[bearishgurl]

[quote=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.[/quote]

Agree Ren, I never said that those properties situated in areas I mentioned were immume to a downturn in value, only that a buyer will pay what he/she thinks their worth at the time of purchase. If “Dr. Feelgood” thinks a $1.5M property is now only worth $1.4M, it is because that’s all Ms. Starlet, Mr. CEO (ret), and Mr. Nobel Prize were recently willing to pay in that area. These values have little to NOTHING to do with local worker-bee wages and current mortgage interest rates.

[bearishgurl]

[quote=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.[/quote]

Agree Ren, I never said that those properties situated in areas I mentioned were immume to a downturn in value, only that a buyer will pay what he/she thinks their worth at the time of purchase. If “Dr. Feelgood” thinks a $1.5M property is now only worth $1.4M, it is because that’s all Ms. Starlet, Mr. CEO (ret), and Mr. Nobel Prize were recently willing to pay in that area. These values have little to NOTHING to do with local worker-bee wages and current mortgage interest rates.

[bearishgurl]

[quote=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.[/quote]

Agree Ren, I never said that those properties situated in areas I mentioned were immume to a downturn in value, only that a buyer will pay what he/she thinks their worth at the time of purchase. If “Dr. Feelgood” thinks a $1.5M property is now only worth $1.4M, it is because that’s all Ms. Starlet, Mr. CEO (ret), and Mr. Nobel Prize were recently willing to pay in that area. These values have little to NOTHING to do with local worker-bee wages and current mortgage interest rates.

[bearishgurl]

[quote=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.[/quote]

Agree Ren, I never said that those properties situated in areas I mentioned were immume to a downturn in value, only that a buyer will pay what he/she thinks their worth at the time of purchase. If “Dr. Feelgood” thinks a $1.5M property is now only worth $1.4M, it is because that’s all Ms. Starlet, Mr. CEO (ret), and Mr. Nobel Prize were recently willing to pay in that area. These values have little to NOTHING to do with local worker-bee wages and current mortgage interest rates.

[Ren]

[quote=bearishgurl]If “Dr. Feelgood” thinks a $1.5M property is now only worth $1.4M, it is because that’s all Ms. Starlet, Mr. CEO (ret), and Mr. Nobel Prize were recently willing to pay in that area. These values have little to NOTHING to do with local worker-bee wages and current mortgage interest rates.[/quote]

But they do, at least indirectly. When millions of worker bees pay 40% less (or whatever) for housing farther inland (due to years of mass unemployment, foreclsoures, etc), those price drops put some downward pressure on coastal properties. That’s what I meant by outside influence. I’m sure it’s countered somewhat by the local salary increases sdr mentioned, but how much is anyone’s guess.

[Ren]

[quote=bearishgurl]If “Dr. Feelgood” thinks a $1.5M property is now only worth $1.4M, it is because that’s all Ms. Starlet, Mr. CEO (ret), and Mr. Nobel Prize were recently willing to pay in that area. These values have little to NOTHING to do with local worker-bee wages and current mortgage interest rates.[/quote]

But they do, at least indirectly. When millions of worker bees pay 40% less (or whatever) for housing farther inland (due to years of mass unemployment, foreclsoures, etc), those price drops put some downward pressure on coastal properties. That’s what I meant by outside influence. I’m sure it’s countered somewhat by the local salary increases sdr mentioned, but how much is anyone’s guess.

[Ren]

[quote=bearishgurl]If “Dr. Feelgood” thinks a $1.5M property is now only worth $1.4M, it is because that’s all Ms. Starlet, Mr. CEO (ret), and Mr. Nobel Prize were recently willing to pay in that area. These values have little to NOTHING to do with local worker-bee wages and current mortgage interest rates.[/quote]

But they do, at least indirectly. When millions of worker bees pay 40% less (or whatever) for housing farther inland (due to years of mass unemployment, foreclsoures, etc), those price drops put some downward pressure on coastal properties. That’s what I meant by outside influence. I’m sure it’s countered somewhat by the local salary increases sdr mentioned, but how much is anyone’s guess.

[Ren]

[quote=bearishgurl]If “Dr. Feelgood” thinks a $1.5M property is now only worth $1.4M, it is because that’s all Ms. Starlet, Mr. CEO (ret), and Mr. Nobel Prize were recently willing to pay in that area. These values have little to NOTHING to do with local worker-bee wages and current mortgage interest rates.[/quote]

But they do, at least indirectly. When millions of worker bees pay 40% less (or whatever) for housing farther inland (due to years of mass unemployment, foreclsoures, etc), those price drops put some downward pressure on coastal properties. That’s what I meant by outside influence. I’m sure it’s countered somewhat by the local salary increases sdr mentioned, but how much is anyone’s guess.

[Ren]

[quote=bearishgurl]If “Dr. Feelgood” thinks a $1.5M property is now only worth $1.4M, it is because that’s all Ms. Starlet, Mr. CEO (ret), and Mr. Nobel Prize were recently willing to pay in that area. These values have little to NOTHING to do with local worker-bee wages and current mortgage interest rates.[/quote]

But they do, at least indirectly. When millions of worker bees pay 40% less (or whatever) for housing farther inland (due to years of mass unemployment, foreclsoures, etc), those price drops put some downward pressure on coastal properties. That’s what I meant by outside influence. I’m sure it’s countered somewhat by the local salary increases sdr mentioned, but how much is anyone’s guess.

[CA renter]

[quote=Ren][quote=bearishgurl]If “Dr. Feelgood” thinks a $1.5M property is now only worth $1.4M, it is because that’s all Ms. Starlet, Mr. CEO (ret), and Mr. Nobel Prize were recently willing to pay in that area. These values have little to NOTHING to do with local worker-bee wages and current mortgage interest rates.[/quote]

But they do, at least indirectly. When millions of worker bees pay 40% less (or whatever) for housing farther inland (due to years of mass unemployment, foreclsoures, etc), those price drops put some downward pressure on coastal properties. That’s what I meant by outside influence. I’m sure it’s countered somewhat by the local salary increases sdr mentioned, but how much is anyone’s guess.[/quote]

Exactly, Ren.

Also, remember that credit expansions affect wealth in other ways, too. The price of stocks, bonds, commodities, etc. will go up (and business profits will likely go up as more customers have access to greater amounts of credit) as credit expands, so a wealthy person’s “wealth” will increase and enable them to pay more for a house as they can liquidate some of their other holdings and use that money to buy a house with cash.

[CA renter]

[quote=Ren][quote=bearishgurl]If “Dr. Feelgood” thinks a $1.5M property is now only worth $1.4M, it is because that’s all Ms. Starlet, Mr. CEO (ret), and Mr. Nobel Prize were recently willing to pay in that area. These values have little to NOTHING to do with local worker-bee wages and current mortgage interest rates.[/quote]

But they do, at least indirectly. When millions of worker bees pay 40% less (or whatever) for housing farther inland (due to years of mass unemployment, foreclsoures, etc), those price drops put some downward pressure on coastal properties. That’s what I meant by outside influence. I’m sure it’s countered somewhat by the local salary increases sdr mentioned, but how much is anyone’s guess.[/quote]

Exactly, Ren.

Also, remember that credit expansions affect wealth in other ways, too. The price of stocks, bonds, commodities, etc. will go up (and business profits will likely go up as more customers have access to greater amounts of credit) as credit expands, so a wealthy person’s “wealth” will increase and enable them to pay more for a house as they can liquidate some of their other holdings and use that money to buy a house with cash.

[CA renter]

[quote=Ren][quote=bearishgurl]If “Dr. Feelgood” thinks a $1.5M property is now only worth $1.4M, it is because that’s all Ms. Starlet, Mr. CEO (ret), and Mr. Nobel Prize were recently willing to pay in that area. These values have little to NOTHING to do with local worker-bee wages and current mortgage interest rates.[/quote]

But they do, at least indirectly. When millions of worker bees pay 40% less (or whatever) for housing farther inland (due to years of mass unemployment, foreclsoures, etc), those price drops put some downward pressure on coastal properties. That’s what I meant by outside influence. I’m sure it’s countered somewhat by the local salary increases sdr mentioned, but how much is anyone’s guess.[/quote]

Exactly, Ren.

Also, remember that credit expansions affect wealth in other ways, too. The price of stocks, bonds, commodities, etc. will go up (and business profits will likely go up as more customers have access to greater amounts of credit) as credit expands, so a wealthy person’s “wealth” will increase and enable them to pay more for a house as they can liquidate some of their other holdings and use that money to buy a house with cash.

[CA renter]

[quote=Ren][quote=bearishgurl]If “Dr. Feelgood” thinks a $1.5M property is now only worth $1.4M, it is because that’s all Ms. Starlet, Mr. CEO (ret), and Mr. Nobel Prize were recently willing to pay in that area. These values have little to NOTHING to do with local worker-bee wages and current mortgage interest rates.[/quote]

But they do, at least indirectly. When millions of worker bees pay 40% less (or whatever) for housing farther inland (due to years of mass unemployment, foreclsoures, etc), those price drops put some downward pressure on coastal properties. That’s what I meant by outside influence. I’m sure it’s countered somewhat by the local salary increases sdr mentioned, but how much is anyone’s guess.[/quote]

Exactly, Ren.

Also, remember that credit expansions affect wealth in other ways, too. The price of stocks, bonds, commodities, etc. will go up (and business profits will likely go up as more customers have access to greater amounts of credit) as credit expands, so a wealthy person’s “wealth” will increase and enable them to pay more for a house as they can liquidate some of their other holdings and use that money to buy a house with cash.

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