UT: County housing market strengthening

[UCGal]

I’ve seen some properties that fit CARs description. But in my hood – University City…

This one comes to mind:
http://www.sdlookup.com/MLS-100003395-4327_Benhurst_San_Diego_CA_92122

They’re on their 4th MLS# in a year, resetting the DOM. Their price reductions have been small. The property has some issues – the big one is that it backs up to Governor drive.

They paid $420k in 2000 – but have probably pulled a lot of cash out. They originally listed for close to $1M. It was too high back then – and they haven’t dropped much.

It doesn’t help that 4346 Benhurst, across the street, is scheduled for trustee sale next month. That will provide another uncomfortable comp for them.

[jpinpb]

[quote=Rich Toscano]I don’t think the relationship between rates going up and prices going down is so cut and dried. Look back at the early 80s – mortgage rates went well into the teens and home prices did not drop. Market activity shrieked to a halt, or so I’m told, but prices did not actually go down.

Generally speaking, there has been very little historical correlation between rates and housing expensiveness.

That said, a sufficiently violent rise in rates could certainly take down housing prices (especially given all the other factors in play). But I just don’t think it’s the done deal that a lot of people think (ie, “It’s ok if rates rise because prices will go down”).

Rich[/quote]

One thing that makes me think about this is that back in the day there may not have been a correlation between rates and housing prices, as you say, but was it a credit bubble that caused prices to rise?

[jpinpb]

[quote=Rich Toscano]I don’t think the relationship between rates going up and prices going down is so cut and dried. Look back at the early 80s – mortgage rates went well into the teens and home prices did not drop. Market activity shrieked to a halt, or so I’m told, but prices did not actually go down.

Generally speaking, there has been very little historical correlation between rates and housing expensiveness.

That said, a sufficiently violent rise in rates could certainly take down housing prices (especially given all the other factors in play). But I just don’t think it’s the done deal that a lot of people think (ie, “It’s ok if rates rise because prices will go down”).

Rich[/quote]

One thing that makes me think about this is that back in the day there may not have been a correlation between rates and housing prices, as you say, but was it a credit bubble that caused prices to rise?

[jpinpb]

[quote=Rich Toscano]I don’t think the relationship between rates going up and prices going down is so cut and dried. Look back at the early 80s – mortgage rates went well into the teens and home prices did not drop. Market activity shrieked to a halt, or so I’m told, but prices did not actually go down.

Generally speaking, there has been very little historical correlation between rates and housing expensiveness.

That said, a sufficiently violent rise in rates could certainly take down housing prices (especially given all the other factors in play). But I just don’t think it’s the done deal that a lot of people think (ie, “It’s ok if rates rise because prices will go down”).

Rich[/quote]

One thing that makes me think about this is that back in the day there may not have been a correlation between rates and housing prices, as you say, but was it a credit bubble that caused prices to rise?

[jpinpb]

[quote=Rich Toscano]I don’t think the relationship between rates going up and prices going down is so cut and dried. Look back at the early 80s – mortgage rates went well into the teens and home prices did not drop. Market activity shrieked to a halt, or so I’m told, but prices did not actually go down.

Generally speaking, there has been very little historical correlation between rates and housing expensiveness.

That said, a sufficiently violent rise in rates could certainly take down housing prices (especially given all the other factors in play). But I just don’t think it’s the done deal that a lot of people think (ie, “It’s ok if rates rise because prices will go down”).

Rich[/quote]

One thing that makes me think about this is that back in the day there may not have been a correlation between rates and housing prices, as you say, but was it a credit bubble that caused prices to rise?

[jpinpb]

[quote=Rich Toscano]I don’t think the relationship between rates going up and prices going down is so cut and dried. Look back at the early 80s – mortgage rates went well into the teens and home prices did not drop. Market activity shrieked to a halt, or so I’m told, but prices did not actually go down.

Generally speaking, there has been very little historical correlation between rates and housing expensiveness.

That said, a sufficiently violent rise in rates could certainly take down housing prices (especially given all the other factors in play). But I just don’t think it’s the done deal that a lot of people think (ie, “It’s ok if rates rise because prices will go down”).

Rich[/quote]

One thing that makes me think about this is that back in the day there may not have been a correlation between rates and housing prices, as you say, but was it a credit bubble that caused prices to rise?

[Rich Toscano]

Yes, but I believe was primarily due to lower lending standards as opposed to lower 30-yr mortgage rates. (When borrowers got low teaser rates, I am counting that as low lending standards, because that was a result of a really easy loan not of low market rates).

Rich

[Rich Toscano]

Yes, but I believe was primarily due to lower lending standards as opposed to lower 30-yr mortgage rates. (When borrowers got low teaser rates, I am counting that as low lending standards, because that was a result of a really easy loan not of low market rates).

Rich

[Rich Toscano]

Yes, but I believe was primarily due to lower lending standards as opposed to lower 30-yr mortgage rates. (When borrowers got low teaser rates, I am counting that as low lending standards, because that was a result of a really easy loan not of low market rates).

Rich

[Rich Toscano]

Yes, but I believe was primarily due to lower lending standards as opposed to lower 30-yr mortgage rates. (When borrowers got low teaser rates, I am counting that as low lending standards, because that was a result of a really easy loan not of low market rates).

Rich

[Rich Toscano]

Yes, but I believe was primarily due to lower lending standards as opposed to lower 30-yr mortgage rates. (When borrowers got low teaser rates, I am counting that as low lending standards, because that was a result of a really easy loan not of low market rates).

Rich

[an]

jpinpb, I bet we’d still have a bubble if rate stay high but and have subprime, negam, etc. loan programs.

[an]

jpinpb, I bet we’d still have a bubble if rate stay high but and have subprime, negam, etc. loan programs.

[an]

jpinpb, I bet we’d still have a bubble if rate stay high but and have subprime, negam, etc. loan programs.

[an]

jpinpb, I bet we’d still have a bubble if rate stay high but and have subprime, negam, etc. loan programs.

[Author]

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