We are richer when house prices go down

[sdrealtor]

While felix’s point is full of holes there is some truth in it. Finding the house you want is NOT easy. I have 2 clients right now that are big time bear/bubble sitters sitting on wads of cash. They are both expect to spend between $1M to 1.5M.

We have been looking at homes up to about $2.25M. We have been looking at homes for over a year (each has seen over 100 homes), not to buy one but to educate them as to what they want when they are ready to go. Neither has seen a home yet where they’ve come clost to saying, if this home was $X I would buy it today.

[OC Burns]

Why do people have have such visceral negative reactions to dropping house values?

Because they already own a home? Even if they have good cash flow, nobody likes to see their largest asset fall off a cliff.

What if they can afford to buy more home, and they can afford to stay and keep paying their current loan, but they cannot afford to sell because they’d have to realize a loss?

We bought in 2003 with 20% down and I can easily see this becoming the case in our situation.

[OC Burns]

Why do people have have such visceral negative reactions to dropping house values?

Because they already own a home? Even if they have good cash flow, nobody likes to see their largest asset fall off a cliff.

What if they can afford to buy more home, and they can afford to stay and keep paying their current loan, but they cannot afford to sell because they’d have to realize a loss?

We bought in 2003 with 20% down and I can easily see this becoming the case in our situation.

[OC Burns]

Why do people have have such visceral negative reactions to dropping house values?

Because they already own a home? Even if they have good cash flow, nobody likes to see their largest asset fall off a cliff.

What if they can afford to buy more home, and they can afford to stay and keep paying their current loan, but they cannot afford to sell because they’d have to realize a loss?

We bought in 2003 with 20% down and I can easily see this becoming the case in our situation.

[OC Burns]

Why do people have have such visceral negative reactions to dropping house values?

Because they already own a home? Even if they have good cash flow, nobody likes to see their largest asset fall off a cliff.

What if they can afford to buy more home, and they can afford to stay and keep paying their current loan, but they cannot afford to sell because they’d have to realize a loss?

We bought in 2003 with 20% down and I can easily see this becoming the case in our situation.

[OC Burns]

Why do people have have such visceral negative reactions to dropping house values?

Because they already own a home? Even if they have good cash flow, nobody likes to see their largest asset fall off a cliff.

What if they can afford to buy more home, and they can afford to stay and keep paying their current loan, but they cannot afford to sell because they’d have to realize a loss?

We bought in 2003 with 20% down and I can easily see this becoming the case in our situation.

[felix]

TG, you seem to have some issues with my opinion. I didn’t intend to insult you by referring to you as a renter. And I certainly didn’t mean get you riled up over my opinion. I was just adding my opinion as an outsider looking at the San Diego RE market.

I only recently stumbled upon this blog after I purchased in the San Diego market. I found this blog to have a lot of local insight which I appreciated.

However, after reading much of what was written here, I thought I’d add what I as an outsider with cash sees as a great opportunity.

Clearly, you don’t like what I have to say or you think it’s ridiculous. That is fine.

Anyway, I hope you do get the home you want at the price you want.

[felix]

TG, you seem to have some issues with my opinion. I didn’t intend to insult you by referring to you as a renter. And I certainly didn’t mean get you riled up over my opinion. I was just adding my opinion as an outsider looking at the San Diego RE market.

I only recently stumbled upon this blog after I purchased in the San Diego market. I found this blog to have a lot of local insight which I appreciated.

However, after reading much of what was written here, I thought I’d add what I as an outsider with cash sees as a great opportunity.

Clearly, you don’t like what I have to say or you think it’s ridiculous. That is fine.

Anyway, I hope you do get the home you want at the price you want.

[felix]

TG, you seem to have some issues with my opinion. I didn’t intend to insult you by referring to you as a renter. And I certainly didn’t mean get you riled up over my opinion. I was just adding my opinion as an outsider looking at the San Diego RE market.

I only recently stumbled upon this blog after I purchased in the San Diego market. I found this blog to have a lot of local insight which I appreciated.

However, after reading much of what was written here, I thought I’d add what I as an outsider with cash sees as a great opportunity.

Clearly, you don’t like what I have to say or you think it’s ridiculous. That is fine.

Anyway, I hope you do get the home you want at the price you want.

[felix]

TG, you seem to have some issues with my opinion. I didn’t intend to insult you by referring to you as a renter. And I certainly didn’t mean get you riled up over my opinion. I was just adding my opinion as an outsider looking at the San Diego RE market.

I only recently stumbled upon this blog after I purchased in the San Diego market. I found this blog to have a lot of local insight which I appreciated.

However, after reading much of what was written here, I thought I’d add what I as an outsider with cash sees as a great opportunity.

Clearly, you don’t like what I have to say or you think it’s ridiculous. That is fine.

Anyway, I hope you do get the home you want at the price you want.

[felix]

TG, you seem to have some issues with my opinion. I didn’t intend to insult you by referring to you as a renter. And I certainly didn’t mean get you riled up over my opinion. I was just adding my opinion as an outsider looking at the San Diego RE market.

I only recently stumbled upon this blog after I purchased in the San Diego market. I found this blog to have a lot of local insight which I appreciated.

However, after reading much of what was written here, I thought I’d add what I as an outsider with cash sees as a great opportunity.

Clearly, you don’t like what I have to say or you think it’s ridiculous. That is fine.

Anyway, I hope you do get the home you want at the price you want.

[drunkle]

felix, could you start a new thread and post up some investment opportunities that you think are worthwhile?

as well, maybe even post ownership opportunities. never know, someone might find their dream home that way.

[drunkle]

felix, could you start a new thread and post up some investment opportunities that you think are worthwhile?

as well, maybe even post ownership opportunities. never know, someone might find their dream home that way.

[drunkle]

felix, could you start a new thread and post up some investment opportunities that you think are worthwhile?

as well, maybe even post ownership opportunities. never know, someone might find their dream home that way.

[drunkle]

felix, could you start a new thread and post up some investment opportunities that you think are worthwhile?

as well, maybe even post ownership opportunities. never know, someone might find their dream home that way.

[Author]

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