We are richer when house prices go down

[felix]

How do you benefit or become richer from renting instead of owning unless rents are also coming down or unless you get the home you want at a price you can afford? Unfortunately if you wait too long to buy you not only won’t get the home you want but may get none at all.

The only ones directly losing money when home prices go down are those who are over extended and either have to sell or can no longer live off the equity in their depreciating home. The drop in the price of a neighbors foreclosed home doesn’t directly affect me unless I have to sell or I need the cash I can take from my equity.

As a long time stock trader I am used to watching markets. I know as markets near bottoms less and less trade occurs at the lowest prices. As the benefits(raising cash)of selling diminish only those who have to sell will sell. So as we near a housing bottom fewer and fewer homes will be available for the biggest reductions. That’s great if it’s the one you want and you get it.

If you are a renter waiting to buy and you miss out on the one you wanted or get no home at all what benefit did you get from the “sell off”?

I feel I have been able to get a great price on a 2nd home recently. It was the one I wanted in the neighborhood I wanted.

I was surprised to able to rent it for more than I could get by putting my money in other fixed income instruments. I was expecting only $3400/mo but got $3800/mo.. I’m sure others will be able to do the same as more and more people are being forced into the rental market.

Remember down turns don’t last forever and that you don’t need to get the bottom tick to get a great deal.

An old market adage says, only thing worse than buying (or selling) too early is trying to buy (or sell)too late.

[JWM in SD]

JWM in SD

Methinks someone (Felix) has not seen the Credit Suisse Reset Chart.

ROTFLMAO………..

[JWM in SD]

JWM in SD

Methinks someone (Felix) has not seen the Credit Suisse Reset Chart.

ROTFLMAO………..

[JWM in SD]

JWM in SD

Methinks someone (Felix) has not seen the Credit Suisse Reset Chart.

ROTFLMAO………..

[JWM in SD]

JWM in SD

Methinks someone (Felix) has not seen the Credit Suisse Reset Chart.

ROTFLMAO………..

[JWM in SD]

JWM in SD

Methinks someone (Felix) has not seen the Credit Suisse Reset Chart.

ROTFLMAO………..

[Anonymous]

Felix, you said the above to say what exactly?? Are you advocating that people buy now in a rapidly depreciating housing market.

I’m sorry, but I just don’t get your point. Although I didn’t get much sleep last night, so I’m a bit of a bitch this morning.

[Anonymous]

Felix, you said the above to say what exactly?? Are you advocating that people buy now in a rapidly depreciating housing market.

I’m sorry, but I just don’t get your point. Although I didn’t get much sleep last night, so I’m a bit of a bitch this morning.

[Anonymous]

Felix, you said the above to say what exactly?? Are you advocating that people buy now in a rapidly depreciating housing market.

I’m sorry, but I just don’t get your point. Although I didn’t get much sleep last night, so I’m a bit of a bitch this morning.

[Anonymous]

Felix, you said the above to say what exactly?? Are you advocating that people buy now in a rapidly depreciating housing market.

I’m sorry, but I just don’t get your point. Although I didn’t get much sleep last night, so I’m a bit of a bitch this morning.

[Anonymous]

Felix, you said the above to say what exactly?? Are you advocating that people buy now in a rapidly depreciating housing market.

I’m sorry, but I just don’t get your point. Although I didn’t get much sleep last night, so I’m a bit of a bitch this morning.

[GoUSC]

Shiller is very pragmatic and I think he makes a lot of good points. I think the last portion of the article really points out to where we need to go:

“In major cities, we see often the service people can’t live there any more, the firemen, school teachers. This is not the way we want our society. We want affordable housing,” he said.

Shiller said it can’t be all or nothing, and that there has been a big misperception that houses will constantly appreciate.

“Some times people will try to imagine that we can have both high home prices and affordable housing. But I can tell you that doesn’t add up,” he said.

“You either have high home prices or lower home prices and lower home prices are what we want, and people shouldn’t be afraid of that,” said Shiller. “Most of us care about our children and grandchildren, and these people have to buy houses so why would we want high home prices. We want economic growth, we don’t want high home prices.”

San Diego is a prime example of this. When you have a market when someone such as myself making well into the 6 digits can’t afford a middle class home you have a real problem that cannot continue going forward.

[GoUSC]

Shiller is very pragmatic and I think he makes a lot of good points. I think the last portion of the article really points out to where we need to go:

“In major cities, we see often the service people can’t live there any more, the firemen, school teachers. This is not the way we want our society. We want affordable housing,” he said.

Shiller said it can’t be all or nothing, and that there has been a big misperception that houses will constantly appreciate.

“Some times people will try to imagine that we can have both high home prices and affordable housing. But I can tell you that doesn’t add up,” he said.

“You either have high home prices or lower home prices and lower home prices are what we want, and people shouldn’t be afraid of that,” said Shiller. “Most of us care about our children and grandchildren, and these people have to buy houses so why would we want high home prices. We want economic growth, we don’t want high home prices.”

San Diego is a prime example of this. When you have a market when someone such as myself making well into the 6 digits can’t afford a middle class home you have a real problem that cannot continue going forward.

[GoUSC]

Shiller is very pragmatic and I think he makes a lot of good points. I think the last portion of the article really points out to where we need to go:

“In major cities, we see often the service people can’t live there any more, the firemen, school teachers. This is not the way we want our society. We want affordable housing,” he said.

Shiller said it can’t be all or nothing, and that there has been a big misperception that houses will constantly appreciate.

“Some times people will try to imagine that we can have both high home prices and affordable housing. But I can tell you that doesn’t add up,” he said.

“You either have high home prices or lower home prices and lower home prices are what we want, and people shouldn’t be afraid of that,” said Shiller. “Most of us care about our children and grandchildren, and these people have to buy houses so why would we want high home prices. We want economic growth, we don’t want high home prices.”

San Diego is a prime example of this. When you have a market when someone such as myself making well into the 6 digits can’t afford a middle class home you have a real problem that cannot continue going forward.

[GoUSC]

Shiller is very pragmatic and I think he makes a lot of good points. I think the last portion of the article really points out to where we need to go:

“In major cities, we see often the service people can’t live there any more, the firemen, school teachers. This is not the way we want our society. We want affordable housing,” he said.

Shiller said it can’t be all or nothing, and that there has been a big misperception that houses will constantly appreciate.

“Some times people will try to imagine that we can have both high home prices and affordable housing. But I can tell you that doesn’t add up,” he said.

“You either have high home prices or lower home prices and lower home prices are what we want, and people shouldn’t be afraid of that,” said Shiller. “Most of us care about our children and grandchildren, and these people have to buy houses so why would we want high home prices. We want economic growth, we don’t want high home prices.”

San Diego is a prime example of this. When you have a market when someone such as myself making well into the 6 digits can’t afford a middle class home you have a real problem that cannot continue going forward.

[Author]

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