I’ll say it again…the sales are UP rather dramatically in the lower-end areas. It’s rather stunning, actually.
While following a random sample of listings, there is a definite pattern. Homes priced in the $100K range (look in 92057) are **flying of the market**, and according to Jim Klinge’s site, a number of them are being bought by investors.
As of this moment, you could probably break even or get a slightly positive cash flow on most of these as rentals. However, what happens when all these new houses come onto the rental market? What will likely happen to rents in those areas, especially if the job market continues to deteriorate? Then, the fundamentals don’t work again, and the prices continue to fall.
Also, remember that all these low-priced sales serve as comps. We need somebody to set the downward-moving market prices for these houses. Might as well be somebody other than us! 😉
There is also alot of bubble mentality still flying around too. A “dont miss out, get rich now” mentality. A friend who couldnt save a dime if they glued it to his forehead told me this past weekend that if I dont buy a house within the year I am an idiot and gonna miss out.
My response was (literally) “miss out on what? a chance to flush my money away?” ( I was drinking and didnt feel like going over high school econ again)
-I have a hunch based on nothing (cept talking to people) that alot of the purchases we see in the lower areas are people who are banking on this being a short term thing and a “J” shaped recovery. The idea that houseing can go down for years just doesnt regester with them.
There is also alot of bubble mentality still flying around too. A “dont miss out, get rich now” mentality. A friend who couldnt save a dime if they glued it to his forehead told me this past weekend that if I dont buy a house within the year I am an idiot and gonna miss out.
My response was (literally) “miss out on what? a chance to flush my money away?” ( I was drinking and didnt feel like going over high school econ again)
-I have a hunch based on nothing (cept talking to people) that alot of the purchases we see in the lower areas are people who are banking on this being a short term thing and a “J” shaped recovery. The idea that houseing can go down for years just doesnt regester with them.
There is also alot of bubble mentality still flying around too. A “dont miss out, get rich now” mentality. A friend who couldnt save a dime if they glued it to his forehead told me this past weekend that if I dont buy a house within the year I am an idiot and gonna miss out.
My response was (literally) “miss out on what? a chance to flush my money away?” ( I was drinking and didnt feel like going over high school econ again)
-I have a hunch based on nothing (cept talking to people) that alot of the purchases we see in the lower areas are people who are banking on this being a short term thing and a “J” shaped recovery. The idea that houseing can go down for years just doesnt regester with them.
There is also alot of bubble mentality still flying around too. A “dont miss out, get rich now” mentality. A friend who couldnt save a dime if they glued it to his forehead told me this past weekend that if I dont buy a house within the year I am an idiot and gonna miss out.
My response was (literally) “miss out on what? a chance to flush my money away?” ( I was drinking and didnt feel like going over high school econ again)
-I have a hunch based on nothing (cept talking to people) that alot of the purchases we see in the lower areas are people who are banking on this being a short term thing and a “J” shaped recovery. The idea that houseing can go down for years just doesnt regester with them.
