Who are the buyers in this market and economy?

[davelj]

[quote=nostradamus]No, you should wait until the cost of owning is equal to or less than the cost of renting. So rents have to rise or home prices have to fall.

I bought in 1998.[/quote]

I bet most properties selling for less than $400K these days are cheaper to buy than to rent today in SD assuming you can get sub-5.25% financing. And the $400K-$600K range is getting closer every month. Above $600K, it’s not close… yet. And above $1 million, it’s art; the prices have always been disconnected from rent.

[jpinpb]

I’m still renting for less than I can buy. Places in my complex are in the 350k to 400k range.

[jpinpb]

I’m still renting for less than I can buy. Places in my complex are in the 350k to 400k range.

[jpinpb]

I’m still renting for less than I can buy. Places in my complex are in the 350k to 400k range.

[jpinpb]

I’m still renting for less than I can buy. Places in my complex are in the 350k to 400k range.

[jpinpb]

I’m still renting for less than I can buy. Places in my complex are in the 350k to 400k range.

[Anonymous]

Me. I just sold my townhouse and upgraded.

My job is extremely stable and I needed more space for my growing family. It literally would take an act of congress for me to lose my job. Prices have dropped to a point where we can afford to live in neighborhoods we like. The PITI on the place we purchased is only a few hundred more a month than our current place when you include the HOA.

Am I worried prices may drop the next year or two? Sure, but I plan on holding on to this house for at least 10 years and now my kids have a yard.

I’m also worried about inflation. Rents won’t always stay where they are if inflation gets out of control. As stated already, data indicates current local rents are not inflated. There may be a rent correction when unemployment gets worse but I haven’t seen it yet. If I was a renter, I’d start to get concerned about the Fed printing money and what’s going on in the bond market. Interest rates can’t stay this low forever.

There also seems to be a belief that home prices will drop when interest rates rise. Does anyone have historical data suggesting this is true? I couldn’t find anything so I think its a myth. It didn’t happen during real estate cycles in the 70’s, 80’s or 90’s. There were small fluctuations but nothing like some have predicted (10-20% drops with 8-10% mortgage rates).

[Anonymous]

Me. I just sold my townhouse and upgraded.

My job is extremely stable and I needed more space for my growing family. It literally would take an act of congress for me to lose my job. Prices have dropped to a point where we can afford to live in neighborhoods we like. The PITI on the place we purchased is only a few hundred more a month than our current place when you include the HOA.

Am I worried prices may drop the next year or two? Sure, but I plan on holding on to this house for at least 10 years and now my kids have a yard.

I’m also worried about inflation. Rents won’t always stay where they are if inflation gets out of control. As stated already, data indicates current local rents are not inflated. There may be a rent correction when unemployment gets worse but I haven’t seen it yet. If I was a renter, I’d start to get concerned about the Fed printing money and what’s going on in the bond market. Interest rates can’t stay this low forever.

There also seems to be a belief that home prices will drop when interest rates rise. Does anyone have historical data suggesting this is true? I couldn’t find anything so I think its a myth. It didn’t happen during real estate cycles in the 70’s, 80’s or 90’s. There were small fluctuations but nothing like some have predicted (10-20% drops with 8-10% mortgage rates).

[Anonymous]

Me. I just sold my townhouse and upgraded.

My job is extremely stable and I needed more space for my growing family. It literally would take an act of congress for me to lose my job. Prices have dropped to a point where we can afford to live in neighborhoods we like. The PITI on the place we purchased is only a few hundred more a month than our current place when you include the HOA.

Am I worried prices may drop the next year or two? Sure, but I plan on holding on to this house for at least 10 years and now my kids have a yard.

I’m also worried about inflation. Rents won’t always stay where they are if inflation gets out of control. As stated already, data indicates current local rents are not inflated. There may be a rent correction when unemployment gets worse but I haven’t seen it yet. If I was a renter, I’d start to get concerned about the Fed printing money and what’s going on in the bond market. Interest rates can’t stay this low forever.

There also seems to be a belief that home prices will drop when interest rates rise. Does anyone have historical data suggesting this is true? I couldn’t find anything so I think its a myth. It didn’t happen during real estate cycles in the 70’s, 80’s or 90’s. There were small fluctuations but nothing like some have predicted (10-20% drops with 8-10% mortgage rates).

[Anonymous]

Me. I just sold my townhouse and upgraded.

My job is extremely stable and I needed more space for my growing family. It literally would take an act of congress for me to lose my job. Prices have dropped to a point where we can afford to live in neighborhoods we like. The PITI on the place we purchased is only a few hundred more a month than our current place when you include the HOA.

Am I worried prices may drop the next year or two? Sure, but I plan on holding on to this house for at least 10 years and now my kids have a yard.

I’m also worried about inflation. Rents won’t always stay where they are if inflation gets out of control. As stated already, data indicates current local rents are not inflated. There may be a rent correction when unemployment gets worse but I haven’t seen it yet. If I was a renter, I’d start to get concerned about the Fed printing money and what’s going on in the bond market. Interest rates can’t stay this low forever.

There also seems to be a belief that home prices will drop when interest rates rise. Does anyone have historical data suggesting this is true? I couldn’t find anything so I think its a myth. It didn’t happen during real estate cycles in the 70’s, 80’s or 90’s. There were small fluctuations but nothing like some have predicted (10-20% drops with 8-10% mortgage rates).

[Anonymous]

Me. I just sold my townhouse and upgraded.

My job is extremely stable and I needed more space for my growing family. It literally would take an act of congress for me to lose my job. Prices have dropped to a point where we can afford to live in neighborhoods we like. The PITI on the place we purchased is only a few hundred more a month than our current place when you include the HOA.

Am I worried prices may drop the next year or two? Sure, but I plan on holding on to this house for at least 10 years and now my kids have a yard.

I’m also worried about inflation. Rents won’t always stay where they are if inflation gets out of control. As stated already, data indicates current local rents are not inflated. There may be a rent correction when unemployment gets worse but I haven’t seen it yet. If I was a renter, I’d start to get concerned about the Fed printing money and what’s going on in the bond market. Interest rates can’t stay this low forever.

There also seems to be a belief that home prices will drop when interest rates rise. Does anyone have historical data suggesting this is true? I couldn’t find anything so I think its a myth. It didn’t happen during real estate cycles in the 70’s, 80’s or 90’s. There were small fluctuations but nothing like some have predicted (10-20% drops with 8-10% mortgage rates).

[temeculaguy]

jp, if the prices of your place fall to rent nuetral, would you buy one? Would you worry about current macroeconomic conditions, unemployment, foreclosure rates, or would you just decide it’s now the same out of pocket, what the hell.

I think that is who the buyers are and will be, a lot of areas in S.D. and outside of it have reached those fundamentals, in some places it is cheaper to buy than rent. I wonder how many times in history it was cheaper to buy than rent and how long it stayed that way.

[temeculaguy]

jp, if the prices of your place fall to rent nuetral, would you buy one? Would you worry about current macroeconomic conditions, unemployment, foreclosure rates, or would you just decide it’s now the same out of pocket, what the hell.

I think that is who the buyers are and will be, a lot of areas in S.D. and outside of it have reached those fundamentals, in some places it is cheaper to buy than rent. I wonder how many times in history it was cheaper to buy than rent and how long it stayed that way.

[temeculaguy]

jp, if the prices of your place fall to rent nuetral, would you buy one? Would you worry about current macroeconomic conditions, unemployment, foreclosure rates, or would you just decide it’s now the same out of pocket, what the hell.

I think that is who the buyers are and will be, a lot of areas in S.D. and outside of it have reached those fundamentals, in some places it is cheaper to buy than rent. I wonder how many times in history it was cheaper to buy than rent and how long it stayed that way.

[temeculaguy]

jp, if the prices of your place fall to rent nuetral, would you buy one? Would you worry about current macroeconomic conditions, unemployment, foreclosure rates, or would you just decide it’s now the same out of pocket, what the hell.

I think that is who the buyers are and will be, a lot of areas in S.D. and outside of it have reached those fundamentals, in some places it is cheaper to buy than rent. I wonder how many times in history it was cheaper to buy than rent and how long it stayed that way.

[Author]

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