Why not walk away?

[Ex-SD]

sdrealtor posted: “1996 was the bottom of the last cycle when prices over corrected. Even if prices overcorrect again they would be about double the 1996 prices based upon simple inflation.”

I don’t agree with your logic since that didn’t happen in the majority of the rest of the country that didn’t experience crazy bubble prices. Prices are still going to have to meet median income or you won’t have buyers. Median family income in SD is around $69k. Under your theory, it won’t compute. I think that prices will drop in most areas to where they were in 1998……………but I don’t have a crystal ball either.
Only time will tell which of us is correct. One thing is for sure: Prices are dropping and they’re going to get a lot lower than where they are today.

Re. sandiego and his dillema: If he makes a business decision vs an emotional decision, he will probably quit making his payments and wait for the lender to kick him out. He can pocket 7 – 9 payments which he can use to rent in the same building for far less than he’s probably paying to buy a depreciating asset. I have thought for some time that as this situation got worse, that many, otherwise responsible homeowners who actually put real money into their homes would get to the point where sandiego is today and throw the keys back to the lender.

[NotCranky]

EX-Sd Income alone doesn’t control the fate of this market. It is one important part of it.

[NotCranky]

EX-Sd Income alone doesn’t control the fate of this market. It is one important part of it.

[NotCranky]

EX-Sd Income alone doesn’t control the fate of this market. It is one important part of it.

[NotCranky]

EX-Sd Income alone doesn’t control the fate of this market. It is one important part of it.

[NotCranky]

EX-Sd Income alone doesn’t control the fate of this market. It is one important part of it.

[sdrealtor]

ex-Sd
Funny i was just back East visiting a place where prices didnt experience crazy bubble prices and the prices seemed to be about double what they were in 1996.

One problem with the median income logic is that the median income household does not generally purchase the median priced home. This is a rough example but you should et my point. Typically (of course there are exceptions), the bottom half of households income wise do not buy homes while the upper half does. So effectively it is the 75th percentile that is buying the median priced home. Furthermore, in a high cost such as this most of the buyers are generally skewed toward higher incomes more than in an area such as the Carolinas where you are now.

[sdrealtor]

ex-Sd
Funny i was just back East visiting a place where prices didnt experience crazy bubble prices and the prices seemed to be about double what they were in 1996.

One problem with the median income logic is that the median income household does not generally purchase the median priced home. This is a rough example but you should et my point. Typically (of course there are exceptions), the bottom half of households income wise do not buy homes while the upper half does. So effectively it is the 75th percentile that is buying the median priced home. Furthermore, in a high cost such as this most of the buyers are generally skewed toward higher incomes more than in an area such as the Carolinas where you are now.

[sdrealtor]

ex-Sd
Funny i was just back East visiting a place where prices didnt experience crazy bubble prices and the prices seemed to be about double what they were in 1996.

One problem with the median income logic is that the median income household does not generally purchase the median priced home. This is a rough example but you should et my point. Typically (of course there are exceptions), the bottom half of households income wise do not buy homes while the upper half does. So effectively it is the 75th percentile that is buying the median priced home. Furthermore, in a high cost such as this most of the buyers are generally skewed toward higher incomes more than in an area such as the Carolinas where you are now.

[sdrealtor]

ex-Sd
Funny i was just back East visiting a place where prices didnt experience crazy bubble prices and the prices seemed to be about double what they were in 1996.

One problem with the median income logic is that the median income household does not generally purchase the median priced home. This is a rough example but you should et my point. Typically (of course there are exceptions), the bottom half of households income wise do not buy homes while the upper half does. So effectively it is the 75th percentile that is buying the median priced home. Furthermore, in a high cost such as this most of the buyers are generally skewed toward higher incomes more than in an area such as the Carolinas where you are now.

[sdrealtor]

ex-Sd
Funny i was just back East visiting a place where prices didnt experience crazy bubble prices and the prices seemed to be about double what they were in 1996.

One problem with the median income logic is that the median income household does not generally purchase the median priced home. This is a rough example but you should et my point. Typically (of course there are exceptions), the bottom half of households income wise do not buy homes while the upper half does. So effectively it is the 75th percentile that is buying the median priced home. Furthermore, in a high cost such as this most of the buyers are generally skewed toward higher incomes more than in an area such as the Carolinas where you are now.

[condogrrl]

Question: if sandiego walks, will his credit be dinged so bad that no one will want to rent to him?

[condogrrl]

Question: if sandiego walks, will his credit be dinged so bad that no one will want to rent to him?

[condogrrl]

Question: if sandiego walks, will his credit be dinged so bad that no one will want to rent to him?

[condogrrl]

Question: if sandiego walks, will his credit be dinged so bad that no one will want to rent to him?

[Author]

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