[an]

On the rent & save end, if you put away 1500/month toward saving at a saving rate of 5.5% over the last 4 years, you’ll have $80,000.

The $783k sold price would be $736k after 6% commission. So it would yield $191k profit after 4 years. So he/she still made over 2X what he/she could have made by rent and save. Obviously, if you shift that buy date to 2 years later, we’ll see how the numbers play out in 2 years. I highly doubt it would yield the same result.

[an]

I agree with nsr, why bother listing when you know you can’t afford a short sale and you’re under water. Might as well enjoy it while it last before the ARM tidal wave hit. Also, check out the sales #. It declined 24.4% yoy. Which mean even w/ a decline of 4% in inventory, the month of supply is still going up. No bottom here, move along.

[an]

I agree with nsr, why bother listing when you know you can’t afford a short sale and you’re under water. Might as well enjoy it while it last before the ARM tidal wave hit. Also, check out the sales #. It declined 24.4% yoy. Which mean even w/ a decline of 4% in inventory, the month of supply is still going up. No bottom here, move along.

[an]

Looks like the house on 11119 MORNING CREEK DR. S., SD – Rancho Bernardo, CA 92128 was bought by a flipper. Bought for $585k + 5% auction fee = $614k. I don’t know exactly what they did but base on the pictures I saw on Zip, they at least updated the whole kitchen w/ new appliances, counters, and cabinets. They also repainted the whole house. They didn’t do anything with the backyard though. They’re trying to sell it now for $669,000 – $684,000. Would be interesting to see how this turn out. If it sell for $669k – 6% commission, the total sale = $628k. That’s $14k more than what they bought – what they put in & 1 month of carrying cost, there’s really no room for error for them.

[an]

Looks like the house on 11119 MORNING CREEK DR. S., SD – Rancho Bernardo, CA 92128 was bought by a flipper. Bought for $585k + 5% auction fee = $614k. I don’t know exactly what they did but base on the pictures I saw on Zip, they at least updated the whole kitchen w/ new appliances, counters, and cabinets. They also repainted the whole house. They didn’t do anything with the backyard though. They’re trying to sell it now for $669,000 – $684,000. Would be interesting to see how this turn out. If it sell for $669k – 6% commission, the total sale = $628k. That’s $14k more than what they bought – what they put in & 1 month of carrying cost, there’s really no room for error for them.

[an]

when affordability returns to the market you will see median home prices plummet rapidly. Ironically that will be the first sign of health returning to the market.

That’s completely true, especially w/ the stricter lending standard, at the bottom, only people who can buy are the one that can truly afford it. So when median drops drastically due to low end market firming up, that would be a good time to call the bottom.

[an]

when affordability returns to the market you will see median home prices plummet rapidly. Ironically that will be the first sign of health returning to the market.

That’s completely true, especially w/ the stricter lending standard, at the bottom, only people who can buy are the one that can truly afford it. So when median drops drastically due to low end market firming up, that would be a good time to call the bottom.

[an]

Maybe someone can copy this add with the next part of the roller coaster going down even more. That would b e funny.

[an]

Maybe someone can copy this add with the next part of the roller coaster going down even more. That would b e funny.

[an]

Completely agree with you SD R. If the fed controls long term rate, then we wouldn’t be in a flat yield curve situation we’re in now.

[an]

Completely agree with you SD R. If the fed controls long term rate, then we wouldn’t be in a flat yield curve situation we’re in now.

[an]

I’m just speak theoretically when I say I want high rate & low price. Obviously, there are reasons why rates would go to such level and those reasons would affect jobs. But then that would in turn affect housing price even more than rates would. So, if we can keep those other variable static and just think of rate & price = monthly payment, it would make sense to want higher rate and lower price. Granted that housing is in equilibrium and not at an overbought level like we are at now. After all, isn’t long term average for rate is in the 8-9% range? If so, we’re still awhile away.

[an]

I’m just speak theoretically when I say I want high rate & low price. Obviously, there are reasons why rates would go to such level and those reasons would affect jobs. But then that would in turn affect housing price even more than rates would. So, if we can keep those other variable static and just think of rate & price = monthly payment, it would make sense to want higher rate and lower price. Granted that housing is in equilibrium and not at an overbought level like we are at now. After all, isn’t long term average for rate is in the 8-9% range? If so, we’re still awhile away.

[an]

PerryChase, I completely agree with you. I long for the day of ultra high rates + ultra low prices again. Anyone who plan to actually live in their houses and make it a long term home should long for it as well.

[an]

PerryChase, I completely agree with you. I long for the day of ultra high rates + ultra low prices again. Anyone who plan to actually live in their houses and make it a long term home should long for it as well.

[Author]

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