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“and because it is a buyer’s market,”

That is not true, right now it is a renters market not a sellers or a buyers market. Nothing wrong with buying now if that is what you want. New cars are sold everyday and depreciate 15% as soon as they are driven off the lot. People still buy them.

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That is absolutely true but the same people that build equity and would not save otherwise take HELOCs and second mortgages to pay for frivolous stuff.

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mistake 2

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mistake

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The guy doesn’t have a clue. He writes:

“Net result: We were at 38 or 40 sellers per buyer most of the summer. Last week it dropped to 34, and this week it’s at 33. This is starting to look like it might be a trend, and when the ratio of sellers to buyers drops enough, prices are going to stabilize, the period of best deals will be over, and people are going to rush back into the market.”

In previous years the number of listings dropped dramatically from November to January. Sometimes as much as 50% from the summer peak. The reason is not sales, sellers remove the listings during the holidays. In fact, this year the number of listings, as a percentage, has decreased less than last year.

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A little misleading because the big climb vs. 2005 is 0.61% y-o-y.

Typical pro-Real Estate reporting of the U-T.

Here is the article from the U-T:

“A 3.81 percent increase in the past year to an average rent of $1,241 is the biggest gain in rental rates since September 2002, when average rents increased by 5.68 percent, according to a recent survey by MarketPointe Realty Advisors. It compares with annual increases of 3.2 percent in September 2005, 3.12 percent in 2004, and 3.64 percent in September 2003.”

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At least they have fake spider webs. In some near future they may have real spider webs.

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CHP? What CHP? San Diego County has the least density of cops per population of all U.S. cities. With the huge debt the city has, there is no budget to hire more. In addition, many experienced cops have left the county citing the high housing and living expenses.

When there is no traffic on the freeways, I drive at 80 mph constantly; on surface streets, at 10-15 mph above the speed limit. Have been doing it for years and never get tickets.

You are right about the fact that San Diego is aquiring that big city feel, lots of traffic; everybody is angry and in a rush; noise and air polution.

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None of the 16 houses sold. Those L.A lawyers that bought them as an investment should be very worried.

From the U-T

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There was an article in the U-T about this just a few days ago. Rents, on average, are up 3.8% for the county. My personal experience is that the rent went up this year by the same amount that in the previous two years.

If rents continue to increase at 4% – 5% per year, and home prices continue to decline at 8% per year, renting will be about the same as buying in 2 years. This is assuming interest rates stay at about the same as today. Will it be a good time to buy then? Only if home prices level off.

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No. Everybody else posts too little.

In my experience, all blogs and forums have always a “Powayseller”.

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The truly rich don’t drive. They are driven.

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From the UT article:

“Kerr said banks are supportive. ‘They know they’re better off hanging in there than doing a fire sale,’ he said. ‘In our conversations with lenders, we’ve told them, ‘We don’t want to toss you the keys, and we don’t think you want us to toss you the keys, because who will (manage the project) better than we will?’ And they know that.’”

“‘Do I think (by renting the units) you can cover 100 percent of your debt service? Probably not,’ Easley said. ‘”But that basically buys you time and allows you to wait for the market.’”

What could possible change the market at this point? The soonest the Feds will start lowering rates is in Spring 2007. We know the population of San Diego is declining. Most importantly, the greed frenzy and the fear of being priced out are gone.

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I lived there in 1999 when it was brand new. Layouts are the same as the Costa Verde Apts. in UTC. Big units, decent sound insultion and large closets. Covered and assigned parking was OK. Besides lack of personality they were comparable to what is in the area and if I recall correctly, a good value.

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It is interesting that the last time the Feds lower rates it did not cause a run up like the recent one. You may need to factor in the availability of ARMs, Option-ARMs and lower underwriting standards.

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