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cyphire
ParticipantHi all – rustico, SD Realtor, sdrealtor et. al. I am actually considering some drastic action….
Moving to Wisconsin…
Buying a house….
I am currently renting in La Jolla. I sold my house in Dec 06 and was going to wait for something high end to come down… The problem I have is that I have a 13 year old and an 11 year old… The 13 year old will be starting 9th grade in September, the 11 year old will be starting middle school in september. If I ever make the move, it has to be now, I don’t want my kids to keep moving around.
I guess what it comes down to is that I’m not super-enamored with La Jolla. Or carmel valley. The market in Madison WI is still fairly strong, but there is some big pressure on their ‘high end’.
The weather sucks, but I’m not from California, and I’m not an outdoor person. I live a few blocks from the beach and never go there. I miss the seasons and I want my comfort without breaking the bank.
I found a house that a builder built for himself. The house is amazing. In a neighborhood which I like and near the school I want for my kids (the middle and the high school). The home is 7400 sq feet. It has a 5 car heated garage, heated floors, heated towel racks, a media room, and more rooms and amenities then I have ever seen in my life. I think that my family would be happy there, it is 5 min from my brother-in-law and their cousins. The house was listed way over a million, now it is a divorce sale for 790,000.00
It’s not too hard a decision but it is a BIG one. The way I look at it, I don’t want to wait for a year to wait for prices to come down. I don’t want to be renting in La Jolla and wait for something to come down a couple of hundred thousand dollars while we are still renting. More importantly, I can pay cash for this house, and still have a ton of money left over. I don’t need a mortgage…
I’m not sure what responses I will get from this, but I figure maybe someone has some questions / thoughts about this…
So… Am I crazy? Or is this an awesome move even in the midst of a, what I believe to be, market which will get much much worse….
cyphire
ParticipantHi all – rustico, SD Realtor, sdrealtor et. al. I am actually considering some drastic action….
Moving to Wisconsin…
Buying a house….
I am currently renting in La Jolla. I sold my house in Dec 06 and was going to wait for something high end to come down… The problem I have is that I have a 13 year old and an 11 year old… The 13 year old will be starting 9th grade in September, the 11 year old will be starting middle school in september. If I ever make the move, it has to be now, I don’t want my kids to keep moving around.
I guess what it comes down to is that I’m not super-enamored with La Jolla. Or carmel valley. The market in Madison WI is still fairly strong, but there is some big pressure on their ‘high end’.
The weather sucks, but I’m not from California, and I’m not an outdoor person. I live a few blocks from the beach and never go there. I miss the seasons and I want my comfort without breaking the bank.
I found a house that a builder built for himself. The house is amazing. In a neighborhood which I like and near the school I want for my kids (the middle and the high school). The home is 7400 sq feet. It has a 5 car heated garage, heated floors, heated towel racks, a media room, and more rooms and amenities then I have ever seen in my life. I think that my family would be happy there, it is 5 min from my brother-in-law and their cousins. The house was listed way over a million, now it is a divorce sale for 790,000.00
It’s not too hard a decision but it is a BIG one. The way I look at it, I don’t want to wait for a year to wait for prices to come down. I don’t want to be renting in La Jolla and wait for something to come down a couple of hundred thousand dollars while we are still renting. More importantly, I can pay cash for this house, and still have a ton of money left over. I don’t need a mortgage…
I’m not sure what responses I will get from this, but I figure maybe someone has some questions / thoughts about this…
So… Am I crazy? Or is this an awesome move even in the midst of a, what I believe to be, market which will get much much worse….
cyphire
ParticipantHi all – rustico, SD Realtor, sdrealtor et. al. I am actually considering some drastic action….
Moving to Wisconsin…
Buying a house….
I am currently renting in La Jolla. I sold my house in Dec 06 and was going to wait for something high end to come down… The problem I have is that I have a 13 year old and an 11 year old… The 13 year old will be starting 9th grade in September, the 11 year old will be starting middle school in september. If I ever make the move, it has to be now, I don’t want my kids to keep moving around.
I guess what it comes down to is that I’m not super-enamored with La Jolla. Or carmel valley. The market in Madison WI is still fairly strong, but there is some big pressure on their ‘high end’.
The weather sucks, but I’m not from California, and I’m not an outdoor person. I live a few blocks from the beach and never go there. I miss the seasons and I want my comfort without breaking the bank.
I found a house that a builder built for himself. The house is amazing. In a neighborhood which I like and near the school I want for my kids (the middle and the high school). The home is 7400 sq feet. It has a 5 car heated garage, heated floors, heated towel racks, a media room, and more rooms and amenities then I have ever seen in my life. I think that my family would be happy there, it is 5 min from my brother-in-law and their cousins. The house was listed way over a million, now it is a divorce sale for 790,000.00
It’s not too hard a decision but it is a BIG one. The way I look at it, I don’t want to wait for a year to wait for prices to come down. I don’t want to be renting in La Jolla and wait for something to come down a couple of hundred thousand dollars while we are still renting. More importantly, I can pay cash for this house, and still have a ton of money left over. I don’t need a mortgage…
I’m not sure what responses I will get from this, but I figure maybe someone has some questions / thoughts about this…
So… Am I crazy? Or is this an awesome move even in the midst of a, what I believe to be, market which will get much much worse….
cyphire
ParticipantHi all – rustico, SD Realtor, sdrealtor et. al. I am actually considering some drastic action….
Moving to Wisconsin…
Buying a house….
I am currently renting in La Jolla. I sold my house in Dec 06 and was going to wait for something high end to come down… The problem I have is that I have a 13 year old and an 11 year old… The 13 year old will be starting 9th grade in September, the 11 year old will be starting middle school in september. If I ever make the move, it has to be now, I don’t want my kids to keep moving around.
I guess what it comes down to is that I’m not super-enamored with La Jolla. Or carmel valley. The market in Madison WI is still fairly strong, but there is some big pressure on their ‘high end’.
The weather sucks, but I’m not from California, and I’m not an outdoor person. I live a few blocks from the beach and never go there. I miss the seasons and I want my comfort without breaking the bank.
I found a house that a builder built for himself. The house is amazing. In a neighborhood which I like and near the school I want for my kids (the middle and the high school). The home is 7400 sq feet. It has a 5 car heated garage, heated floors, heated towel racks, a media room, and more rooms and amenities then I have ever seen in my life. I think that my family would be happy there, it is 5 min from my brother-in-law and their cousins. The house was listed way over a million, now it is a divorce sale for 790,000.00
It’s not too hard a decision but it is a BIG one. The way I look at it, I don’t want to wait for a year to wait for prices to come down. I don’t want to be renting in La Jolla and wait for something to come down a couple of hundred thousand dollars while we are still renting. More importantly, I can pay cash for this house, and still have a ton of money left over. I don’t need a mortgage…
I’m not sure what responses I will get from this, but I figure maybe someone has some questions / thoughts about this…
So… Am I crazy? Or is this an awesome move even in the midst of a, what I believe to be, market which will get much much worse….
cyphire
ParticipantThanks for the comment SD Realtor… But what I was really driving at was the lack of proper data currently in the marketplace. Literally nothing the newspapers print has any real basis in fundamentals or reality. The statistics they quote are given by Realtors, or economists, none of who are really doing a full analysis. Median prices, ignoring all the other factors, and a manipulated system of days on market, comps and appraisals. It takes sites like this one (which have a limited audience) to even get close to the truth.
The public has no reasonable way of monitoring the housing market, it is not an efficient market as the transaction costs (realtors, and other closing costs) are so high as to create a market which is unlike almost any other. It’s happening too slowly, but the transaction costs need to be dramatically lowered, which will then put real pressure to only have quality real estate professionals in the business as there will be much less pie to slop around.
cyphire
ParticipantThanks for the comment SD Realtor… But what I was really driving at was the lack of proper data currently in the marketplace. Literally nothing the newspapers print has any real basis in fundamentals or reality. The statistics they quote are given by Realtors, or economists, none of who are really doing a full analysis. Median prices, ignoring all the other factors, and a manipulated system of days on market, comps and appraisals. It takes sites like this one (which have a limited audience) to even get close to the truth.
The public has no reasonable way of monitoring the housing market, it is not an efficient market as the transaction costs (realtors, and other closing costs) are so high as to create a market which is unlike almost any other. It’s happening too slowly, but the transaction costs need to be dramatically lowered, which will then put real pressure to only have quality real estate professionals in the business as there will be much less pie to slop around.
cyphire
ParticipantThanks for the comment SD Realtor… But what I was really driving at was the lack of proper data currently in the marketplace. Literally nothing the newspapers print has any real basis in fundamentals or reality. The statistics they quote are given by Realtors, or economists, none of who are really doing a full analysis. Median prices, ignoring all the other factors, and a manipulated system of days on market, comps and appraisals. It takes sites like this one (which have a limited audience) to even get close to the truth.
The public has no reasonable way of monitoring the housing market, it is not an efficient market as the transaction costs (realtors, and other closing costs) are so high as to create a market which is unlike almost any other. It’s happening too slowly, but the transaction costs need to be dramatically lowered, which will then put real pressure to only have quality real estate professionals in the business as there will be much less pie to slop around.
cyphire
ParticipantThanks for the comment SD Realtor… But what I was really driving at was the lack of proper data currently in the marketplace. Literally nothing the newspapers print has any real basis in fundamentals or reality. The statistics they quote are given by Realtors, or economists, none of who are really doing a full analysis. Median prices, ignoring all the other factors, and a manipulated system of days on market, comps and appraisals. It takes sites like this one (which have a limited audience) to even get close to the truth.
The public has no reasonable way of monitoring the housing market, it is not an efficient market as the transaction costs (realtors, and other closing costs) are so high as to create a market which is unlike almost any other. It’s happening too slowly, but the transaction costs need to be dramatically lowered, which will then put real pressure to only have quality real estate professionals in the business as there will be much less pie to slop around.
cyphire
ParticipantThanks for the comment SD Realtor… But what I was really driving at was the lack of proper data currently in the marketplace. Literally nothing the newspapers print has any real basis in fundamentals or reality. The statistics they quote are given by Realtors, or economists, none of who are really doing a full analysis. Median prices, ignoring all the other factors, and a manipulated system of days on market, comps and appraisals. It takes sites like this one (which have a limited audience) to even get close to the truth.
The public has no reasonable way of monitoring the housing market, it is not an efficient market as the transaction costs (realtors, and other closing costs) are so high as to create a market which is unlike almost any other. It’s happening too slowly, but the transaction costs need to be dramatically lowered, which will then put real pressure to only have quality real estate professionals in the business as there will be much less pie to slop around.
cyphire
ParticipantInteresting comments, I hope this makes sense in the context of some of these arguments…
Prices went up on houses because of a bubble. That is the main reason. There was a bubble because anyone could qualify for any loan, and the loans were unrealistically priced with ARM’s both subprime, up to super-jumbos for good credit scores. Some people got 30 years, or refinanced as the rates went up…
Now what?
It looks like there will be inflation. The way to curb inflation is there will have to be interest rate rises. Usually inflation translates into wage increases (wage inflation), and more people make more money which gets worth less and less because all prices are rising at the same time.
The more important factor which I haven’t seen here yet, is that as interest rates rise, home prices have to fall. Because the new buyers can’t possibly afford the new payments. I also see stagflation, prices going up but wages not going up. This will put huge pressure on home prices. It takes time for a bubble to burst, and many people can’t get loans at good rates right now, hence the lowering of home prices…
I am on the sidelines, sold in Dec 2006, will watch and see what comes.
cyphire
ParticipantInteresting comments, I hope this makes sense in the context of some of these arguments…
Prices went up on houses because of a bubble. That is the main reason. There was a bubble because anyone could qualify for any loan, and the loans were unrealistically priced with ARM’s both subprime, up to super-jumbos for good credit scores. Some people got 30 years, or refinanced as the rates went up…
Now what?
It looks like there will be inflation. The way to curb inflation is there will have to be interest rate rises. Usually inflation translates into wage increases (wage inflation), and more people make more money which gets worth less and less because all prices are rising at the same time.
The more important factor which I haven’t seen here yet, is that as interest rates rise, home prices have to fall. Because the new buyers can’t possibly afford the new payments. I also see stagflation, prices going up but wages not going up. This will put huge pressure on home prices. It takes time for a bubble to burst, and many people can’t get loans at good rates right now, hence the lowering of home prices…
I am on the sidelines, sold in Dec 2006, will watch and see what comes.
cyphire
ParticipantInteresting comments, I hope this makes sense in the context of some of these arguments…
Prices went up on houses because of a bubble. That is the main reason. There was a bubble because anyone could qualify for any loan, and the loans were unrealistically priced with ARM’s both subprime, up to super-jumbos for good credit scores. Some people got 30 years, or refinanced as the rates went up…
Now what?
It looks like there will be inflation. The way to curb inflation is there will have to be interest rate rises. Usually inflation translates into wage increases (wage inflation), and more people make more money which gets worth less and less because all prices are rising at the same time.
The more important factor which I haven’t seen here yet, is that as interest rates rise, home prices have to fall. Because the new buyers can’t possibly afford the new payments. I also see stagflation, prices going up but wages not going up. This will put huge pressure on home prices. It takes time for a bubble to burst, and many people can’t get loans at good rates right now, hence the lowering of home prices…
I am on the sidelines, sold in Dec 2006, will watch and see what comes.
cyphire
ParticipantInteresting comments, I hope this makes sense in the context of some of these arguments…
Prices went up on houses because of a bubble. That is the main reason. There was a bubble because anyone could qualify for any loan, and the loans were unrealistically priced with ARM’s both subprime, up to super-jumbos for good credit scores. Some people got 30 years, or refinanced as the rates went up…
Now what?
It looks like there will be inflation. The way to curb inflation is there will have to be interest rate rises. Usually inflation translates into wage increases (wage inflation), and more people make more money which gets worth less and less because all prices are rising at the same time.
The more important factor which I haven’t seen here yet, is that as interest rates rise, home prices have to fall. Because the new buyers can’t possibly afford the new payments. I also see stagflation, prices going up but wages not going up. This will put huge pressure on home prices. It takes time for a bubble to burst, and many people can’t get loans at good rates right now, hence the lowering of home prices…
I am on the sidelines, sold in Dec 2006, will watch and see what comes.
cyphire
ParticipantInteresting comments, I hope this makes sense in the context of some of these arguments…
Prices went up on houses because of a bubble. That is the main reason. There was a bubble because anyone could qualify for any loan, and the loans were unrealistically priced with ARM’s both subprime, up to super-jumbos for good credit scores. Some people got 30 years, or refinanced as the rates went up…
Now what?
It looks like there will be inflation. The way to curb inflation is there will have to be interest rate rises. Usually inflation translates into wage increases (wage inflation), and more people make more money which gets worth less and less because all prices are rising at the same time.
The more important factor which I haven’t seen here yet, is that as interest rates rise, home prices have to fall. Because the new buyers can’t possibly afford the new payments. I also see stagflation, prices going up but wages not going up. This will put huge pressure on home prices. It takes time for a bubble to burst, and many people can’t get loans at good rates right now, hence the lowering of home prices…
I am on the sidelines, sold in Dec 2006, will watch and see what comes.
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