[earlyretirement]

[quote=sdrealtor]Just to be clear. I never said immune and I dont hang out with a wealthy crowd. I hang out with well educated, professionals in their late 30″ to mid 50’s who have earned good money for many years and have always lived within their means. These folks didnt over extend themselves, have solid incomes, assets and family behind them. Too many of you seem to think everyone out there was irresponsible during the bubble. I know that I wasnt and that my friends and neighbors werent either. There are a lot more of us out there than any of you could imagine. The rich folks, well i run into them in my travels because of where I live. There are lots of them out there too.

Yes there are folks who got caught up in things and overextended them in my hoods. However they are far more the exception than the rule. There are just as many if not more conservative folks who sat all this out than there are over extended around here. Bear in mind I am specifically addressing NCC and the other submarkets are very different.[/quote]

I do agree with this statement sdrealtor that you made. I do agree that in that area, the incomes are higher, the education levels are higher and there are probably far fewer that over extended themselves vs. on the national scene.

You are right there are plenty of people that lived within their means over the past decade. I work with hundreds of investors and they all are in the camp you described. In fact, I’ve purchased over 500 properties for them in the past decade and they have all paid 100% cash for their properties.

And I do agree with you BG that the coastal areas will be less affected by the loan reduction limits but I do think nonetheless it will make a difference.

I think that San Diego will always be a more desirable market and will attract a wealthier crowd in the nicer neighborhoods.

While there are a lot of wealthy folks in that area, there are still plenty of people that lived beyond their means. Lots of folks even with good income streams were taking equity out of their homes, etc.

Just a look at the scary high number of Americans that have NEGATIVE equity on their homes speaks volumes and isn’t something you can argue with. By the end of this year, the percentage of Americans with negative equity could be upwards of 35% depending how much properties fall. That’s a staggering #.

So yeah there are a lot of wealthy people that didn’t over extend themselves but there are lots that did.

[earlyretirement]

[quote=sdrealtor]Just to be clear. I never said immune and I dont hang out with a wealthy crowd. I hang out with well educated, professionals in their late 30″ to mid 50’s who have earned good money for many years and have always lived within their means. These folks didnt over extend themselves, have solid incomes, assets and family behind them. Too many of you seem to think everyone out there was irresponsible during the bubble. I know that I wasnt and that my friends and neighbors werent either. There are a lot more of us out there than any of you could imagine. The rich folks, well i run into them in my travels because of where I live. There are lots of them out there too.

Yes there are folks who got caught up in things and overextended them in my hoods. However they are far more the exception than the rule. There are just as many if not more conservative folks who sat all this out than there are over extended around here. Bear in mind I am specifically addressing NCC and the other submarkets are very different.[/quote]

I do agree with this statement sdrealtor that you made. I do agree that in that area, the incomes are higher, the education levels are higher and there are probably far fewer that over extended themselves vs. on the national scene.

You are right there are plenty of people that lived within their means over the past decade. I work with hundreds of investors and they all are in the camp you described. In fact, I’ve purchased over 500 properties for them in the past decade and they have all paid 100% cash for their properties.

And I do agree with you BG that the coastal areas will be less affected by the loan reduction limits but I do think nonetheless it will make a difference.

I think that San Diego will always be a more desirable market and will attract a wealthier crowd in the nicer neighborhoods.

While there are a lot of wealthy folks in that area, there are still plenty of people that lived beyond their means. Lots of folks even with good income streams were taking equity out of their homes, etc.

Just a look at the scary high number of Americans that have NEGATIVE equity on their homes speaks volumes and isn’t something you can argue with. By the end of this year, the percentage of Americans with negative equity could be upwards of 35% depending how much properties fall. That’s a staggering #.

So yeah there are a lot of wealthy people that didn’t over extend themselves but there are lots that did.

[earlyretirement]

[quote=sdrealtor]Just to be clear. I never said immune and I dont hang out with a wealthy crowd. I hang out with well educated, professionals in their late 30″ to mid 50’s who have earned good money for many years and have always lived within their means. These folks didnt over extend themselves, have solid incomes, assets and family behind them. Too many of you seem to think everyone out there was irresponsible during the bubble. I know that I wasnt and that my friends and neighbors werent either. There are a lot more of us out there than any of you could imagine. The rich folks, well i run into them in my travels because of where I live. There are lots of them out there too.

Yes there are folks who got caught up in things and overextended them in my hoods. However they are far more the exception than the rule. There are just as many if not more conservative folks who sat all this out than there are over extended around here. Bear in mind I am specifically addressing NCC and the other submarkets are very different.[/quote]

I do agree with this statement sdrealtor that you made. I do agree that in that area, the incomes are higher, the education levels are higher and there are probably far fewer that over extended themselves vs. on the national scene.

You are right there are plenty of people that lived within their means over the past decade. I work with hundreds of investors and they all are in the camp you described. In fact, I’ve purchased over 500 properties for them in the past decade and they have all paid 100% cash for their properties.

And I do agree with you BG that the coastal areas will be less affected by the loan reduction limits but I do think nonetheless it will make a difference.

I think that San Diego will always be a more desirable market and will attract a wealthier crowd in the nicer neighborhoods.

While there are a lot of wealthy folks in that area, there are still plenty of people that lived beyond their means. Lots of folks even with good income streams were taking equity out of their homes, etc.

Just a look at the scary high number of Americans that have NEGATIVE equity on their homes speaks volumes and isn’t something you can argue with. By the end of this year, the percentage of Americans with negative equity could be upwards of 35% depending how much properties fall. That’s a staggering #.

So yeah there are a lot of wealthy people that didn’t over extend themselves but there are lots that did.

[earlyretirement]

[quote=sdrealtor]Just to be clear. I never said immune and I dont hang out with a wealthy crowd. I hang out with well educated, professionals in their late 30″ to mid 50’s who have earned good money for many years and have always lived within their means. These folks didnt over extend themselves, have solid incomes, assets and family behind them. Too many of you seem to think everyone out there was irresponsible during the bubble. I know that I wasnt and that my friends and neighbors werent either. There are a lot more of us out there than any of you could imagine. The rich folks, well i run into them in my travels because of where I live. There are lots of them out there too.

Yes there are folks who got caught up in things and overextended them in my hoods. However they are far more the exception than the rule. There are just as many if not more conservative folks who sat all this out than there are over extended around here. Bear in mind I am specifically addressing NCC and the other submarkets are very different.[/quote]

I do agree with this statement sdrealtor that you made. I do agree that in that area, the incomes are higher, the education levels are higher and there are probably far fewer that over extended themselves vs. on the national scene.

You are right there are plenty of people that lived within their means over the past decade. I work with hundreds of investors and they all are in the camp you described. In fact, I’ve purchased over 500 properties for them in the past decade and they have all paid 100% cash for their properties.

And I do agree with you BG that the coastal areas will be less affected by the loan reduction limits but I do think nonetheless it will make a difference.

I think that San Diego will always be a more desirable market and will attract a wealthier crowd in the nicer neighborhoods.

While there are a lot of wealthy folks in that area, there are still plenty of people that lived beyond their means. Lots of folks even with good income streams were taking equity out of their homes, etc.

Just a look at the scary high number of Americans that have NEGATIVE equity on their homes speaks volumes and isn’t something you can argue with. By the end of this year, the percentage of Americans with negative equity could be upwards of 35% depending how much properties fall. That’s a staggering #.

So yeah there are a lot of wealthy people that didn’t over extend themselves but there are lots that did.

[earlyretirement]

[quote=sdrealtor]Just to be clear. I never said immune and I dont hang out with a wealthy crowd. I hang out with well educated, professionals in their late 30″ to mid 50’s who have earned good money for many years and have always lived within their means. These folks didnt over extend themselves, have solid incomes, assets and family behind them. Too many of you seem to think everyone out there was irresponsible during the bubble. I know that I wasnt and that my friends and neighbors werent either. There are a lot more of us out there than any of you could imagine. The rich folks, well i run into them in my travels because of where I live. There are lots of them out there too.

Yes there are folks who got caught up in things and overextended them in my hoods. However they are far more the exception than the rule. There are just as many if not more conservative folks who sat all this out than there are over extended around here. Bear in mind I am specifically addressing NCC and the other submarkets are very different.[/quote]

I do agree with this statement sdrealtor that you made. I do agree that in that area, the incomes are higher, the education levels are higher and there are probably far fewer that over extended themselves vs. on the national scene.

You are right there are plenty of people that lived within their means over the past decade. I work with hundreds of investors and they all are in the camp you described. In fact, I’ve purchased over 500 properties for them in the past decade and they have all paid 100% cash for their properties.

And I do agree with you BG that the coastal areas will be less affected by the loan reduction limits but I do think nonetheless it will make a difference.

I think that San Diego will always be a more desirable market and will attract a wealthier crowd in the nicer neighborhoods.

While there are a lot of wealthy folks in that area, there are still plenty of people that lived beyond their means. Lots of folks even with good income streams were taking equity out of their homes, etc.

Just a look at the scary high number of Americans that have NEGATIVE equity on their homes speaks volumes and isn’t something you can argue with. By the end of this year, the percentage of Americans with negative equity could be upwards of 35% depending how much properties fall. That’s a staggering #.

So yeah there are a lot of wealthy people that didn’t over extend themselves but there are lots that did.

[earlyretirement]

[quote=Rich Toscano]Right, nobody can argue that it’s a positive, but is it a significant negative?

sdr says no, that it’s the same to qualify for both types of loans. But for instance sdr, I’ve heard that down payment requirements are higher for non-conforming loans… if this is true, (even if “qualifying” is otherwise the same), that represents a tightening of financing for this price range. Any idea whether that’s the case?[/quote]

Hey Rich,

I think “significant” can be a bit relative. I don’t necessarily think it will be too significant on it’s own. But when you couple it with everything else that is going on at the same time including a tighter credit environment, continued unemployment and a potential start to a Bear stock market and correction of commodities and couple those things all together and I think it’s going to add up. But I too am not sure how significant it will be.

And I was more speaking on the national scale vs. just San Diego but definitely I see it having an effect in that price range you mentioned for San Diego as well.

sdr sounds like he is hanging around the wealthy crowd, which I admit there is plenty of in San Diego. However, there are a lot of pikers out there as well. From the outside looking in, they might appear to have money or at least a healthy net worth… but it’s all smoke and mirrors and they are leveraged to the hilt.

Some times you don’t even know about it (even if it’s your neighbors) until you read about them losing their houses.

I think people really underestimate all of the negative equity out there. People are finally starting to realize just how many people have a $0 net worth (or even a negative $0 net worth).

The trends don’t look too good for the rest of 2011. I’m not sure how even the biggest bull could try to argue on that one.

The government WILL eventually ease out of supporting the housing market and when they do it will be ugly. It might take a few years but I do believe it will happen. Personally, I wouldn’t mind seeing them get rid of the interest exemption as well.

[earlyretirement]

[quote=Rich Toscano]Right, nobody can argue that it’s a positive, but is it a significant negative?

sdr says no, that it’s the same to qualify for both types of loans. But for instance sdr, I’ve heard that down payment requirements are higher for non-conforming loans… if this is true, (even if “qualifying” is otherwise the same), that represents a tightening of financing for this price range. Any idea whether that’s the case?[/quote]

Hey Rich,

I think “significant” can be a bit relative. I don’t necessarily think it will be too significant on it’s own. But when you couple it with everything else that is going on at the same time including a tighter credit environment, continued unemployment and a potential start to a Bear stock market and correction of commodities and couple those things all together and I think it’s going to add up. But I too am not sure how significant it will be.

And I was more speaking on the national scale vs. just San Diego but definitely I see it having an effect in that price range you mentioned for San Diego as well.

sdr sounds like he is hanging around the wealthy crowd, which I admit there is plenty of in San Diego. However, there are a lot of pikers out there as well. From the outside looking in, they might appear to have money or at least a healthy net worth… but it’s all smoke and mirrors and they are leveraged to the hilt.

Some times you don’t even know about it (even if it’s your neighbors) until you read about them losing their houses.

I think people really underestimate all of the negative equity out there. People are finally starting to realize just how many people have a $0 net worth (or even a negative $0 net worth).

The trends don’t look too good for the rest of 2011. I’m not sure how even the biggest bull could try to argue on that one.

The government WILL eventually ease out of supporting the housing market and when they do it will be ugly. It might take a few years but I do believe it will happen. Personally, I wouldn’t mind seeing them get rid of the interest exemption as well.

[earlyretirement]

[quote=Rich Toscano]Right, nobody can argue that it’s a positive, but is it a significant negative?

sdr says no, that it’s the same to qualify for both types of loans. But for instance sdr, I’ve heard that down payment requirements are higher for non-conforming loans… if this is true, (even if “qualifying” is otherwise the same), that represents a tightening of financing for this price range. Any idea whether that’s the case?[/quote]

Hey Rich,

I think “significant” can be a bit relative. I don’t necessarily think it will be too significant on it’s own. But when you couple it with everything else that is going on at the same time including a tighter credit environment, continued unemployment and a potential start to a Bear stock market and correction of commodities and couple those things all together and I think it’s going to add up. But I too am not sure how significant it will be.

And I was more speaking on the national scale vs. just San Diego but definitely I see it having an effect in that price range you mentioned for San Diego as well.

sdr sounds like he is hanging around the wealthy crowd, which I admit there is plenty of in San Diego. However, there are a lot of pikers out there as well. From the outside looking in, they might appear to have money or at least a healthy net worth… but it’s all smoke and mirrors and they are leveraged to the hilt.

Some times you don’t even know about it (even if it’s your neighbors) until you read about them losing their houses.

I think people really underestimate all of the negative equity out there. People are finally starting to realize just how many people have a $0 net worth (or even a negative $0 net worth).

The trends don’t look too good for the rest of 2011. I’m not sure how even the biggest bull could try to argue on that one.

The government WILL eventually ease out of supporting the housing market and when they do it will be ugly. It might take a few years but I do believe it will happen. Personally, I wouldn’t mind seeing them get rid of the interest exemption as well.

[earlyretirement]

[quote=Rich Toscano]Right, nobody can argue that it’s a positive, but is it a significant negative?

sdr says no, that it’s the same to qualify for both types of loans. But for instance sdr, I’ve heard that down payment requirements are higher for non-conforming loans… if this is true, (even if “qualifying” is otherwise the same), that represents a tightening of financing for this price range. Any idea whether that’s the case?[/quote]

Hey Rich,

I think “significant” can be a bit relative. I don’t necessarily think it will be too significant on it’s own. But when you couple it with everything else that is going on at the same time including a tighter credit environment, continued unemployment and a potential start to a Bear stock market and correction of commodities and couple those things all together and I think it’s going to add up. But I too am not sure how significant it will be.

And I was more speaking on the national scale vs. just San Diego but definitely I see it having an effect in that price range you mentioned for San Diego as well.

sdr sounds like he is hanging around the wealthy crowd, which I admit there is plenty of in San Diego. However, there are a lot of pikers out there as well. From the outside looking in, they might appear to have money or at least a healthy net worth… but it’s all smoke and mirrors and they are leveraged to the hilt.

Some times you don’t even know about it (even if it’s your neighbors) until you read about them losing their houses.

I think people really underestimate all of the negative equity out there. People are finally starting to realize just how many people have a $0 net worth (or even a negative $0 net worth).

The trends don’t look too good for the rest of 2011. I’m not sure how even the biggest bull could try to argue on that one.

The government WILL eventually ease out of supporting the housing market and when they do it will be ugly. It might take a few years but I do believe it will happen. Personally, I wouldn’t mind seeing them get rid of the interest exemption as well.

[earlyretirement]

[quote=Rich Toscano]Right, nobody can argue that it’s a positive, but is it a significant negative?

sdr says no, that it’s the same to qualify for both types of loans. But for instance sdr, I’ve heard that down payment requirements are higher for non-conforming loans… if this is true, (even if “qualifying” is otherwise the same), that represents a tightening of financing for this price range. Any idea whether that’s the case?[/quote]

Hey Rich,

I think “significant” can be a bit relative. I don’t necessarily think it will be too significant on it’s own. But when you couple it with everything else that is going on at the same time including a tighter credit environment, continued unemployment and a potential start to a Bear stock market and correction of commodities and couple those things all together and I think it’s going to add up. But I too am not sure how significant it will be.

And I was more speaking on the national scale vs. just San Diego but definitely I see it having an effect in that price range you mentioned for San Diego as well.

sdr sounds like he is hanging around the wealthy crowd, which I admit there is plenty of in San Diego. However, there are a lot of pikers out there as well. From the outside looking in, they might appear to have money or at least a healthy net worth… but it’s all smoke and mirrors and they are leveraged to the hilt.

Some times you don’t even know about it (even if it’s your neighbors) until you read about them losing their houses.

I think people really underestimate all of the negative equity out there. People are finally starting to realize just how many people have a $0 net worth (or even a negative $0 net worth).

The trends don’t look too good for the rest of 2011. I’m not sure how even the biggest bull could try to argue on that one.

The government WILL eventually ease out of supporting the housing market and when they do it will be ugly. It might take a few years but I do believe it will happen. Personally, I wouldn’t mind seeing them get rid of the interest exemption as well.

[earlyretirement]

It certainly won’t help with home prices in the range you are talking about Rich from $600,000 to $900,000. I’m not sure how anyone can try to even look at it as it being nothing less than a big negative for home prices. That’s why the realtor lobby group is fighting it so viciously….

It’s not going to help things at the higher end of the market and the NAR knows it.

Personally I think it’s a healthy development. It’s healthy that they are working to ease out of the market and as they do, loans should get more difficult to get and as they do it will put more pressure on home prices.

Economics 101.

I’m not saying they will cause prices to plummet because I don’t think they will. But no one can argue it’s a positive development for home prices and the direction of them.

Let’s be honest….. guys like that flight attendant have no business buying a $700,000+ house in the first place and the reduction of the loan limits will help prevent people like him from buying more than they can afford.

Don’t forget just how high the % of negative equity is right now. 28.4% plus the near negative equity #’s out there. Ugly.

Yeah, real estate prices vary in various areas like California and New York. But my philosophy is if you can’t afford a given area, move to a cheaper area that is more affordable.

[earlyretirement]

It certainly won’t help with home prices in the range you are talking about Rich from $600,000 to $900,000. I’m not sure how anyone can try to even look at it as it being nothing less than a big negative for home prices. That’s why the realtor lobby group is fighting it so viciously….

It’s not going to help things at the higher end of the market and the NAR knows it.

Personally I think it’s a healthy development. It’s healthy that they are working to ease out of the market and as they do, loans should get more difficult to get and as they do it will put more pressure on home prices.

Economics 101.

I’m not saying they will cause prices to plummet because I don’t think they will. But no one can argue it’s a positive development for home prices and the direction of them.

Let’s be honest….. guys like that flight attendant have no business buying a $700,000+ house in the first place and the reduction of the loan limits will help prevent people like him from buying more than they can afford.

Don’t forget just how high the % of negative equity is right now. 28.4% plus the near negative equity #’s out there. Ugly.

Yeah, real estate prices vary in various areas like California and New York. But my philosophy is if you can’t afford a given area, move to a cheaper area that is more affordable.

[earlyretirement]

It certainly won’t help with home prices in the range you are talking about Rich from $600,000 to $900,000. I’m not sure how anyone can try to even look at it as it being nothing less than a big negative for home prices. That’s why the realtor lobby group is fighting it so viciously….

It’s not going to help things at the higher end of the market and the NAR knows it.

Personally I think it’s a healthy development. It’s healthy that they are working to ease out of the market and as they do, loans should get more difficult to get and as they do it will put more pressure on home prices.

Economics 101.

I’m not saying they will cause prices to plummet because I don’t think they will. But no one can argue it’s a positive development for home prices and the direction of them.

Let’s be honest….. guys like that flight attendant have no business buying a $700,000+ house in the first place and the reduction of the loan limits will help prevent people like him from buying more than they can afford.

Don’t forget just how high the % of negative equity is right now. 28.4% plus the near negative equity #’s out there. Ugly.

Yeah, real estate prices vary in various areas like California and New York. But my philosophy is if you can’t afford a given area, move to a cheaper area that is more affordable.

[earlyretirement]

It certainly won’t help with home prices in the range you are talking about Rich from $600,000 to $900,000. I’m not sure how anyone can try to even look at it as it being nothing less than a big negative for home prices. That’s why the realtor lobby group is fighting it so viciously….

It’s not going to help things at the higher end of the market and the NAR knows it.

Personally I think it’s a healthy development. It’s healthy that they are working to ease out of the market and as they do, loans should get more difficult to get and as they do it will put more pressure on home prices.

Economics 101.

I’m not saying they will cause prices to plummet because I don’t think they will. But no one can argue it’s a positive development for home prices and the direction of them.

Let’s be honest….. guys like that flight attendant have no business buying a $700,000+ house in the first place and the reduction of the loan limits will help prevent people like him from buying more than they can afford.

Don’t forget just how high the % of negative equity is right now. 28.4% plus the near negative equity #’s out there. Ugly.

Yeah, real estate prices vary in various areas like California and New York. But my philosophy is if you can’t afford a given area, move to a cheaper area that is more affordable.

[earlyretirement]

It certainly won’t help with home prices in the range you are talking about Rich from $600,000 to $900,000. I’m not sure how anyone can try to even look at it as it being nothing less than a big negative for home prices. That’s why the realtor lobby group is fighting it so viciously….

It’s not going to help things at the higher end of the market and the NAR knows it.

Personally I think it’s a healthy development. It’s healthy that they are working to ease out of the market and as they do, loans should get more difficult to get and as they do it will put more pressure on home prices.

Economics 101.

I’m not saying they will cause prices to plummet because I don’t think they will. But no one can argue it’s a positive development for home prices and the direction of them.

Let’s be honest….. guys like that flight attendant have no business buying a $700,000+ house in the first place and the reduction of the loan limits will help prevent people like him from buying more than they can afford.

Don’t forget just how high the % of negative equity is right now. 28.4% plus the near negative equity #’s out there. Ugly.

Yeah, real estate prices vary in various areas like California and New York. But my philosophy is if you can’t afford a given area, move to a cheaper area that is more affordable.

[Author]

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