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(former)FormerSanDiegan
Participant[quote=paramount]That’s what the prop mgmt kept telling me – the price is fine.[/quote]
Maybe. But if you had dropped the rent three weeks ago and had a tenant move in 2-4 weeks before the ones that might ber moving in over the next few weeks, then you would have generated more cash over the year.
September 20, 2011 at 8:15 AM in reply to: CA demographic shifts in the coming years will favor cities over suburbia #729506Participant[quote=briansd1]
SF is not a very pretty city, if it weren’t for the topography and the ocean.
[/quote]
I agree
Same goes for Montana. It would be ugly except for those mountains and blue sky.
Also, the weather in San Diego would suck if it weren’t for the coolling effect of the Pacific Ocean.
Participant[quote=CA renter]
If not for the interventions, would his numbers be correct? That’s really the question we should be asking, IMHO.
[/quote]
If the factors that made his numbers incorrect did not exist, then yeah he would have been correct.
If companies would have hired instead of laying off employees our unemployment rate would be lower, too.
ParticipantDrop your rent by $50.
That may not seem like a lot to you, but tenants make decisions based on that (or smaller) amounts.
If it doesn’t lease out in a week or 10 days, drop it another $50.
Repeat until you get a tenant.
Don;t tell you mgmt company your strategy (otherwise they will tip off the tenant that the price will drop next week), just give them the order to drop the price when you want.
Participant[quote=sdrealtor]Mr Mortgage has been wrong early and often. I just checked the NOD rolls and any tsunami is still many months if not a year or more away around here if at all.[/quote]
exactly!
Participant[quote=GH][quote=FormerSanDiegan]Dear svelte –
Your tenant has been imprisoned and has abandoned your property. He does have savings and is willing to pay the remainder of the lease, God willing. However, to do so he needs you to wire $100 from your bank account so that his lawyer, the Honorable Mr. Nairegin Macs can set up the monthly wire transfers. Please provide your banking information as soon as possible. Thanmks you and may the Lord Bless You.
Sincerely,
The Honorable Nairegin Macs, Esq.[/quote]
This sounds like a version of the Nigerian Scam.
Do NOT give your bank account or your money will disappear (ALL OF IT!!!)[/quote]
Great Advice!
Especially since The dude’s name “Nairegin Macs” is Nigerian Scam spelled backwards.P.S. – Perhaps we should use some special smiley face logo here to denote satire 😮
ParticipantI think that this upcoming wave of foreclosures must be the real tsunami coming, mainly because that Mr Mortgage guy, Mark Hanson, has inside information and he is quoted in the latest round of articles.
ParticipantDear svelte –
Your tenant has been imprisoned and has abandoned your property. He does have savings and is willing to pay the remainder of the lease, God willing. However, to do so he needs you to wire $100 from your bank account so that his lawyer, the Honorable Mr. Nairegin Macs can set up the monthly wire transfers. Please provide your banking information as soon as possible. Thanmks you and may the Lord Bless You.
Sincerely,
The Honorable Nairegin Macs, Esq.
ParticipantI predict that there will be a 6.0 or larger tomorrow.
ParticipantDid the power go out in LA, too?
ParticipantThe real reason for the power outage was the part of the speech where he proposed selling San Diego county to Mexico for $400 Billion to offset the cost of the program.
ParticipantHere is a re-post of something I wrote back in February with some historical info …
If rates changed instantaneously by 1% and no other factors in the economy changed, then the price would be inversely related to rate.
However, rate changes never happen in a vaccum. Rates respond to underlying economics, so changes in home prices rarely respond as you suggest.
Example #1: From 2006 to 2010, 30-yr mortgage rates declined from around 6.5% to less than 5%.
Did prices increase by 10%+ during that period ? Hell No. Prices declined at the steepest rates since the depression.Example #2: In late 2002 30-yr mortgage interest rates were at 6%. BY mid 2006 they were 6.5%.
Were home prices flat during that period ? No. They were quite bubblicious.Example #3: From 1990 to 1995 rates dropped from 10% + to about 7.5%. Did prices rise during this period ? Not really.
This period current decline) in home prices in post-war California.Example #4: In 1972, 30-yr mortgage rates were about 7.4%. By 1989, rates were above 10%. What did home prices do doing this period ?
Hint: they did not decline.The simple point is that it’s not that simple. Rates do not change in a vacuum. As a thought experiment prices are inversely proportional to rates, but in reality, it is not neccessarily so.
Participantdavelj makes some excellent points, as to the other factors involved (namely rents).
People tend to look at how interest rates relate to payments. They correctly see that an increase in rates lowers the amount of property they might qualify for. However, people often make the mistake of extraolating this to the macroeconomy.
The mistake is assume that other factors remain constant (rent, income, inflation, etc).
Interest rates do not move in a vacuum.If prices were inversely proportional to interest rates, we should have seen significant increases in prices as rates fell from about 6% to near 3% over the past 6 years.
In fact, history tells us that interest rates and housing prices over long-term periods (e.g. 5 year periods) tend to move in the same direction.
The lay person might ask, “How can this happen if the amount of the loan I can afford decreases when rates go up ?” The answer is that over the long run rates tend to move up with inflation and down with disinflation (or outright deflation). Rates are low now because the economy is sluggish, joblessness is high. Rates historically increase when either the economy is on the upswing or inflation is present. In both cases (historically) home prices tend to move up.
Look at what prices did in the late 1960’s to the early 1980s as interest rates moved from 5 or 6 % to the teens.
An inverse relationship of home prices to interest rates is a fallacy.
ParticipantPerhaps this is what caused the incident…
[img_assist|nid=15348|title=Power Outage|desc=|link=node|align=left|width=256|height=192]
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