[(former)FormerSanDiegan]

[quote=peterb]Takes a job to get a loan, to buy the house. And herein lies the problem for the future.

Loan mods need to have cramdowns, otherwise they’re not attractive alternatives to letting the property go back to the lender.

Yes, Japan managed to spread the problem over many years. Price corrections will not be denied by the market.[/quote]

Japan did not respond by turning on the printing presses in the same way the US has. As you point out the market will not be denied. One important aspect of that market is the supply of money.

Look at the chart in the link below.

http://www.pcasd.com/us_not_going_down_japans_road

[(former)FormerSanDiegan]

[quote=peterb]Takes a job to get a loan, to buy the house. And herein lies the problem for the future.

Loan mods need to have cramdowns, otherwise they’re not attractive alternatives to letting the property go back to the lender.

Yes, Japan managed to spread the problem over many years. Price corrections will not be denied by the market.[/quote]

Japan did not respond by turning on the printing presses in the same way the US has. As you point out the market will not be denied. One important aspect of that market is the supply of money.

Look at the chart in the link below.

http://www.pcasd.com/us_not_going_down_japans_road

[(former)FormerSanDiegan]

Never heard of this.
I live about 130 miles from my rental property.

[(former)FormerSanDiegan]

Never heard of this.
I live about 130 miles from my rental property.

[(former)FormerSanDiegan]

Never heard of this.
I live about 130 miles from my rental property.

[(former)FormerSanDiegan]

Never heard of this.
I live about 130 miles from my rental property.

[(former)FormerSanDiegan]

Never heard of this.
I live about 130 miles from my rental property.

[(former)FormerSanDiegan]

[quote=davelj][quote=meadandale]The $400 billion figure was the total value of assessed property in CA, last I read. It basically doubled since about 1999.[/quote]

Also incorrect. By a large margin. If the average tax collected is approximately 1% of assessed values, then the total value of assessed property in CA is more like $4.5 trillion.

C’mon folks. Think about these numbers for just a second before guessing. Zeroes and decimals will set you free.[/quote]

Another good reason to cut school spending 😉

[(former)FormerSanDiegan]

[quote=davelj][quote=meadandale]The $400 billion figure was the total value of assessed property in CA, last I read. It basically doubled since about 1999.[/quote]

Also incorrect. By a large margin. If the average tax collected is approximately 1% of assessed values, then the total value of assessed property in CA is more like $4.5 trillion.

C’mon folks. Think about these numbers for just a second before guessing. Zeroes and decimals will set you free.[/quote]

Another good reason to cut school spending 😉

[(former)FormerSanDiegan]

[quote=davelj][quote=meadandale]The $400 billion figure was the total value of assessed property in CA, last I read. It basically doubled since about 1999.[/quote]

Also incorrect. By a large margin. If the average tax collected is approximately 1% of assessed values, then the total value of assessed property in CA is more like $4.5 trillion.

C’mon folks. Think about these numbers for just a second before guessing. Zeroes and decimals will set you free.[/quote]

Another good reason to cut school spending 😉

[(former)FormerSanDiegan]

[quote=davelj][quote=meadandale]The $400 billion figure was the total value of assessed property in CA, last I read. It basically doubled since about 1999.[/quote]

Also incorrect. By a large margin. If the average tax collected is approximately 1% of assessed values, then the total value of assessed property in CA is more like $4.5 trillion.

C’mon folks. Think about these numbers for just a second before guessing. Zeroes and decimals will set you free.[/quote]

Another good reason to cut school spending 😉

[(former)FormerSanDiegan]

[quote=davelj][quote=meadandale]The $400 billion figure was the total value of assessed property in CA, last I read. It basically doubled since about 1999.[/quote]

Also incorrect. By a large margin. If the average tax collected is approximately 1% of assessed values, then the total value of assessed property in CA is more like $4.5 trillion.

C’mon folks. Think about these numbers for just a second before guessing. Zeroes and decimals will set you free.[/quote]

Another good reason to cut school spending 😉

[(former)FormerSanDiegan]

Independent of interest rates, Point Loma, being on the high end may still be defying gravity a little. I have not been tracking there as carefully as places like Clairemont/Bay Park because I suspect the bottom hits these communities well before Point Loma. But, the other dynamic is that except for Liberty Station, many parts of Point Loma have become more of an old-money long-time resident area, especially Sunset Cliffs.

I think CA Renter has the right approach wrt how oleveraged you will be. The more leverage (lower down payment) the sooner you should buy.

But, interest rates spike if you go into Jumbo Jumbo land (above Jumbo-conforming).

If you can comfortably afford to live there at these prices and interest rates … ?

Tough call, but the penalty for waiting another year or so is not likely to be severe.

[(former)FormerSanDiegan]

Independent of interest rates, Point Loma, being on the high end may still be defying gravity a little. I have not been tracking there as carefully as places like Clairemont/Bay Park because I suspect the bottom hits these communities well before Point Loma. But, the other dynamic is that except for Liberty Station, many parts of Point Loma have become more of an old-money long-time resident area, especially Sunset Cliffs.

I think CA Renter has the right approach wrt how oleveraged you will be. The more leverage (lower down payment) the sooner you should buy.

But, interest rates spike if you go into Jumbo Jumbo land (above Jumbo-conforming).

If you can comfortably afford to live there at these prices and interest rates … ?

Tough call, but the penalty for waiting another year or so is not likely to be severe.

[(former)FormerSanDiegan]

Independent of interest rates, Point Loma, being on the high end may still be defying gravity a little. I have not been tracking there as carefully as places like Clairemont/Bay Park because I suspect the bottom hits these communities well before Point Loma. But, the other dynamic is that except for Liberty Station, many parts of Point Loma have become more of an old-money long-time resident area, especially Sunset Cliffs.

I think CA Renter has the right approach wrt how oleveraged you will be. The more leverage (lower down payment) the sooner you should buy.

But, interest rates spike if you go into Jumbo Jumbo land (above Jumbo-conforming).

If you can comfortably afford to live there at these prices and interest rates … ?

Tough call, but the penalty for waiting another year or so is not likely to be severe.

[Author]

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