[(former)FormerSanDiegan]

[quote=poorsaver]It’s peculiar how rents could fall when demand is strong due to record breaking foreclosures. I’m in the eastern part of LA county and let me tell you rents here are certainly not going down. 1300 sq. ft. 45 yr. old POS still getting $2000 a month minimum. Sad.[/quote]

I was driving around in West LA last week and noticed a preponderance of for rent or lease signs. This area is much more influenced by jobs than foreclosure refugees.

[(former)FormerSanDiegan]

[quote=poorsaver]It’s peculiar how rents could fall when demand is strong due to record breaking foreclosures. I’m in the eastern part of LA county and let me tell you rents here are certainly not going down. 1300 sq. ft. 45 yr. old POS still getting $2000 a month minimum. Sad.[/quote]

I was driving around in West LA last week and noticed a preponderance of for rent or lease signs. This area is much more influenced by jobs than foreclosure refugees.

[(former)FormerSanDiegan]

[quote=DWCAP]’He recently used Craigslist, a popular community website, to advertise a one-bedroom apartment on Federal Avenue in West L.A. Price: $1,495 a month. When no one bit, he dropped it to $1,395. When the vacancy hit the two-month mark, McCabe dropped it another $100 and found a renter.’
-LA times article posted above.

Now, lets do the math. Assuming rental income over 1 year.

10 months X 1495/month = 14’950
12 months X 1295/month = 15’540

This LL lost $550 in potental rental income because it was priced too high. Not to mention the cash flow impact assuming this LL had a morgage. I know this wont go over well here, but some times I think LL get alittle caught up in the idea that “my place is special”.

[/quote]

I doubt that the McCabe, the president of property management firm Century West Properties really thinks that a 1-BR apartment in West LA is “special”.

[(former)FormerSanDiegan]

[quote=DWCAP]’He recently used Craigslist, a popular community website, to advertise a one-bedroom apartment on Federal Avenue in West L.A. Price: $1,495 a month. When no one bit, he dropped it to $1,395. When the vacancy hit the two-month mark, McCabe dropped it another $100 and found a renter.’
-LA times article posted above.

Now, lets do the math. Assuming rental income over 1 year.

10 months X 1495/month = 14’950
12 months X 1295/month = 15’540

This LL lost $550 in potental rental income because it was priced too high. Not to mention the cash flow impact assuming this LL had a morgage. I know this wont go over well here, but some times I think LL get alittle caught up in the idea that “my place is special”.

[/quote]

I doubt that the McCabe, the president of property management firm Century West Properties really thinks that a 1-BR apartment in West LA is “special”.

[(former)FormerSanDiegan]

[quote=DWCAP]’He recently used Craigslist, a popular community website, to advertise a one-bedroom apartment on Federal Avenue in West L.A. Price: $1,495 a month. When no one bit, he dropped it to $1,395. When the vacancy hit the two-month mark, McCabe dropped it another $100 and found a renter.’
-LA times article posted above.

Now, lets do the math. Assuming rental income over 1 year.

10 months X 1495/month = 14’950
12 months X 1295/month = 15’540

This LL lost $550 in potental rental income because it was priced too high. Not to mention the cash flow impact assuming this LL had a morgage. I know this wont go over well here, but some times I think LL get alittle caught up in the idea that “my place is special”.

[/quote]

I doubt that the McCabe, the president of property management firm Century West Properties really thinks that a 1-BR apartment in West LA is “special”.

[(former)FormerSanDiegan]

[quote=DWCAP]’He recently used Craigslist, a popular community website, to advertise a one-bedroom apartment on Federal Avenue in West L.A. Price: $1,495 a month. When no one bit, he dropped it to $1,395. When the vacancy hit the two-month mark, McCabe dropped it another $100 and found a renter.’
-LA times article posted above.

Now, lets do the math. Assuming rental income over 1 year.

10 months X 1495/month = 14’950
12 months X 1295/month = 15’540

This LL lost $550 in potental rental income because it was priced too high. Not to mention the cash flow impact assuming this LL had a morgage. I know this wont go over well here, but some times I think LL get alittle caught up in the idea that “my place is special”.

[/quote]

I doubt that the McCabe, the president of property management firm Century West Properties really thinks that a 1-BR apartment in West LA is “special”.

[(former)FormerSanDiegan]

[quote=DWCAP]’He recently used Craigslist, a popular community website, to advertise a one-bedroom apartment on Federal Avenue in West L.A. Price: $1,495 a month. When no one bit, he dropped it to $1,395. When the vacancy hit the two-month mark, McCabe dropped it another $100 and found a renter.’
-LA times article posted above.

Now, lets do the math. Assuming rental income over 1 year.

10 months X 1495/month = 14’950
12 months X 1295/month = 15’540

This LL lost $550 in potental rental income because it was priced too high. Not to mention the cash flow impact assuming this LL had a morgage. I know this wont go over well here, but some times I think LL get alittle caught up in the idea that “my place is special”.

[/quote]

I doubt that the McCabe, the president of property management firm Century West Properties really thinks that a 1-BR apartment in West LA is “special”.

[(former)FormerSanDiegan]

I am bullish in the longer-term (5+ years). But not bullish for the next year.

Here’s why:
From an affordability perspective (monthly payment to income ratio), the San Diego market is less expensive today than almost any point in the past 30 years. We are also now below the average price to income over the past 30 years.

I can see prices going lower and perhaps 2-3 years before we experience 2008 prices again to the upside. But long-term trends tend to win out. So, if I had sufficient cash to deploy (which I don’t) I would buy a SFH each year starting this year for the next 5 years. Since I don’t have sufficient cash I will wait for a safer point. Perhaps late 2010, unless I too find myself in line at the local soup kitchen.

[(former)FormerSanDiegan]

I am bullish in the longer-term (5+ years). But not bullish for the next year.

Here’s why:
From an affordability perspective (monthly payment to income ratio), the San Diego market is less expensive today than almost any point in the past 30 years. We are also now below the average price to income over the past 30 years.

I can see prices going lower and perhaps 2-3 years before we experience 2008 prices again to the upside. But long-term trends tend to win out. So, if I had sufficient cash to deploy (which I don’t) I would buy a SFH each year starting this year for the next 5 years. Since I don’t have sufficient cash I will wait for a safer point. Perhaps late 2010, unless I too find myself in line at the local soup kitchen.

[(former)FormerSanDiegan]

I am bullish in the longer-term (5+ years). But not bullish for the next year.

Here’s why:
From an affordability perspective (monthly payment to income ratio), the San Diego market is less expensive today than almost any point in the past 30 years. We are also now below the average price to income over the past 30 years.

I can see prices going lower and perhaps 2-3 years before we experience 2008 prices again to the upside. But long-term trends tend to win out. So, if I had sufficient cash to deploy (which I don’t) I would buy a SFH each year starting this year for the next 5 years. Since I don’t have sufficient cash I will wait for a safer point. Perhaps late 2010, unless I too find myself in line at the local soup kitchen.

[(former)FormerSanDiegan]

I am bullish in the longer-term (5+ years). But not bullish for the next year.

Here’s why:
From an affordability perspective (monthly payment to income ratio), the San Diego market is less expensive today than almost any point in the past 30 years. We are also now below the average price to income over the past 30 years.

I can see prices going lower and perhaps 2-3 years before we experience 2008 prices again to the upside. But long-term trends tend to win out. So, if I had sufficient cash to deploy (which I don’t) I would buy a SFH each year starting this year for the next 5 years. Since I don’t have sufficient cash I will wait for a safer point. Perhaps late 2010, unless I too find myself in line at the local soup kitchen.

[(former)FormerSanDiegan]

I am bullish in the longer-term (5+ years). But not bullish for the next year.

Here’s why:
From an affordability perspective (monthly payment to income ratio), the San Diego market is less expensive today than almost any point in the past 30 years. We are also now below the average price to income over the past 30 years.

I can see prices going lower and perhaps 2-3 years before we experience 2008 prices again to the upside. But long-term trends tend to win out. So, if I had sufficient cash to deploy (which I don’t) I would buy a SFH each year starting this year for the next 5 years. Since I don’t have sufficient cash I will wait for a safer point. Perhaps late 2010, unless I too find myself in line at the local soup kitchen.

[(former)FormerSanDiegan]

[quote=4plexowner]”By any definition I could find”

seems like a complete definition would address the ability of the buyers to actually buy the item in question

let’s see, no more:
– zero down loans
– stated income (liars) loans
– cheap jumbo loans
– inflated appraisals

yep, sounds like a buyer’s market to me too[/quote]

“… ability of buyers to actually buy the item in question …”

BY definition if they are buyers they have the ability to buy. Otherwise they are onlookers.

As to whether one should buy currently ? Well that is another question altogether, and should not be confused with the term “buyer’s market”

But as to whether it’s a buyer’s market in economic terms. Of this there is no doubt.

[(former)FormerSanDiegan]

[quote=4plexowner]”By any definition I could find”

seems like a complete definition would address the ability of the buyers to actually buy the item in question

let’s see, no more:
– zero down loans
– stated income (liars) loans
– cheap jumbo loans
– inflated appraisals

yep, sounds like a buyer’s market to me too[/quote]

“… ability of buyers to actually buy the item in question …”

BY definition if they are buyers they have the ability to buy. Otherwise they are onlookers.

As to whether one should buy currently ? Well that is another question altogether, and should not be confused with the term “buyer’s market”

But as to whether it’s a buyer’s market in economic terms. Of this there is no doubt.

[(former)FormerSanDiegan]

[quote=4plexowner]”By any definition I could find”

seems like a complete definition would address the ability of the buyers to actually buy the item in question

let’s see, no more:
– zero down loans
– stated income (liars) loans
– cheap jumbo loans
– inflated appraisals

yep, sounds like a buyer’s market to me too[/quote]

“… ability of buyers to actually buy the item in question …”

BY definition if they are buyers they have the ability to buy. Otherwise they are onlookers.

As to whether one should buy currently ? Well that is another question altogether, and should not be confused with the term “buyer’s market”

But as to whether it’s a buyer’s market in economic terms. Of this there is no doubt.

[Author]

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