[HLS]

YES, you were “lucky” along with millions of others, but most people don’t see it as luck, but now an entitlement to easy street.

Just because there have been 9 cycles, doesn’t guarantee that there will be a 10th.

The psychology of people thinking that it has to happen can actually make it happen, but if that same psychology turns, it won’t happen. If psychology turns in the stock market, watch out below.

Houses are cheaper than they were 2 and 3 years ago. Mortgage rates are lower than they were 2 and 3 years ago,
actual payments are less than they were 2 and 3 years ago, SO where are the buyers ??

It’s a bargain now compared to 2 and 3 years ago, but the psychology has changed 180 degrees, and people who are smart are concerned, and those that aren’t concerned don’t understand what is happening.

Where are all the genius “investors” who went to seminars and bought books and tapes on RE investing ?
Since prices are cheaper now, the market should be booming, but it’s not.

The party is over, but some people are just arriving, thinking that they aren’t too late and there is more fun to come.

The band has packed up, the liquor bottles are empty, there is trash all over the place. There’s a mess that needs to be cleaned up.

Anybody who buys a house today is helping to clean up that mess and saving somebody else the trouble.

[HLS]

YES, you were “lucky” along with millions of others, but most people don’t see it as luck, but now an entitlement to easy street.

Just because there have been 9 cycles, doesn’t guarantee that there will be a 10th.

The psychology of people thinking that it has to happen can actually make it happen, but if that same psychology turns, it won’t happen. If psychology turns in the stock market, watch out below.

Houses are cheaper than they were 2 and 3 years ago. Mortgage rates are lower than they were 2 and 3 years ago,
actual payments are less than they were 2 and 3 years ago, SO where are the buyers ??

It’s a bargain now compared to 2 and 3 years ago, but the psychology has changed 180 degrees, and people who are smart are concerned, and those that aren’t concerned don’t understand what is happening.

Where are all the genius “investors” who went to seminars and bought books and tapes on RE investing ?
Since prices are cheaper now, the market should be booming, but it’s not.

The party is over, but some people are just arriving, thinking that they aren’t too late and there is more fun to come.

The band has packed up, the liquor bottles are empty, there is trash all over the place. There’s a mess that needs to be cleaned up.

Anybody who buys a house today is helping to clean up that mess and saving somebody else the trouble.

[HLS]

I think that using downtown SD condos as an example of anything is a poor choice.

There is a very thin market of people who would want to live in a multi story urban building with limited parking.
It’s a hassle with dogs, and kids, and schools.

I don’t see rental prices for suburban houses falling that much. The support of rental prices is what will determine the real value of a house. (The value doesn’t determine the rental market)

People can afford current market rents with $50K-$80K+ gross income, it’s mortgage payments that they cannot afford.

Many people who had $3000+ monthly mortgage payments are happy to pay $2000+ for a rental and not have to worry about maintenance and insurance.

This isn’t the 90’s downturn when people lost jobs and then lost houses. Most people that are losing houses still have jobs, and they need a place to live.

Decent rentals in the $1600-$3000 monthly rent range are very affordable to many.
McMansions were never designed to be sensible rentals.
Foolish people tried to make them that.

In my younger days, the good rentals were called “bread and butter” units, usually never more than a 2 or 3 bedroom homes in average neighborhoods.
Having HOA’s and condo assn fees for a rental was not a popular choice.

People didn’t talk about buying SFR’s in high end neighborhoods as investments in those days. The concept of being a landlord has changed with the times, and many people are just out of touch with reality.

[HLS]

I think that using downtown SD condos as an example of anything is a poor choice.

There is a very thin market of people who would want to live in a multi story urban building with limited parking.
It’s a hassle with dogs, and kids, and schools.

I don’t see rental prices for suburban houses falling that much. The support of rental prices is what will determine the real value of a house. (The value doesn’t determine the rental market)

People can afford current market rents with $50K-$80K+ gross income, it’s mortgage payments that they cannot afford.

Many people who had $3000+ monthly mortgage payments are happy to pay $2000+ for a rental and not have to worry about maintenance and insurance.

This isn’t the 90’s downturn when people lost jobs and then lost houses. Most people that are losing houses still have jobs, and they need a place to live.

Decent rentals in the $1600-$3000 monthly rent range are very affordable to many.
McMansions were never designed to be sensible rentals.
Foolish people tried to make them that.

In my younger days, the good rentals were called “bread and butter” units, usually never more than a 2 or 3 bedroom homes in average neighborhoods.
Having HOA’s and condo assn fees for a rental was not a popular choice.

People didn’t talk about buying SFR’s in high end neighborhoods as investments in those days. The concept of being a landlord has changed with the times, and many people are just out of touch with reality.

[HLS]

I think that using downtown SD condos as an example of anything is a poor choice.

There is a very thin market of people who would want to live in a multi story urban building with limited parking.
It’s a hassle with dogs, and kids, and schools.

I don’t see rental prices for suburban houses falling that much. The support of rental prices is what will determine the real value of a house. (The value doesn’t determine the rental market)

People can afford current market rents with $50K-$80K+ gross income, it’s mortgage payments that they cannot afford.

Many people who had $3000+ monthly mortgage payments are happy to pay $2000+ for a rental and not have to worry about maintenance and insurance.

This isn’t the 90’s downturn when people lost jobs and then lost houses. Most people that are losing houses still have jobs, and they need a place to live.

Decent rentals in the $1600-$3000 monthly rent range are very affordable to many.
McMansions were never designed to be sensible rentals.
Foolish people tried to make them that.

In my younger days, the good rentals were called “bread and butter” units, usually never more than a 2 or 3 bedroom homes in average neighborhoods.
Having HOA’s and condo assn fees for a rental was not a popular choice.

People didn’t talk about buying SFR’s in high end neighborhoods as investments in those days. The concept of being a landlord has changed with the times, and many people are just out of touch with reality.

[HLS]

I think that using downtown SD condos as an example of anything is a poor choice.

There is a very thin market of people who would want to live in a multi story urban building with limited parking.
It’s a hassle with dogs, and kids, and schools.

I don’t see rental prices for suburban houses falling that much. The support of rental prices is what will determine the real value of a house. (The value doesn’t determine the rental market)

People can afford current market rents with $50K-$80K+ gross income, it’s mortgage payments that they cannot afford.

Many people who had $3000+ monthly mortgage payments are happy to pay $2000+ for a rental and not have to worry about maintenance and insurance.

This isn’t the 90’s downturn when people lost jobs and then lost houses. Most people that are losing houses still have jobs, and they need a place to live.

Decent rentals in the $1600-$3000 monthly rent range are very affordable to many.
McMansions were never designed to be sensible rentals.
Foolish people tried to make them that.

In my younger days, the good rentals were called “bread and butter” units, usually never more than a 2 or 3 bedroom homes in average neighborhoods.
Having HOA’s and condo assn fees for a rental was not a popular choice.

People didn’t talk about buying SFR’s in high end neighborhoods as investments in those days. The concept of being a landlord has changed with the times, and many people are just out of touch with reality.

[HLS]

I think that using downtown SD condos as an example of anything is a poor choice.

There is a very thin market of people who would want to live in a multi story urban building with limited parking.
It’s a hassle with dogs, and kids, and schools.

I don’t see rental prices for suburban houses falling that much. The support of rental prices is what will determine the real value of a house. (The value doesn’t determine the rental market)

People can afford current market rents with $50K-$80K+ gross income, it’s mortgage payments that they cannot afford.

Many people who had $3000+ monthly mortgage payments are happy to pay $2000+ for a rental and not have to worry about maintenance and insurance.

This isn’t the 90’s downturn when people lost jobs and then lost houses. Most people that are losing houses still have jobs, and they need a place to live.

Decent rentals in the $1600-$3000 monthly rent range are very affordable to many.
McMansions were never designed to be sensible rentals.
Foolish people tried to make them that.

In my younger days, the good rentals were called “bread and butter” units, usually never more than a 2 or 3 bedroom homes in average neighborhoods.
Having HOA’s and condo assn fees for a rental was not a popular choice.

People didn’t talk about buying SFR’s in high end neighborhoods as investments in those days. The concept of being a landlord has changed with the times, and many people are just out of touch with reality.

[HLS]

Allan, you may have forgotten that I live in Fallbrook and am in the mortgage biz and have an office in Temecula/Murrieta.

I never did a neg-am loan and am trying to wake people up with the reality of life and the crappy situations that others put them in.

Some people just cannot be saved, but are “waiting to see what happens” they are hoping/wishing/praying.

I remember Temecula in the 1960’s, it was a fun place to visit as a kid. We called it Rancho California back then.

I don’t find the decline amazing at all, I’ve expected it for years. Denial will catch up with many people sooner rather than later, continuing the downward spiral.

[HLS]

Allan, you may have forgotten that I live in Fallbrook and am in the mortgage biz and have an office in Temecula/Murrieta.

I never did a neg-am loan and am trying to wake people up with the reality of life and the crappy situations that others put them in.

Some people just cannot be saved, but are “waiting to see what happens” they are hoping/wishing/praying.

I remember Temecula in the 1960’s, it was a fun place to visit as a kid. We called it Rancho California back then.

I don’t find the decline amazing at all, I’ve expected it for years. Denial will catch up with many people sooner rather than later, continuing the downward spiral.

[HLS]

Allan, you may have forgotten that I live in Fallbrook and am in the mortgage biz and have an office in Temecula/Murrieta.

I never did a neg-am loan and am trying to wake people up with the reality of life and the crappy situations that others put them in.

Some people just cannot be saved, but are “waiting to see what happens” they are hoping/wishing/praying.

I remember Temecula in the 1960’s, it was a fun place to visit as a kid. We called it Rancho California back then.

I don’t find the decline amazing at all, I’ve expected it for years. Denial will catch up with many people sooner rather than later, continuing the downward spiral.

[HLS]

Allan, you may have forgotten that I live in Fallbrook and am in the mortgage biz and have an office in Temecula/Murrieta.

I never did a neg-am loan and am trying to wake people up with the reality of life and the crappy situations that others put them in.

Some people just cannot be saved, but are “waiting to see what happens” they are hoping/wishing/praying.

I remember Temecula in the 1960’s, it was a fun place to visit as a kid. We called it Rancho California back then.

I don’t find the decline amazing at all, I’ve expected it for years. Denial will catch up with many people sooner rather than later, continuing the downward spiral.

[HLS]

Allan, you may have forgotten that I live in Fallbrook and am in the mortgage biz and have an office in Temecula/Murrieta.

I never did a neg-am loan and am trying to wake people up with the reality of life and the crappy situations that others put them in.

Some people just cannot be saved, but are “waiting to see what happens” they are hoping/wishing/praying.

I remember Temecula in the 1960’s, it was a fun place to visit as a kid. We called it Rancho California back then.

I don’t find the decline amazing at all, I’ve expected it for years. Denial will catch up with many people sooner rather than later, continuing the downward spiral.

[HLS]

“…if you can take riding it out, take it off the market and stop trying to sell something unsellable”

THAT is denial…..

The market is always good when there are buyers, it’s the bubbles that were the problem.

This is the root of the crisis. The carrying costs today are not affordable to many who bought in 2004-2006. They can barely afford their current payment, and looking straight into an 18 wheeler heading straight for them when their ARM adjusts.

The house CAN be sold, but only at today’s price. It’s DENIAL to think that it is really worth more, because it isn’t. Hanging on is just a gamble.

The sickness of human nature is that people think they are entitled to break even (or make money). Nobody cares what anybody paid for their house, except them. It’s worth what it’s worth today. Same applies to stocks. Hanging on to not take a loss is often a worse decision than having bought in the first place.

Nobody likes to admit they were wrong and don’t understand the concept of “cutting their loss”

The biggest mistake many people are making is throwing good money after bad by continuing to pay a dollar for something that is worth 50c, thinking that they will eventually get their dollar back. They are going to waste time and money.

Some savings and retirement accounts have been depleted because of DENIAL. Some people will never recover.

Down the road, there will be people who will be living on SSI, talking about how rich they had been and the homes that they “owned” before the depression came.

There is a good chance that it’s going to be worth 40c long before it’s worth 60c, and it may never be worth $1.00 again, or not for a very long time.

[HLS]

“…if you can take riding it out, take it off the market and stop trying to sell something unsellable”

THAT is denial…..

The market is always good when there are buyers, it’s the bubbles that were the problem.

This is the root of the crisis. The carrying costs today are not affordable to many who bought in 2004-2006. They can barely afford their current payment, and looking straight into an 18 wheeler heading straight for them when their ARM adjusts.

The house CAN be sold, but only at today’s price. It’s DENIAL to think that it is really worth more, because it isn’t. Hanging on is just a gamble.

The sickness of human nature is that people think they are entitled to break even (or make money). Nobody cares what anybody paid for their house, except them. It’s worth what it’s worth today. Same applies to stocks. Hanging on to not take a loss is often a worse decision than having bought in the first place.

Nobody likes to admit they were wrong and don’t understand the concept of “cutting their loss”

The biggest mistake many people are making is throwing good money after bad by continuing to pay a dollar for something that is worth 50c, thinking that they will eventually get their dollar back. They are going to waste time and money.

Some savings and retirement accounts have been depleted because of DENIAL. Some people will never recover.

Down the road, there will be people who will be living on SSI, talking about how rich they had been and the homes that they “owned” before the depression came.

There is a good chance that it’s going to be worth 40c long before it’s worth 60c, and it may never be worth $1.00 again, or not for a very long time.

[HLS]

“…if you can take riding it out, take it off the market and stop trying to sell something unsellable”

THAT is denial…..

The market is always good when there are buyers, it’s the bubbles that were the problem.

This is the root of the crisis. The carrying costs today are not affordable to many who bought in 2004-2006. They can barely afford their current payment, and looking straight into an 18 wheeler heading straight for them when their ARM adjusts.

The house CAN be sold, but only at today’s price. It’s DENIAL to think that it is really worth more, because it isn’t. Hanging on is just a gamble.

The sickness of human nature is that people think they are entitled to break even (or make money). Nobody cares what anybody paid for their house, except them. It’s worth what it’s worth today. Same applies to stocks. Hanging on to not take a loss is often a worse decision than having bought in the first place.

Nobody likes to admit they were wrong and don’t understand the concept of “cutting their loss”

The biggest mistake many people are making is throwing good money after bad by continuing to pay a dollar for something that is worth 50c, thinking that they will eventually get their dollar back. They are going to waste time and money.

Some savings and retirement accounts have been depleted because of DENIAL. Some people will never recover.

Down the road, there will be people who will be living on SSI, talking about how rich they had been and the homes that they “owned” before the depression came.

There is a good chance that it’s going to be worth 40c long before it’s worth 60c, and it may never be worth $1.00 again, or not for a very long time.

[Author]

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