[joec]

Homes are selling because for a lot of folks, they are buying the homes to live it.

If there is a very long, slow dragged out down period, people are just buying homes and living in them. You can wait 3 years, 5 years, 10 years or 20 years for this housing thing to play itself out, but no one knows when the true bottom will be and if the numbers work for you compared to rent, maybe it’s not the worst thing to buy. Unlike rent, in 15 or 30 years (depending on your loan terms), you’ll actually own the place and will have no housing expense (other than prop taxes and maintenance).

I know we did. Unlike stocks, unfortunately, you have to have a place to live and some folks simply get tired of renting with all the downsides of that.

Wasn’t there an article here about interest rates also not really affecting housing prices much in the 80s? Personally, I don’t buy that higher rates will insanely drive housing prices to collapse since it didn’t in the past and folks will probably find ways around it (perhaps creative financing where they assume your low 4-5% loan through some other contract) and everyone moves on their merry way…

Here’s the first link that google came out with on interest rates and housing prices I found. Some blog, but there are other graphs out there I think showing no huge correlation:

http://tiny.cc/iile3

[joec]

Homes are selling because for a lot of folks, they are buying the homes to live it.

If there is a very long, slow dragged out down period, people are just buying homes and living in them. You can wait 3 years, 5 years, 10 years or 20 years for this housing thing to play itself out, but no one knows when the true bottom will be and if the numbers work for you compared to rent, maybe it’s not the worst thing to buy. Unlike rent, in 15 or 30 years (depending on your loan terms), you’ll actually own the place and will have no housing expense (other than prop taxes and maintenance).

I know we did. Unlike stocks, unfortunately, you have to have a place to live and some folks simply get tired of renting with all the downsides of that.

Wasn’t there an article here about interest rates also not really affecting housing prices much in the 80s? Personally, I don’t buy that higher rates will insanely drive housing prices to collapse since it didn’t in the past and folks will probably find ways around it (perhaps creative financing where they assume your low 4-5% loan through some other contract) and everyone moves on their merry way…

Here’s the first link that google came out with on interest rates and housing prices I found. Some blog, but there are other graphs out there I think showing no huge correlation:

http://tiny.cc/iile3

[joec]

Homes are selling because for a lot of folks, they are buying the homes to live it.

If there is a very long, slow dragged out down period, people are just buying homes and living in them. You can wait 3 years, 5 years, 10 years or 20 years for this housing thing to play itself out, but no one knows when the true bottom will be and if the numbers work for you compared to rent, maybe it’s not the worst thing to buy. Unlike rent, in 15 or 30 years (depending on your loan terms), you’ll actually own the place and will have no housing expense (other than prop taxes and maintenance).

I know we did. Unlike stocks, unfortunately, you have to have a place to live and some folks simply get tired of renting with all the downsides of that.

Wasn’t there an article here about interest rates also not really affecting housing prices much in the 80s? Personally, I don’t buy that higher rates will insanely drive housing prices to collapse since it didn’t in the past and folks will probably find ways around it (perhaps creative financing where they assume your low 4-5% loan through some other contract) and everyone moves on their merry way…

Here’s the first link that google came out with on interest rates and housing prices I found. Some blog, but there are other graphs out there I think showing no huge correlation:

http://tiny.cc/iile3

[joec]

The difference between a hands on worker and the CEO is the amount of money they can afford to lose and still keep their job…

I worked at a hosting company a long time ago and Intel thought about doing security and server farm hosting as well and did some data center build outs. Only thing they did was tour our facilities and try to steal how it was done…I think they left that industry as well (did they?).

Sometimes, large companies just seem want to merge for no other reason than to say they are doing something at their job and being busy…

[joec]

The difference between a hands on worker and the CEO is the amount of money they can afford to lose and still keep their job…

I worked at a hosting company a long time ago and Intel thought about doing security and server farm hosting as well and did some data center build outs. Only thing they did was tour our facilities and try to steal how it was done…I think they left that industry as well (did they?).

Sometimes, large companies just seem want to merge for no other reason than to say they are doing something at their job and being busy…

[joec]

The difference between a hands on worker and the CEO is the amount of money they can afford to lose and still keep their job…

I worked at a hosting company a long time ago and Intel thought about doing security and server farm hosting as well and did some data center build outs. Only thing they did was tour our facilities and try to steal how it was done…I think they left that industry as well (did they?).

Sometimes, large companies just seem want to merge for no other reason than to say they are doing something at their job and being busy…

[joec]

The difference between a hands on worker and the CEO is the amount of money they can afford to lose and still keep their job…

I worked at a hosting company a long time ago and Intel thought about doing security and server farm hosting as well and did some data center build outs. Only thing they did was tour our facilities and try to steal how it was done…I think they left that industry as well (did they?).

Sometimes, large companies just seem want to merge for no other reason than to say they are doing something at their job and being busy…

[joec]

The difference between a hands on worker and the CEO is the amount of money they can afford to lose and still keep their job…

I worked at a hosting company a long time ago and Intel thought about doing security and server farm hosting as well and did some data center build outs. Only thing they did was tour our facilities and try to steal how it was done…I think they left that industry as well (did they?).

Sometimes, large companies just seem want to merge for no other reason than to say they are doing something at their job and being busy…

[joec]

Another thing to consider is that the higher end never had that 100-200% increase like the south and east county areas. That said, it shouldn’t drop down as much since it never went up as much percentage wise. Look at Texas, it never boomed so there is nothing to fall down from.

In the end, we’ll just see what happens in 2-3 years, but it just sounds like to me a renter being upset that he can’t find a home they can afford or is willing to pay for and is praying for it to come down a ton (which may or may not happen).

DZ, are you married or do you have kids? I think for a lot of single folks, they can put up with renting for a LONG LONG time. Once you have kids, wife, there seems to be bigger pressure to buy so maybe you can afford to wait while some folks simply don’t want to.

[joec]

Another thing to consider is that the higher end never had that 100-200% increase like the south and east county areas. That said, it shouldn’t drop down as much since it never went up as much percentage wise. Look at Texas, it never boomed so there is nothing to fall down from.

In the end, we’ll just see what happens in 2-3 years, but it just sounds like to me a renter being upset that he can’t find a home they can afford or is willing to pay for and is praying for it to come down a ton (which may or may not happen).

DZ, are you married or do you have kids? I think for a lot of single folks, they can put up with renting for a LONG LONG time. Once you have kids, wife, there seems to be bigger pressure to buy so maybe you can afford to wait while some folks simply don’t want to.

[joec]

Another thing to consider is that the higher end never had that 100-200% increase like the south and east county areas. That said, it shouldn’t drop down as much since it never went up as much percentage wise. Look at Texas, it never boomed so there is nothing to fall down from.

In the end, we’ll just see what happens in 2-3 years, but it just sounds like to me a renter being upset that he can’t find a home they can afford or is willing to pay for and is praying for it to come down a ton (which may or may not happen).

DZ, are you married or do you have kids? I think for a lot of single folks, they can put up with renting for a LONG LONG time. Once you have kids, wife, there seems to be bigger pressure to buy so maybe you can afford to wait while some folks simply don’t want to.

[joec]

Another thing to consider is that the higher end never had that 100-200% increase like the south and east county areas. That said, it shouldn’t drop down as much since it never went up as much percentage wise. Look at Texas, it never boomed so there is nothing to fall down from.

In the end, we’ll just see what happens in 2-3 years, but it just sounds like to me a renter being upset that he can’t find a home they can afford or is willing to pay for and is praying for it to come down a ton (which may or may not happen).

DZ, are you married or do you have kids? I think for a lot of single folks, they can put up with renting for a LONG LONG time. Once you have kids, wife, there seems to be bigger pressure to buy so maybe you can afford to wait while some folks simply don’t want to.

[joec]

Another thing to consider is that the higher end never had that 100-200% increase like the south and east county areas. That said, it shouldn’t drop down as much since it never went up as much percentage wise. Look at Texas, it never boomed so there is nothing to fall down from.

In the end, we’ll just see what happens in 2-3 years, but it just sounds like to me a renter being upset that he can’t find a home they can afford or is willing to pay for and is praying for it to come down a ton (which may or may not happen).

DZ, are you married or do you have kids? I think for a lot of single folks, they can put up with renting for a LONG LONG time. Once you have kids, wife, there seems to be bigger pressure to buy so maybe you can afford to wait while some folks simply don’t want to.

[joec]

[quote=deadzone]Not saying high net worth individuals don’t exist, but I don’t belive there are so many more now than there were 15 years ago relative to the general population.

Also, most people in their 40s with net worth already has bought a home long before now. Where is this huge market of new 1M home buyers coming from? Still not buying it..

Not denying these buyers exist right now, but very skeptical of the long run sustainability.

Also, I would argue that the number of people with “millions in the bank” is very small % of the population. Even for most “successful professionals” their assets are either in real estate or 401K/IRA. Neither of these are particularly liquid right now.[/quote]

I just don’t understand why it’s so hard to believe that other folks have plenty of money. I know we’re all a product of our experiences, but just seeing 20 bids on some 1 mil place should be proof enough that plenty of folks are willing, able and can easily afford some prime real estate.

Worldwide, I think there are actually more millionaires now than the past 2 years with the stock market recovering from the 7k lows. Also, compared to 15 years ago, a LOT and LOT of people made a ton of money from the dot com boom. Not EVERYONE lost money.

Also, businesses have simply not been hiring as much and business owners, professionals and just folks who have done well the past 20 years who are now in their 40s-50s are doing quite well really.

I’m just surprised that saying it isn’t happening or not believing it doesn’t mean is not true. If the homes are really being bought up in these areas as stated in the example, then obviously, someone is buying them.

As sdrealtor said, it’s not just the person who even has to work to afford these homes. I also think it’s accurate that 15 years ago, San Diego sounded like it was a difference place than now.

Also, a million for any out of town person is SO cheap if they came from the bay area (SF or Silicon Valley) or LA and there seems to be quite a few bay area transplants here (me included).

Pretty much all my friends live in 1 mil+ places now with no ocean view in LA and the bay area. It’s actually CHEAP and a no brainer if they have work and can afford the payments to find a nice place they like by the coast.

I think there are plenty of folks like this and believe that there are certainly more than 15 years ago, while real estate wise, not much building at all.

These areas are built out already so I assume the current owners weren’t the folks who were doing the 0% down, ninja loans, etc. so if they don’t have to sell, they simply don’t…My parents are an example of that already.

It’s hard to believe, but yes, many people have much more money than you (and me too!)

[joec]

[quote=deadzone]Not saying high net worth individuals don’t exist, but I don’t belive there are so many more now than there were 15 years ago relative to the general population.

Also, most people in their 40s with net worth already has bought a home long before now. Where is this huge market of new 1M home buyers coming from? Still not buying it..

Not denying these buyers exist right now, but very skeptical of the long run sustainability.

Also, I would argue that the number of people with “millions in the bank” is very small % of the population. Even for most “successful professionals” their assets are either in real estate or 401K/IRA. Neither of these are particularly liquid right now.[/quote]

I just don’t understand why it’s so hard to believe that other folks have plenty of money. I know we’re all a product of our experiences, but just seeing 20 bids on some 1 mil place should be proof enough that plenty of folks are willing, able and can easily afford some prime real estate.

Worldwide, I think there are actually more millionaires now than the past 2 years with the stock market recovering from the 7k lows. Also, compared to 15 years ago, a LOT and LOT of people made a ton of money from the dot com boom. Not EVERYONE lost money.

Also, businesses have simply not been hiring as much and business owners, professionals and just folks who have done well the past 20 years who are now in their 40s-50s are doing quite well really.

I’m just surprised that saying it isn’t happening or not believing it doesn’t mean is not true. If the homes are really being bought up in these areas as stated in the example, then obviously, someone is buying them.

As sdrealtor said, it’s not just the person who even has to work to afford these homes. I also think it’s accurate that 15 years ago, San Diego sounded like it was a difference place than now.

Also, a million for any out of town person is SO cheap if they came from the bay area (SF or Silicon Valley) or LA and there seems to be quite a few bay area transplants here (me included).

Pretty much all my friends live in 1 mil+ places now with no ocean view in LA and the bay area. It’s actually CHEAP and a no brainer if they have work and can afford the payments to find a nice place they like by the coast.

I think there are plenty of folks like this and believe that there are certainly more than 15 years ago, while real estate wise, not much building at all.

These areas are built out already so I assume the current owners weren’t the folks who were doing the 0% down, ninja loans, etc. so if they don’t have to sell, they simply don’t…My parents are an example of that already.

It’s hard to believe, but yes, many people have much more money than you (and me too!)

[Author]

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