[PerryChase]

I’m here because the psychology is more fun to watch than the fundamentals. As the professor pointed out if there was no sentiment, there wouldn’t be any cycles. We need downturns and bankruptcies to clean up the market — that just how capitalism works.

I find it amazing that few remember the downturn of the 1990’s. I’m not old but I remember like it was yesterday.

[PerryChase]

JES, I think you meant her 5-series BMW. Mercedes does not make 5-series. BMW models are “series”; Mercedes cars are “classes”. I too am unimpressed by material wealth. But I know trivia. 🙂

[PerryChase]

JES, that’s a hard question to answer.

When I said that people in Austin are nicer, I meant that in my cousin’s neighborhood, people talk to one another more. The kids play together and the families sometimes have gatherings. They may even go to church together. There’s more “village” life. I was trying to answer the thread’s question by what one might wish the “ideal” all-American neighborhood to be.

People in San Diego are “new” people in new developments so they don’t really socialize.

From my personal perspective, I like the NYC type attitude. I don’t go to church nor do I want my neighbors to ask me to join them. I don’t want people to bring me pies because I’d feel obligated to return the favor. I don’t want kids to sell me girl-scout cookies and I don’t care if I never set foot in my neighbor’s home or if I’m not invited to their parties. Some people might call me anti-social but I don’t really need to be friends with my neighbors. I may feel differently when I’m older but for now, I’m happy to lead a socially independent life.

So it depends on your perspective. People in Austin are more Norman Rockwell nice. It’s wonderful if you want that.

[PerryChase]

We can debate the downturn all we want but there’s nothing like looking at the listings to see the down market.

I have some searches saved on zip realty. There were few results last year but now I see inventory added all the time. One example is Downtown SD for under $299k. The prices are lowered yet they sit and sit… If they are such good deals, why are they not moving?

The professor predicted 25% down from the peak. I see listings already 15% down(in today’s supposedly ‘stable’ market) but with no takers. So in my mind 25% drop is too conservative. I know that a few examples don’t reflect the whole market. But since so many listings already reflect 15% drop, I can imagine that it will only get worse as the statistics reflect the beginning of a downturn.

[PerryChase]

$150k SFR in 1999? I don’t remember prices being so low in 1999? 1994 perhaps in Mira Mesa, Clairemont, Normal Heights.

[PerryChase]

I support the minimum wage as well as other government intervention. If we had a free for all system, life would pretty be bleak for most. I could survive but people without skills or resources would be living in slums. I believe that providing everyone with a mininum standard of living is a core American value.

[PerryChase]

Technovelist, how does an American move to Canada? Is that a difficult process? Just curious.

[PerryChase]

The weather is cooler than Temecula but humid — great for your skin but it feels hot and sticky. You need good central air. It’s also cold (but nothing frigid) in the winter so you need heat. I would compare Texas weather to Florida weather except colder in the winter.

Weather wise, no place can ever beat San Diego (especially coastal San Diego)

[PerryChase]

JES, with high oil prices, TX should have great employment prospects. The whole old sector is doing extremely well and that should trickle down to the general economy. With Austin being the capital of the state, the economy should be able to withstand a national recession.

BTW, if you feel like Thai, Japanese, Moroccan or Vietnamese for dinner, you can get it in Austin.

If you’re seriously thinking about relocating, give Austin a good look before you decide to make the move.

[PerryChase]

I have a cousin who lives in Austin. The people are friendly and good-ol’ American types. There’s no uppity West LA, La Jolla, Del Mar type attitude.

You can buy a brand new house for $150k-200k there (see DR Horton and KB homes websites). It’s a good city and the University of Texas (major tech research) is there. It’s also the capital of TX so government and university jobs make the economy stable. It’s a fairly progressive city also, but if you want neo-con conservatism, there’s plenty of that too (kinda like San Diego politically).

I think that summer heat is preferable to tundra cold of the north. The warm sunny weather also means you can live and retire in Austin, without having to worry about your arthristis when you’re old.

If I wanted a “wholesome” family and lifestyle, at low cost, no mortgage, I’d take my California money there and live stressfree.

I’ve never been to Ft Collins or Boise, but I’d bet that the employment base in Austin is much better. If I remember well, Dell has a call center and operations in San Marcos (near Austin).

[PerryChase]

Daniel, you’re right. ARM was certainly less expensive than fixed in the last 20 years mostly because rates have been coming down. A buyer would have saved without having the expense of refinancing several times.

However, I beleive that a buyer who got a 30 year fixed at 5% would benefit in the future as rates trend upwards.

[PerryChase]

sdsundevil, did you buy RE in the last few years? If you don’t mind, please tell us a little about the good deal you had, and how you plan on making RE work for you in the future.

BTW, sdsundevil, you’re entitled to your opinion. Please keep on posting away otherwise, we’ll just have one set of opinions here and it’ll get quite boring.

[PerryChase]

I wonder who cleans those big houses?

You’d have to spend all your free time maintaining a 6000sf house, unless, of course you had a maid and gardener which would add $$$ to the monthly expenses.

Does anyone here live in a McMansion? If so, who cleans it?

[PerryChase]

I don’t think that renters will pay to bail-out owners. Just like consumers won’t pay to bail-out manufacturers. They just find a cheap source somewhere else.

RE is not as easy as consumer goods to substitute, so owners can ask for high rents. They may get it in the short run, but as owners go bankrupt in the upcoming RE crash, rents will come down.

On a related note, now that RE inventory is plentiful and buyers have access to previous purchase data, I think that future buyers will resist giving owners much profit. That’s a phenomenon that did not exist 10 years ago. That in itself will keep prices down.

[PerryChase]

Right on deadzone, don’t get married. And you’re right that SD has always been expensive.

With the RE boom, people have not yet realized how stretched they are because in their minds, they are still investing for the future. I have a friend who pays $2,600 per month to own an old house that would normally rent for $900. The house is pretty old and delapidated. But he’s making sacrifices to restore it and views his work as an investment. For the last two years, he could’ve been investing $1,700 per month risk free. I have a feeling that he’ll loose his shirt on this one. Go figure. The Real Estate industry has absolutely brain-washed people into owning.

So no, i don’t feel sorry for people who loose in real estate. I’d rather save my compassion for the migrant workers that everyone is beating up on.

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