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PerryChase
ParticipantWhat’s so Marxist about the article? And who’s telling anyone to spend his money?
If anything, the Fed actions amounted to social engineering.
If we are going to have an efficient market economy, we need to let the market work and stop intervening. I wonder what the Fed will pull this time around.
ParticipantBobbyD, thanks for the recommendation. Everything worked out perfectly. I shipped two cars, one to Chicago and one back with DASautoshippers.com. Good service. They even have tracking like UPS so you know that status of your car.
ParticipantWe need to bring back debtor's prisons.
Why bother? It's expensive to imprison someone. The ideal solution is to stop bailouts — let the markets work. Let lenders and borrowers go bankrupt.
ParticipantSD Realtor, sounds like you have a fun full house. Living with the mother-in-law? You must be a very patient and forgiving man. 🙂 My cousin’s mom lives with their family. At 94, the granma is in perfect health and still zips up and down the stairs. It’s heathly for the elderly to live surrounded by family. Your mother-in-law is lucky to have such a great family.
ParticipantYes, patience, patience… it’s a virtue.
I recently visited some Carmel Valley models also. Buyers are in the dark of what’s going in new developments because many sales don’t go through the MLS so the sales data is not readily available out there.
About, Arabella, Portico, Santa Rosa and other CV developments. I recommend that potential buyers drive the neighborhood, jot down addresses and look at the closed sales on SDlookup.com. Compare lots with view and non-views and adjust accordingly.
I noticed that buyers accross the models have already “lost” money on their purchases last year. There are more many more such losses to come. Remember, that the closed prices don’t reflect incentives. I’m sure it’s not a good feeling for homeowners to see new houses in their development selling for less than they paid.
Developers are masters of gamesmmanship, lowering and raising prices as the winds blow. As the houses sit prices will come down and developers will be the first to react.
ParticipantAren’t you generally paying more by renting from a management company.
If you rent a house and want to make sure that you’re paying rent to the rightful owner, you can simply visit the County Recorders’s office to verify that information. It’s that simply. How about due diligence on the part of of the renter? The landlord does credit checks. Perhaps the renter should do some checking also. 🙂
ParticipantIf you lend money to financially dumb people = you eventually go bankrupt yourself as your borrowers go bankrupt.
That’s how our capitalist system works. It’s self-correcting but it takes time.
ParticipantWhat I hope comes out of this thread though is a discussion about the massive disparity between what is happening in the financial markets and what two realtors on this very board are reporting. Ok its happening, now lets figure out why.
I don't think that there's any such disparity. The lenders have not tightened their practices because the massive losses aren't there — yet. The mortgage brokers' business model is the origination of loans — no originations means no revenue.
Sure the market is down. People can't refinance or sell. But that's not due to fact that it's harder for buyers to get easy money.
ParticipantFirtTimeBuyer, Bob2007, I find it surprising that you’ve read this blog for months yet you went ahead and bought. Each person has different reasons for buying or waiting.
If I were you and had bought, and felt comfortable with my purchase, I’d consider it water-under-the-bridge and stop monitoring the market.
You mentioned a lifestyle decision. Why could you not rent a house for less than the carrying cost of a similar house?
No one knows what the future will bring us. I hope all the posters will check-in once in a while in the next few years to share their experiences.
Personally, I’ve owned my house since 1988. I made a lifestyle decision not to sell. But I’m waiting for the right time to buy another house in a more desirable neighborhood — to me (that would be a less desirable neighborhood in most other peoples’ views).
ParticipantWant easy credit? $145k for $484/mo. That’s how easy credit still is. Check out lowermybills
I don’t think that we’ll ever get back the 20% down conventional loans. Easy credit is here to stay because lenders (the lightly regulated ones) and banks have a stake in easy credit. They generate tons of revenue from those easy loans. Revenue and profit are what drive the stock and executive bonuses.
The key is risk management. Lenders will have to charge everyone more so that they can continue to market easy qualify mortgages.
Think about the credit card business — anyone can get one regardless of default or bankruptcy. The easy to qualify issuers make more money than the risk averse ones. They make it up on the outrageous fees. In my opinion the same thing will happen in the mortgage business. They will begin charging for payoff statements, refunds from impound account, mail statements will cost $5/mo, etc…
ParticipantI agree that credit is what drives the market. There’s still plenty of easy financing out there. If a buyer wants a loan, he can. We have to keep in mind that buyers intend on buying a house, will go to lengths than us, Piggingtons, won’t even consider.
Just to get a feel of psychology, I just talked to my brother who doesn’t follow the market as closely as I do. He said that “really nice” houses aren’t going down and maybe he should buy now. I told him absolutely not! But he’s got a wife and a 3-year old child and they are feeling cramped in their townhouse.
Zillow also makes people believe that houses are “worth” more than they are.
The real bleeding won’t happen until psychology turns decidedly negative.
ParticipantThanks for the article. I agree very much that housing has masked a weak economy. As a country, we’ve been living on borrowed time.
1. Euphoria and capital spending based on the Internet.
2. Capital spending and employment based on Y2K.
3. Dot com bubble.
4. Low interest rates.
5. Real estate bubble.
6. Massive government spending on security and war.I’m afraid that we’re running out of options to prop up the economy.
ParticipantDo you guys know if this house sold? It went “inactive” on my ZipRealty saved houses.
Participantmixxalot, another thing to consider in Point Loma. The owners of the Sports Arena wants to tear it down and redevelop that whole area. If that’s happens, you might have even more choices in Point Loma in a few years.
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