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Ren
Participant[quote=bearishgurl]If “Dr. Feelgood” thinks a $1.5M property is now only worth $1.4M, it is because that’s all Ms. Starlet, Mr. CEO (ret), and Mr. Nobel Prize were recently willing to pay in that area. These values have little to NOTHING to do with local worker-bee wages and current mortgage interest rates.[/quote]
But they do, at least indirectly. When millions of worker bees pay 40% less (or whatever) for housing farther inland (due to years of mass unemployment, foreclsoures, etc), those price drops put some downward pressure on coastal properties. That’s what I meant by outside influence. I’m sure it’s countered somewhat by the local salary increases sdr mentioned, but how much is anyone’s guess.
Participant[quote=bearishgurl]If “Dr. Feelgood” thinks a $1.5M property is now only worth $1.4M, it is because that’s all Ms. Starlet, Mr. CEO (ret), and Mr. Nobel Prize were recently willing to pay in that area. These values have little to NOTHING to do with local worker-bee wages and current mortgage interest rates.[/quote]
But they do, at least indirectly. When millions of worker bees pay 40% less (or whatever) for housing farther inland (due to years of mass unemployment, foreclsoures, etc), those price drops put some downward pressure on coastal properties. That’s what I meant by outside influence. I’m sure it’s countered somewhat by the local salary increases sdr mentioned, but how much is anyone’s guess.
Participant[quote=bearishgurl]If “Dr. Feelgood” thinks a $1.5M property is now only worth $1.4M, it is because that’s all Ms. Starlet, Mr. CEO (ret), and Mr. Nobel Prize were recently willing to pay in that area. These values have little to NOTHING to do with local worker-bee wages and current mortgage interest rates.[/quote]
But they do, at least indirectly. When millions of worker bees pay 40% less (or whatever) for housing farther inland (due to years of mass unemployment, foreclsoures, etc), those price drops put some downward pressure on coastal properties. That’s what I meant by outside influence. I’m sure it’s countered somewhat by the local salary increases sdr mentioned, but how much is anyone’s guess.
Participant[quote=bearishgurl]If “Dr. Feelgood” thinks a $1.5M property is now only worth $1.4M, it is because that’s all Ms. Starlet, Mr. CEO (ret), and Mr. Nobel Prize were recently willing to pay in that area. These values have little to NOTHING to do with local worker-bee wages and current mortgage interest rates.[/quote]
But they do, at least indirectly. When millions of worker bees pay 40% less (or whatever) for housing farther inland (due to years of mass unemployment, foreclsoures, etc), those price drops put some downward pressure on coastal properties. That’s what I meant by outside influence. I’m sure it’s countered somewhat by the local salary increases sdr mentioned, but how much is anyone’s guess.
Participant[quote=bearishgurl]In these areas, value is determined by exactly how much a buyer is willing to pay, period.[/quote]
I know what you were trying to say, but this sentence is actually true for every square inch of privately held land in the country. Better to say that highly desirable locations are less affected by other economic influences. However, no location, no matter how perfect, is immune to economic pressure from outside the area.
As for value, let’s say a beach property sells for $2m in 2006, then sells again today for $1.5m. The buyer was willing to pay $2m in 2006, and that’s how much it was worth in 2006, but today’s buyer was willing to pay no more than $1.5m. The value can (and will) still change over time, regardless of what people are willing to pay at this moment and regardless of salaries in the area. Much of this change is likely due to outside influences. No one questions that Dr. Feelgood in Del Mar is capable of paying $2m for that house, he just isn’t willing to. In a year, he may not be willing to pay $1.4m.
Participant[quote=bearishgurl]In these areas, value is determined by exactly how much a buyer is willing to pay, period.[/quote]
I know what you were trying to say, but this sentence is actually true for every square inch of privately held land in the country. Better to say that highly desirable locations are less affected by other economic influences. However, no location, no matter how perfect, is immune to economic pressure from outside the area.
As for value, let’s say a beach property sells for $2m in 2006, then sells again today for $1.5m. The buyer was willing to pay $2m in 2006, and that’s how much it was worth in 2006, but today’s buyer was willing to pay no more than $1.5m. The value can (and will) still change over time, regardless of what people are willing to pay at this moment and regardless of salaries in the area. Much of this change is likely due to outside influences. No one questions that Dr. Feelgood in Del Mar is capable of paying $2m for that house, he just isn’t willing to. In a year, he may not be willing to pay $1.4m.
Participant[quote=bearishgurl]In these areas, value is determined by exactly how much a buyer is willing to pay, period.[/quote]
I know what you were trying to say, but this sentence is actually true for every square inch of privately held land in the country. Better to say that highly desirable locations are less affected by other economic influences. However, no location, no matter how perfect, is immune to economic pressure from outside the area.
As for value, let’s say a beach property sells for $2m in 2006, then sells again today for $1.5m. The buyer was willing to pay $2m in 2006, and that’s how much it was worth in 2006, but today’s buyer was willing to pay no more than $1.5m. The value can (and will) still change over time, regardless of what people are willing to pay at this moment and regardless of salaries in the area. Much of this change is likely due to outside influences. No one questions that Dr. Feelgood in Del Mar is capable of paying $2m for that house, he just isn’t willing to. In a year, he may not be willing to pay $1.4m.
Participant[quote=bearishgurl]In these areas, value is determined by exactly how much a buyer is willing to pay, period.[/quote]
I know what you were trying to say, but this sentence is actually true for every square inch of privately held land in the country. Better to say that highly desirable locations are less affected by other economic influences. However, no location, no matter how perfect, is immune to economic pressure from outside the area.
As for value, let’s say a beach property sells for $2m in 2006, then sells again today for $1.5m. The buyer was willing to pay $2m in 2006, and that’s how much it was worth in 2006, but today’s buyer was willing to pay no more than $1.5m. The value can (and will) still change over time, regardless of what people are willing to pay at this moment and regardless of salaries in the area. Much of this change is likely due to outside influences. No one questions that Dr. Feelgood in Del Mar is capable of paying $2m for that house, he just isn’t willing to. In a year, he may not be willing to pay $1.4m.
Participant[quote=bearishgurl]In these areas, value is determined by exactly how much a buyer is willing to pay, period.[/quote]
I know what you were trying to say, but this sentence is actually true for every square inch of privately held land in the country. Better to say that highly desirable locations are less affected by other economic influences. However, no location, no matter how perfect, is immune to economic pressure from outside the area.
As for value, let’s say a beach property sells for $2m in 2006, then sells again today for $1.5m. The buyer was willing to pay $2m in 2006, and that’s how much it was worth in 2006, but today’s buyer was willing to pay no more than $1.5m. The value can (and will) still change over time, regardless of what people are willing to pay at this moment and regardless of salaries in the area. Much of this change is likely due to outside influences. No one questions that Dr. Feelgood in Del Mar is capable of paying $2m for that house, he just isn’t willing to. In a year, he may not be willing to pay $1.4m.
ParticipantFar too much partying this weekend.
Agree, patience, sdr. And the 3/2 was a townhome as well 🙂
ParticipantFar too much partying this weekend.
Agree, patience, sdr. And the 3/2 was a townhome as well 🙂
ParticipantFar too much partying this weekend.
Agree, patience, sdr. And the 3/2 was a townhome as well 🙂
ParticipantFar too much partying this weekend.
Agree, patience, sdr. And the 3/2 was a townhome as well 🙂
ParticipantFar too much partying this weekend.
Agree, patience, sdr. And the 3/2 was a townhome as well 🙂
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