[Sandi Egan]

With absolutely no doubt I can say that you can get the same rebate as the Redfin model and receive much better buyers agent services.

Could you please elaborate? I like dealing with my agent, but 15K on a 500K home seems to be a REALLY expensive way to say thanks. I imagine I could tell my agent that she is getting a fixed 3K from any deal I sign, and the rest she will have to pay me back. And I believe she would agree, since it’s still more than nothing. Somehow, though, I suspect that will make me the least favored of her clients, and that’s bound to have negative impact on the service provided. Don’t you agree?

[Sandi Egan]

Since we won’t see a cut-off of credit anytime soon, consumer confidence will hold and we’ll see the housing market slowly deflate over years. I believe it’s psychologically healthier to have a slow protracted downturn. Economically, we’re much better off to cut out losses and move-on.

I kind of believe in self-correcting markets. If our assumptions are correct, and subprime mortgages are too risky, the lenders and/or MBS investors are going to get that soon or late. At that point, they will either stringent mortgage requirements or significantly increase subprime interest rates, both of which will push prices down. Additionally, if home prices fall for any prolonged period of time, the mentality will change and RE will become as scary and shunned an investment as hi-tech stocks were in 2002. Right now a substantial percentage of population still seems to be too optimistic and market downturn does is yet not a common knowledge.

I believe we will see a sharp price declines in coming years when all of the above happens. Inflation is of course going to somewhat soften the process, but in a short (2-3 years) period it’s negligible.

My bet is, by 2009 the median/sq.ft price in San Diego will be down by about 40% from the peak. After that, it will continue slightly downward for several years, but most of losses will be offset by inflation.

[Sandi Egan]

I was duped into thinking it couldn’t go much higher. We may all be fooled again this time around if rates dip under 5 percent…and stay there!

Like csr_sd, I am making low six figures and 500K is about as much as I can afford. If at some point I am able to get a house that I like for that money, I will buy it. If not, I’ll just keep renting and save the extra money for something fun. After all, happiness is not measured in square feet.

[Sandi Egan]

I concur with waiting hawk.

Actually, I’d tell your landlord, that I am willing to stay in the house while he is trying to sell it for $1K a month. If you move out right away, he will be losing money while the house is on sale. And something’s telling me that’s gonna take a while 🙂

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