[sd_bear]

[quote=GoUSC]

My GF and I make combined around $250,000. We will be hit by Obama hard. Are we “rich” living here in San Diego? Certainly not.
[/quote]

Yes, you are. If you make a combined 250,000 a year you are rich. I don’t care how long it took to get there or how hard you worked. You may not have a private jet, but you are still rich. If you honestly don’t think so then you live in a very tiny bubble.

[sd_bear]

[quote=GoUSC]

My GF and I make combined around $250,000. We will be hit by Obama hard. Are we “rich” living here in San Diego? Certainly not.
[/quote]

Yes, you are. If you make a combined 250,000 a year you are rich. I don’t care how long it took to get there or how hard you worked. You may not have a private jet, but you are still rich. If you honestly don’t think so then you live in a very tiny bubble.

[sd_bear]

[quote=GoUSC]

My GF and I make combined around $250,000. We will be hit by Obama hard. Are we “rich” living here in San Diego? Certainly not.
[/quote]

Yes, you are. If you make a combined 250,000 a year you are rich. I don’t care how long it took to get there or how hard you worked. You may not have a private jet, but you are still rich. If you honestly don’t think so then you live in a very tiny bubble.

[sd_bear]

[quote=GoUSC]

My GF and I make combined around $250,000. We will be hit by Obama hard. Are we “rich” living here in San Diego? Certainly not.
[/quote]

Yes, you are. If you make a combined 250,000 a year you are rich. I don’t care how long it took to get there or how hard you worked. You may not have a private jet, but you are still rich. If you honestly don’t think so then you live in a very tiny bubble.

[sd_bear]

[quote=GoUSC]

My GF and I make combined around $250,000. We will be hit by Obama hard. Are we “rich” living here in San Diego? Certainly not.
[/quote]

Yes, you are. If you make a combined 250,000 a year you are rich. I don’t care how long it took to get there or how hard you worked. You may not have a private jet, but you are still rich. If you honestly don’t think so then you live in a very tiny bubble.

[sd_bear]

The way I see it and often explain it to people without having to go into great detail is to just list the factors involved in house prices and see what they indicate.

1) Economy – We are in VERY poor shape
2) Unemployment – Going higher based on every account
3) Inventory – Near record levels
4) Interest rates – getting worse
5) Foreclosures – getting much worse

Every single factor here points to downward pressure on home prices. When several of these turn around (and it will NOT happen overnight) then it could be a good time to jump into the market.

[sd_bear]

The way I see it and often explain it to people without having to go into great detail is to just list the factors involved in house prices and see what they indicate.

1) Economy – We are in VERY poor shape
2) Unemployment – Going higher based on every account
3) Inventory – Near record levels
4) Interest rates – getting worse
5) Foreclosures – getting much worse

Every single factor here points to downward pressure on home prices. When several of these turn around (and it will NOT happen overnight) then it could be a good time to jump into the market.

[sd_bear]

The way I see it and often explain it to people without having to go into great detail is to just list the factors involved in house prices and see what they indicate.

1) Economy – We are in VERY poor shape
2) Unemployment – Going higher based on every account
3) Inventory – Near record levels
4) Interest rates – getting worse
5) Foreclosures – getting much worse

Every single factor here points to downward pressure on home prices. When several of these turn around (and it will NOT happen overnight) then it could be a good time to jump into the market.

[sd_bear]

The way I see it and often explain it to people without having to go into great detail is to just list the factors involved in house prices and see what they indicate.

1) Economy – We are in VERY poor shape
2) Unemployment – Going higher based on every account
3) Inventory – Near record levels
4) Interest rates – getting worse
5) Foreclosures – getting much worse

Every single factor here points to downward pressure on home prices. When several of these turn around (and it will NOT happen overnight) then it could be a good time to jump into the market.

[sd_bear]

The way I see it and often explain it to people without having to go into great detail is to just list the factors involved in house prices and see what they indicate.

1) Economy – We are in VERY poor shape
2) Unemployment – Going higher based on every account
3) Inventory – Near record levels
4) Interest rates – getting worse
5) Foreclosures – getting much worse

Every single factor here points to downward pressure on home prices. When several of these turn around (and it will NOT happen overnight) then it could be a good time to jump into the market.

[sd_bear]

[quote=CA renter]Actually, if principal amounts are reduced, that should be noted in public records, and it should be mandated that future appraisals use these as comps.

After all, that was the real purchase price of the house, not the original, artificially-inflated price. The “written-down” price is the actual price the buyer could afford; therefore, it is the true sales price. [/quote]

This was my belief as well. I think principal reductions would really accelerate the decline since it automatically cuts the value to whatever an actual borrower could afford. I can’t imagine this not being used in appraisals.

In the end I really don’t think it matters what happens with the government and all these plans. Prices will fall to levels that people can afford with fixed mortgages. Maybe it’ll take 15 years, maybe 3. But it has to happen. There is no way around it.

[sd_bear]

[quote=CA renter]Actually, if principal amounts are reduced, that should be noted in public records, and it should be mandated that future appraisals use these as comps.

After all, that was the real purchase price of the house, not the original, artificially-inflated price. The “written-down” price is the actual price the buyer could afford; therefore, it is the true sales price. [/quote]

This was my belief as well. I think principal reductions would really accelerate the decline since it automatically cuts the value to whatever an actual borrower could afford. I can’t imagine this not being used in appraisals.

In the end I really don’t think it matters what happens with the government and all these plans. Prices will fall to levels that people can afford with fixed mortgages. Maybe it’ll take 15 years, maybe 3. But it has to happen. There is no way around it.

[sd_bear]

[quote=CA renter]Actually, if principal amounts are reduced, that should be noted in public records, and it should be mandated that future appraisals use these as comps.

After all, that was the real purchase price of the house, not the original, artificially-inflated price. The “written-down” price is the actual price the buyer could afford; therefore, it is the true sales price. [/quote]

This was my belief as well. I think principal reductions would really accelerate the decline since it automatically cuts the value to whatever an actual borrower could afford. I can’t imagine this not being used in appraisals.

In the end I really don’t think it matters what happens with the government and all these plans. Prices will fall to levels that people can afford with fixed mortgages. Maybe it’ll take 15 years, maybe 3. But it has to happen. There is no way around it.

[sd_bear]

[quote=CA renter]Actually, if principal amounts are reduced, that should be noted in public records, and it should be mandated that future appraisals use these as comps.

After all, that was the real purchase price of the house, not the original, artificially-inflated price. The “written-down” price is the actual price the buyer could afford; therefore, it is the true sales price. [/quote]

This was my belief as well. I think principal reductions would really accelerate the decline since it automatically cuts the value to whatever an actual borrower could afford. I can’t imagine this not being used in appraisals.

In the end I really don’t think it matters what happens with the government and all these plans. Prices will fall to levels that people can afford with fixed mortgages. Maybe it’ll take 15 years, maybe 3. But it has to happen. There is no way around it.

[sd_bear]

[quote=CA renter]Actually, if principal amounts are reduced, that should be noted in public records, and it should be mandated that future appraisals use these as comps.

After all, that was the real purchase price of the house, not the original, artificially-inflated price. The “written-down” price is the actual price the buyer could afford; therefore, it is the true sales price. [/quote]

This was my belief as well. I think principal reductions would really accelerate the decline since it automatically cuts the value to whatever an actual borrower could afford. I can’t imagine this not being used in appraisals.

In the end I really don’t think it matters what happens with the government and all these plans. Prices will fall to levels that people can afford with fixed mortgages. Maybe it’ll take 15 years, maybe 3. But it has to happen. There is no way around it.

[Author]

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