[yojimbo]

Well, being an economist I guess I’m prone to over analysis. Then again having been involved in the real estate industry for the last 15 years I’ve witnessed jaw dropping “under analysis” from many of those in the industry – and that’s being kind.

Still, in my opinion there is no real pent up demand. Just demand. If a person is in prison and cannot buy a home until they get out then I suppose that is pent up demand. When they get out that demand will be unleashed upon the market. If you had a million people in prison and all of them wanted a $400k home in Santee and could qualify for a loan but couldn’t enter into an enforceable contract until they were released then I might consider that pent up demand. And, if they were all released on the same day that pent up demand would definitely show itself in an upward pricing move in Santee.

Now, to move into my “over analysis” mode. Just because a home that SEEMS to be priced extremely low relative to the market draws a large number of offers from people wanting a home in that area means ABSOLUTELY NOTHING in regard to “pent up” demand. It just means that a lot of people would want that house at that price. And, as DWCAP stated I might actually want most any house in North County if it were priced unbelievably low as well.

The point I was making with regard to the cracked slab and why I feel it is COMPLETELY RELEVANT is that most of the offers written on the property were probably from buyers who didn’t know the home had a cracked slab. Once they conducted their inspection their “demand” disappeared at the price level of their offer. Am I to assume then that their “pent up demand has now changed and they are pent up at about $50k less since they have to fix the slab now?

Offer a home on the cliffs in Malibu for $100k and see how much “pent up” demand there is for it. Then tell all those who wrote offers that it is sitting on top of a toxic waste dump and watch all of that pent up demand disappear.

The thousands of buyers waiting in the wings to buy are just waiting for a particular price point. It’s not a new type of demand – pent up or otherwise. Prices drop – demand rises. The “pent up” phrasing just adds an amount of urgency to the situation which is what most salespeople want to introduce into the buying decision – for obvious reasons.

[yojimbo]

I’m not really sure how people are defining “Pent up demand”. I agree with AN – there is plain old demand for a trashed home in 92113 at the right price. It’s not “pent up”, it’s just a buyer that will pay a certain price albeit a low one in Logan Heights.

I would think “pent up demand” would be comprised of buyers who want to buy at the current price but cannot for some reason such as the current credit tightening. The demand is there but cannot express itself due to some non-price related constraint.

Demand that occurs for a home in RP is just plain old demand at a certain price point. It’s not pent up or restrained in any way. The buyers are looking at the market and making what they believe are rational economic decisions to buy or wait. Those decisions will be made by buyers the entire time the market is moving down or up.

I think the pent up demand mantra has been pushed by the real estate industry to imply that the market “could” turn around quickly. “With all this Pent Up Demand you buyers better be ready to jump on something or you may be sorry!”

So, personally I don’t believe there is any pent up demand. Just plain old boring demand at certain price levels.

Obviously there was quite a bit of demand for the subject property in this thread at its original price until most buyers saw the inside of the home or found out it had a cracked slab and would most likely have to be purchased all cash and then a lot of that demand probably disappeared. No different in North County then South or Central County. It’s just a matter of price.

[yojimbo]

I’m not really sure how people are defining “Pent up demand”. I agree with AN – there is plain old demand for a trashed home in 92113 at the right price. It’s not “pent up”, it’s just a buyer that will pay a certain price albeit a low one in Logan Heights.

I would think “pent up demand” would be comprised of buyers who want to buy at the current price but cannot for some reason such as the current credit tightening. The demand is there but cannot express itself due to some non-price related constraint.

Demand that occurs for a home in RP is just plain old demand at a certain price point. It’s not pent up or restrained in any way. The buyers are looking at the market and making what they believe are rational economic decisions to buy or wait. Those decisions will be made by buyers the entire time the market is moving down or up.

I think the pent up demand mantra has been pushed by the real estate industry to imply that the market “could” turn around quickly. “With all this Pent Up Demand you buyers better be ready to jump on something or you may be sorry!”

So, personally I don’t believe there is any pent up demand. Just plain old boring demand at certain price levels.

Obviously there was quite a bit of demand for the subject property in this thread at its original price until most buyers saw the inside of the home or found out it had a cracked slab and would most likely have to be purchased all cash and then a lot of that demand probably disappeared. No different in North County then South or Central County. It’s just a matter of price.

[yojimbo]

I’m not really sure how people are defining “Pent up demand”. I agree with AN – there is plain old demand for a trashed home in 92113 at the right price. It’s not “pent up”, it’s just a buyer that will pay a certain price albeit a low one in Logan Heights.

I would think “pent up demand” would be comprised of buyers who want to buy at the current price but cannot for some reason such as the current credit tightening. The demand is there but cannot express itself due to some non-price related constraint.

Demand that occurs for a home in RP is just plain old demand at a certain price point. It’s not pent up or restrained in any way. The buyers are looking at the market and making what they believe are rational economic decisions to buy or wait. Those decisions will be made by buyers the entire time the market is moving down or up.

I think the pent up demand mantra has been pushed by the real estate industry to imply that the market “could” turn around quickly. “With all this Pent Up Demand you buyers better be ready to jump on something or you may be sorry!”

So, personally I don’t believe there is any pent up demand. Just plain old boring demand at certain price levels.

Obviously there was quite a bit of demand for the subject property in this thread at its original price until most buyers saw the inside of the home or found out it had a cracked slab and would most likely have to be purchased all cash and then a lot of that demand probably disappeared. No different in North County then South or Central County. It’s just a matter of price.

[yojimbo]

I’m not really sure how people are defining “Pent up demand”. I agree with AN – there is plain old demand for a trashed home in 92113 at the right price. It’s not “pent up”, it’s just a buyer that will pay a certain price albeit a low one in Logan Heights.

I would think “pent up demand” would be comprised of buyers who want to buy at the current price but cannot for some reason such as the current credit tightening. The demand is there but cannot express itself due to some non-price related constraint.

Demand that occurs for a home in RP is just plain old demand at a certain price point. It’s not pent up or restrained in any way. The buyers are looking at the market and making what they believe are rational economic decisions to buy or wait. Those decisions will be made by buyers the entire time the market is moving down or up.

I think the pent up demand mantra has been pushed by the real estate industry to imply that the market “could” turn around quickly. “With all this Pent Up Demand you buyers better be ready to jump on something or you may be sorry!”

So, personally I don’t believe there is any pent up demand. Just plain old boring demand at certain price levels.

Obviously there was quite a bit of demand for the subject property in this thread at its original price until most buyers saw the inside of the home or found out it had a cracked slab and would most likely have to be purchased all cash and then a lot of that demand probably disappeared. No different in North County then South or Central County. It’s just a matter of price.

[yojimbo]

I’m not really sure how people are defining “Pent up demand”. I agree with AN – there is plain old demand for a trashed home in 92113 at the right price. It’s not “pent up”, it’s just a buyer that will pay a certain price albeit a low one in Logan Heights.

I would think “pent up demand” would be comprised of buyers who want to buy at the current price but cannot for some reason such as the current credit tightening. The demand is there but cannot express itself due to some non-price related constraint.

Demand that occurs for a home in RP is just plain old demand at a certain price point. It’s not pent up or restrained in any way. The buyers are looking at the market and making what they believe are rational economic decisions to buy or wait. Those decisions will be made by buyers the entire time the market is moving down or up.

I think the pent up demand mantra has been pushed by the real estate industry to imply that the market “could” turn around quickly. “With all this Pent Up Demand you buyers better be ready to jump on something or you may be sorry!”

So, personally I don’t believe there is any pent up demand. Just plain old boring demand at certain price levels.

Obviously there was quite a bit of demand for the subject property in this thread at its original price until most buyers saw the inside of the home or found out it had a cracked slab and would most likely have to be purchased all cash and then a lot of that demand probably disappeared. No different in North County then South or Central County. It’s just a matter of price.

[yojimbo]

Yeah, or maybe most American voters believe in abortion rights, gun control, the dept. of education, membership in international organizations, environmental regulations, zoning controls…

Nope. That's not it.

 

[yojimbo]

Yeah, or maybe most American voters believe in abortion rights, gun control, the dept. of education, membership in international organizations, environmental regulations, zoning controls…

Nope. That's not it.

 

[yojimbo]

Yeah, or maybe most American voters believe in abortion rights, gun control, the dept. of education, membership in international organizations, environmental regulations, zoning controls…

Nope. That's not it.

 

[yojimbo]

Yeah, or maybe most American voters believe in abortion rights, gun control, the dept. of education, membership in international organizations, environmental regulations, zoning controls…

Nope. That's not it.

 

[yojimbo]

Yeah, or maybe most American voters believe in abortion rights, gun control, the dept. of education, membership in international organizations, environmental regulations, zoning controls…

Nope. That's not it.

 

[yojimbo]

“raptorduck, are you trying to tell me that you’d be willing to pay a meaningful premium simply to have your mail delivered to a RSF address? To have your checks with a RSF address? To be able to tell people at a cocktail party that, yes, your mailing address is in RSF? Same schools, same neighbors, same quality of housing, same weather, etc. – and you’d be willing to pay a premium just for the ADDRESS? That just seems absolutely mental illness crazy to me.”

Isn’t this the same, albeit on a smaller monetary scale, as paying a premium for a Nike shirt or ball cap with a Reebok logo on it? Or maybe a shoe with Shaq’s logo on it? We all know where the shoes and clothing are made. They are all of essentially the same quality. It’s the brand identity or celebrity association that we a pay a premium for.

The RSF area has essentially been branded and people will pay a premium to be associated with that brand.

[yojimbo]

“raptorduck, are you trying to tell me that you’d be willing to pay a meaningful premium simply to have your mail delivered to a RSF address? To have your checks with a RSF address? To be able to tell people at a cocktail party that, yes, your mailing address is in RSF? Same schools, same neighbors, same quality of housing, same weather, etc. – and you’d be willing to pay a premium just for the ADDRESS? That just seems absolutely mental illness crazy to me.”

Isn’t this the same, albeit on a smaller monetary scale, as paying a premium for a Nike shirt or ball cap with a Reebok logo on it? Or maybe a shoe with Shaq’s logo on it? We all know where the shoes and clothing are made. They are all of essentially the same quality. It’s the brand identity or celebrity association that we a pay a premium for.

The RSF area has essentially been branded and people will pay a premium to be associated with that brand.

[yojimbo]

“raptorduck, are you trying to tell me that you’d be willing to pay a meaningful premium simply to have your mail delivered to a RSF address? To have your checks with a RSF address? To be able to tell people at a cocktail party that, yes, your mailing address is in RSF? Same schools, same neighbors, same quality of housing, same weather, etc. – and you’d be willing to pay a premium just for the ADDRESS? That just seems absolutely mental illness crazy to me.”

Isn’t this the same, albeit on a smaller monetary scale, as paying a premium for a Nike shirt or ball cap with a Reebok logo on it? Or maybe a shoe with Shaq’s logo on it? We all know where the shoes and clothing are made. They are all of essentially the same quality. It’s the brand identity or celebrity association that we a pay a premium for.

The RSF area has essentially been branded and people will pay a premium to be associated with that brand.

[yojimbo]

“raptorduck, are you trying to tell me that you’d be willing to pay a meaningful premium simply to have your mail delivered to a RSF address? To have your checks with a RSF address? To be able to tell people at a cocktail party that, yes, your mailing address is in RSF? Same schools, same neighbors, same quality of housing, same weather, etc. – and you’d be willing to pay a premium just for the ADDRESS? That just seems absolutely mental illness crazy to me.”

Isn’t this the same, albeit on a smaller monetary scale, as paying a premium for a Nike shirt or ball cap with a Reebok logo on it? Or maybe a shoe with Shaq’s logo on it? We all know where the shoes and clothing are made. They are all of essentially the same quality. It’s the brand identity or celebrity association that we a pay a premium for.

The RSF area has essentially been branded and people will pay a premium to be associated with that brand.

[Author]

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