To sum up May: inventory rose, but sales rose more, resulting in even
lower months-of-inventory. Despite that, single family home prices took
a breather. But the price trend is still comfortably “up.”
Further interpretation will be left as an exercise for the reader…
😉 Graphs below:
June 8, 2017 @ 9:20 PM
Perhaps this is just obvious,
Perhaps this is just obvious, as the volume of sales rises in May at a quicker pace than previous months, the level of remaining inventory drops even faster.
So everyone who sees this occurring and wants to buy also needs to make a decision faster.
Perhaps buyers are ever more confident the parameters driving the values are more permanent and are thus feeling surer in their decisions.
So main question, and I think the answer is yes, are buyers behaving rationally?
June 8, 2017 @ 10:38 PM
Escoguy wrote:
So main
[quote=Escoguy]
So main question, and I think the answer is yes, are buyers behaving rationally?[/quote]
Anecdotally, in Clairemont the rents for SFH have steadily increased. $2850 for 3/2, $2500 for a half a duplex. For a renter, buying does seem to make sense if you got a 10% downpayment, and can find a house for sale.
June 9, 2017 @ 1:51 AM
I’d say buying with 5% down
I’d say buying with 5% down is still much cheaper than renting. The extra MI and .25% interest stings. But it might only take 18 months of payments and appreciation to get the 20% equity needed to do a MI-drop refi.
June 21, 2017 @ 10:10 AM
double post, edited.
double post, edited.
June 21, 2017 @ 10:10 AM
bewildering wrote:Escoguy
[quote=bewildering][quote=Escoguy]
So main question, and I think the answer is yes, are buyers behaving rationally?[/quote]
Anecdotally, in Clairemont the rents for SFH have steadily increased. $2850 for 3/2, $2500 for a half a duplex. For a renter, buying does seem to make sense if you got a 10% downpayment, and can find a house for sale.[/quote]
It’s picking up way more than that for SFH per my view.
Just look at this place… 4/2 <1,800 sqft for $4k!!! I called, it's already rented!
https://www.zillow.com/homes/for_rent/San-Diego-CA/house,condo,apartment_duplex,mobile,townhouse_type/17200256_zpid/54296_rid/817828-_price/3000-_mp/32.871442,-117.147303,32.757469,-117.257166_rect/12_zm/
[quote=gzz]I’d say buying with 5% down is still much cheaper than renting. The extra MI and .25% interest stings. But it might only take 18 months of payments and appreciation to get the 20% equity needed to do a MI-drop refi.[/quote]
This kind of thinking is what did us in the last time.
Buying with the hope of 20% appreciation in 18 months while we’re at historic highs is dangerous.
June 22, 2017 @ 9:34 AM
Asitl, appreciation would
Asitl, appreciation would only need to be about 13% to do a MI dropping 20% down refi. 5% is already down and regular payments would be another 2% or so.