Happy Holidays Rich! Thank you so much for all your posts throughout the years! Much appreciated as always!
I recall the question couple of years ago was how this will all play out. Looks like it is a slow correction in value, where there is low transaction volume with sellers and buyers both not eager to act and monthly payment is relatively very expensive. Unless a catalyst comes to force either side, my prediction is slow grind at below inflation and thus negative real price change until income catches up in 4 to 6 or so years. Real estate will go back to something people buy to live in rather than speculate until then.
Love seeing these greedy landlords hemorrhage money. This hgouse has likely been sitting empty for almost a year because they are asking such an outrageous amount for rent. They originally asked for 8000$!
Happy Holidays Rich! Thank you so much for all your posts throughout the years! Much appreciated as always!
I recall the question couple of years ago was how this will all play out. Looks like it is a slow correction in value, where there is low transaction volume with sellers and buyers both not eager to act and monthly payment is relatively very expensive. Unless a catalyst comes to force either side, my prediction is slow grind at below inflation and thus negative real price change until income catches up in 4 to 6 or so years. Real estate will go back to something people buy to live in rather than speculate until then.
Hi and thank you! I think that is a pretty good base case…
Buying just makes no sense at the moment. Just put any San Diego house in the nerdwallet rent versus buy calculator.
I did this house:
https://www.zillow.com/homedetails/4888-Bridle-Ridge-Ct-San-Diego-CA-92130/95061336_zpid/
Renting for 6500/month.
Valued at 2.3 million apparently.
Renting is $457,392 less than buying in only 3 years.
Maybe i am missing something but this market feels like 2005.
it definitely doesn’t make sense if you are singularly focused on Carmel Valley…
Love seeing these greedy landlords hemorrhage money. This hgouse has likely been sitting empty for almost a year because they are asking such an outrageous amount for rent. They originally asked for 8000$!
Looks like they are only requiring a 660+ credit score and only 1.5x gross income to qualify to rent. Yikes.