Quote:
Originally Posted by Flash68
I like your thinking. Look at the appreciation and bubblelicious valuations right now. We are right back to 2006-2007 again.... and it's rate & supply driven.
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I think people have all too soon forgotten what the real estate bubblelicious was all about... and it's root cause.
The cause was the "easy money" -- no credit no problem -- no down no problem... That had people that had no business whatsoever buying houses - flipping houses... and doing just about anything else that was ridiculous in the name of housing.
Banks won't even look at a buyer if their credit isn't pristine... and you'd better bring a wheelbarrow of cash for the downstroke. This isn't the easy money buyers market.
I think the market is still tight on "nice" / "good" houses because there's still a large amount of America that can't sell their house yet. They're still underwater -- or perhaps they took out one of the magical Home Equity Lines of Credit... and they bought a PT car and haven't paid that back....
Good houses at the right prices are selling briskly in the big markets.... Secondary houses are beginning to pick up here locally -- and the market is starting the move up market (million plus) -- here. Our local agent publishes statistics each Friday and the high dollar sales are really becoming noticeable. We looked for weeks with our friends that wanted a condo here to use and rent... and it was real obvious when you saw a property on the market that had been on the market for a long time. Some you wouldn't buy at any price - and some where so stupid over the top asking prices and you knew the sellers were just dreaming or on drugs. My friends were all cash buyers having just sold another property they owned for years in Palm Springs. A condo came on the market one day - they weren't here - we are - we went to look at it and I told them if they didn't buy it I would. Done. They're owners. It was a nice condo - makes a great rental - and was priced right where it should have been. Put a sold sticker on it. The buyer is my buddy that is an agent in Seattle.
I have two best friends that are both agents in the Seattle market -- they're saying that over 50% of the "all cash" sales are all Asian buyers bringing in money from their countries. They don't care as much about the price today... they're investing their capital where they believe it should be safe. In the Seattle market you have a high employment rate with high salaries... with a HUGE hi tech community. I would think LA area is far more "diverse" for employers. So it may depend more on area by area....