Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: y2kate who wrote (5225)	9/11/2002 3:52:54 PM
From: MulhollandDrive	Respond to of 306849

y2kate.. The house is definitely overvalued at present IMO. But that's what I thought last year when comps were going for $650k, and the year before, when they were going for $500k..yes, I realize it has to end somewhere! selling a home is different than selling a stock, it carries with it a certain amount of emotional attachment. this is where you live. some people say they wouldn't sell their homes for ANY price...but it sounds to me like you are trying to hold out for "the top"...good luck on that. my bird in the hand comment was that you have had an unprecedented appreciation of RE values in your area, though i wouldn't advise you to sell or not to sell simply on the basis of price appreciation. my point was if you are considering a sale , you have a spectacular gain and if indeed this bubble will just keep on floating, the next place you buy should appreciate as well (assuming location) i'm on record saying the prices have outstripped income and sooner or later a wall is hit, doesn't mean a crash, just means "this ain't gonna last" (double digit annual appreciation) then again... i suppose trees can indeed grow to the sky...

To: y2kate who wrote (5225)	9/11/2002 4:26:59 PM
From: J. P.	Read Replies (2) \| Respond to of 306849

I have no advice or no idea what you should or could do. But there is a very very odd disconnect between housing prices and income, and it seems to be most pronounced in California. 800K for a 3 bedroom 1 bath? Let's see, the monthly payments and taxes on that would be (assuming you put 160K down!) about 8K a month. So if somebody wanted to put 33% of their income for house payments(mortgage companies used to only let you use 25%!) they would have to gross 24K a month, which is 288k a year. The only people making that kind of dough are business owners, and high level execs. You're talking about the top .05% of the wage earners in this country. And is a high level exec really going to want to live in a house with 1 bathroom? What is probably happening is that people are doubling their incomes and paying 8k in mortgage on a combined 10K in income. Just a guess. HELLO!? This bubble will melt, the only question is when and how fast.

To: y2kate who wrote (5225)	9/11/2002 5:15:57 PM
From: MSI	Respond to of 306849

I know several people who have successfully bounced every few years from one house to the other, making improvements or appreciation gains. If you're willing to risk having to move somewhere else quite different, you'd have a start towards a retirement nest egg, from the sounds of it. If we really hit the economic skids you'd have more cash than most, and income whether entertainment work came in or not... FWIW, of course... Re your question: Personally, I've "bounced" twice, and am now building a place I'll stay, whether it's worth millions or zilch in the future...