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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: CalculatedRisk who wrote (1380)	3/6/2004 1:33:54 PM
From: justwhatuwant	Read Replies (1) \| Respond to of 116555

<< The people I talk with say the RE market is still hot where I live (SoCal). >> I live in SoCal too (San Diego) and there is no sign of housing price decreases. The few houses that come on market always move. House supply is low (partly due to fires in October). What is disturbing though is that those who bought a few years ago and enjoy a 100% increase, are starting to rent their existing house and purchase a new one. Which leads to a trend that has not been addressed very much ... "multiple-home owners". These folks increase ownership numbers. A house locally is renting for $2300/mo (value is approx $650,000). Remove fees for lawn, rental broker (10%), insurance and property taxes (low due to low purchase price) and you can clear an easy $1500/mo. You can pull some serious money from that house and re-fi it, then apply to your new house and still live ok. Hence, why not buy a new house and keep the old one too. You double your rise in house price pleasure! :-O Also, I know of several people locally that have purchased houses on speculation locally. I have also talked with RE brokers and home insurance agents in Las Vegas who tell me of the numerous folks from CA that are buying houses in LV on speculation.I could tell you stories of buying frenzy there!