You said that Unlike stocks, real estate never "tank" fast. kind of got that you were comparing the two. Real market in real estate is not known now because so much inventory is for sale with NO offers. At least that is how it is in San Diego. John
I give up. Stupidity can't be fixed. I'm sure you are a brilliant trader because that "Trading is for Dumb People" thread says so.
You have a memory of a little sewer rat. Read my first two posts on this thread because you can't remember anything....
how about we stop the food fight.? ive been in the real estate biz for well over 2 decades. i've seen the same arguements before on the way up, and same rationalizations before on the way down. there certainly is a mass psychology component to real estate, although here is Socal developable sites, particularly along the coast are scarce and very valuable. i posted this before - im a regular guy that got lucky and was too stupid to sell. i sold a duplex for about 4.5-times what i paid for it 18 years earlier. since i only put 10% down, i/we made about 40x our money - it was an expensive duplex and we made serious dough. i put $2k down on another place that is worth $700,000 to $800,000;. its now F&C - figure the equity yield on that baby. conversely, i saw people buy in 1989 and not get bailed out until 1999, and if you look at IR historys, thats when the FED started the death spiral. if FED hadnt gone so low(neg real rates), i doubt those people would have been bailed out even today. so if you bought recently with fixed IR, are not over-leveraged and probably will never have to sell, and you love the area & home, its no worrries. if you bought on the come, i think you are in for some hard times if you have ARM and are over-leveraged and subject to income irregularities, ie, software engineer, aerospace, etc. i plan to keep one place in Socal. i have another place in a tax free state that i exchanged into and plan to occupy at some point. other na that, its passive income, passive income and more passive income. something would have to be a screaming dela for me to get interested. i can wait, ive seen this movie before.
Excellent post QQQBall and presumably you'll trade a little QQQ while you wait. Internet forums are about information, entertainment and expression so (IMHO) let the food fight continue. Cheers
Unless the economic downturn affects your area. Realistically, a minority falls into the category you mention. This whole economy was driven on the RE boom, or more specifically, pumping up of the money supply by the Fed. The 3 biggest drivers of job "growth" over the last 5 years will all take serious direct hits: Construction, Retail & Financial Services. That's the real problem, not just some flippers being burned. It will be a slow transition. Real estate does not cliff dive like stocks. What's hapening in Florida seems to follow the cycle, first buyer interest slows, then illiquidity. The fun part begins after that. NYC is way overpriced and I'm calling that quite a few projects currently in the works will not be finished. NY & LI areas are growing in foreclosures fast. Don't expect any corner pieces to drop in price in NYC or any other cities with similiar infrastructure (Boston, SF). If you live in NYC, just take notice, may clue you in on what is really going on in the world.
i live in miami but travel to detroit to see family a lot (grew up in detroit) detroit is an absolute firesale...prices continue to slide ...my dad told me there is 4 years of inventory here....Beautiful huge homes are so cheap compared to miami...i wish i liked the weather nad lifestlye in detroit..cause its an absolute bargain miami ..i have been lookin andkeepin eye on mls for over a year now as we had a baby and are looking to upgrade but cant pull the trigger on OVER inflated dumps i have definately noticed a lot more inventory comin on line..but people still have not really dropped...except one home we looked at for 899 is now at 760 offer...still no buyer i think once the pre cons of 2004 are completed by mid=late 2007...prices will further feel the wrath my condo building has seen much lower prices prob by like 10%..but i still think we go lower...oh well for now i have stoppped lookin seriously ,..but still keep tabs on whats goin on sales wise d