JtR reporting from the field about market conditions, and trying to justify one more time why we are due for some frenzy slowdown:
Jim Klinge
Klinge Realty Group
Broker-Associate, Compass
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It appears to have all reasons for general slow down from here on. I think its primarily because NSDCC sellers are not motivated enough.
Also it appears that most of the bubble-era toxic is now out from NSDCC. As a buyer I do see a rare short-sale/REO here and there but mostly traditional sales. As pointed in the video, every regular seller is expecting some %age higher than the previous sale. It becomes more intense for Prime Properties/lots.
Might be too early to say about next selling season (2014), but upward pricing trend may continue, though may not be at the same rate. Unless rents come down and sellers are motivated, we may not see any change in pricing direction (especially on/near the coast) in short term. Its already getting extreme in Lower End of Orange County Coastal areas, and NSDCC will probably follow the same.
as long as rates stay low the party continues for awhile longer. As long as buyers thing they will make a quick buck they will keep lining up.
As long as buyers [think] they can make a quick buck they will keep lining up.
Only if price increases are real. This price run up is proped up artificially with really low interest rates by really low builder inventory because of the historic correction.
Normally after a recession builders would be able to satisfy the demand and there would be plenty of natural sellers to satify the demand uptic, but now…
Didn’t you guys (and ladies) see what happened when Bernanke even hinted at taking the punchbowl away last week?
I’ll give you a a hint. Chinese trading markets experienced a “flash-crash” which spilled over to Europe and then mysteriously went away when it came back to USA the following morning.
The USA is in a very tight spot right now. Everyone has they’re hands out and the printing press is in full swing.
Want to see our future? Watch Japan.
Out here in East County, we are seeing swings upwards as well, but certainly not like peak prices in the areas that JtR covers (thats for sure).
Ultimately, in the law of %s, how many are FHA maxed and will a jump to 6% interest still play a role?
I actually just heard someone in the office recently that bought in Santaluz no more than 6 months ago and is already underwater and hasnt paid her mortgage. Apparently she had help with the down payment and it was cosigned so they could get an FHA loan at 3.5%
Mind you they bought two brand new Audis right after getting the house….just like the ‘good ole days’.