Comments on: A Sustainable Housing Market Means Lower Prices Are Necessary

By: Donna Robinson

Donna Robinson — Mon, 10 Oct 2011 13:29:16 +0000

Excellent points Joshua. From an investors point of view, I do agree. From the point of view of the “traditional” marketplace, housing will no longer be the economic engine it once was, for years to come.

By: Joshua

Joshua — Sun, 09 Oct 2011 03:02:44 +0000

I love agents and investers both and as an investor I find that prices will continue to change in the marketplace no matter what decade we are in. The very nature of capitalism is market growth and then market decline. If you don’t like the swing then let someone else ride. If you really look around there is always some one getting rich and someone going broke. No matter what the whole market is doing. As an invester I can see that the down market is much easier to make money in but I don’t decry either one. The biggest problem with our capitalism is not the growth and decline. It is the propensity for the fear of failier (to big to fail should not be in our system). Govt intervention mostly by fannie and freddie has allowed massive lending to go on (loans given out to people who should never have gotton one) as banks were able to sell notes to a place that had third party backing (i.e. the U.S. Govt.) Had these banks had to hang on to these mortgages or garentee them themselves after selling.. ..they never would have lent the money. Thus the home prices would not have risen so high thus it would not have out paced income. Your problem is not the agents not the investors and not even the banks. It is the vote collectors who have their thums in to many places they should not be. As an agent or investor try to sell a home at a higher value to someone who can not get a loan. Price does not matter because there is no sale. There is a famous saying that goes like this “when you see the croud running in one direction… …start running the other way. Look up when the hiltons got there big realestate growth. Hint: Right after Dec 7, when everyone on the west coast thought war was comming to our shores and wanted to sell in a hurry. Thanks for your time and consideration… …hope this helps.

P.s. By the way if it rents of $1000.00 I would not pay more than $70,000.00. My money is worth more than everybody else’s!

By: Donna Robinson

Donna Robinson — Tue, 04 Oct 2011 13:31:36 +0000

You are so right Paul. A $100,000 house that rents for $1000 a month is a return to what used to be a rental property standard – the 1% rule. Properties should rent for 1% of their purchase price. In the housing boom this rule was completely forgotten. We need to stop worrying about when prices are going to get back to where they were in 2006, and worry about how we’re going to maintain an affordable balance.

By: Paul Francis - Las Vegas Real Estate Agent

Paul Francis - Las Vegas Real Estate Agent — Tue, 04 Oct 2011 04:31:15 +0000

The memories of $300,000 starter shacks in Las Vegas that could only be leased out for $1,100 a month… Great for Real Estate commissions… bad for investing.

I’ll take the $100,000 homes that can be leased out for $1,000 a month any day of the week…

Here in our neck of the woods where over 40% of the current sales are cash buyers… that’s true sustainability. Unlike the no down 100% financing buyers that made up 2005 and 2006… today’s cash buyers are not going to be just walking away when they get a headache.