patrick.net

I smell a realtor. :)

@bubblesitter

If you believe that hyperinflation is coming, it would be in your best interest to buy a house NOW.

Believe me, you will be priced out again once our money becomes worthless.

FaithInHim says

@bubblesitter

If you believe that hyperinflation is coming, it would be in your best interest to buy a house NOW.

Believe me, you will be priced out again once our money becomes worthless.

If/when that happens, buying a house to "nest" in is going to be at the bottom of everyone's list of priorities. Food & water will be all that matters if the economy completely implodes and money is largely worthless. RE is something people waste time worrying about when the economy is good enough that they don't need to worry at all about the basics (shelter is a basic & can be covered many ways; buying property is an unnecessary luxury).

FaithInHim says

@bubblesitter

If you believe that hyperinflation is coming, it would be in your best interest to buy a house NOW.

Believe me, you will be priced out again once our money becomes worthless.

rofl, Phoenix.

Realtor and religious ignorance all wrapped in one. Where do I sign?

@ bmwman91

I give your ideology an epic fail.

Shelter is a priority, just like food and water. Why wouldnt shelter go up in price as well?

You really think bankers are going to let you repay your loans with worthless dollars?

Really?

lol

@ crazyman

Your in CA, and that is definately a buyers market. There are some smoking bargains in CA. You need to buy up now.

Buy, buy, buy!

CrazyMan says

You really think bankers are going to let you repay your loans with worthless dollars?

Really?

lol

Well, I guess if they change the contract terms, they could reject US dollars.But they may not change the terms. If by chance they dont, you could probably pay off your home in no time.

bubblesitter says

I smell a realtor. :)

Article states median house price in metro Phoenix is $124k. Then it could well be true that prices have bottomed.

Just because something comes from NAR does not mean it is automatically false. In order to be useless you must actually be right sometimes.

This statement is obviously a falsehood, since it is common knowledge that you can't tell a bottom, until the bottom has passed. The statement made by the "wishful thinker" who started this blog, is akin to saying that today is the end of the world.

Also, I wish state colleges would stick to their charter of educating our youths in real subjects, so that they can be competitive with the rest of the world, instead of catering to the NAR mafia, and other special-interest groups.

FaithInHim says

There are some smoking bargains in CA. You need to buy up now.

Show me one bargain in the bay area which is not in the getto.

FaithInHim says

Why wouldnt shelter go up in price as well?

Because, I need a loan to buy a shelter. When shelter is as cheap as air, water and food, where I don't require a loan to get it, then, we can talk.

FaithInHim says

@ bmwman91

I give your ideology an epic fail.

Shelter is a priority, just like food and water. Why wouldnt shelter go up in price as well?

Take a look at the Great Depression and see how much the average person cared about purchasing real estate during that time. People's concerns were in feeding themselves & their families because the cost of food rose far faster than wages.

Are you suggesting that one must BUY shelter for it to count? Yeah, rents went up during the great depression, but renting also afforded people the mobility that they needed to move & start lives elsewhere. I get that people that buy in today's dollars can pay the house off in a week with hyper-inflated dollars of the future. The thing is that another great depression will change everything for everyone, and they may well just walk away from the house to greener pastures. The point is not that they can save money by buying now: the point is, if your hyperinflation idea is true, that homeownership won't matter because putting food in your mouth & subsisting will be a daily struggle.

You aren't a very good realtor shill, by the way. We have had a lot of them, far more clever than you, come through here.

dunnross says

This statement is obviously a falsehood, since it is common knowledge that you can't tell a bottom, until the bottom has passed. The statement made by the "wishful thinker" who started this blog, is akin to saying that today is the end of the world.

Wishful?? Are you kidding me. Let me guess, you're one of those folks that sold your 401K in 2008, missing the buying opportunity.

Im trying to tell you that now is the time to buy. Dont wait because the prices will be rising quickly going forth. Prices increase or decrease depending on supply and demand. The stock market is rising off the roof. Food prices are skyrocketing. The fed funds rate is still at 0%. These are all signs of inflation.

FaithInHim says

Im trying to tell you that now is the time to buy. Dont wait because the prices will be rising quickly going forth.

lol. Maybe they will. That would be indicative of far bigger problems down the road, and buying houses would be a dumb idea for more reasons than it is right now.

FaithInHim says

The stock market is rising off the roof. Food prices are skyrocketing. The fed funds rate is still at 0%. These are all signs of inflation.

No, these are all signs of a diseased economy in its death throes.

FaithInHim says

The fed funds rate is still at 0%. These are all signs of inflation.

Maybe you should go back to your Econ 101 class. How is Fed funds rate at 0% a sign of inflation?

bmwman91 says

Take a look at the Great Depression and see how much the average person cared about purchasing real estate during that time.

You're comparing apples to oranges.

In a depression enrivonment, the dollar still has value and you still have a manufacturing base. In depression, there is a shortage of dollars. In this type of environment, you want to hold as much cash as possible.

In a inflationary enrivorment, the dollar loses value and you have no manufacturing base. During inflation, there is a influx of dollars. You dont want to save in this kind of environment. You want to purchase as much as possible in today's dollars.

So during a depression, buying a house would not be essential as it would take up too much cash needed for other things. In inflation, buying a house is essential to do now before you are priced out.

dunnross says

FaithInHim says

The fed funds rate is still at 0%. These are all signs of inflation.

Maybe you should go back to your Econ 101 class. How is Fed funds rate at 0% a sign of inflation?

because your flooding too much money in the system.

FaithInHim says

because your flooding too much money in the system.

Then you should go back to your Logic 101 class. Remember:

"Correlation does not imply causation"

If hyperinflation happened in America, the lower class would just rise up and take what they wanted. Owning a home wouldn't matter unless it had a defense system and power generator.

@dunnrose

You're talking crazy talk.

The signs are all around you!

Food prices went up
Gas went up
Housing will go up
Gold went up
Dollar value went down

Everything's worth is measured in US Dollars. If the value of the dollar goes down, everything else will go up.

StoutFiles says

If hyperinflation happened in America, the lower class would just rise up and take what they wanted. Owning a home wouldn't matter unless it had a defense system and power generator.

Yup. If you are convinced of hyperinflation, you would be stockpiling guns, ammo and non-perishable food. If it happens, I fully intend to TAKE what I need, because there aren't going to be any police or other enforcers of the law (they will also be out taking what they need for their families). It scares the hell out of me, thinking about the millions & millions of people in America that can't provide for themselves without welfare, and what they will do once the free lunch goes away. I'll barricade myself in whatever shelter I am in at the time & take as many of them down as I can as they try to get at my stores. This sounds an awful lot like a zombie movie.....

We still have very clear deflation in house prices. It would be foolish to buy anytime soon.

The Fed would like to inflate housing, but they are not all-powerful. They are limited by the fears of the bond market.

If bond buyers get spooked, they will demand higher interest rates, and housing will continue to fall anyway, because people won't be able to borrow as much at higher rates.

We do have inflation in energy, food, and especially in medical care, but we have deflation in housing at the same time because there is still WAY too much mortgage debt out there, and it continues to default at a good clip.

The real inflation to watch is wage inflation. If wages were spiraling upward, then housing could follow. But I don't see wage inflation at all.

dunnross says

FaithInHim says

There are some smoking bargains in CA. You need to buy up now.

Show me one bargain in the bay area which is not in the getto.

@dunnross

here are several properties

editing...realized you said bay area

FaithInHim says

dunnross says

FaithInHim says

There are some smoking bargains in CA. You need to buy up now.

Show me one bargain in the bay area which is not in the getto.

@dunnross

here are several properties

editing...realized you said bay area

Yes, preferably in the fortress, because everything else is sh*t. In fact, even the fortress is sh*t, but it doesn't smell as bad as the other sh*t.

You HAVE to buy food You cannot rent food.

You don't have to buy a house. You can always rent it, or rent an apartment for that matter.

As food and fuel costs rise, it leaves less discretionary income to buy things like nice homes and nice cars.

On another note, and more importantly, it's not about housing priced in dollars, but housing priced in gold that matters.

nw888 says

On another note, and more importantly, it's not about housing priced in dollars, but housing priced in gold that matters.

Exactly!

dunnross says

nw888 says

On another note, and more importantly, it's not about housing priced in dollars, but housing priced in gold that matters.

Exactly!

I am waiting to buy my house in Palo Alto for 100 gold coins. In 2000, it cost 2000 gold coins. Now, it's only 400 gold coins. 100 is not too far away.

FaithInHim says

dunnross says

FaithInHim says

There are some smoking bargains in CA. You need to buy up now.

Show me one bargain in the bay area which is not in the getto.

@dunnross

here are several properties

editing...realized you said bay area

Good luck if you're off looking for bay area bargains to update this post. If you're from Phoenix you're probably going to be pretty shocked when you do a search on what's on the market in many California areas.

nw888 says

On another note, and more importantly, it's not about housing priced in dollars, but housing priced in gold that matters.

How about housing priced in terms of local incomes. Wouldn't that be refreshing.

We still have very clear deflation in house prices. It would be foolish to buy anytime soon.

The Fed would like to inflate housing, but they are not all-powerful. They are limited by the fears of the bond market.

If bond buyers get spooked, they will demand higher interest rates, and housing will continue to fall anyway, because people won't be able to borrow as much at higher rates.

We do have inflation in energy, food, and especially in medical care, but we have deflation in housing at the same time because there is still WAY too much mortgage debt out there, and it continues to default at a good clip.

The real inflation to watch is wage inflation. If wages were spiraling upward, then housing could follow. But I don't see wage inflation at all.

Ok, I agree with everything you said except two points.

1. It wouldnt spook those who can buy houses with cash. You can purchase a house buy taking funds from your 401k.

2. Remember, wages have been deflating since the 80's, and that had nil effect to the price of houses.

dunnross says

FaithInHim says

dunnross says

FaithInHim says

There are some smoking bargains in CA. You need to buy up now.

Show me one bargain in the bay area which is not in the getto.

@dunnross

here are several properties

editing...realized you said bay area

Yes, preferably in the fortress, because everything else is sh*t. In fact, even the fortress is sh*t, but it doesn't smell as bad as the other sh*t.

Holy cow, the bay area isnt like the rest of the country. You cant really buy anything decent there under 500k. Sorry, I come back empty handed.

Shawn says

How about housing priced in terms of local incomes. Wouldn't that be refreshing.

Haha!! Wow what a novel idea! Hush, you shouldn't speak of anything logical in this country, for you will surely be branded a witch.

FaithInHim says

Buy, buy, buy!

LMAO for the boldest statement on this forum. There are a few bulls here and even they haven't said that strongly!

FaithInHim says

Holy cow, the bay area isnt like the rest of the country. You cant really buy anything decent there under 500k. Sorry, I come back empty handed.

Now try LA, Orange County and San Diego.

FaithInHim says

1. It wouldnt spook those who can buy houses with cash. You can purchase a house buy taking funds from your 401k.

Most people cannot pay cash. House prices are driven almost entirely by lending.

Borrowing against your 401k to buy a depreciating asset sounds like an especially bad idea, even if you have the money there.

FaithInHim says

2. Remember, wages have been deflating since the 80's, and that had nil effect to the price of houses.

Depends what segment you look at. Most people have declining real wages, so they made up for it in borrowing because the banks let them do it.

Productivity went way up during that time period, but all of the extra income (and then some) was taken by the 1%. Those people can buy whatever they want.

FaithInHim says

@bubblesitter

If you believe that hyperinflation is coming, it would be in your best interest to buy a house NOW.

Believe me, you will be priced out again once our money becomes worthless.

Fear fear fear. Why buy now when you can buy later for less. Try your fear bull on the less wise.

FaithInHim says

Holy cow, the bay area isnt like the rest of the country. You cant really buy anything decent there under 500k. Sorry, I come back empty handed.

Most posters in here are in the CA Bay Area. Patrick.net is a great general resource for RE information, but most of the discussions here focus on the Bay Area. From what I can see, Nevada and Arizona may well have markets where houses are at or near the bottom. They are so cheap (compared to here) that I could just go buy one with cash now & not even care if it lost 50% of its value next year. I'd consider parts of AZ since there is good hiking & rock climbing, and some mechanical engineering jobs.

So, hopefully that helps to clarify things in here a little for you. Most posters are focused on the BA, and are really irritated by the exorbitant prices & competition.

FaithInHim says

@ bmwman91

I give your ideology an epic fail.

Shelter is a priority, just like food and water. Why wouldnt shelter go up in price as well?

Because it won't. Period. Not enough working folks in this country and our debt is absolutely astonishing. Pay attention.