Are there too many people on the sidelines waiting to buy???

NEW -> Contingent Buyer Assistance Program
<p>possibly, troop</p>

<p>NSR, we are only one bank, and we were getting a lot of CFC money. People who hold money in 6 month cd's and money market accts are very rate sensitive, and we have killer rates on these products</p>
 
"<em><strong>Your statements are so funny that it is hard to determine if you are actually a troll."</strong></em>





Kali's statements don't sound like a troll to me. I have heard statements like that many times from people I know. And, as a home owner reading this blog, I have to admit I have the urge to sell my home from time to time, just to cash out my phantom equity (or cash in? not sure how to differentiate the two.... ).


<p><em><strong> </strong></em></p>
 
<p>Yes, I know you're one bank, but what's your market share?</p>

<p>At 1% market share, those deposits are $13,000 a month. Nice, but unless they can repeat it as individual households for the next ten months to get a down payment for a condo. Based on just LA/OC. For SoCal it's about $8500.</p>

<p>At say 4% market share (like IndyMac's nationwide share estimate), it's roughly $2100/account holder.</p>
 
Can't comment with great accuracy, awgee. I can tell you that we aren't the only bank that is trying to raise deposits. Banks are trying to get as liquid as possible by quarter's end. Reduced lending and increased deposits. We aren't going to make money if we can't lend out our deposits at higher rates, but at this point liquidityis front row center
 
We need a "Introduction" or "Education" type section on this blog. There are a lot of people like this guy who are new to the blog & haven't seen all the original posts (ex. anatomy of a credit bubble) and so are understandably lost. There should be an Introduction ilnk with 5 or less links to "must read" stuff so new people can catch up.
 
<p>The "Analysis" tab at the top of the main blog has all the great articles that Irvine Renter has written in the past year. I actually just noticed the tab the other day and I've been on this site for awhile now. </p>
 
Anon...yes, perhaps a sticky post titled "Newbie", or something like that. Set ground rules..."read these 5 posts first, then ask questions", etc.
 
<p>I read Major Straufarfeguggen's first remarks, and I thought, Hooray! someone who's thinking positive!! </p>

<p>and then the "sarcasm off" remark...</p>

<p> </p>

<p>boooooooooo! </p>
 
<p>Yes <a href="http://www.cnbc.com/id/20907018">positive thinking</a> always makes asset prices increase.</p>

<p><em>"This is precisely why homes aren’t selling. Sellers are stubborn; they just don’t get it. Prices during the boom were unsustainable, affordability is now ridiculous, and continued price appreciation makes no economic sense in the current atmosphere. The boom-time price inflation in homes was thanks to a faulty mortgage system, which is now in the process of righting itself, and home prices rightfully have to fall in line. <strong>Do I like writing those words? Hell no! I own a home. I like money. I also like logic. Sue me."</strong></em></p>
 
<p>I am one of those people on the sidelines, with good credit and enough money to buy.</p>

<p>However, I can't come up with any reason why I would want to buy now and watch prices drop by anywhere from 15-45%. The amount prices will drop depend on many things, but I don't think you'll find an market in CA where there is a better than even chance of prices going up during the next two years. If you were lucky and good, bought at 15% below current market, that house might be barely be worth the same amount in 2009. In the mean time, you would have paid more than the cost of renting a similar house.</p>

<p>As I've been looking at houses for rent, I've seen something interesting. Owners have always preferred nice people with good credit, but if you want a good investment try this. Let's say a place you really like is renting for $2500 a month. If you offer to pay the whole year's rent up front, you can get an amazing discount. Like 20% off in some places.</p>

<p> </p>
 
<p class="MsoPlainText">My personal opinion is that if you can afford to get into the market right now, and aren’t trying to get in just to make a quick buck but for the long run, then why not? There are deals out there to be had. There are a lot of people who have been sitting on the sidelines for years that have missed out on the appreciation that has happened in the market.</p>

<p class="MsoPlainText"> </p>

<p class="MsoPlainText">My wife and I did get ‘lucky’ when we took a chance on the housing market 5 years ago… but you have to take some risks in order to recognize some of the benefits. We recently sold our house, made a very nice profit, and are moving right into buying in Columbus Square. We have done our homework, negotiated with the builder, and are at the point that we are happy and excited about our next purchase… but we plan on being there for a while. If we didn’t take the risk 5 years ago we wouldn’t be in the position of moving up to a bigger house. </p>

<p class="MsoPlainText"> </p>

<p class="MsoPlainText">Yes the market may go down more after we buy but we aren’t looking at making a quick buck. We are looking at this house being where we live for the next 10+ years and if it goes down in value right after we buy so be it… by the time we are looking at selling I am sure the value will return. People who think the prices are going to drop by 50% I think are mistaken (IMHO)… but we all have our opinions and that’s all they are. Some are happy to rent, some are happy to buy, and I am not going to preach that one is better than the other since everyone’s situation and comport level is different.</p>
 
<p><em> "Let's say a place you really like is renting for $2500 a month. If you offer to pay the whole year's rent up front, you can get an amazing discount. Like 20% off in some places".</em></p>

<p>While I like the concept, I would be too concerned with rent skimming these days...jingle mail....poooooof, your money's gone. Now get out.</p>
 
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