Comments on: Dear Homedebtors… http://www.arcadiahousingblog.com/2008/03/28/dear-homedebtors/ Tracking the Arcadia and San Gabriel Valley Housing Market Sat, 31 Jul 2010 04:35:12 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: AKR http://www.arcadiahousingblog.com/2008/03/28/dear-homedebtors/comment-page-1/#comment-1137 AKR Sun, 30 Mar 2008 05:05:12 +0000 http://www.arcadiahousingblog.com/2008/03/28/dear-homedebtors/#comment-1137 The seller would say... That's great - keep renting for another 30 years. Why are you even on the market as a buyer if you are not serious about buying. The seller would say…

That’s great – keep renting for another 30 years. Why are you even on the market as a buyer if you are not serious about buying.

]]> By: SavedbyGrace http://www.arcadiahousingblog.com/2008/03/28/dear-homedebtors/comment-page-1/#comment-1114 SavedbyGrace Fri, 28 Mar 2008 22:57:07 +0000 http://www.arcadiahousingblog.com/2008/03/28/dear-homedebtors/#comment-1114 Sadly, the average seller probably won't even understand your point. I think you should change your name to InformedBoy or something. Clearly you're not idiotic ;) Sadly, the average seller probably won’t even understand your point. I think you should change your name to InformedBoy or something. Clearly you’re not idiotic ;)

]]> By: IdiotBoy http://www.arcadiahousingblog.com/2008/03/28/dear-homedebtors/comment-page-1/#comment-1112 IdiotBoy Fri, 28 Mar 2008 22:25:25 +0000 http://www.arcadiahousingblog.com/2008/03/28/dear-homedebtors/#comment-1112 Actually, no, I wouldn't. Unless I really didn't plan on moving anytime in the next five years. Having your house perpetually "for sale" will cause potential buyers to either ignore you or aggressively low-ball you once you do need to sell. You're also kind of screwing your neighbors, since giving potential buyers the impression that houses in your neighborhood are languishing on the market, and that the supply of available houses in your area is larger than it actually is, just diminishes demand and home values. Actually, no, I wouldn’t. Unless I really didn’t plan on moving anytime in the next five years. Having your house perpetually “for sale” will cause potential buyers to either ignore you or aggressively low-ball you once you do need to sell. You’re also kind of screwing your neighbors, since giving potential buyers the impression that houses in your neighborhood are languishing on the market, and that the supply of available houses in your area is larger than it actually is, just diminishes demand and home values.

]]> By: IdiotBoy http://www.arcadiahousingblog.com/2008/03/28/dear-homedebtors/comment-page-1/#comment-1111 IdiotBoy Fri, 28 Mar 2008 22:07:24 +0000 http://www.arcadiahousingblog.com/2008/03/28/dear-homedebtors/#comment-1111 The Buyer's answer, of course, is that the depreciation of the dollar versus a basket of foreign currencies only matters to the extent that said depreciation (i) is reflected in price inflation in the economy generally or (ii) leads to foreign investors buying a bunch of single-family homes in NE Los Angeles. Thus far, inflation (which has numerous causes other than just dollar depreciation v. other currencies) has increased only marginally and there's no evidence that foreign investors have any interest in using their suddenly more valuable Yen or Euros to invest in single family homes. The upshot is that housing prices are depreciating 8-10 times more quickly than inflaton is increasing, so if you're waiting for inflation to make your asking price anything other than a joke, you're not really a seller and you'd do everybody a favor by taking your house off the market. PS: Incidentally, current inflationary pressures have virtually nothing to do with any increase in the total money supply-- because there hasn't been an increase in the money supply over the past 2+ years, despite the general misimpression that the Fed is printing money at an absurd clip. See: http://www.federalreserve.gov/releases/H6/Current/ Inflation is creeping up because of decades of US current account deficits and general asset price inflation (e.g., oil, fertilizer, metals, etc.) caused by the rapid economic growth of China, India, Brazil and Russia. The Buyer’s answer, of course, is that the depreciation of the dollar versus a basket of foreign currencies only matters to the extent that said depreciation (i) is reflected in price inflation in the economy generally or (ii) leads to foreign investors buying a bunch of single-family homes in NE Los Angeles. Thus far, inflation (which has numerous causes other than just dollar depreciation v. other currencies) has increased only marginally and there’s no evidence that foreign investors have any interest in using their suddenly more valuable Yen or Euros to invest in single family homes.

The upshot is that housing prices are depreciating 8-10 times more quickly than inflaton is increasing, so if you’re waiting for inflation to make your asking price anything other than a joke, you’re not really a seller and you’d do everybody a favor by taking your house off the market.

PS: Incidentally, current inflationary pressures have virtually nothing to do with any increase in the total money supply– because there hasn’t been an increase in the money supply over the past 2+ years, despite the general misimpression that the Fed is printing money at an absurd clip.

See: http://www.federalreserve.gov/releases/H6/Current/

Inflation is creeping up because of decades of US current account deficits and general asset price inflation (e.g., oil, fertilizer, metals, etc.) caused by the rapid economic growth of China, India, Brazil and Russia.

]]> By: Tim K. http://www.arcadiahousingblog.com/2008/03/28/dear-homedebtors/comment-page-1/#comment-1109 Tim K. Fri, 28 Mar 2008 20:22:13 +0000 http://www.arcadiahousingblog.com/2008/03/28/dear-homedebtors/#comment-1109 Dear Buyer - Ha, you got me. Obviously, I'm not your target. I'm not really interested in moving, but if some fool comes along with a Bag of Money and a Box of Stupid, I want my home to be available so he can overpay and give me my lucky break! Surely, it's worth it for me to do so. After all, it costs me nothing to keep the house listed, because either I am a Realtor or I've got a Realtor friend who owes me. He thinks I'm crazy too which is why he's not really spending much money marketing my property. Anyway, you can call my a moron if you want, but this is the cheapest lottery ticket I've got. Wouldn't you do the same if you were me? Dear Buyer -

Ha, you got me. Obviously, I’m not your target. I’m not really interested in moving, but if some fool comes along with a Bag of Money and a Box of Stupid, I want my home to be available so he can overpay and give me my lucky break!

Surely, it’s worth it for me to do so. After all, it costs me nothing to keep the house listed, because either I am a Realtor or I’ve got a Realtor friend who owes me. He thinks I’m crazy too which is why he’s not really spending much money marketing my property.

Anyway, you can call my a moron if you want, but this is the cheapest lottery ticket I’ve got. Wouldn’t you do the same if you were me?

]]> By: SavedbyGrace http://www.arcadiahousingblog.com/2008/03/28/dear-homedebtors/comment-page-1/#comment-1108 SavedbyGrace Fri, 28 Mar 2008 18:58:41 +0000 http://www.arcadiahousingblog.com/2008/03/28/dear-homedebtors/#comment-1108 "Fed reserve is printing new money faster than houses being put on the market. So time is on my side." If that were true then shouldn't the housing crisis be over? We're still in the early stages of the correction and home prices will probably drop faster than the Feds can print the $1trillion needed to save the credit/housing market. Time is not on the sellers' side. “Fed reserve is printing new money faster than houses being put on the market. So time is on my side.”

If that were true then shouldn’t the housing crisis be over? We’re still in the early stages of the correction and home prices will probably drop faster than the Feds can print the $1trillion needed to save the credit/housing market. Time is not on the sellers’ side.

]]> By: SavedbyGrace http://www.arcadiahousingblog.com/2008/03/28/dear-homedebtors/comment-page-1/#comment-1107 SavedbyGrace Fri, 28 Mar 2008 18:53:26 +0000 http://www.arcadiahousingblog.com/2008/03/28/dear-homedebtors/#comment-1107 Dear Seller, That's great - keep it for another 30 years. Why is your house even on the market then? - Buyer As a side note, sellers who have paid off their property and/or bought 30 years ago are more the minority. Most of the properties on sale today have not been paid off so they're not actually homeowners, they're homedebtors. Dear Seller,

That’s great – keep it for another 30 years. Why is your house even on the market then?

- Buyer

As a side note, sellers who have paid off their property and/or bought 30 years ago are more the minority. Most of the properties on sale today have not been paid off so they’re not actually homeowners, they’re homedebtors.

]]> By: AKR http://www.arcadiahousingblog.com/2008/03/28/dear-homedebtors/comment-page-1/#comment-1106 AKR Fri, 28 Mar 2008 18:37:43 +0000 http://www.arcadiahousingblog.com/2008/03/28/dear-homedebtors/#comment-1106 Seller may reply Dear buyer, Thanks for buying into my neighborhood! What a great neighborhood my house is in. I brought my house long time ago and it's completely paid off. I will only let it go if someone really appreciates its greatness, otherwise I don't mind keeping it for another 30 years. I agree with you that house price in general is dropping, and I don't see my house being an exception. However, the value of dollar is depreciating even faster. Why should I exchange one depreciating asset (my house) with another asset that's worse in keeping up its value? Fed reserve is printing new money faster than houses being put on the market. So time is on my side. Seller may reply

Dear buyer,
Thanks for buying into my neighborhood! What a great neighborhood my house is in. I brought my house long time ago and it’s completely paid off. I will only let it go if someone really appreciates its greatness, otherwise I don’t mind keeping it for another 30 years.
I agree with you that house price in general is dropping, and I don’t see my house being an exception. However, the value of dollar is depreciating even faster. Why should I exchange one depreciating asset (my house) with another asset that’s worse in keeping up its value? Fed reserve is printing new money faster than houses being put on the market. So time is on my side.

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