Some choice quotes:
""The era of cheap mortgages finally ended yesterday. After fueling one of the most free-spending decades on record, the cheap, fixed-rate mortgage jumped virtually overnight from its historic 40-year lows to root permanently beyond the psychologically important 6 percent level yesterday, where economists believe it will keep rising dramatically."
""The new jump in mortgage costs, when combined with weaker incomes, the national deficit, skyrocketing energy prices and overpriced houses, are driving a stake into the housing bubble, analysts say."
""People had felt rich but they're seeing now that they aren't, it was just an illusion on paper,' Johnson said.""
""Peter Schiff (said), 'We've been living in this fantasy bubble for too long. People are going to find out their pensions and homes aren't worth what they thought.'""
3 comments:
"People had felt rich but they're seeing now that they aren't, it was just an illusion on paper"
But, we're already rich in Marin, right?
I'm sure nobody spent here based on the "paper wealth" of their homes--or extracted equity for home improvement or new cars? Marin is definitely a cash-rich place, and can't possibly be affected by a real estate downturn.
I assume you are being sarcastic. But... Sure there are a lot of folks here who are rich and were so before the housing bubble. But I am also sure there are a lot here who are rich on paper and who have extracted tons of equity from their houses. I know quite a number of these sorts myself. It would be useful to know what percentage of Marinites have done this.
Sure there are a lot of folks here who are rich and were so before the housing bubble.
I'm sure there's plenty of old money here, such as the people I'm told who own a half-dozen homes in the county. Perhaps parking all that cash in real estate is common practice in their circles, but they'll only see a return if they sell. But, they're stubborn to price to market.
It may still be popular now to "invest" in real estate, but what happens when the old money changes their mind? I bet all the wannabes will follow suit. Could real estate investing in Marin ever become passé?
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