All Forum Posts by: Account Closed

A grand total of $1495 for a house in Pittsburg CA? It seems you have an error in the tabular data -- two 'median house price' columns. Is one of the columns supposed to be median rent for the city?

If I spent $1 million and bought say a vacation property somewhere in San Francisco (or any other city for that matter), then, for whatever reason decide I need to sell the property. Maybe to deploy the cash elsewhere where I can earn a better return on the funds, maybe its because if I spent a month living in each property I already own, I wouldn't get to the SF property until 3 years from now; so I could be listing the property for sale for any boat load of reasons. 

If I also listed the property for less than the $1 million that I paid for it, does that then mean there is an issue either with the San Francisco or California real estate market or the US economy for that matter? The answer is no... the one transaction doesn't explain what is happening economy wide... that has been and is the point.

I doesn't seem there is much dispute regarding the fact that the one transaction does necessarily reflect what is going on economy wide.

Sounds like someone either overpaid (who knows why) or may have personal issues making them sell. The percent of homes with declining values happen to be a number that is being tracked for many of the states. In California for instance, compared to 2015, there seems to be a decline in the percent of homes with declining values. But San Francisco does seem to have different dynamics and does seem to be cooling - at least according to Zillow.

What actually happens depends on how the marginal increase in DTI will trigger an increase in demand (ceteris paribus -- somewhat likely), and how the DTI increase is likely to alter current supply levels (inventory) in the market place. When you say "bubble again"... are you suggesting that there is going to be another crash due to this?

Issues of discrimination can be quite serious, especially if you participate is any form of a federal program. Is there more to this story? Have there been previous complaints (whether or not you felt they had merit).. there seems to be quite some ways between a missing rent and a discrimination complaint.

The goal was to ensure others don't accept a persons radicalized opinions about an economic system as facts. There are issues with and in any society. You just don't from that, lump the issues into confusing what a free market system is. 

There are things like eminent domain still in play even today in the US and the government can take your property from you against your will through legal channels through the guise of serving the greater good; but that does not then mean the economic system in the US is not based on a free market system.

Its like with political systems, there is democracy and there is for instance a dictatorship. In light of recent events here in the US (don't mean to hurt any feelings), you can't just say the US is not a democratic society just because you want to explain the fact that ultimately, the electoral college makes the decision which can derail the intent of the popular vote. The people still participated and it is still a democracy (or a form of it). 

It is a very different system than what Kim Jung Un is used to in North Korea; over there, the economy is centrally planned and very different from the US.

I don't need to argue, I just do not see any point that you have made... in a free market, forces of demand and supply set prices which is in direct contrast to a command economy where prices are dictated. 

Talks about a renter burning down your house has nothing to do with the concept of free markets.. and what does going to court have to do with this? Completely irrational...are you sure you aren't confused on what free market means?

A renter burns down your house they get charged with arson... insurance pays.. if others suffer a fatal injury renter rots in a jail cell.. don't see your point.

 Have you heard of SLABS -- student loan asset backed securities?

This is not correct. "Free market" is indeed an economic system at least conceptually although in practice what often prevails is a form of mixed economy -- a blend of both free markets and government intervention. 

An example -- here in the US, if you own a rental property in most parts of the country, you can charge the customer just about anything you feel you should -- even though you are likely to charge market rate or else the rooms would be empty. Renters also have the choice to rent from just about anyone they choose to as long as they can afford it. These are characteristics of a free market. Very different from an environment where nationwide what you charge for rent is what you are told.

Despite it being a free market, this does not mean however that in some nooks of the market such as New York, California etc., you won't experience rent controls and attempts by the government to regulate rent in certain areas due to the housing affordability crises experienced in those areas.

Despite the US claiming to be a free market for instance, some mergers of companies in the market place often have to pass regulatory approval -- to prevent excessive concentration of market power in the hands of a few firms that can result in predatory activities that can prevail in such an environment. Companies like Microsoft have had its fair share of harassment by the DOJ.

So even in a free market environment, the government will often identify trends and developments that may put at risk its national security and hence have to act to address the threat  or may intervene to bring about equity and fairness. I know... the government is concerned about fairness? Equity? What am smoking I right? 

In some rare few instances -- they do or should.

I think it really depends on the particulars of the case and there are times when it can make sense to utilize an agent. Some sellers by the way may already include agent fees in the price above their target profit. 

In some markets there can be a HUGE difference between selling a property yourself and utilizing the MLS -- in a sellers market, getting multiple offers in excess of asking price can be nice; as would the agent educating buyers about the market, area, organizing showings etc. which some buyers may find quite valuable. Some however still just like to save.

I personally as an investor may need a license because access to the MLS can be helpful in researching deals or getting comps.