Comments on: Thought Provoking http://blog.redfin.com/sfbay/2007/10/thought_provoking.html Redfin Bay Area Sweet Digs Fri, 20 Nov 2009 12:03:22 -0800 http://wordpress.org/?v=2.8.1 hourly 1 By: sue.herz http://blog.redfin.com/sfbay/2007/10/thought_provoking.html/comment-page-1#comment-1682 sue.herz Wed, 31 Oct 2007 14:28:56 +0000 http://blog.redfin.com/sfbay/2007/10/thought_provoking.html#comment-1682 And when you add in the factor of market growth and demand plus dozens of other factors, predictability pretty much flies out the window. Guessing and hoping are pretty much the best we can do and that is a tough premise to 'take to the bank'. The problem I have with renting as opposed to owning (after having been a 'renter' most of my life and now an 'owner') is that a renter has no real say-so regarding the security of their space. That does matter, regardless of the cost. And when you add in the factor of market growth and demand plus dozens of other factors, predictability pretty much flies out the window. Guessing and hoping are pretty much the best we can do and that is a tough premise to ‘take to the bank’.

The problem I have with renting as opposed to owning (after having been a ‘renter’ most of my life and now an ‘owner’) is that a renter has no real say-so regarding the security of their space. That does matter, regardless of the cost.

]]> By: Red http://blog.redfin.com/sfbay/2007/10/thought_provoking.html/comment-page-1#comment-1679 Red Tue, 30 Oct 2007 20:28:35 +0000 http://blog.redfin.com/sfbay/2007/10/thought_provoking.html#comment-1679 Yes, homes are overpriced because of the low interest rate, plus high rate of price increase and the expectation that the increases would continue. If the assumption goes from "it will be worth 10% more next year" to no appreciation, then suddenly the fact that rents are half the cost of owning matters. That same home goes from a money maker to a big money eater and the home prices spiral down for years. Yes, homes are overpriced because of the low interest rate, plus high rate of price increase and the expectation that the increases would continue. If the assumption goes from “it will be worth 10% more next year” to no appreciation, then suddenly the fact that rents are half the cost of owning matters. That same home goes from a money maker to a big money eater and the home prices spiral down for years.

]]> By: smrufett http://blog.redfin.com/sfbay/2007/10/thought_provoking.html/comment-page-1#comment-1675 smrufett Tue, 30 Oct 2007 03:19:57 +0000 http://blog.redfin.com/sfbay/2007/10/thought_provoking.html#comment-1675 I personally think that part of the reason we have such an overpriced housing market is because of the low interest rate. And the unwillingness by the government to let the market correct itself. If interest rates stay the same, then maybe housing prices will actually decrease enough for average people to afford it. I personally think that part of the reason we have such an overpriced housing market is because of the low interest rate. And the unwillingness by the government to let the market correct itself. If interest rates stay the same, then maybe housing prices will actually decrease enough for average people to afford it.

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