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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Foreclosure booms and busts Posted by Ward-CA- on August 26, 2001 at 4:54 PM In Reply to: Booms and busts posted by todd-wa on August 26, 2001 at 4:00 PM : A cover story in Forbes reads,"What If Real Estate Crashed?" It's no news that there is a real estate cycle and we have been in the boom phase. : Just curious Ward,having been through these ups and downs what phase do you find more profitable... More desireable from the foreclosure buyer angle? =•=•=•=•=•=•=•=•=•=•=•=•= Todd, it’s funny but not all areas react the same to a notable economic boom or bust—even within the same state. Let’s take California at the present time. Right now, the silicon valley area of San Jose and it’s environs is going through a dramatic bust out due to the pandemic collapse of the dot.com economy in this country. As a consequence the real estate market in that area has plummeted, while at the same time it’s surging ahead here in San Diego county. The dichotomy is due to the concentration of affected parties. In the San Jose area the perception is that every other person is directly affected. By contrast, here in San Diego only a sprinkling of people are presumed to be directly affected. My feeling is that San Diego’s real estate market, while slowing somewhat due to our normal seasonal change, is going to continue to bound ahead until we either produce enough housing to meet local demand or we suffer from a sudden drop in consumer confidence due to something as wide and serious as an outright war in the Middle East. My personal preference, in the real estate cycle, is a Neutral market—one that neither favors sellers nor buyers. That’s because I’m both a buyer and seller in the same real estate market when flipping foreclosures. If it’s too skewed to a Seller’s market I can’t buy any deals to sell and if it’s too skewed to a Buyer’s market I can’t sell the fantastic deals I can buy. A neutral market is one where the average marketing time, as tracked in the local Multiple Listing Service, is between 61–90 days. Hope this helps. Follow Ups: Re: Foreclosure booms and busts-strategy Michael 8:31 AM, 08/27/01 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : A cover story in Forbes reads,"What If Real Estate Crashed?" It's no news that there is a real estate cycle and we have been in the boom phase. : : Just curious Ward,having been through these ups and downs what phase do you find more profitable... More desireable from the foreclosure buyer angle? : =•=•=•=•=•=•=•=•=•=•=•=•= : Todd, it’s funny but not all areas react the same to a notable economic boom or bust—even within the same state. Let’s take California at the present time. : Right now, the silicon valley area of San Jose and it’s environs is going through a dramatic bust out due to the pandemic collapse of the dot.com economy in this country. As a consequence the real estate market in that area has plummeted, while at the same time it’s surging ahead here in San Diego county. : The dichotomy is due to the concentration of affected parties. In the San Jose area the perception is that every other person is directly affected. By contrast, here in San Diego only a sprinkling of people are presumed to be directly affected. : My feeling is that San Diego’s real estate market, while slowing somewhat due to our normal seasonal change, is going to continue to bound ahead until we either produce enough housing to meet local demand or we suffer from a sudden drop in consumer confidence due to something as wide and serious as an outright war in the Middle East. : My personal preference, in the real estate cycle, is a Neutral market—one that neither favors sellers nor buyers. That’s because I’m both a buyer and seller in the same real estate market when flipping foreclosures. If it’s too skewed to a Seller’s market I can’t buy any deals to sell and if it’s too skewed to a Buyer’s market I can’t sell the fantastic deals I can buy. : A neutral market is one where the average marketing time, as tracked in the local Multiple Listing Service, is between 61–90 days. : : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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