U.S. stocks in free fall - Housing side discussion

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JoinTheLocalizer
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U.S. stocks in free fall - Housing side discussion

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[Moved into a new thread from: U.S. stocks in free fall --admin LadyGeek]
drk wrote: Thu Jan 13, 2022 4:34 pm
GeraniumLover wrote: Thu Jan 13, 2022 4:29 pm Berkshire Hathaway hit a new all time high again today
Cash is trash, so everybody's buying a company loaded with cash. :moneybag
Cash was quite precious between 2008 and 2012, and not just for stocks. House down the street from my Mom's went to foreclosure for only $40K, in a nice retirement neighborhood in FL. I wish I started my pilot journey back then. Could've scored a Cessna 172 for about 1/3 of the price since there were so many broke as a joke folks who lost their toys to the bank, or wifey made them sell it to not fall behind on the mortgage.
Marseille07
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Re: U.S. stocks in free fall

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JoinTheLocalizer wrote: Thu Jan 13, 2022 6:55 pm Cash was quite precious between 2008 and 2012, and not just for stocks. House down the street from my Mom's went for $40K under foreclosure, in a nice retirement neighborhood in FL. I wish I started my pilot journey back then. Could've scored a Cessna 172 for about 1/3 of the price since there were so many broke as a joke folks who lost their toys to the bank, or wifey made them sell it to not fall behind on the mortgage.
It seems easy in hindsight. I was looking for an investment property back in 2012; this was when the prices kept going sideways or down, and it appeared I'd be overpaying for a property bound to lose value.
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gas_balloon
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Re: U.S. stocks in free fall

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Marseille07 wrote: Thu Jan 13, 2022 6:59 pm
JoinTheLocalizer wrote: Thu Jan 13, 2022 6:55 pm Cash was quite precious between 2008 and 2012, and not just for stocks. House down the street from my Mom's went for $40K under foreclosure, in a nice retirement neighborhood in FL. I wish I started my pilot journey back then. Could've scored a Cessna 172 for about 1/3 of the price since there were so many broke as a joke folks who lost their toys to the bank, or wifey made them sell it to not fall behind on the mortgage.
It seems easy in hindsight. I was looking for an investment property back in 2012; this was when the prices kept going sideways or down, and it appeared I'd be overpaying for a property bound to lose value.
Here in San Francisco / Bay Area, the cash buyers had moved in back then. We were seeing million dollar homes (which seemed high back then!) sell for 100% cash offers.
Last edited by gas_balloon on Thu Jan 13, 2022 7:02 pm, edited 1 time in total.
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Re: U.S. stocks in free fall

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Marseille07 wrote: Thu Jan 13, 2022 6:59 pm
JoinTheLocalizer wrote: Thu Jan 13, 2022 6:55 pm Cash was quite precious between 2008 and 2012, and not just for stocks. House down the street from my Mom's went for $40K under foreclosure, in a nice retirement neighborhood in FL. I wish I started my pilot journey back then. Could've scored a Cessna 172 for about 1/3 of the price since there were so many broke as a joke folks who lost their toys to the bank, or wifey made them sell it to not fall behind on the mortgage.
It seems easy in hindsight. I was looking for an investment property back in 2012; this was when the prices kept going sideways or down, and it appeared I'd be overpaying for a property bound to lose value.
Right and this is when you needed to buy of course, when people were saying "housing prices only go down". This was also predicated on having a job, since they were pretty hard to come by for many.
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Re: U.S. stocks in free fall

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gas_balloon wrote: Thu Jan 13, 2022 7:01 pm
Marseille07 wrote: Thu Jan 13, 2022 6:59 pm
JoinTheLocalizer wrote: Thu Jan 13, 2022 6:55 pm Cash was quite precious between 2008 and 2012, and not just for stocks. House down the street from my Mom's went for $40K under foreclosure, in a nice retirement neighborhood in FL. I wish I started my pilot journey back then. Could've scored a Cessna 172 for about 1/3 of the price since there were so many broke as a joke folks who lost their toys to the bank, or wifey made them sell it to not fall behind on the mortgage.
It seems easy in hindsight. I was looking for an investment property back in 2012; this was when the prices kept going sideways or down, and it appeared I'd be overpaying for a property bound to lose value.
Here in San Francisco / Bay Area, the cash buyers had moved in back then. We were seeing million dollar homes (which seemed high back then!) sell for 100% cash offers.
SF and DC were outliers of the national market. DC for obvious reasons (the stable jobs in a very unstable job market back then)

Lest we forget that SF/Bay area did have a housing depression for a while. Either there or SoCal. I think during the early 90s timeframe, around the S&L scandal timeframe? It was hard to find buyers IIRC back then and houses were being sold for a song.

SF homes took a little dip in asking price in November also.

https://www.sfchronicle.com/bayarea/art ... 610951.php

Image
Last edited by JoinTheLocalizer on Thu Jan 13, 2022 7:53 pm, edited 1 time in total.
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Re: U.S. stocks in free fall

Post by gas_balloon »

JoinTheLocalizer wrote: Thu Jan 13, 2022 7:44 pm
gas_balloon wrote: Thu Jan 13, 2022 7:01 pm
Marseille07 wrote: Thu Jan 13, 2022 6:59 pm
JoinTheLocalizer wrote: Thu Jan 13, 2022 6:55 pm Cash was quite precious between 2008 and 2012, and not just for stocks. House down the street from my Mom's went for $40K under foreclosure, in a nice retirement neighborhood in FL. I wish I started my pilot journey back then. Could've scored a Cessna 172 for about 1/3 of the price since there were so many broke as a joke folks who lost their toys to the bank, or wifey made them sell it to not fall behind on the mortgage.
It seems easy in hindsight. I was looking for an investment property back in 2012; this was when the prices kept going sideways or down, and it appeared I'd be overpaying for a property bound to lose value.
Here in San Francisco / Bay Area, the cash buyers had moved in back then. We were seeing million dollar homes (which seemed high back then!) sell for 100% cash offers.
SF and DC were outliers of the national market. DC for obvious reasons (the stable jobs in a very unstable job market back then)

Lest we forget that SF/Bay area did have a housing depression for a while. Either there or SoCal. I think during the early 90s timeframe, around the S&L scandal timeframe? It was hard to find buyers IIRC back then and houses were being sold for a song.

SF homes took a little dip in asking price in November also.

https://www.sfchronicle.com/bayarea/art ... 610951.php

Image
SF and Bay Area have diverged in the past 2 years. A lot of people are moving from SF to San Jose suburbs (i.e. Bay Area or Silicon Valley or South Bay). The south bay and parts of east bay have seen a HUGE surge in properties price while SF has not seen as much.
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U.S. stocks in free fall - Housing side discussion

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gas_balloon wrote: Thu Jan 13, 2022 8:06 pm
JoinTheLocalizer wrote: Thu Jan 13, 2022 7:44 pm
gas_balloon wrote: Thu Jan 13, 2022 7:01 pm
Marseille07 wrote: Thu Jan 13, 2022 6:59 pm
JoinTheLocalizer wrote: Thu Jan 13, 2022 6:55 pm Cash was quite precious between 2008 and 2012, and not just for stocks. House down the street from my Mom's went for $40K under foreclosure, in a nice retirement neighborhood in FL. I wish I started my pilot journey back then. Could've scored a Cessna 172 for about 1/3 of the price since there were so many broke as a joke folks who lost their toys to the bank, or wifey made them sell it to not fall behind on the mortgage.
It seems easy in hindsight. I was looking for an investment property back in 2012; this was when the prices kept going sideways or down, and it appeared I'd be overpaying for a property bound to lose value.
Here in San Francisco / Bay Area, the cash buyers had moved in back then. We were seeing million dollar homes (which seemed high back then!) sell for 100% cash offers.
SF and DC were outliers of the national market. DC for obvious reasons (the stable jobs in a very unstable job market back then)

Lest we forget that SF/Bay area did have a housing depression for a while. Either there or SoCal. I think during the early 90s timeframe, around the S&L scandal timeframe? It was hard to find buyers IIRC back then and houses were being sold for a song.

SF homes took a little dip in asking price in November also.

https://www.sfchronicle.com/bayarea/art ... 610951.php

Image
SF and Bay Area have diverged in the past 2 years. A lot of people are moving from SF to San Jose suburbs (i.e. Bay Area or Silicon Valley or South Bay). The south bay and parts of east bay have seen a HUGE surge in properties price while SF has not seen as much.
I can appreciate that hypothesis as it was a common theme to move out of cities throughout the country. The point is that SF Bay area in aggregate had 3 housing recessions over the past 30 years.

Also, when I hear that "cash buyers moved in", usually I just shrug this assertion off. It may be true there's an uptick in all cash buyers, but the percentage overall is still very much in the minority. The overwhelming majority of "homebuyers" are still leveraged mortgage debtors. A lot of housing bulls here in Research Triangle Park (Raleigh, NC area) have said the same thing but it's because they hear about a few examples of this happening (ie 1 or 2 of their friends listed their home and a cash buyer moved in), and projecting that out to the general population vis-a-vis confirmation bias.
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