Real estate buyers loaded with cash wait for sellers to crack

Los Angeles Daily News ^ | 19 May 2020 | By John Gittelsohn and Jack Sidders

[DIRTYSECRET]

An internet connection is all u need these days.

[gogeo]

Vulture investing.

[theyreallthesame]

That’s a broad brush. The Glendale/Burbank/North L.A. and Pasadena market has remained strong. Entertainment business is coming back into the area(s). The actors, actresses, film crews, producers, directors, etc. no longer wish to travel Sunday night to Thursday night, stay in Hotels and breathe the recycled air on the Planes. Some areas will be hit harder than others and some will flourish. The Fed is flooding the system with money and Bond Yields are dismal. Locally, ehere is a ton of money on the sidelines waiting to buy. Your mileage may vary...

[gogeo]

I suspect it will take more than that. The purchase price isn’t the hurdle, it’s the carrying cost...taxes.

[Lurker]

“The purchase price isn’t the hurdle, it’s the carrying cost...taxes.”

Those are going to go up, too.

Way, way up.

L

[mrsmith]

“World’s biggest...”
Yes, the world wants to buy the US at a discount.
Not in the biz, but doubt they’ll get much discount except in places like NYC that have lost a lot of their value permanently.

[dragnet2]

I’d guess commercial properties and residential homes in major population centers are going to take a hit after being under the punitive control of these leftist in big cities during this virus BS.

And I’d guess the real-estate prices in smaller cities and towns are going to go up as people don’t want to be subjected to the big city control freaks anymore.

[Dr. Sivana]

the ChiComs are gettin to ready to strike the real estate market (again).

Maybe not. We are buying less stuff, as is Europe. Red China is not flush with cash right now.

[Dr. Sivana]

I’ve read stories of about how millenials are sick of the city life and retreating to the country.

That's anecdotal. Large numbers haven't even bothered to learn how to drive.

[Dr. Sivana]

Fifty cents on the dollar across the state.

Especially when property taxes go up to compensate. I built in rural Illinois (Ogle County) and housing values fell 40% overnight. We held out as long as we could, and the values still had not begun to recover six years after. I am confident it never got back to 2007 levels. Property taxes remained the same.

We are renting now, but am willing to buy low when low comes here in Phoenix, where it is NOT Illinois.

[Dr. Sivana]

And I’d guess the real-estate prices in smaller cities and towns are going to go up as people don’t want to be subjected to the big city control freaks anymore.

Beware, some big city control freaks move to small towns and become small town control freaks. The wealthier ones like to use HOAs etc. to drive up prices, keeping riff-raff out, and are all in favor for higher taxes for schools, "culture", etc.

[MeneMeneTekelUpharsin]

I’d guess commercial properties and residential homes in major population centers are going to take a hit after being under the punitive control of these leftist in big cities during this virus BS.

And I’d guess the real-estate prices in smaller cities and towns are going to go up as people don’t want to be subjected to the big city control freaks anymore.

You probably have a point there.

[MeneMeneTekelUpharsin]

“The purchase price isn’t the hurdle, it’s the carrying cost...taxes.”

Yep. You hit the nail on the head. You never really own anything. :(

[dragnet2]

You bet. There are corruption and control freaks everywhere. Yep. But speaking from significant experience in both smallish towns and massive population centers, cities like LA/S.CA for example, there is no comparison. Like in LA, it’s freaks, criminals, gangs, nut jobs, dings, sadist, pedos and even cannibals. Ya cruise down the road and ya see people arguing with telephone poles. It’s off the scale when compared.

[Left2Right]

We are going to see a lot of vacant commercial space over the next few years as companies lay off their "coders" (see latest news of layoffs at Uber, this is just the start). Urban areas are going to get hit hard and not sure what all the "coders" are going to do when they lose their jobs (and those coding jobs are not coming back in America when someone in India can do their job for a quarter of the price).

They learned to code, but no one needs them anymore! Now what? Learn to jog?

[MeneMeneTekelUpharsin]

Learn to jog?

Not in Georgia. That was low, bro....

[stuckincali]

except in Calwihave control of our property taxes and if the prices drop the taxes drop

[dfwgator]

the ChiComs are gettin to ready to strike the real estate market (again).

I also suspect a big reason the stock prices went back up is because the ChiComs have been buying stock left and right.

[Right Wing Assault]

In my neighborhood the last couple weeks, as soon houses go on the market they are selling right away. Almost all of the houses go in less than 10 days, and surprising numbers go in two or three. If you want to buy, you don't putz around or the one you like will be gone. I've never seen it like this.

I don't know if people are lowering prices or buyers don't mind giving the sellers what they want. Or maybe the buyers are low-balling their offers and the sellers jump at it with summer on the way. Or all of these, depending on the property.

[Dr. Sivana]

Ya cruise down the road and ya see people arguing with telephone poles.

Yes, but to be fair ... the telephone pole WAS in the way of where he was going.