Another Housing Crash

[Joe Flacco]

Yep, more house does not equate to affordability, does it?

The smaller the GLA, the higher price/sf which makes mathematical sense. However, it is nonsense to measure affordability by price/sf.

If you put 2 families in 1 house is that more affordable than putting 1 family in 1 house?

 

[George Hatch]

Fine, if price is no object then why has RE operated in an up-down cycle for all these years? How could that happen if people have no choice but to buy, regardless of the price? How do people lose their homes if all it takes is turning their house into SRO occupancy?

 

[Randolph Kinney]

If you put 2 families in 1 house is that more affordable than putting 1 family in 1 house?

I have appraised SFR with more than one family living in the home. It is not legal but it is done all the time, what's your point? AirBnB?

 

[Joe Flacco]

Fine, if price is no object then why has RE operated in an up-down cycle for all these years? How could that happen if people have no choice but to buy, regardless of the price?

The topic is this.



I never said prices will never ever go down a percent or even five percent. You guys are pointing to price / income ratio which has not been relevant for almost 50 years. I am saying fresh lows in active listings

 

[Randolph Kinney]

You guys are pointing to price / income ratio which has not been relevant for almost 50 years.

Strange, in order to qualify for a mortgage or any credit, they look at your income to support the total debt. In order words, loan to value.

 

[George Hatch]

I don't think we're necessarily on the cusp for a crash. But I do think the market is in a position where it could transition at any point going forward, and I'm reasonably confident that it eventually will turn. The "when" and the closely related "how hard" are in question, but not the "if". The longer this bull run goes the harder the subsequent correction will hit.

 

[Joe Flacco]

I don't think we're necessarily on the cusp for a crash. But I do think the market is in a position where it could transition at any point going forward, and I'm reasonably confident that it eventually will turn. The "when" and the closely related "how hard" are in question, but not the "if". The longer this bull run goes the harder the subsequent correction will hit.

Well don't let that bias creep into your appraisal reports. All indicators are bullish for price.

 

[George Hatch]

I wouldn't say that understanding RE markets are cyclical amounts to a bias about what the current value is. I don't know why you would jump to that conclusion.

As I say, I do not care what the market does. Nor would it matter if I did.

 

[Joe Flacco]

I wouldn't say that understanding RE markets are cyclical amounts to a bias about what the current value is. I don't know why you would jump to that conclusion.

I am sure your appraisal reports are unbiased.

 

[George Hatch]

Which is why your dare to imply that I am biased? What's the bias?