Patricknet.com is one such forum where many didn’t buy because of general bearishness, didn’t follow the principle of “buy when there is extreme pessimism”… 2009-2011 is when everybody gave up on stocks and RE… and believe economy would plunge into Great Depression… luckily Fed waved its magic wand, only Great Recession.
In the long run, buy quality. However, short term returns are always highest for low quality or those transitioning to quality e.g. some zip codes of Oakland appreciates by more than 40% in 2016! Which area is transitioning? Don’t mistake low quality as transitioning 
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True. My West Oakland property has almost doubled since 2013. But even there I asked myself if I were willing to live there with family. And the answer was positive. The neighborhood has some rough edges but clearly transitioning for the better.
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40% in 1 year is most likely a sales mix change, not appreciation.
It’s scary that there are no bears left even when the market is clearly tired after years of fast race. Peak happens when everyone is bullish.
I don’t think “hold” means bullish.
I am bullish on long term(a few decades) bay area real estate market but guess short term corrections will happen from time to time.
Given all tax benefits, historical data on appreciation and overhead with selling, i guess holding and leaving the property to children makes sense to many property owners.
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Many didn’t buy because of Dodd Frank…Frankly the cure was worse than the affliction. .Dodd Frank and the Democratic witch hunt on bankers backfired and screwed traditional Democratic constituents and lead to the slowest recovery in history…Housing still hasn’t recovered…The building industry has been decimated, we are building housing at recession levels…The Obama administration should be ashamed and was properly punished for ignoring home buyers…
Real estate is not like stocks where people sell at peak and buy at low tide. Stability is high and fluctuations are low. Real estate is not liquid asset.
If you know the RE wisdom “Location, Location and Location”, and tap it rightly, you have better safety net that will save you r asset even during recession.
One of them is given by manch “Actually even at the top of the bubble say 2007, if you took out a couple NINJA loans with 0% down payment and bought in Palo Alto or Cupertino, you would be filthy rich today.”
This is the main reason, I exclusively wrote few homes as deal (with stronger safety margin) like this. Each home (first 3 homes) may likely have 100k-150k margin when you expand later. The amount you pay now is protected even after 10% (around 100k) downfall. When the market turns up, it goes steep and you will not like to sell.
For the long hold, as rental, all the three homes are good.
https://www.redfin.com/CA/San-Jose/1620-Norman-Ave-95125/home/6237006
https://www.redfin.com/CA/Santa-Clara/3554-Butcher-Dr-95051/home/16828594
https://www.redfin.com/CA/Sunnyvale/359-Stowell-Ave-94085/home/11150144
See this one has 267 favorities, tough to get at 699k, you need to pay premium with multiples offers. Even though you do not have margin of safety (by high competition), this is a good primary home.
https://www.redfin.com/CA/Fremont/39391-Sutter-Dr-94538/home/1817514
Correct, but it has value in it. Dodd Frank avoids reckless lending, forcing lender to properly verify and document it. Strict LTV, DTI and proper insurance be covered.
Real estate disaster is a major issue for USA as this No 2 business in next to Stock/Trading industry. The 2007-2010 mortgage was reckless. Yes, this has made slow recovery, but stability is returned.
For example, I was given two mortgages, my first home in 2004 and second home in 2008, as no verification (even with docs) loan. For the same purchase price, at today’s stringent check/condition, I am not eligible for mortgage. I was lucky enough to escape out of recession as my property was in good location.
However, after Dodd Frank, financing has become tough especially with multiple loans+rentals.
I am doing a refinance now, locked 45 days, extended 60 days and now 90 days. Lender is still verifying everything and keep on auditing. They have asked 12 months bank statements and asking each and every deposit proof ! After 80 days, finally they are approving it.
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If I can’t have justice then give me money. Bring back the NINJA loans Mr Trump! 
I made my fortune on ninja loans…Dodd Frank put me out of business during the best buying opportunity in history. .I hate those Fuckers…And the only people they punished were the poor homebuyers for the last 8 years…The banks all thrived after their bs bankruptcies
No doubt,my first two loans are ninja and I made my fortune with ninja loans. I was given 10x loan of my pay ! Since they were not right, we had 2008-2011 real estate downturn. Here again, the down fall and prolonged low interest rate helped me.
It does not mean they are right at first place.
Dodd Frank reforms guides proper documents and scrutiny, helps all serious home buyers with proper eligibility limiting what they can pay back without going to bankruptcy stage.
Dodd Frank was created by both parties, right? Hillary said that Dodd Frank was just a political gesture to appease the mob’s anger at the banks.
I think Dodd Frank is fine as it prevents the chance of future taxpayer bailout. It’s indeed risky to lend to population with poor credit. If you want to help them, teach them to take personal responsibility and pay bills to establish good credit.
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I wish I was smart enough to get one of those loans back in the day. If I understood non-recourse laws I definitely would have… but then I would have been part of the problem I guess
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Dodd Frank cost the cointry 1% gdp loss per year for the last 8 years…That is a huge cost…probably more than all the losses from the financial meltdown…Sorry the cure was worse than the problem. .We finally reached almost 3%…should be 4%…
I think the pendulum swung too far to the other side. The loosey goosey in the late 90s and early 00s was not good, but that the super tight underwriting after the crash was no good either. We need some happy medium.
Anyway if Trump wants to give me NINJA loans the NSA knows my number.
Hi,
I read your post. And I want to hold it on rather than sell.
Thanks!!
Yes, I remember the guys, crazy ones, saying hold on, prices are coming down. I believed in them, for a while, until I saw 10 couples waiting outside any property we were interested in.
We had some fun people, OTH, and others that were nuts.