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Is it me, or is there a lot of fear out there?
We've talked about the fear/greed cycle that drove the RE market for the last few years. The big fear, as discussed before, was usually about being priced out forever. People jumped into the market because they were afraid not to.
But now the fear is going in a different direction. People are afraid of losing their homes, their equity and their jobs. We're already seeing panic selling here in certain parts of Ca. And the news is offering up daily stories that stoke the fear of the FB's.
What affect do you think all this fear is going to have on the RE market in the near future? Are you afraid?
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Fear. I like it! :)
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Fear is greed's twin brother --the one FBs haven't heard from in a long, long time. It's about time they became reacquainted.
Mmmmm... sweet delicious fear... yum! :twisted:
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Hey, we've had six straight threads with NO graphics. What gives??
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Or perhaps:
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Is there any wonder we are seeing increased terrorist threats/arrests which increase fear as we head into the election season this fall. For some reason the republicans still poll better in the face of terror fear.
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What is fear? It needs a more philosophical treatment. Let me meditate and I will get back to you.
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Well, it's about time these FBs get reaquainted with fear. They should have been more fearful of the downsides when they were buying in 2002-2006. They should have had more sleepless nights before tying themselves to mortgages 10X their annual salary. They should have thought about interest rate jumps when they agreed to ARMs. They should have worry when they see prostitutes walking around their "gentrifying" neighborhood. They should of had a contingency plan for $4/gallon gas or soaring natural gas prices or 6 months of unemployment.
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They should have been more fearful of the downsides when they were buying in 2002-2006.
But they were more fearful of being priced out and left behind forever.
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Fear is..... You have depleted your savings and maxed out your credit cards and you are 14 days late on your $3500 mortgage payment when you get paid on the 15th...but you need money for groceries and the brakes are broken on your truck and your kids need clothes for school and then there's those credit card bills.... "Well, I can always sell the house if things get too tight," you tell yourself. Then you see an item on your local news telling you that the house you bought in October '05 with 5% down has depreciated by 10%.
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...and how could I forget---the ARM adjusts in only 2 more months and your spouse's employer just announced layoffs are coming...
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For some, it should have been a balance of the two fears, but those people only saw one side and unfortunately, they're likely to suffer for their ignorance. I see that especially with a lot of modest income people like teachers and public servants, who bought themselves crappy condos out of fear that 2005 was their last chance to "own."
But for many, maybe most people who bought, I see greed as the prevailing motive. A lot of people bought bigger and more expensive houses than they could afford, or bought multiple properties, in anticipation of double digit annual appreciation. These people weren't motivated by fear, but by greed for easy money.
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a balance of the two fears
It sounds like a sequel to "The Sum of All Fears". :)
Greed and fear are linked. Greed is about the preference of getting the better possible outcomes. Fear is about the preference of NOT getting worse possible outcomes.
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Fear is chi uncontrollably descending, and fright/shock causes it to scatter….
Good point! Are you really into chi and feng shui? I am actually learning to use dowsing rods to find energy lines.
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I just realized I myself had been remiss in not posting a graphic for "Lies, Damned Lies, and the C.A.R." Rest assured, I have remedied the situation.
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Unfortunately, whereas meditation can be used to overcome fear, shock and fright, it does little to stabilize prices.
Perhaps when the FBs are really tranced out they would see non-stop triple-digit appreciation. Mind is very powerful. :)
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(As long as you can clearly “feel” the quality of what you are looking for in your mind/body)
I agree.
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"Perhaps when the FBs are really tranced out they would see non-stop triple-digit appreciation. Mind is very powerful. "
I thought the point of meditation was to release yourself from material concerns.
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I know some people who have recently sold homes in Pacific Heights and Presidio Heights and who are already renting in the Presidio. I think the Chronicle article today about SFH rents in the Presidio rapidly increasing will get more Town & Burke parents to think about cashing out and doing the same thing.
Some people like a childless couple I know were able to sell a home on Lake Street and rent a similar home a block away for less than the CD interest they are getting on their gain (the first $500K was tax free).
I know others who are scared that prices may have stopped going up 20% a year and are thinking about getting out from under a $3mm 1st mortgage (and many times also a 2nd) while they still can (my parents said the 30 something VC couple next to them are selling since they don't want to try and pay a $4mm mortgage with one salary)...
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I am of the school of “feel it” feng shui - the other one (that uses the Lopan) is just too much like work for my liking!
The "feel" part is more important, IMO. I have problems trusting my intuition though. This is probably my biggest blockage.
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But if you're a top level executive with good legal representation and a fawning board, you have nothing to fear.
http://www.slate.com/id/2148327/