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Just who are the willing buyers?


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2007 Feb 25, 8:55am   8,884 views  122 comments

by Peter P   ➕follow (2)   💰tip   ignore  

It is clear that homes are still being purchased in the Bay Area. Many "For Sale" signs in my Sunnyvale Neighborhood have "Sale Pending" attached to them. Who are still buying? What are the motivations? Now that the fear of being priced out has waned, what is the driving emotion?

This also leads to the issue of a possible "spring bounce". Will there be one this year? If the local economy is strong, a soft leading is not completely out of the question.

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119   e   2007 Feb 26, 7:22am  

Just to do some more math:

$26k disposable income
-1k for car insurance
-5k for car payments
-1k for DSL/Cell phone
-1k for new clothes

That's still 18k left ($347 week) in disposable income.

For a single person, that's not too bad. And, amazingly, this includes $15,500 in 401k savings - which probably puts the person in the Top 5% of savers in this country. :)

120   e   2007 Feb 26, 7:24am  

Your calculations would probably work for someone who had employer covered health and dental insurance and didn’t go for much long distance travel.

Oh... well.. yeah. I was thinking of an Apple/Yahoo/Intel/Cisco/Google/Tech Startup employee.

As for vacations - most of my California native friends only go to Tahoe or Vegas. I think it's believed that if you go too far from California, you'll die or something. (Unless it's Taiwan/Mumbai for family reasons.)

121   surfer-x   2007 Feb 26, 8:54am  

How’s the bubble unfolding there?

Suds, it's correcting in real time, especially in Ventura where I'll like buy. $B kind of actually sucks, the people here are icky.

122   B.A.C.A.H.   2007 Feb 26, 10:36am  

CB wrote,

"Did you at least see some white guy with a Asian wife or girlfriend? Serves them right to be a FB for stealing our women"

Well, if that is what happened, at least you cannot accuse the guy of marrying his way into a green card after positioning himself with a Canadian residency. Could accuse the Asian wife of doing it maybe, but not the guy.

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