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> Also strongest advantage of owning a house over renting is the stability you get. From: https://www.zillow.com/homedetails/3203-Benton-St-Santa-Clara-CA-950

by dpc_pw 7y ago

> Also strongest advantage of owning a house over renting is the stability you get. From: https://www.zillow.com/homedetails/3203-Benton-St-Santa-Clara-CA-95051/19597537_zpid/ https://www.zillow.com/homedetails/3203-Benton-St-Santa-Clar... Neighborhood home value 95051 home values have fallen 8.3 % over the past 12 months. One-year prediction Zillow predicts the home values in 95051 will fall 9% in the next year. http://www.stock-market-crash.net/wp-content/uploads/2012/06/Japan-Real-Estate-Prices.jpg http://www.stock-market-crash.net/wp-content/uploads/2012/06...

toast0 7y ago
Do you have rent trends? Did they follow the housing trends, or did they just keep going up (either one sometimes happens, I'm not in the market anymore).
- dpc_pw 7y ago
  From what I can tell, they are roughly flat since around 2016. Example: https://www.zillow.com/homedetails/1174-Pomeroy-Ave-Santa-Clara-CA-95051/19596535_zpid/ https://www.zillow.com/homedetails/1174-Pomeroy-Ave-Santa-Cl... . Depends on what and where, of course. And AFAIK, generally rents are lagging behind house prices and are more sticky. If you're a prospective buyer and houses are loosing and are projected to loose hundreds of thousands of dollars each year, that's pretty big incentive to stick around in your rental and wait.
usaar333 7y ago
If I'm planning to live in a home forever, the short term price fluctuations of it are hardly relevant - it does nothing but inform me about the past (I got a great deal or bad deal when I bought.. in hindsight). They are relevant to a renter.
- dpc_pw 7y ago
  "Short term fluctuations" can last decades. https://fred.stlouisfed.org/series/QJPN628BIS https://fred.stlouisfed.org/series/QJPN628BIS And "forever" often turns into couple of years because of health problems, job opportunities, personal events, and so and so. The only reason why houses cost as much as they do is historically low mortgage rates https://www.macrotrends.net/2604/30-year-fixed-mortgage-rate-chart https://www.macrotrends.net/2604/30-year-fixed-mortgage-rate... . And if this (mean reverting) trend is to revert any time soon... I don't know what actually is going to happen. And maybe FED will eventually decide to hyperinflate the crashing credit bubble which would be great for people with big mortgages. But people that live in oblivion thinking that's the safest investment ever, are completely clueless. But maybe they'll be lucky. :)
  - imtringued 7y ago
    Unfortunately I cannot seem to find a much better place than where I currently am. I have tried. Most of the super fancy locations have an awful local purchasing power that can't be offset with better international purchasing power. Sure you might go there for 6 years and save some money but then you will also leave again. Meanwhile here I am in my little city with barely more than 100k people spending less than 1/3 of my income per month with the help of a stable government job. I could get more if I wanted simply by working at the largest employer in town. So why move?

by dpc_pw 7y ago

toast0 7y ago

Do you have rent trends? Did they follow the housing trends, or did they just keep going up (either one sometimes happens, I'm not in the market anymore).

dpc_pw 7y ago
From what I can tell, they are roughly flat since around 2016. Example: https://www.zillow.com/homedetails/1174-Pomeroy-Ave-Santa-Clara-CA-95051/19596535_zpid/ https://www.zillow.com/homedetails/1174-Pomeroy-Ave-Santa-Cl... . Depends on what and where, of course. And AFAIK, generally rents are lagging behind house prices and are more sticky. If you're a prospective buyer and houses are loosing and are projected to loose hundreds of thousands of dollars each year, that's pretty big incentive to stick around in your rental and wait.

usaar333 7y ago

If I'm planning to live in a home forever, the short term price fluctuations of it are hardly relevant - it does nothing but inform me about the past (I got a great deal or bad deal when I bought.. in hindsight). They are relevant to a renter.

dpc_pw 7y ago
"Short term fluctuations" can last decades. https://fred.stlouisfed.org/series/QJPN628BIS https://fred.stlouisfed.org/series/QJPN628BIS And "forever" often turns into couple of years because of health problems, job opportunities, personal events, and so and so. The only reason why houses cost as much as they do is historically low mortgage rates https://www.macrotrends.net/2604/30-year-fixed-mortgage-rate-chart https://www.macrotrends.net/2604/30-year-fixed-mortgage-rate... . And if this (mean reverting) trend is to revert any time soon... I don't know what actually is going to happen. And maybe FED will eventually decide to hyperinflate the crashing credit bubble which would be great for people with big mortgages. But people that live in oblivion thinking that's the safest investment ever, are completely clueless. But maybe they'll be lucky. :)
- imtringued 7y ago
  Unfortunately I cannot seem to find a much better place than where I currently am. I have tried. Most of the super fancy locations have an awful local purchasing power that can't be offset with better international purchasing power. Sure you might go there for 6 years and save some money but then you will also leave again. Meanwhile here I am in my little city with barely more than 100k people spending less than 1/3 of my income per month with the help of a stable government job. I could get more if I wanted simply by working at the largest employer in town. So why move?