Comments on: The Weekly Wednesday Wrap Up – Hoboken Condo Sales & Activity for the Week of March 2nd. http://hobokenrealestatenews.com/2010/03/02/the-weekly-wednesday-wrap-up-hoboken-condo-sales-activity-for-the-week-of-march-2nd/ What buyers and sellers need to know about Hoboken condos and real estate. Mon, 21 May 2012 19:00:39 -0400 http://wordpress.org/?v=2.8.4 hourly 1 By: shortsequalmarket http://hobokenrealestatenews.com/2010/03/02/the-weekly-wednesday-wrap-up-hoboken-condo-sales-activity-for-the-week-of-march-2nd/comment-page-2/#comment-5304 shortsequalmarket Fri, 05 Mar 2010 23:47:01 +0000 http://hobokenrealestatenews.com/?p=2720#comment-5304 Inflation typically favors debtors but we should note that inflation does not occur evenly across all products assets. With the exception being a true hyperinflation. During the '90s and 00's many products declined in price as their production was outsourced. Think consumer goods at Target and Wal-Mart. When was the last time you went to an actual butcher, etc? Based on these savings there were more dollars chasing all the other goods, housing being one of them. Now that so much production has been outsourced as a nation we are at the whim of our foreign suppliers. If China says we are increasing wages then get prepared to pay more for an iPad ;). This means there will be less dollars for chasing other goods, particularly domestic produced goods like housing. This is actually occurring. The CPI is negative or near zero because owners equivalent rent (housing cost) but the prices of many other goods have been increasing. Inflation typically favors debtors but we should note that inflation does not occur evenly across all products assets. With the exception being a true hyperinflation.

During the ’90s and 00’s many products declined in price as their production was outsourced. Think consumer goods at Target and Wal-Mart. When was the last time you went to an actual butcher, etc? Based on these savings there were more dollars chasing all the other goods, housing being one of them.

Now that so much production has been outsourced as a nation we are at the whim of our foreign suppliers. If China says we are increasing wages then get prepared to pay more for an iPad ;) . This means there will be less dollars for chasing other goods, particularly domestic produced goods like housing.

This is actually occurring. The CPI is negative or near zero because owners equivalent rent (housing cost) but the prices of many other goods have been increasing.

]]> By: shortsequalmarket http://hobokenrealestatenews.com/2010/03/02/the-weekly-wednesday-wrap-up-hoboken-condo-sales-activity-for-the-week-of-march-2nd/comment-page-2/#comment-5303 shortsequalmarket Fri, 05 Mar 2010 23:41:21 +0000 http://hobokenrealestatenews.com/?p=2720#comment-5303 The items I listed in a previous thread will occur or at least the government has said they will occur. These items include: *The Fed will stop buying MBS *The first time home buyers credit will expire *FHA criteria will become more strict These items will occur and it is hard to see them having anything other than a negative impact on home prices. The units with the nurseries I have seen have been the fairly standard 2/2 1,200 sq ft with parking. I am not saying there are not larger units in Hoboken. However they are few and far between. Which means many people with kids are trying to leave Hoboken (or they are going to be out of luck when it comes to finding a larger place). Will the next set of young families be willing to risk being indentured to their house to paint a room pink? The items I listed in a previous thread will occur or at least the government has said they will occur. These items include:

*The Fed will stop buying MBS
*The first time home buyers credit will expire
*FHA criteria will become more strict

These items will occur and it is hard to see them having anything other than a negative impact on home prices.

The units with the nurseries I have seen have been the fairly standard 2/2 1,200 sq ft with parking. I am not saying there are not larger units in Hoboken. However they are few and far between. Which means many people with kids are trying to leave Hoboken (or they are going to be out of luck when it comes to finding a larger place). Will the next set of young families be willing to risk being indentured to their house to paint a room pink?

]]> By: patk14 http://hobokenrealestatenews.com/2010/03/02/the-weekly-wednesday-wrap-up-hoboken-condo-sales-activity-for-the-week-of-march-2nd/comment-page-2/#comment-5299 patk14 Fri, 05 Mar 2010 20:57:17 +0000 http://hobokenrealestatenews.com/?p=2720#comment-5299 Liquidity means different things to different people. If your parents will step in if you have liquidity problems, then you can utilize every dollar that you have available. If your parents cannot afford to do that and you work in a volatile industry (can we all spell finance), having liquidity means much more and you are less likely to risk it in today's real estate market. I really feel for that guy who took a 35% hit on an expensive condo. How many of us could afford to take such a hit? Liquidity means different things to different people. If your parents will step in if you have liquidity problems, then you can utilize every dollar that you have available. If your parents cannot afford to do that and you work in a volatile industry (can we all spell finance), having liquidity means much more and you are less likely to risk it in today’s real estate market. I really feel for that guy who took a 35% hit on an expensive condo. How many of us could afford to take such a hit?

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