There was a “herd mentality” when it came to investing in RE in the past few years. It would get reported that some market was “hot”, and the investors would rush in- then rush out when prices were up and move on to the next market.

The process has made for fewer investment opportunities nationwide.

It wasn’t very scientific, but I sat down with Craigslist a couple of months ago and looked at prices in every market they cover. I used Craigslist because there are a lot of properties that will give you a rent vs. buy comarison for the same property.

Now maybe these seller/landlords are all on Craigslist because they are delusional about the selling price, but I didn’t see one property that the purchase made to purchase for the cash flow.

The townhouse took about 6 months to complete and I closed on the purchase of a 1050sqft – two bedroom townhouse for around $57K in summer of 1982 at 4011 Livingston Street. I have told anybody who will listen that I think that peak of the housing market in Midland was the day I closed. There were three bedroom townhouses that sold for around $67-72,000. Within two years the market completely tanked on these and just about every other home in Midland. The main ways out were: 1) company (which happened with the big oil companies) moved you and bought home, 2) you rented (which is what I did) or 3) you walked. I left Midland in 1984 and after being told that the best I could get was in the high $40k and rented out my townhouse. I remember calling back to a neighbor of mine with a growing family and he told me that in 1985, he put the keys on the counter and “WALKED”. I found out that it sold through FDIC auction for around $35,000, ALMOST HALF! It took until the mid 90’s before I saw where I could sell my place for close to the $57K I paid. For what it is worth, I did a Zestimate and found it to be around $116K today. Main lessons learned: 1) if everyone is saying buy before its too late, stay put. 2) If the area is not landlocked for development, which is the case for areas like Midland, Houston, Dallas and Phoenix, be very careful of steep price hikes.

So my question to this forum is:

Have you seen any “reduction” in quality in the new builds in Vegas?

If so, what exactly are they cutting back on?

The guy who told me that has a vendor account.

A Long Recession Looms
Bernanke’s Failing Policies

“The U.S. consumer faces a constant drumbeat of bad news. Housing prices are falling, gas prices are rising, good new jobs are getting scarcer than hens teeth, and credit card terms are getting tougher, even as the Federal Reserve makes credit to banks cheaper.”

http://counterpunch.com/morici02252008.html

Every generation has it’s moment. My Dad was a citizen soldier and fought the great war. I’m part of the 60′s social revolution but settled down, worked hard and have done well. But all you Gen X/Y scoflaws it’s time to get off your butts. Your moment has come. God help us all!

It was refreshing to see something that is in short supply these day’s..HONESTY.

So I gave him a buck. I’d rather buy a chronic drunk a beer, then give a dollar to all the lying,thieving, politicians!