Judge it!Its been noted people are sellbg off 401k stock to finance new properties. Its hoped by these speculators the real estate market will recover losses. Unfortunately, it's a slippery slope:if nobody can afford it and the prices are still too high, how come people are still buying and in some cases people are still paying more than asking.
I have been out bid over asking 3 times now.
Both markets, 401k stocks and real estate market are crashing crashibg crashing.
On one hand, speculator 'sells' stock demonishing value of stock in so doing to buy the real property.
On the other hand, speculator hopes to finance real property to buy into diminished value of stocks again.
Unsustainable, because borrowing is based on over appraisal of real property against commercial stock market that isn't, doesn't perform.
Perspectively, having stakes in a company and downsizing people to buy the house - but the people downsized can't rent or buy from you now because they're downsized .. hence being the downsized aren't generating income necessary to rent OR buy - putting more burden and devaluation on the real estate property again.
Of coarse, it can be argued the downsized are being hired again by the mortgaged repurchase of stock; but loss of time money attention resources to complete this process even in escrow doesn't offset any liability.
Essentially, more of the same that led us to market mess to begin with.
Most homes in Santa Cruz aren't worth $100,000 based on income levels. That anyone would RENT from even a $200,000 principle mortgage home is burning alotta money, no equity, squandered.
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