Already, some regions of California have suffered 15% price declines. Is this economist aware of these facts? I am suggesting that he well aware of the bubble and is softening the blow for his employers. What is going to happen to all those new real estate related jobs across the nation? (Real estate accounts for 45% of all the jobs created in the past two years). Nada por nada.
But what do I know, anyway. After all, I'm just a geezer living the Sheeples Republic of Oregon.
The lumber restrictions aren't helping either.
"We are looking at probably a 10 to 15 percent drop in home prices" if the proposals become reality.
Lets see, the price is up 50% over three years since I bought, and we are looking at a 15% drop? OK
Mike
In southern california construction has not kept up with demand. I am seeing multiple offers on properties under 450,000. Tell me again what's making the market go down.
q: How can you tell a realtor is lying?
a: Their lips are moving.
None of them will ever admit that prices are going down. For them its always, "Buy now! They aren't making anymore land!! Buy now or be priced out forever!!"
I have watched as condos in Seattle that were going for 280K at the begining of the year now being sold for 380K in October. I hope the whole house of cards comes crashing down on the speculators heads as soon as possible.
The worst-case speculation regarding adjustable rate mortgages always assumes an increase much greater than the less-than-7% rate cited here. They'll just refi into another 3/1 ARM at about 5.5%. Not a huge hit to the bottom line in the majority of households.
Capping the mortgage interest deduction won't get any further than similar proposals got in 1993. That sacred cow ain't getting slaughtered any time soon, so speculating upon the effects of such a cap is highly premature.
Yes, markets will soften. But it doesn't look like a doom and gloom scenario.
Even the chief economist says the market is fundamentally sound.
q: How can you tell a realtor is lying?
a: Their lips are moving.
None of them will ever admit that prices are going down. For them its always, "Buy now! They aren't making anymore land!! Buy now or be priced out forever!!"
I have watched as condos in Seattle that were going for 280K at the begining of the year now being sold for 380K in October. I hope the whole house of cards comes crashing down on the speculators heads as soon as possible.
Man, you sure do like posting "sky is falling" articles about real estate.
I can only surmise that you missed the great surge in appreciation these last few years and you're pissed.
I'm so glad I'm in my last house. It's all paid for, now, with the proceeds of the sale of a vastly overvalued home in California used to buy this one.
I'm here. I'm staying. I'm not going to sell. I suppose I'll die in this house.
I'm out of the housing market forever.
Oh no! People in Washington DC metro area will have to live with 5% appreciation on their $650,000 colonials instead of 20% appreciation on their $250,000 colonials!
Is this the same dude who said we will see a slow down last quarter when there was actually a 12% increase in new home sales?
BTTT
Anyone have a good, accurate read on NYC? I am prepping my condo in Chelsea for sale this month, and am concerned. Thanks.
Inflation is startign to heat up. Except in extremely overvalued markets where price appreciation has been off the charts most markets will be flat or experience a modest decline.
It won't be a collapse like when the .com bubble burst though the press will treat it as such.
Has anyone noticed that the realestate markets where pricing has taken complete leave of its moorings are always liberal bastions ?
We sold our condo 3 weeks ago. It was on the market for 5 days.
Hopefully they don't back out and in the next week or two the hard landing hits around here and they don't take notice :D
Co-worker in Silicon valley area told me yesterday he sold a house - he said it was on the market for 7 days. So some houses are still moving out there.