http://ochousingnews.com/news/will-dwindling-supply-cause-prices-to-rise-or-sales-volumes-to-fall
Will dwindling housing supply cause resale prices to rise or sales volumes to fa
By golfplan18 Follow Mon, 25 Jun 2012, 5:40am 883 views 10 comments
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Irvine, CA
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Oil Can's website
Who is going to pink first?
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Ain't gonna happen.
There are millions of properties that are just sitting foreclosed by the banks waiting on insurance payouts from FN/FR.
And if you follow the market news, there is no need to speculate. CA and parts of WA, as well as North East are better places to rent, most of the nation it is cheaper to own. Some states never got out of the bubble, and CA is the worst one next to only NY.
And when you add it all up...There is no sustainable job growth, low rates create a systematic risk aversion, governments are out of money, capital flight into better ventures when everyone knows that rates will have to rise making long term notes worthless.
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Prices are falling because buyers cannot afford them. For this reason it is impossible for prices to rise.
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Laguna Beach, CA
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Strategic Renter says
This, and only this.
Even with 50% to 60% decreases in supply, there isn't a comparably huge increase in prices. In fact in OC, the Spring bump for sold prices is abnormally weak.
You can cut the supply another 20%, and it won't do anything to lift prices or create a bottom, people simply can't get loans or FHA themselves into 800k 3 bedroom homes. Right now all the bank is doing is hiding their insolvency by allowing people to squat.
The real winners are the people who will get 2 years of rent free squatting.
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The cartoon forgot the part about hedge funds buying every last foreclosure and establishing cartel rents on them that are 2x the PITI of comparable homes during the height of the bubble.
Also the part about the 30 year old on his sixteenth part-time no-benefits job raising the black flag and buying an ax into the bankster's back.
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Laguna Beach, CA
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Here's the numbers for O.C from Lasner:
Median Price: $435,000
Change YOY: -0.5%
Total June Sales: 3,313
Change YOY: +16.8%
So sales are up from possibly one of the worst years OC has ever experienced in housing, yet prices are still falling.
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Pasadena, CA
How do we make EVERYONE aware of this. It seems like no one around me even knows about shadow inventory or people squatting and not paying anything for the last few years. I want to buy, but everything in media is about raising the cost of homes! We need a fire sale like the HP Touchpad! Clearout inventory and that will boost home prices. Stop rewarding the squatters!
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I frankly don't understand it. I thought cartoons needed translators. Now I am sure of it. So this is saying that the buyers are upset because their is no inventory and they want the lenders to put more houses on the market. The lenders want more for their houses? It makes sense from a Realtors point of view I guess. I don't get it. Isn't that guy with the 45 Harvey Keitel?
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I am not sure which way the volume will tilt but prices are heading down for sure.