But when they hit both the up and down sides, they have all bases covered...
......"National home prices, including that of distressed homes, climbed 6.3 percent year-over-year in October, rising for the eighth straight month, according to the latest data from CoreLogic. This is the biggest increase since June 2006.
On a monthly basis however home prices declined 0.2 percent."
"Climbed" and "declined" in the first few sentences... nice CYA..
Without a doubt, I'm seeing junk that should be bulldozed selling for 50k, and ex-meth houses priced at 80k in my neck of the woods. Not bubbly, just that money is cheap to borrow, and for many right now, plentiful. With the kinds of YOY price gains we are now seeing again I see we buy house signs again along the street. If locals are not buying, foreigners are buying, investors are buying, FHA has participated big time in this reflation of RE as well.
I see people buying condo's, SUV and boats in the driveway again. Those credit card applications are hitting my mailbox again, feels like the good old days.
It does not seem right, predicating the success of the economy based on jacking home prices and repeating the same housing bubble all over again, but it is interesting to see how we are on course to pump this up to previous levels in half the time prior.
Same thing they did to the DOW, doing in 2009-12 what it took 2001-2009 to do.
It is also interesting to see how the rental market is changing, more and more people are living together with some wages stagnant. I say some because, well, lol, my brother is a good example, just decided to take 3 months off work for the heck of it, while he's gone fishing and hunting, he gets a raise, waiting for him when he returns to work. Still, we have groundbreaking on some really big rental projects coming up as rents are hitting record highs for the area I live in, with interest rates so low it was just a matter of time before I'd be seeing all the construction cranes springing up all over the city again.
I thought it was your turn to come up with the million dollar ideas?
It's quite a coincidence you brought this up today because earlier I was looking at refinancing options and cashing out would only cost me another quarter of a percent. I don't recall it being that low before and I would gain an additional half percent rate reduction plus get all fees paid. It's a no brainer except for waiting another week or so for fiscal cliff fear factor to fully materialize.
Soooooo I'm faced with where to stick money as well. I hate to say it but the stock market looks the most attractive for the simple reason that everyone is scared shitless about capital gains and dividend tax rates rocketing upward on January 1st.
Of course this means rolling the dice and deciding when to pull the trigger. Congress might grow up but I doubt it. I still want a house in Vegas if only to say I have a house in Vegas that will earn me brownie points in my extended family circle. There are still a few condos around that while not nearly as lucrative as last year, cash flow pretty well.