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Higher prices and rising interest rates will slow housing market appreciation

By golfplan18   Follow   Thu, 20 Dec 2012, 7:09am   1,732 views   33 comments
In Irvine CA 92620   Watch (0)   Share   Quote   Permalink   Like (2)   Dislike  

http://ochousingnews.com/news/rising-prices-and-rising-interest-rates-will-slow-housing-market-appreciation?source=Patrick.net

The restricted inventory condition we are dealing with here in the Southwest has caused prices to go up. However, for buying to keep pushing prices higher, interest rates must keep falling to sustain affordability at higher price levels. In a market like ours where demand is less than robust (most increased demand this year came from all-cash investors and hedge funds), any decrease in affordability is going to hurt sales. At first it will show up in decreased sales volumes. If affordability continues to crumble, prices will begin falling again.

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1. RentingForHalfTheCost Follow Befriend (8) 38 threads 2,010 comments Pleasanton, CA Premium

   1   7:14am Thu 20 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike   Protected   But but but, decreased sales means appreciation (no supply) ? Wait, it could also mean depreciation (no demand). Dammit, this supply-demand economics is tricky. Who is calling the shots here, the buyer or seller. ;)

2. Oil Can Follow Befriend 21 threads 128 comments Oil Can's website

   2   7:15am Thu 20 Dec 2012   Share   Quote   Permalink   Like (2)   Dislike   Do we get a Fed implosion next year? Or QE 5, this time it's personal!

3. lostand confused Follow Befriend (9) 165 threads 1,548 comments Premium

   3   7:28am Thu 20 Dec 2012   Share   Quote   Permalink   Like   Dislike   Protected   Well, the Bank of Japan has been in perpetual QE for decades now. It didn't stop their slide. Though their currency appreciation may have put a dent in prices-comparitively. now that bernake has adopted QE till all of eternity -lets wait and see how this goes.

4. robertoaribas Follow Befriend (23) 55 threads 3,798 comments Scottsdale, AZ robertoaribas's website

   4   8:43am Thu 20 Dec 2012   Share   Quote   Permalink   Like   Dislike (1)   RentingForHalfTheCost says But but but, decreased sales means appreciation (no supply) ? Wait, it could also mean depreciation (no demand). Dammit, this supply-demand economics is tricky. Who is calling the shots here, the buyer or seller. ;) Not tricky if you learn how to read: Inventory (supply) hit a low since sometime in 2005... thus, it is reduced supply. http://money.cnn.com/2012/12/20/real_estate/existing-home-sales/index.html?iid=HP_Highlight

5. RentingForHalfTheCost Follow Befriend (8) 38 threads 2,010 comments Pleasanton, CA Premium

   5   5:11pm Thu 20 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike   Protected   robertoaribas says RentingForHalfTheCost says But but but, decreased sales means appreciation (no supply) ? Wait, it could also mean depreciation (no demand). Dammit, this supply-demand economics is tricky. Who is calling the shots here, the buyer or seller. ;) Not tricky if you learn how to read: Inventory (supply) hit a low since sometime in 2005... thus, it is reduced supply. http://money.cnn.com/2012/12/20/real_estate/existing-home-sales/index.html?iid=HP_Highlight I tend to agree in part, however like someone said earlier, every home in the country is for sale if the price is right. We don't have an inventory problem, we have a price problem. You said yourself, that for the right price you would sell. Supply-Demand economics mentions nothing of an MLS system. We have tonnes of inventory, just low sales. Could be because sellers are asking too much, or that buyers are offering too little. The gap in these prices is the problem with sales.

6. Kevin Follow Befriend 40 threads 2,652 comments

   6   8:27pm Thu 20 Dec 2012   Share   Quote   Permalink   Like   Dislike   "Higher prices will slow appreciation." WHAT? Either things are appreciating, or the price isn't higher.

7. E-man Follow Befriend (31) 34 threads 2,549 comments San Jose, CA Premium

   7   12:08am Fri 21 Dec 2012   Share   Quote   Permalink   Like   Dislike   Protected   Oil Can says Do we get a Fed implosion next year? Or QE 5, this time it's personal! What's your relation to OCHN? Everytime he posts a topic, you post your one liner.

8. Bubbabear Follow Befriend (9) 242 threads 341 comments Yorba Linda, CA

   8   12:17pm Fri 21 Dec 2012   Share   Quote   Permalink   Like (3)   Dislike   lostand confused says -lets wait and see how this goes. "Hyperinflation in America isn't here yet, but we're edging dangerously close to the point of no return." can we experience hyperinflation in the US? Yes, it’s possible… But! Hyperinflation is usually caused by the collapse of a country’s government or as a result of war. And if that happens, well then I think we will have other problems to worry about!

9. robertoaribas Follow Befriend (23) 55 threads 3,798 comments Scottsdale, AZ robertoaribas's website

   9   2:27pm Fri 21 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike (3)   oh no higher prices will slow the market, whatever will I do? I should sell now before the prices get higher!!!

10. E-man Follow Befriend (31) 34 threads 2,549 comments San Jose, CA Premium

    10   8:01pm Fri 21 Dec 2012   Share   Quote   Permalink   Like   Dislike   Protected   Oil Can says Do we get a Fed implosion next year? Or QE 5, this time it's personal! Here we go again with Mr. one liner on OCHN's post.

11. Bubbabear Follow Befriend (9) 242 threads 341 comments Yorba Linda, CA

    11   11:54am Sat 22 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike   Oil Can says Do we get a Fed implosion next year? Or QE 5, this time it's personal! The U.S. economy has never been less-solvent in its entire history, meaning that U.S. Treasuries have never been less valuable. The new supply of U.S. Treasuries grossly exceeds any level of paper the U.S. has ever pumped into global markets before, meaning that Treasuries have never been less valuable. And yet we see (alleged) buyers being permanently willing to pay (by far) the highest prices in history for these mountainous stacks of paper. http://blog.ml-implode.com/2012/05/the-mythical-land-of-us/

12. Oil Can Follow Befriend 21 threads 128 comments Oil Can's website

    12   10:53pm Sat 22 Dec 2012   Share   Quote   Permalink   Like (2)   Dislike   E-man says Here we go again with Mr. one liner on OCHN's post. I'm weekend guy on this site. Just don't have much time to be on Patrick.net (any other expect OCHN) too long, so I drop my bomb and leave. I wrote this... http://ochousingnews.com/news/the-final-bailout-of-the-housing-will-be-the-federal-reserve-of-the-all-the-housing-programs

13. E-man Follow Befriend (31) 34 threads 2,549 comments San Jose, CA Premium

    13   11:01pm Sat 22 Dec 2012   Share   Quote   Permalink   Like   Dislike   Protected   Oil Can says E-man says Here we go again with Mr. one liner on OCHN's post. I'm weekend guy on this site. Just don't have much time to be on Patrick.net (any other expect OCHN) too long, so I drop my bomb and leave. I wrote this... http://ochousingnews.com/news/the-final-bailout-of-the-housing-will-be-the-federal-reserve-of-the-all-the-housing-programs I knew you are related to OCHN in someway.

14. robertoaribas Follow Befriend (23) 55 threads 3,798 comments Scottsdale, AZ robertoaribas's website

    14   11:09pm Sat 22 Dec 2012   Share   Quote   Permalink   Like   Dislike (1)   that link has a minimum of 30 grammatical errors, some serious misstatements of fact, and sophomoric writing style...

15. Oil Can Follow Befriend 21 threads 128 comments Oil Can's website

    15   3:00am Sun 23 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike   robertoaribas says hat link has a minimum of 30 grammatical errors, some serious misstatements of fact, and sophomoric writing style... 7 versus 3. And you are in the most trusted profession of all.

16. Raw Follow Befriend 10 threads 694 comments

    16   10:05am Sun 23 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike (1)   RentingForHalfTheCost says But but but, decreased sales means appreciation (no supply) ? Wait, it could also mean depreciation (no demand). Dammit, this supply-demand economics is tricky. Who is calling the shots here, the buyer or seller. ;) Decreased sales could mean low demand, but then with low demand we would also have falling prices, and we all know prices are skyrocketing. Low sales + higher prices = no supply. The facts are out there....We have the greatest buying opportunity in a life time. Don't screw up.

17. Kevin Follow Befriend 40 threads 2,652 comments

    17   11:43am Sun 23 Dec 2012   Share   Quote   Permalink   Like (1)   Dislike   The greatest buying opportunity was last year. There isn't any inventory now, so its a total sellers market.

18. Raw Follow Befriend 10 threads 694 comments

    18   11:57am Sun 23 Dec 2012   Share   Quote   Permalink   Like   Dislike   Kevin says The greatest buying opportunity was last year. There isn't any inventory now, so its a total sellers market. I'll go with that. The greatest ever buying opportunity is over. But the second greatest buying opportunity is in 2013. It's never a wrong time to do the right thing, so what are you waiting for?

19. Bubbabear Follow Befriend (9) 242 threads 341 comments Yorba Linda, CA

    19   2:52pm Sun 23 Dec 2012   Share   Quote   Permalink   Like   Dislike   Oil Can says robertoaribas says hat link has a minimum of 30 grammatical errors, some serious misstatements of fact, and sophomoric writing style... 7 versus 3. And you are in the most trusted profession of all. Hey Oil Can , I've arrived at the conclusion where Dumbtexan went after OCR went with Facebook

20. everything Follow Befriend (2) 3 threads 552 comments Madison, WI

    20   3:29pm Sun 23 Dec 2012   Share   Quote   Permalink   Like   Dislike   Interest rates are not going up for years, and the fed keeps pushing that forward. Now, the fed feeding investors money to buy excess inventory has done more for price appreciation than anything. But, we've known for quite sometime who owns the government. The headline does not really make any sense when it says higher prices will slow market appreciation? With how cheap money has become (for certain entities), and for others yet they've got piles of it with nowhere else to go, it's no wonder we have such drastic appreciation. In a renters society it won't matter how high property taxes, upkeep, or energy prices go either, or interest costs, as it will just be passed on.

21. Oil Can Follow Befriend 21 threads 128 comments Oil Can's website

    21   5:33pm Sun 23 Dec 2012   Share   Quote   Permalink   Like   Dislike   Billybigrig LOL!

22. swebb Follow Befriend (3) 29 threads 490 comments Denver, CO

    22   7:58pm Sun 23 Dec 2012   Share   Quote   Permalink   Like (2)   Dislike   robertoaribas says that link has a minimum of 30 grammatical errors, some serious misstatements of fact, and sophomoric writing style... I thought you were probably being too harsh...then I read the first paragraph. You are being generous.

23. Oil Can Follow Befriend 21 threads 128 comments Oil Can's website

    23   2:30am Mon 24 Dec 2012   Share   Quote   Permalink   Like   Dislike   swebb says I thought you were probably being too harsh...then I read the first paragraph. You are being generous. How is that 410(K) plan going for you?

24. E-man Follow Befriend (31) 34 threads 2,549 comments San Jose, CA Premium

    24   9:24am Mon 24 Dec 2012   Share   Quote   Permalink   Like   Dislike   Protected   Oil Can says swebb says I thought you were probably being too harsh...then I read the first paragraph. You are being generous. How is that 410(K) plan going for you? It's going fantastic. It went from 401 to 410. That's over 2% appreciation in a very short period of time. :)

25. iwog Follow Befriend (48) 274 threads 12,555 comments 47 male Lafayette, CA Premium

    25   10:14am Tue 1 Jan 2013   Share   Quote   Permalink   Like   Dislike   Protected   Kevin says The greatest buying opportunity was last year. There isn't any inventory now, so its a total sellers market. I disagree and I bought two homes last year. The greatest buying opportunity was in late 2008 and 2009. There's absolutely no comparison. Imagine nearly limitless homes at a foreclosure auction being sold for 30% of their 2006 value with fresh 6-figure remodels and no other bidders. I didn't know how good I had it until years later.

26. robertoaribas Follow Befriend (23) 55 threads 3,798 comments Scottsdale, AZ robertoaribas's website

    26   8:07pm Tue 1 Jan 2013   Share   Quote   Permalink   Like   Dislike   iwog says The greatest buying opportunity was in late 2008 and 2009. Not in Phoenix, the best opportunity was from 2 years ago, to 1 year ago...

27. Kevin Follow Befriend 40 threads 2,652 comments

    27   9:17pm Tue 1 Jan 2013   Share   Quote   Permalink   Like (1)   Dislike   iwog says Kevin says The greatest buying opportunity was last year. There isn't any inventory now, so its a total sellers market. I disagree and I bought two homes last year. The greatest buying opportunity was in late 2008 and 2009. There's absolutely no comparison. Imagine nearly limitless homes at a foreclosure auction being sold for 30% of their 2006 value with fresh 6-figure remodels and no other bidders. I didn't know how good I had it until years later. This would be highly dependent on the market. We had a mini bump here in 2009. My home went from being worth $540 to $600 back down to $525 in the spring of 2011. It wasn't until last January that the price recovered. robertoaribas says iwog says The greatest buying opportunity was in late 2008 and 2009. Not in Phoenix, the best opportunity was from 2 years ago, to 1 year ago... There's no such thing as a good buying opportunity in Phoenix, unless you're a fan of living in desert hellscapes full of old people and seas of stucco.

28. robertoaribas Follow Befriend (23) 55 threads 3,798 comments Scottsdale, AZ robertoaribas's website

    28   9:25pm Tue 1 Jan 2013   Share   Quote   Permalink   Like   Dislike   Kevin says There's no such thing as a good buying opportunity in Phoenix, unless you're a fan of living in desert hellscapes full of old people and seas of stucco. I'd say turning my 400K into 1.1 million in just two years was a good opportunity, but if your mental abilities leave you with nothing but regional prejudices... well, I guess that's all you've got!

29. iwog Follow Befriend (48) 274 threads 12,555 comments 47 male Lafayette, CA Premium

    29   11:43pm Tue 1 Jan 2013   Share   Quote   Permalink   Like   Dislike   Protected   Kevin says This would be highly dependent on the market. We had a mini bump here in 2009. My home went from being worth $540 to $600 back down to $525 in the spring of 2011. It wasn't until last January that the price recovered. Well if you went strictly by the charts, the low was in late 2011 however the homes that were selling were of lower quality and in worse neighborhoods. In 2008-2009, many of the homes were flipping failures and had fresh remodels in prime locations. There were no buyers.

30. HEY YOU Follow Befriend (4) 334 threads 919 comments

    30   12:12am Wed 2 Jan 2013   Share   Quote   Permalink   Like   Dislike   RentingForHalfTheCost says But but but, decreased sales means appreciation (no supply) ? Wait, it could also mean depreciation (no demand). Dammit, this supply-demand economics is tricky. Who is calling the shots here, the buyer or seller. ;) The buyer has absolute control of the housing market. No buyer-No sale-No overpriced houses. Damn! I forgot about the ignorant(stupid) buyers that are forfeiting their power.

31. robertoaribas Follow Befriend (23) 55 threads 3,798 comments Scottsdale, AZ robertoaribas's website

    31   9:39am Wed 2 Jan 2013   Share   Quote   Permalink   Like   Dislike   HEY YOU says The buyer has absolute control of the housing market. No buyer-No sale-No overpriced houses. by that same logic, the buyer has the absolute control over every market, from milk to bmw's.... So, I guess nothing in the world will ever be expensive!

32. iwog Follow Befriend (48) 274 threads 12,555 comments 47 male Lafayette, CA Premium

    32   9:45am Wed 2 Jan 2013   Share   Quote   Permalink   Like (1)   Dislike   Protected   HEY YOU says The buyer has absolute control of the housing market. No buyer-No sale-No overpriced houses. Damn! I forgot about the ignorant(stupid) buyers that are forfeiting their power. Don't you think this is a bit silly? Technically you are correct. People can simply agree not to consume housing and live on the streets occasionally freezing to death. Where a housing investor is concerned, he cares not if a person buys or rents. Either way the money is pushing up home values.

33. CaptainShuddup Follow Befriend (1) 249 threads 4,731 comments

    33   10:47am Wed 2 Jan 2013   Share   Quote   Permalink   Like   Dislike   House prices, are a like a teen slut on Jenny Jones, they will do what ever they want, that's just how they are.