Are you seeing any ARMs ? those are usually the killers because they reset to higher interest rate
Not like in the past. Certainly not the Free Parking type of ARMs that we had in the mid-2000's (middle Oughts?). But the come-one-come-all of FHA free money loans is not a far cry if a buyer is special enough to compete in today's market.
Not in California. Lets get real guys, for the last 50 years California real eastate has easily beat inflation and income growth. The key is population growth.
even with growth and all the boom in SFBA.. from 1975 to 1995.. the best you or anyone can say is its a draw.. Inflation DID NOT EASILY BEAT prices.. if anything we learned.. is even in SFBA prices went flat over that period.. and frankly.. why have we seen prices drop more recently...
Thomas, your chart clearly shows that Bay area prices outperforms inflation. That is what I was trying to say.
Nothing goes up in a steady predictable, so you can expect major pull backs every now and then. These pull backs are major buying opportunities, which no one should miss.
As they say....buy when there is blood on the streets.
nope.. price inflation came from irrational belief of home owners/buyers..
it started much earlier than than 2001. Nationally, Had nothing do with Int% rates population growth or anything else. Just like back in early 90s as inflation dropped
and all other factors..people expected too much..
shiller's got lots of data. that and he's always careful with his wording is what i like about him. he was also one of the first people to popularize the idea that people's (irrational) behavior greatly affects economics.
he has a deeper understanding of markets than pretty much everyone on patnet. yet, i think most readers prefer the anecdotal, unsubstantiated, hyperbolic and often retarded claims made here. sad.
Shiller is full of shit, time after time Shiller hid the truth, how many bubbles did they ignore or misrepresent and for how long!
Fuck these bitch assholes.
I was screaming at bubbles between 2000-2006, "every single financial expert" said, " it was not a bubble".
I remember in 2006 when most people laughed at the idea of falling home prices. hilarious!
i tried to tell some of past price declines SoCal in early 90s.. bloodbath !
but past news articles do not appear on the web so easily..
And than again.. many that come to Cali do get pumped the idea from realtors
ITS ALWAYS BEEN expensive line.. WOW ! talk about pimps and hustlers!
WRONG !! the index that you showed is INFLATION ADJUSTED.
thats right.. flat adjusted for inflation. Predictable pattern ! It should be, by now clear as daylight if a region is getting HOT as they called it back in the bubble days.. something is amiss.. and going wrong ! Cause every historical example of local bubbles as far back the 1920s Florida land speculation has ended in disaster.
Today, the only meaningful land where prices are up.. may well be the Natural Gas rich regions of middle America.. (fly over states full of people guns and bible -- now Billionaires)
But they are pumping and selling real income producing products.. you certainly dont hear Realtors talking about that.. far from it !!!
Hes better than the boom doom and gloom guy that's for sure, but saying the recovery could take 50 years is a little far out. I can't even imagine what 2014 will be like let alone the second half of this year. I do understand that he analyzes a lot of data, more than we do here, and I know fundamentally he is right there is a lot of headwinds for this recovery. But to end it with "This might take 50 years" really spoke to me more about his character than his analysis.
nah. you're mis-interpreting what he said. he didn't say a recovery was 50 years away, he said another big bubble is far way and he threw out 50 years.
here's the quote:
He added, “I think we’re pretty far from irrational exuberance, maybe 50 years away.”
Until interest rates are allowed to go back to historical levels, 7.5 to 8%, nobody will know what the real house prices, stock prices, bond prices, or gold prices are.
Exactly, you said it perfectly. . ."allowed" to go back to historical levels. The implication is that the market is well controlled. So, while many people here are frustrated by the feeling that the market should not be moving up, the reality is that it is being controlled to do so. It is another stealth bailout, and it will continue until the banks are in a safe zone.
There are studies out there that show that in a world full of idiots...the intelligent are made to look like fools. Keep that in mind if you decide to keep your housing bear hat on.
Interest rates are the level that they always are when unemployement is high and the economy is struggling. Rates are not going to rise until unemployment falls down to historic levels.
House prices, stock prices, gold prices, or any asset prices vary with the cost of money. There is no "real" level....
Easy to get unemployment numbers down. That doesn't mean much when many of the employed are underemployed. i.e. PhD working in retail selling shoes.
My worry is that we get the unemployment looking better and start moving interest rates up, only to find out that people still don't have any money to pump up the economy. How long do we go down this path of being broke but in denial. Years and years I bet. My kids will have a name for the 3 lost decades I am sure. They will laugh at our stupidity. FYI, I am buying gold for my kids. It'll be the best present for their future.
I have to disagree with that one. It's not easy at all. Even the shoe company isn't going to hire a PhD if they have enough workers to cover their needs. Employment only increases with more demand.
Looking at the US as a whole, consumers are not broke. It's a distribution problem, not a lack of money probem.
We already have the gov't ability to create fake demand. This is not an open market. We can build bridges and roads to nowhere and have the whole country employed. Won't help a bit though. We need real employment in order to justify any interest rate increase. That is not going to happen anytime soon. It'll be 3 decades of lost growth when we are through. Not 1, not 2, but 3. At the heart of many of our earning years. No house purchase will save you at all, we will all suffer.
Yes, the US economy is so bad that housing prices cannot possibly increase... That is why the have been dropping over the past 12 months...
The economy is in bad shape only because we are printing trillions out of thin air just to keep it afloat. We all know that we can't print forever and keep rates at record lows for too long. Everyone is hoping for or expects a soft landing and the Fed to GRADUALLY raise rates. I am betting that it will not be a soft landing and rates will go through the roof once the bond bubble bursts. No burst of a bubble is ever a soft landing.
We can build bridges and roads to nowhere and have the whole country employed.
Won't help a bit though. We need real employment in order to justify any
interest rate increase
This is what you are missing. If you had the whole country working, it would create real jobs because the people who currently have nothing would actually have disposable income. This would create tremendous demand, which would cause companies to increase production and create jobs. Real jobs.
It is another stealth bailout, and it will continue until the banks are in a safe zone.
You're talking like they know what they're doing. They don't. This is the first time anything to this extent has happened. If you want to risk your money in one of the greatest fraud inspired experiments there ever was go right ahead.
For me, when I see the DOJ and the FBI protecting these banksters, lying right to the camera I know it's way over my head.