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Rising house prices are unsustainable


By retire59   Follow   Fri, 21 Jun 2013, 5:01am PDT   1,099 views   14 comments
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http://www.nbcnews.com/business/realtors-rising-home-prices-are-unsustainable-6C10400738?source=Patrick.net

Well, it must be worse than this if the Realtors are saying rising home prices are "Unsustainable"....look out....

Comments 1-14 of 14     Last »

APOCALYPSEFUCKisShostikovitch   Fri, 21 Jun 2013, 5:04am PDT   Share   Quote   Permalink   Like (3)   Dislike     Comment 1

Commie twinks. There is no reason you can't double housing prices every year forever, unless you hate Success and want to destroy the economy. Get with the Program! Get with Success!

FortWayne   Fri, 21 Jun 2013, 6:14am PDT   Share   Quote   Permalink   Like   Dislike     Comment 2

Well nothing can sustainably rise to infinity. It just has to match the income of the neighborhood to be reasonable.

Call it Crazy   Fri, 21 Jun 2013, 6:32am PDT   Share   Quote   Permalink   Like   Dislike     Comment 3

....."For six straight months, home prices have been leaping in double digits from a year ago. In May, the median existing home sale price was 15.4 percent higher nationally than May of 2012, according to a new report from the National Association of Realtors.

The Realtors themselves say that kind of jump is "unsustainable."

"Some of the increases can be explained by the fact that it is recovering from an over-corrected situation," said Lawrence Yun, chief economist for the Realtors. "But with people's income rising at only 1 or 2 percent and prices rising in double digits, it cannot continue."

*****************
If the chief liar himself, Larry Yun, agrees.... then it must be really be "unsustainable"!!!

retire59   Fri, 21 Jun 2013, 6:33am PDT   Share   Quote   Permalink   Like   Dislike     Comment 4

I just find it interesting in this article, that the NAR is being the 'bear' and they are usually the cheerleaders....so we better duck. ;)...

Call it Crazy   Fri, 21 Jun 2013, 6:34am PDT   Share   Quote   Permalink   Like   Dislike     Comment 5

From the article:

......""These are huge moves especially considering—when purchasing a house using a mortgage—most people buy based on 'monthly payment and the maximum allowable debt-to-income ratio.' This means first-timer share will fall even further. "

....."First-time homebuyer participation was at just 29 percent, according to the Realtors, a five-year low. Without these buyers, as investors pull back and prices rise, home sales will likely lose steam."

Reality   Fri, 21 Jun 2013, 6:49am PDT   Share   Quote   Permalink   Like (1)   Dislike     Comment 6

The Realtwhores need inventory to sell. The homeowners holding out for higher prices are cramping monthly commission revenue.

marcus   Fri, 21 Jun 2013, 6:54am PDT   Share   Quote   Permalink   Like   Dislike     Comment 7

Good interpretation. They are trying to bring the sellers out.

Problem is, the potential sellers are probably either happy where they are, or they're underwater and can't sell..

Tim Aurora   Fri, 21 Jun 2013, 6:59am PDT   Share   Quote   Permalink   Like   Dislike     Comment 8

I agree that the future rise in house price is going to be muted for the following reasons. Infact we may see apullback of a few percentage points.

1. Higher interest rates will curb the price
2. Income increase per household is only increasing at 1-2%
3. Construction cost which rose dramitically earlier are now back to normal. Hence the builders are competetive again.

JodyChunder   Fri, 21 Jun 2013, 7:06am PDT   Share   Quote   Permalink   Like (2)   Dislike     Comment 9

Just increase the minimum wage to $28.00 an hour.

Done.

FortWayne   Fri, 21 Jun 2013, 8:02am PDT   Share   Quote   Permalink   Like   Dislike     Comment 10

donjumpsuit says

JodyChunder says

Just increase the minimum wage to $28.00 an hour.

Done.

I agree. Do it like the Germans.

Germans probably don't have 11 million mexicans willing to work for cash below minimum wage. Nor do they send millions of jobs to China to work for pennies.

I could be wrong though.

Ceffer   Fri, 21 Jun 2013, 9:20am PDT   Share   Quote   Permalink   Like (1)   Dislike     Comment 11

If you have not already taken out multiple HELOCs, you are just behind the curve and deserve to lose.

You have argued with success and lost.

dodgerfanjohn   Fri, 21 Jun 2013, 9:49am PDT   Share   Quote   Permalink   Like   Dislike     Comment 12

*yobs

postbubblesucess   Thu, 27 Jun 2013, 9:46am PDT   Share   Quote   Permalink   Like   Dislike     Comment 13

Gay Latinos run California

mell   Thu, 27 Jun 2013, 10:07am PDT   Share   Quote   Permalink   Like   Dislike     Comment 14

Germany doesn't have federally (or state) mandated minimum wage, certain fields of work do through the unions (which then is enforcable by law).

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