"The (downward) manipulation of interest rates is a result of banks needing higher profit margins"
The point of lower interest rates is to faciltate increased spending on the part of consumers. We have a debt based monetary system, there is no growth if debt does not increase. Banks would love to borrow at zero and loan at the highest interest rate possible.
Patrick is providing his free opinion. Like any opinion we as individuals are responsible to make our own decisions. Obviously he sees a home as place to live not an investment vehicle. That is because he is not a speculator so do not expect him to tell you how to gamble on the housing market. Once housing begins its next downturn, he will be proven correct. Then people will blame him for not telling them to sell.
Yes lets hope this sucker rolls over. Went to a neighborhood open house this weekend. 2300 square foot house listed at 950K. Odd additions, old miss matched flooring, mostly original with no upgrades. In general odd looking and ugly. $4700 a month with 20% down. I think I will stick with my rental.
It looks and feels much different than last time. Based on my ever increasing long commute there must be plenty of folks working. Until that changes and the foreclosures open up I dont expect it to change.
Houses here in east bay seem to sell at a premium. There is very little inventory.