patrick.net

Austinhousingbubble says

I should think for me to have attempted to correct you on a topic of discussion would, at the very least, assume that we were engaged at some point in a discussion -- no?

Sorry, didn't know an invitation was needed prior to entering a discussion on the pat.net boards. My apologies.

Austinhousingbubble says

RE interest rates and prices: according to the wisdom of the average contrarian like yourself, the bottom was in in 2009; prices are not falling, they are flat. However, if we are to assume for the sake of argument that prices are falling, I would suggest that there are several price supports that are working in unison with low rates to buffer and even temporarily suspend the rate at which prices continue to correct and likely over-correct to the downside.

That's not an unreasonable position. But, it is at odds with the previous statements that interest rates were the cause of the bubble. If interest rates cause bubbles, then we should be in another bubble. They are lower than in 2005-2008. Obviously it's not that simple. Interest rates may have had a small effect by initiating a rational housing boom which affected people's psychology. B. Bill is right though, loose lending is the real cause.