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Rising house prices are unsustainable

By retire59   2013 Jun 21, 5:01am   ↑ like   ↓ dislike   2,214 views   14 comments   watch (0)   share   quote  

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....

#housing

Comments 1-14 of 14     Last »

1   APOCALYPSEFUCKisShostikovitch   2013 Jun 21, 5:04am  ↑ like (3)   ↓ dislike   quote   top   bottom   home   share  

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!

2   FortWayne (39/40 = 97% civil)   2013 Jun 21, 6:14am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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

3   Ironman (156/168 = 92% civil)   2013 Jun 21, 6:32am  ↑ like   ↓ dislike (1)   quote   top   bottom   home   share  

....."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"!!!

4   retire59   2013 Jun 21, 6:33am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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. ;)...

5   Ironman (156/168 = 92% civil)   2013 Jun 21, 6:34am  ↑ like   ↓ dislike (1)   quote   top   bottom   home   share  

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."

6   Reality   2013 Jun 21, 6:49am  ↑ like (1)   ↓ dislike   quote   top   bottom   home   share  

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

7   marcus (68/68 = 100% civil)   2013 Jun 21, 6:54am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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..

8   Tim Aurora (28/28 = 100% civil)   2013 Jun 21, 6:59am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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.

9   JodyChunder   2013 Jun 21, 7:06am  ↑ like (2)   ↓ dislike   quote   top   bottom   home   share  

Just increase the minimum wage to $28.00 an hour.

Done.

10   FortWayne (39/40 = 97% civil)   2013 Jun 21, 8:02am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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.

11   Ceffer (71/71 = 100% civil)   2013 Jun 21, 9:20am  ↑ like (1)   ↓ dislike   quote   top   bottom   home   share  

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.

12   Fucking White Male (29/29 = 100% civil)   2013 Jun 21, 9:49am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

*yobs

13   postbubblesucess   2013 Jun 27, 9:46am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

Gay Latinos run California

14   mell (21/21 = 100% civil)   2013 Jun 27, 10:07am  ↑ like   ↓ dislike   quote   top   bottom   home   share  

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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