patrick.net

cloud15 says

LM, what's your prediction for Bay Area ?

A major revolt against the tech buses

Bay area is in a league of its own, housing inflation RIP

Rent
Interest rates
Prices

Will make it hard for lower end middle class and under to live comfortably unless they have good job with stock options.
However, high end areas like San Francisco and New York really do well when equity boom is live and well.
The tech boom has brought new fresh money there so as long as the Stock Market does well and Tech IPO's are doing well they should be able to hold.
It's just so expensive there to live ( own and rent) that its insane
I believe the only other place where rent is more expense is North Dakota because of the energy boom.

I know they're building that Mega commercial tower there so the business cycle is good enough for now. I went to a commercial real estate conference last year and they show cased some nice properties there

CaptainShuddup says

So where in the hell is all that money going

A lot QE went to excess reserve heaven

As always this impacts first time home buyers. However, move up buyers do have this issue as well.

The Professor says

s that tapering I see at the end of the Fed balance sheet line?

Split between MBS and treasuries is there so they on nominal basis buying less but still buying so the growth of balance sheet would slow down but still in there.

At this point if you're looking at the first rate hike toward the end of 2015 or start of 2016