patrick.net

This is characteristic of a bear market rally/dead cat bounce. People still remember the "good old days" and long for them to return. You just have to look at the stock market and listen to the MSM's pronouncements that the "recession is over" and people think it was all just a bad dream and it's full speed ahead.

This is exactly what happened after 1929 - there was a big rally after the initial crash and then the market dropped again to way below the initial crash point. These people are going to be crushed by the next leg down in the market/economy.

There are a lot of factors. In additions to the above, banks are lending more than before, the $6500 move up buyer's credit, low interest rates, banks holding on to inventory creating an artificial shortage. They are trying desperately to hold '03 pricing. I don't think it will work unless the subsidies continue for another three to five years or so (fed buying MBSs, buyer's credits, etc).

second mouse gets the cheese

I'd like additional details on the instant resale at $100K more please.

Are these buyers who bought at auction in all cash and got a ridiculous deal and then decide to put the home on the market to the public who can't pay all cash and therefore pay a premium, in this case $100K?

The rich make money in good times, and tons of money in bad.

mmm221 has 21 posts and 21 comments. Looks like at least half of them are of the cheerleading variety.

Shill alert.

lookforevan says

thomas.wong89 says

If so, it only takes more off on the demand side while supply is still growing.

Down the line there will be fewer buyers to compete with.

who’s to say that demand will not be more robust in 2010?

Increasing unemployment and decreasing wages.

To lookforthevan: In some instances, buying might be nominally cheaper than renting (cheap home, high bracket, newer so no maintenance, low property tax area). However, in these situations, the homeowner is locking themselves into a 30 year commitment to pay that fixed amount every month. Why not wait a few years to see if prices will go lower (which they, of course) and reduce this long-term monthly commitment significantly?

Comparing "what you're willing to pay each month (and it is cheaper than renting)" is the same unwise financial move that gets people into 6 years of payments for autos and poor refinancing decisions for homes.

there is probably some pent up demand from people who've been on the sidelines for the past 2 years.

Also the market's becoming more efficient. Market price is known so there's less inventory from people hoping for the sky then dropping the price for 12 months.