« Credibility is the Key to Success for a CEO – Hovnanian has Lost that Key: A letter to Mr. Hovnanian | Main | Rates are still going up, Mr. Bernanke »

September 18, 2007


tom stone

It looks like the fed will now allow 100% financing up to $729k.I know quite a few people who think this,with the rate cut will "save" home prices in california.you betcha.people can now afford 10x plus the median income as a median home price.


If so, this will cause rampant speculation in the lower price sector, which will fuel those who want to move up for they will take advantage of the 1031 tax exchange rules to trade up instead of paying capital gains tax, which will push the next price level up (you can't trade laterally or down, you must trade up), which will in turn push us past where we are now.

Sooner or later, the real estate oversupply has to pop the natural way. Lowering rates simply levers it further, postpones it, and makes the inevitable even worse.

newport coast homes for sale

People who got houses they can't afford will have to lose them for this to be over, period.

The comments to this entry are closed.

Your email address:

Powered by FeedBlitz

December 2007

Sun Mon Tue Wed Thu Fri Sat
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31