Rates are high, so buy now

User Forum Topic
Submitted by Alex_angel on June 20, 2007 - 7:51am

The good old Union Tribune this morning headlined its business section with story about how the spike in interest rates will ignite the buyers market. They claim people who have been on the sideline will jump in now.

LOL. Okay so let me get this straight. You have sat still for months and now that rates spike a 1/2% it is time to buy? Um no. Unless the home prices have come down some more it is still a suckers market.

Of course in typical tribune fashion the same article contradicts itself and goes on to talk about how the spike in rates will hurt the market and potential buyers with one analyst predicting a rate of 7% by years end.

I just love how the skeezy RE agent used the spike in rates to call this a buyers market because you'd better buy now before rates get even higher. Yet he never mentioned that home prices are still too inflated and need to also come down.

‹ Rich and His Fancy Friends and Fancy Venue the equity answer ›
Alex_angel - WHat you need
Submitted by FormerSanDiegan on June 20, 2007 - 8:12am.

Alex_angel - WHat you need to realize that in order to write for the U-T in areas related to Real Estate, the reporters have to pass the following competence exam.

Question #1. Fill in the Blank:

____________ it's a good time to buy.

A. Rates are up, so ...
B. Rates are down, so ...
C. Inventory is up, so ...
D. Inventory is down, so ...
E. Prices are going up, so ...
F. Prices are going down, so ...
G. It's spring time selling season, so ...
H. It's Fall, so ...
I. It's Winter, so ...
J. It's room temperature outside, so ...
K. It's room temperature inside, so ...
L. Elections are coming up, so ...
M. Elections are over, so ...
N. The Baby Boomers are retiring, so ...
O. The Padres are winning, so ...
P. The sky is blue, so ...
Q. Any or all of the Above.

Question #2: True or True.
The answer to question #1 is Q.

Nor_LA-Temcu-SD-Guy Yea it
Submitted by Nor-La-Temcu-SD-GUY on June 20, 2007 - 8:12am.

Nor_LA-Temcu-SD-Guy

Yea it worked in the past (few years anyway), don't think it will work this time.

Anyway, I am in no hurry, can't see speculators getting all excited either (I think you got to see about 15% a Year before speculators can make much if any money).

Yawn !!

FormerSanDiegan, that was
Submitted by Alex_angel on June 20, 2007 - 8:30am.

FormerSanDiegan, that was classic. Post of the day!

nor_la The recent bloomberg
Submitted by Alex_angel on June 20, 2007 - 8:32am.

nor_la

The recent bloomberg article states that people can afford 8% less house now than 5 weeks ago due to the spike in rates. As you said, the sellers now need to come down at least that much.

This is going to be a really bad next few months for the RE market.

Alex, .....and by "a really
Submitted by Farls on June 20, 2007 - 11:36am.

Alex,
.....and by "a really bad NEXT FEW MONTHS"..you mean 60-100..haha....