I’m glad to see Realtors waking up to reality, at least those who denied there was a bubble, but 10% is not enough.
“People, obviously, that have lost their jobs are not going to be purchasing homes,” Gillespie said. “However, if you look back over the last two years, we’ve had 4 million jobs created in this country and 8 million babies were born, so there’s a lot of pent-up demand.”
I’m not positive, but pretty sure that job number is way off. I know they’re down this year, but if they are up since ’06 the more important question is where? Wal-Mart cashiers probably can’t afford the average house in CA.
And last time I checked babies weren’t buying any homes.
People confuse desire and demand. Wife and I had a child this year and would love to buy, but 10% off a net 140% (200%, -30%) runup in prices during a period of flat incomes is still over inflated.
