Housing is not going to crash without something horrific happening.
Most of the spike up in home prices were caused due to loose lending and speculation. The horrific situation you mention is payment shock for all those who financed under teaser rates and the speculators who cannot unload their homes and have to take a loss on it.
There is just way too much money in San Diego today, lots of Orange County wannabees are down here with large trust funds and endless cash.
You’re completely dellusional about this.
The people who have “way too much money” bought their homes long time ago and don’t contribute to new demand. They are not in the market to buy new homes. It’s completely irrelevant.
The key point is how much money a first time homebuyer has, the market is chained in that if a entry level buyer cannot afford a home then the upgrade buyer cannot move up because he can’t sell and so on and so forth.
.I read these articles about the bubble popping, sub prime etc… but then I look around at open homes, sales releases etc… and business is still booming.
The news is completely bogus and fabricated, it’s your choice to believe it. I have friends in the mortgage business and who are realtors. They all tell me the market is hopelessly DEAD. There has been a small uptick in activity because it’s spring right now but compared to a typical spring selling season it resembles as Roubini would put it “ARCTIC WINTER” !!
On this board we’re not disgruntled but practical, we’re looking at the various factors and discussing the direction of the market. Right now there are a HUGE number of factors that very strongly indicate that a good size decline is going to happen. Being in denial is not going to stop that.
As I mentioned in the previous posts buyer psychology has to change in a BIG way. That takes a long time, people have been fed with the “home is the key to big wealth” brianwashing for so long that even now some believe that they should do absolutely anything and everything to own. This psychology has to change and it has to become widely accepted that owning a home in this market is financial suicide.
