[quote=outtamojo]I never could understand this fascination with underwater owners as potential sellers without at the same time attempting to quantify potential buyers who held back/ or are still holding back buying to avoid bubble prices.Seems like they came out to be somewhat of a wash, no?
At this point in time, for those held off buying, the move off the bottom came too quick.
I wonder what the current frenzy will do to the psychology of home buyers/real estate investors. Will they view housing the same way many viewed stocks in the 90’s, buy the dips because prices ALWAYS come back?[/quote]
I don’t think they come out to a wash at all. Today’s market indicates a lot more demand than supply. And it’s not a fascination. It’s an opinion reached after careful consideration, albeit with an acknowledgement of the possibility that it’s incorrect.
As for the psychology of this investor, I don’t view housing the way you describe, exactly. Nominal prices will always go up in the long run (a hundred years from now they’ll be higher than they are now), but that doesn’t mean that you will make money no matter when you buy.
