‘Sdduuuude nailed
Submitted by CA renter on May 7, 2008 – 10:53pm.
Sdduuuude nailed it.
Investments certainly look good in some areas right now, based on inflated rents. But lots of inventory is being kept off the market by banks and FBs trying to hold on until “the market gets better.” What happens to rents and prices when that inventory is finally released onto the market?
A recession/depression is still not being priced in, nor is a decrease in rent or further decay in the lower-end neighborhoods. Crime will rise, rents will fall; and what seems like a good deal today will probably look foolish next year and the year after that.
I still stand by my 2012 bottom, at best. Time will tell.’
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Both views can be right in the sense that if you look at what Case is talking about, his focus seems to be on the building industry and he seems to be calling the bottom for new home construction. You can have stabilisation of national new home construction co-exist with nationally measured declining and then stabilizing prices. Though there is so much inventory to get though, some areas are not badly hit by the downturn. What case say does not stop San Diego , Sacremento etc going their own way.
