Yep CAR. Also, I believe a big part of it is many of these semi-permabears have now bought here in the last year or so. I used to read a few Housing Bubble sites and even the most die hard of bears has now jumped to the other side and purchased.
So many of these people that diligently called the housing crash and waited on the sidelines to buy have now purchased a house. And now that they purchased, they don’t want to see another crash and probably don’t mind another bubble brewing up.
Personally I think prices are coming up too far too fast. It’s simply not healthy. But with human nature, these people that have purchased (and used to read/post) might not even want to think about a potential crash coming.
Things move in cycles. Nothing moves in a straight line forever. I kind of laugh at sites like Patrick.net now. Yes, he was right for many years. But then he ends up writing a book AFTER the bubble had already burst and prices were on their way up. I think I read that the guy still didn’t buy a house and is a renter.
I respect many of the people that called a housing bubble many years ago. I saw what was going on back in 2004 and saw it coming. So I know how difficult it was for some of these guys to have called it when everyone thought it would go up forever. But I have no respect for someone that calls a bubble, sees prices crash tremendously and then try to say prices will fall forever and end up being a life long perpetual renter.
