University of the Pacific economist Sean Snaith, who predicted in January that Frescno unemployment would drop three percentage points, and construction spending would increase, has a job offer in Florida, forcing him to put his own home on the market.
Snaith said he did “not believe in a bubble akin to the Internet boom-bust. The real estate market cannot crash like that because a person’s house is not simply a financial asset. Instead, he compares the housing situation to a souffle made from the proper mixture of record-low mortgage rates, low inflation, and innovative loan programs.”
Fast forward to today’s story. “Snaith has a home he needs to unload. He’s headed to Florida where he’ll take up a similar position at a much larger college, the University of Central Florida in Orlando. He’s been here two years and probably secretly wishes he’d gotten the job six or eight months ago, before the inventory of homes for sale shot up, prices softened and buyers became the market bosses.
He will now have a real life opportunity to test the soufflé theory of Valley real estate.
Which brings us to that soufflé theory: Snaith, who has an uncanny knack of making things economic not only understandable but interesting, has been using the soufflé analogy in PowerPoint presentations since at least September, shown as a recipe card (“From the kitchen of Sean Snaith”) complete with the picture of a soufflé in the corner.”
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Hmmm…. time to test that souffle theory. Good luck, Snaith, you little economist. I hope those guys at the UCLA Anderson Forecast get to hear your personal real estate sales story.
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