Bailout – What does it mean for real estate for us waiting?

[Huckleberry]

LA Renter beat me to the post, but here is what I had to say anyway…

Oh, and don’t forget the HUGE factor of unemployment. It is rising at it’s fastest pace in 10 years. This variable alone will take a significant percentage of potential “sideline” or future buyers out of the market.

I just don’t see any way they can stop the home price decline freight train! It’s going to keep rolling until prices reach their intrinsic value, which IMO will be somewhere in the late 90’s price ranges, back where incomes could actually support prices.

[peterb]

If you look at the last few RE cycles in CA, you’ll see that by far the strongest correlation is in unemployment. Anything above 6% spells a shut down for the RE market. We’re at 7.7% in CA and rising with no bottom in sight yet.

The failout package is about containing a collapse. not stopping the trend. It’s a delaying tactic at best and who knows how long or well it will really work. SD county has had a median price of about 5 times median income as a historic std for the last 30 years. That could easily over correct in a housing bear market and go more towards the national ratio of 3:1.

[peterb]

If you look at the last few RE cycles in CA, you’ll see that by far the strongest correlation is in unemployment. Anything above 6% spells a shut down for the RE market. We’re at 7.7% in CA and rising with no bottom in sight yet.

The failout package is about containing a collapse. not stopping the trend. It’s a delaying tactic at best and who knows how long or well it will really work. SD county has had a median price of about 5 times median income as a historic std for the last 30 years. That could easily over correct in a housing bear market and go more towards the national ratio of 3:1.

[peterb]

If you look at the last few RE cycles in CA, you’ll see that by far the strongest correlation is in unemployment. Anything above 6% spells a shut down for the RE market. We’re at 7.7% in CA and rising with no bottom in sight yet.

The failout package is about containing a collapse. not stopping the trend. It’s a delaying tactic at best and who knows how long or well it will really work. SD county has had a median price of about 5 times median income as a historic std for the last 30 years. That could easily over correct in a housing bear market and go more towards the national ratio of 3:1.

[peterb]

If you look at the last few RE cycles in CA, you’ll see that by far the strongest correlation is in unemployment. Anything above 6% spells a shut down for the RE market. We’re at 7.7% in CA and rising with no bottom in sight yet.

The failout package is about containing a collapse. not stopping the trend. It’s a delaying tactic at best and who knows how long or well it will really work. SD county has had a median price of about 5 times median income as a historic std for the last 30 years. That could easily over correct in a housing bear market and go more towards the national ratio of 3:1.

[peterb]

If you look at the last few RE cycles in CA, you’ll see that by far the strongest correlation is in unemployment. Anything above 6% spells a shut down for the RE market. We’re at 7.7% in CA and rising with no bottom in sight yet.

The failout package is about containing a collapse. not stopping the trend. It’s a delaying tactic at best and who knows how long or well it will really work. SD county has had a median price of about 5 times median income as a historic std for the last 30 years. That could easily over correct in a housing bear market and go more towards the national ratio of 3:1.

[jpinpb]

Thanks everyone for your insightful replies.

[jpinpb]

Thanks everyone for your insightful replies.

[jpinpb]

Thanks everyone for your insightful replies.

[jpinpb]

Thanks everyone for your insightful replies.

[jpinpb]

Thanks everyone for your insightful replies.

[JC]

are there any benefits at all in the bill for homebuyers? tax credits? if yes, what are the income limits?

[JC]

are there any benefits at all in the bill for homebuyers? tax credits? if yes, what are the income limits?

[JC]

are there any benefits at all in the bill for homebuyers? tax credits? if yes, what are the income limits?

[JC]

are there any benefits at all in the bill for homebuyers? tax credits? if yes, what are the income limits?

[Author]

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