Check out this focx news clip about housing.

[hipmatt]

Who do you agree with.. Peter Schiff or the guy w/ long hair?

http://www.europac.net/Schiff-Fox-4-27-07_lg.asp

[LookoutBelow]

The long hair is smoking crack….he is as far out in left field as the current real estate prices

[(former)FormerSanDiegan]

Did RE/MAX merge with the WWF or what ?

[eccen in esc]

eccen in esc
Although I’ve always been partial to long hair, I definately go with the short hair guy.

[The-Shoveler]

Nor_LA-Temcu-SD-Guy

Peter had a good point, Maybe I will call the Long haired guy and try to sell him My house at the price I could have got in early 2005, only problem now is where to find an idiot… I mean nice mortgage broker to lend him the money …

[ltokuda]

I think they’re both right. There is no national housing market. Some markets are going to crash and others are going to continue to grow. So for a real estate investor, there are always opportunities … as long as you know which market to invest in.

[noone]

Just remember: the louder you yell, the more right you are!

[sdrebear]

At: FormerSanDiegan

Did RE/MAX merge with the WWF or what ?

HAHAHAHAHAHAHAHAHAHAHA!!!!

That was classic. Thanks for the laugh!

[cr]

That’s funny. “$600!!!” That’s because the over-priced homes aren’t selling at all.

Guys like that are the poster child for the wide-sperad ignorance of this market. National averages are only going to deepen the wound of reality, and this guy is just laughing his fear away. For now at least.

[no_such_reality]

Long-hair pretty much copped to it, he’s developing in Texas, when asked, would he do it on the Florida Coast, -No. Southern California – No.

[kev374]

yikes! it’s the long haired freak again!!! That guy was on a show last month as well, he basically speaks nothing but nonsense. I’m wondering how someone like that can even get airtime..seesh!

Net incomes have gone up 10%/yr in the past 3 yrs? In that case I and everyone I know must be in the wrong jobs!

[Cow_tipping]

Submitted by ltokuda on May 1, 2007 – 10:48am.
I think they’re both right. There is no national housing market. Some markets are going to crash and others are going to continue to grow. So for a real estate investor, there are always opportunities … as long as you know which market to invest in.

I beg to differ. There is a national market.
Its like this in crude terms. say at some point in time, 2 cities a and b have prices Pa and Pb for 2 specific houses.
Assuming Pa is 2X Pb, at a different point in time when nothing has changed between these 2 cities they are at Ra and Rb. Ra will also be 2X Rb. That is a global or a national market.
Of course that might never happen, they may build a road by a, a school by b, an airport on top of a, and a shipyard by b. All of those is local.
Needless to say, we can have these factors count in equally in both a and b and they still have the same 2X or there can be a complete lopsided change like Michigan and say CA from 70-2005 etc etc.
There is a national market, but local factors can overwhelm it and skew it in favor of one or the other.
Now the credit bubble it was national, every 2 bit drunk bought a house, be it in Illinois or be it in CA, and every area is bubblicious. Some more bubblicious than others.
Cool.
Cow_tipping.

[SHILOH]

“Did RE/MAX merge with the WWF or what ?”

excellente funnito

[eccen in esc]

eccen in esc
Cow_tipping, Could you repeat that in English? I got a D in Algebra.

[bigmoneysalsa]

eccen, think of it this way. Every year in this country, millions of people make choices about what city to live in. One of the big factors in those decisions is housing prices. In the long run, individuals will tend to go to the places that they perceive to be a better value for themselves. So if prices in one area become very high relative to how attractive that area is compared to the other choices throughout the country, people at the margins will leave (or choose not to come). Most people here in So-Cal know at least a couple families who have left or are thinking about leaving, and for whom high home prices are part of that decision.

Lets say that I get hired by a big company and they give me a choice to work in Boston or Seattle. I like Seattle a little better, but not much. If home prices are very similar in both cities I will probably choose Seattle. But if home prices are double in Seattle compared to Boston, that might nudge me over the line and I choose Boston. Because I am no longer in the Seattle market, this puts downward pressure on home prices in Seattle. It’s a contrived example, but believe me millions of families make compromises just like this every year.

In the long run it is relative desirability that determines relative prices between local markets. Simple but true.

I share your frustration cow_tipping. Few people understand the concept of substitute goods and realize that it applies to housing at a national level.

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