Coworkers argument that house prices won’t fall…

[GoUSC]

Got into a heated debate at the office today about housing values in San Diego. My coworker truly believes that home prices won’t fall for the simple reason that the majority of home owners out there don’t need to sell and have more than enough equity that is the market stays slow they just won’t sell. This will keep the supply of homes in line with the reduced demand and will cause prices not to fall.

What do you guys think of that arguement?

[BuyerWillEPB]

I’m actually hoping the regular sellers who don’t really want to sell would hurry up and get off the MLS.

Most of the homes sold in San Diego county were financed with the dangerous ARM products that we are beginning to see foreclose en mass. I’ve seen articles mention that as much as 80% of the new mortgages between 2003 – 2006 were these toxic mortgages.

So yes, please, all you flipper wannabes out there give it up and take your POS off the market. I only want to be dealing with the thousands of desperate lender foreclosed properties increasing exponentially every month now.

[BuyerWillEPB]

I’m actually hoping the regular sellers who don’t really want to sell would hurry up and get off the MLS.

Most of the homes sold in San Diego county were financed with the dangerous ARM products that we are beginning to see foreclose en mass. I’ve seen articles mention that as much as 80% of the new mortgages between 2003 – 2006 were these toxic mortgages.

So yes, please, all you flipper wannabes out there give it up and take your POS off the market. I only want to be dealing with the thousands of desperate lender foreclosed properties increasing exponentially every month now.

[BuyerWillEPB]

I’m actually hoping the regular sellers who don’t really want to sell would hurry up and get off the MLS.

Most of the homes sold in San Diego county were financed with the dangerous ARM products that we are beginning to see foreclose en mass. I’ve seen articles mention that as much as 80% of the new mortgages between 2003 – 2006 were these toxic mortgages.

So yes, please, all you flipper wannabes out there give it up and take your POS off the market. I only want to be dealing with the thousands of desperate lender foreclosed properties increasing exponentially every month now.

[eyePod]

I think your coworker has an opinion not based on the available data (reality). The supply of homes is way up, the sales volume is way down. Did I mention prices have fallen about 5-10%? Your coworker is like many current sellers (in denial of basic market forces). Time will tell who is right.

[eyePod]

I think your coworker has an opinion not based on the available data (reality). The supply of homes is way up, the sales volume is way down. Did I mention prices have fallen about 5-10%? Your coworker is like many current sellers (in denial of basic market forces). Time will tell who is right.

[eyePod]

I think your coworker has an opinion not based on the available data (reality). The supply of homes is way up, the sales volume is way down. Did I mention prices have fallen about 5-10%? Your coworker is like many current sellers (in denial of basic market forces). Time will tell who is right.

[JPJones]

Is your friend an ostrich?

[JPJones]

Is your friend an ostrich?

[JPJones]

Is your friend an ostrich?

[GoUSC]

I don’t agree with his arguement either but I do understand his point that a good percentage of owners still do have a lot of equity and will just choose to pull their homes off the market. This will reduce supply maybe slightly more in line with demand.

Don’t get me wrong I still have a bet with him that average home prices (per Shiller) will be 20% lower by the end of 2008.

[GoUSC]

I don’t agree with his arguement either but I do understand his point that a good percentage of owners still do have a lot of equity and will just choose to pull their homes off the market. This will reduce supply maybe slightly more in line with demand.

Don’t get me wrong I still have a bet with him that average home prices (per Shiller) will be 20% lower by the end of 2008.

[GoUSC]

I don’t agree with his arguement either but I do understand his point that a good percentage of owners still do have a lot of equity and will just choose to pull their homes off the market. This will reduce supply maybe slightly more in line with demand.

Don’t get me wrong I still have a bet with him that average home prices (per Shiller) will be 20% lower by the end of 2008.

[(former)FormerSanDiegan]

Does this person believe that prices have NOT already fallen ?

Just save your breath and drop the newspaper on their desk when it becomes more obvious. My guess is that even the median price will show a significant decline by October or so.

[(former)FormerSanDiegan]

Does this person believe that prices have NOT already fallen ?

Just save your breath and drop the newspaper on their desk when it becomes more obvious. My guess is that even the median price will show a significant decline by October or so.

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