Inflation – Has it arrived?

[CA renter]

[quote=paramount]So in general, would the near term (~6 mths) be a bad time to acquire real estate?[/quote]

Yes, it’s a bad time, IMHO.

The end of 2008/beginning of 2009 was a good time — when the private mortgage market which pumped up the bubble had disappeared, and the govt-backed mortgages and various incentives were in the future.

Now, we are going to see an end to the govt intervention, as most of the risks that could be transferred to the public have been transferred. This was ALWAYS about saving the banks, and that job is done. Now, they will pull the plug, and allow the deflation to happen, IMHO.

[Arraya]

[quote=CA renter] This was ALWAYS about saving the banks, and that job is done. Now, they will pull the plug, and allow the deflation to happen, IMHO.[/quote]

Exactly. Though it will be interesting to see them tighten underwriting with the numbers scraping the bottom of the barrel now. New home sales are down 13% from Dec and almost 19% from last January. Throw down payments and higher interest rates on top of those numbers. hmm

[Arraya]

[quote=CA renter] This was ALWAYS about saving the banks, and that job is done. Now, they will pull the plug, and allow the deflation to happen, IMHO.[/quote]

Exactly. Though it will be interesting to see them tighten underwriting with the numbers scraping the bottom of the barrel now. New home sales are down 13% from Dec and almost 19% from last January. Throw down payments and higher interest rates on top of those numbers. hmm

[Arraya]

[quote=CA renter] This was ALWAYS about saving the banks, and that job is done. Now, they will pull the plug, and allow the deflation to happen, IMHO.[/quote]

Exactly. Though it will be interesting to see them tighten underwriting with the numbers scraping the bottom of the barrel now. New home sales are down 13% from Dec and almost 19% from last January. Throw down payments and higher interest rates on top of those numbers. hmm

[Arraya]

[quote=CA renter] This was ALWAYS about saving the banks, and that job is done. Now, they will pull the plug, and allow the deflation to happen, IMHO.[/quote]

Exactly. Though it will be interesting to see them tighten underwriting with the numbers scraping the bottom of the barrel now. New home sales are down 13% from Dec and almost 19% from last January. Throw down payments and higher interest rates on top of those numbers. hmm

[Arraya]

[quote=CA renter] This was ALWAYS about saving the banks, and that job is done. Now, they will pull the plug, and allow the deflation to happen, IMHO.[/quote]

Exactly. Though it will be interesting to see them tighten underwriting with the numbers scraping the bottom of the barrel now. New home sales are down 13% from Dec and almost 19% from last January. Throw down payments and higher interest rates on top of those numbers. hmm

[sdrealtor]

To the contrary this just landed in my email box from NAR. Not that I beleive their stats but these seem to suggest otherwise:

Existing home sales which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 2.7 percent to a seasonally adjusted annual rate of 5.36 million in January from a downwardly revised 5.22 million in December, and are 5.3 percent above the 5.09 million level in January 2010. This is the first time in seven months that sales activity was higher than a year earlier.

[sdrealtor]

To the contrary this just landed in my email box from NAR. Not that I beleive their stats but these seem to suggest otherwise:

Existing home sales which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 2.7 percent to a seasonally adjusted annual rate of 5.36 million in January from a downwardly revised 5.22 million in December, and are 5.3 percent above the 5.09 million level in January 2010. This is the first time in seven months that sales activity was higher than a year earlier.

[sdrealtor]

To the contrary this just landed in my email box from NAR. Not that I beleive their stats but these seem to suggest otherwise:

Existing home sales which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 2.7 percent to a seasonally adjusted annual rate of 5.36 million in January from a downwardly revised 5.22 million in December, and are 5.3 percent above the 5.09 million level in January 2010. This is the first time in seven months that sales activity was higher than a year earlier.

[sdrealtor]

To the contrary this just landed in my email box from NAR. Not that I beleive their stats but these seem to suggest otherwise:

Existing home sales which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 2.7 percent to a seasonally adjusted annual rate of 5.36 million in January from a downwardly revised 5.22 million in December, and are 5.3 percent above the 5.09 million level in January 2010. This is the first time in seven months that sales activity was higher than a year earlier.

[sdrealtor]

To the contrary this just landed in my email box from NAR. Not that I beleive their stats but these seem to suggest otherwise:

Existing home sales which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 2.7 percent to a seasonally adjusted annual rate of 5.36 million in January from a downwardly revised 5.22 million in December, and are 5.3 percent above the 5.09 million level in January 2010. This is the first time in seven months that sales activity was higher than a year earlier.

[Rich Toscano]

[quote=CA renter]
Now, we are going to see an end to the govt intervention, as most of the risks that could be transferred to the public have been transferred. This was ALWAYS about saving the banks, and that job is done. Now, they will pull the plug, and allow the deflation to happen, IMHO.[/quote]

Why would they do that? That would just put the banks at risk of failure again, in addition to a host of other consequences that would ensure they aren’t re-elected or re-appointed.

[Rich Toscano]

[quote=CA renter]
Now, we are going to see an end to the govt intervention, as most of the risks that could be transferred to the public have been transferred. This was ALWAYS about saving the banks, and that job is done. Now, they will pull the plug, and allow the deflation to happen, IMHO.[/quote]

Why would they do that? That would just put the banks at risk of failure again, in addition to a host of other consequences that would ensure they aren’t re-elected or re-appointed.

[Rich Toscano]

[quote=CA renter]
Now, we are going to see an end to the govt intervention, as most of the risks that could be transferred to the public have been transferred. This was ALWAYS about saving the banks, and that job is done. Now, they will pull the plug, and allow the deflation to happen, IMHO.[/quote]

Why would they do that? That would just put the banks at risk of failure again, in addition to a host of other consequences that would ensure they aren’t re-elected or re-appointed.

[Rich Toscano]

[quote=CA renter]
Now, we are going to see an end to the govt intervention, as most of the risks that could be transferred to the public have been transferred. This was ALWAYS about saving the banks, and that job is done. Now, they will pull the plug, and allow the deflation to happen, IMHO.[/quote]

Why would they do that? That would just put the banks at risk of failure again, in addition to a host of other consequences that would ensure they aren’t re-elected or re-appointed.

[Author]

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