Let Home Prices Fall

[jpinpb]

I’m not sure where I saw this Newsweek story. I tried to find it on this board, but can’t. I’m posting it in case it is of interest and some of you missed it.

My sentiments have been that the housing prices need and have to come down for the market to correct and the longer people refuse to lower their price, the longer this will drag out.

http://www.newsweek.com/id/118914/page/2

[kev374]

people will always refuse to lower their price until they are forced to. They will not willingly give up their “gains”. Very few people have rational business sense, they would rather chase down the market and lose everything rather than make a huge cut and take in less profit. This part of human nature can be very easily witnessed on the show Deal or No Deal, people get so greedy and go for that “one more time” to make just a little more and then end up losing everything!!!

[kev374]

people will always refuse to lower their price until they are forced to. They will not willingly give up their “gains”. Very few people have rational business sense, they would rather chase down the market and lose everything rather than make a huge cut and take in less profit. This part of human nature can be very easily witnessed on the show Deal or No Deal, people get so greedy and go for that “one more time” to make just a little more and then end up losing everything!!!

[kev374]

people will always refuse to lower their price until they are forced to. They will not willingly give up their “gains”. Very few people have rational business sense, they would rather chase down the market and lose everything rather than make a huge cut and take in less profit. This part of human nature can be very easily witnessed on the show Deal or No Deal, people get so greedy and go for that “one more time” to make just a little more and then end up losing everything!!!

[kev374]

people will always refuse to lower their price until they are forced to. They will not willingly give up their “gains”. Very few people have rational business sense, they would rather chase down the market and lose everything rather than make a huge cut and take in less profit. This part of human nature can be very easily witnessed on the show Deal or No Deal, people get so greedy and go for that “one more time” to make just a little more and then end up losing everything!!!

[kev374]

people will always refuse to lower their price until they are forced to. They will not willingly give up their “gains”. Very few people have rational business sense, they would rather chase down the market and lose everything rather than make a huge cut and take in less profit. This part of human nature can be very easily witnessed on the show Deal or No Deal, people get so greedy and go for that “one more time” to make just a little more and then end up losing everything!!!

[kewp]

People are still delusional.

Once there is capitulation on the national scale, you will see a rush to the exits like you would not believe.

[kewp]

People are still delusional.

Once there is capitulation on the national scale, you will see a rush to the exits like you would not believe.

[kewp]

People are still delusional.

Once there is capitulation on the national scale, you will see a rush to the exits like you would not believe.

[kewp]

People are still delusional.

Once there is capitulation on the national scale, you will see a rush to the exits like you would not believe.

[kewp]

People are still delusional.

Once there is capitulation on the national scale, you will see a rush to the exits like you would not believe.

[Aecetia]

The point about artificially propping up the market is an excellent one! This is Darwinian economics at work.

“The understandable impulse to minimize foreclosures should not be a pretext to prop up the housing market by rescuing too many strapped homeowners. Though cruel, foreclosures and falling home values have the virtue of bringing prices to a level where housing can escape its present stagnation. Helping today’s homeowners makes little sense if it penalizes tomorrow’s homeowners. An unstoppable free fall of prices seems unlikely. Slumping home construction and sales have left much pent-up demand. What will release that demand are affordable prices.”

[Aecetia]

The point about artificially propping up the market is an excellent one! This is Darwinian economics at work.

“The understandable impulse to minimize foreclosures should not be a pretext to prop up the housing market by rescuing too many strapped homeowners. Though cruel, foreclosures and falling home values have the virtue of bringing prices to a level where housing can escape its present stagnation. Helping today’s homeowners makes little sense if it penalizes tomorrow’s homeowners. An unstoppable free fall of prices seems unlikely. Slumping home construction and sales have left much pent-up demand. What will release that demand are affordable prices.”

[Aecetia]

The point about artificially propping up the market is an excellent one! This is Darwinian economics at work.

“The understandable impulse to minimize foreclosures should not be a pretext to prop up the housing market by rescuing too many strapped homeowners. Though cruel, foreclosures and falling home values have the virtue of bringing prices to a level where housing can escape its present stagnation. Helping today’s homeowners makes little sense if it penalizes tomorrow’s homeowners. An unstoppable free fall of prices seems unlikely. Slumping home construction and sales have left much pent-up demand. What will release that demand are affordable prices.”

[Aecetia]

The point about artificially propping up the market is an excellent one! This is Darwinian economics at work.

“The understandable impulse to minimize foreclosures should not be a pretext to prop up the housing market by rescuing too many strapped homeowners. Though cruel, foreclosures and falling home values have the virtue of bringing prices to a level where housing can escape its present stagnation. Helping today’s homeowners makes little sense if it penalizes tomorrow’s homeowners. An unstoppable free fall of prices seems unlikely. Slumping home construction and sales have left much pent-up demand. What will release that demand are affordable prices.”

[Author]

Posts