The “bottom” for various neighborhoods in SD

[LAAFTERHOURS]

4s Renter

“Oddly enough I don’t know anyone on my block who works in construction or retail, most work for the Government or health care and several are retired-(their not going anywhere).”

Just a thought on the above statement. Healthcare and Insurance are probably very stable markets. When you say govt, if its state, fed or local employees, then sure – no problem but I would be very afraid of being a govt contractor right now. With the coming election, I would imagine a reduction in new contract spending. I would vacate any DoD sector consulting gigs and hunker down in a stable industry to brace for the coming impact.

[EconProf]

Bob
As has been pointed out here, the depth, size, and timing of the housing price decline will depend heavily upon mortgage rates. Accordingly, credit market developments of recent days are most alarming.
While the news media are naively convinced that the Fed’s recently lowering of interest rates will rescue housing, the mortgage rates have moved in the opposite direction. This is because the Fed can only influence SHORT TERM rates, such as Fed funds, the discount rate, and short term treasuries. But the MARKET determines long term rates such as 10 year bonds and mortgage rates. This is because supply and demand involving long term investors are buying such instruments, and they are concerned with future inflation and the strength of the dollar. If they have bleak expectations, they will naturally demand higher interest rates before committing their money for so long.
In recent days, long term treasuries have marched up about a half percent, and mortgage rates have climbed even more. I suggest this is because of worsening inflationary expectations and a declining dollar. As to why mortgage rates have climbed even more than government bonds, let’s thank our congress, which is considering bills to change mortgage contracts to the disadvantage of mortgage holders. When our politicians mess with the sanctity of contracts, the investors world-wide will run away from U.S. mortgages, and who can blame them. Thank you Chris Dodd and Barney Frank.
All this will serve to worsen the housing decline, proving once again that our politicians’ failure to understand how free markets work is truly destructive.

[EconProf]

Bob
As has been pointed out here, the depth, size, and timing of the housing price decline will depend heavily upon mortgage rates. Accordingly, credit market developments of recent days are most alarming.
While the news media are naively convinced that the Fed’s recently lowering of interest rates will rescue housing, the mortgage rates have moved in the opposite direction. This is because the Fed can only influence SHORT TERM rates, such as Fed funds, the discount rate, and short term treasuries. But the MARKET determines long term rates such as 10 year bonds and mortgage rates. This is because supply and demand involving long term investors are buying such instruments, and they are concerned with future inflation and the strength of the dollar. If they have bleak expectations, they will naturally demand higher interest rates before committing their money for so long.
In recent days, long term treasuries have marched up about a half percent, and mortgage rates have climbed even more. I suggest this is because of worsening inflationary expectations and a declining dollar. As to why mortgage rates have climbed even more than government bonds, let’s thank our congress, which is considering bills to change mortgage contracts to the disadvantage of mortgage holders. When our politicians mess with the sanctity of contracts, the investors world-wide will run away from U.S. mortgages, and who can blame them. Thank you Chris Dodd and Barney Frank.
All this will serve to worsen the housing decline, proving once again that our politicians’ failure to understand how free markets work is truly destructive.

[EconProf]

Bob
As has been pointed out here, the depth, size, and timing of the housing price decline will depend heavily upon mortgage rates. Accordingly, credit market developments of recent days are most alarming.
While the news media are naively convinced that the Fed’s recently lowering of interest rates will rescue housing, the mortgage rates have moved in the opposite direction. This is because the Fed can only influence SHORT TERM rates, such as Fed funds, the discount rate, and short term treasuries. But the MARKET determines long term rates such as 10 year bonds and mortgage rates. This is because supply and demand involving long term investors are buying such instruments, and they are concerned with future inflation and the strength of the dollar. If they have bleak expectations, they will naturally demand higher interest rates before committing their money for so long.
In recent days, long term treasuries have marched up about a half percent, and mortgage rates have climbed even more. I suggest this is because of worsening inflationary expectations and a declining dollar. As to why mortgage rates have climbed even more than government bonds, let’s thank our congress, which is considering bills to change mortgage contracts to the disadvantage of mortgage holders. When our politicians mess with the sanctity of contracts, the investors world-wide will run away from U.S. mortgages, and who can blame them. Thank you Chris Dodd and Barney Frank.
All this will serve to worsen the housing decline, proving once again that our politicians’ failure to understand how free markets work is truly destructive.

[EconProf]

Bob
As has been pointed out here, the depth, size, and timing of the housing price decline will depend heavily upon mortgage rates. Accordingly, credit market developments of recent days are most alarming.
While the news media are naively convinced that the Fed’s recently lowering of interest rates will rescue housing, the mortgage rates have moved in the opposite direction. This is because the Fed can only influence SHORT TERM rates, such as Fed funds, the discount rate, and short term treasuries. But the MARKET determines long term rates such as 10 year bonds and mortgage rates. This is because supply and demand involving long term investors are buying such instruments, and they are concerned with future inflation and the strength of the dollar. If they have bleak expectations, they will naturally demand higher interest rates before committing their money for so long.
In recent days, long term treasuries have marched up about a half percent, and mortgage rates have climbed even more. I suggest this is because of worsening inflationary expectations and a declining dollar. As to why mortgage rates have climbed even more than government bonds, let’s thank our congress, which is considering bills to change mortgage contracts to the disadvantage of mortgage holders. When our politicians mess with the sanctity of contracts, the investors world-wide will run away from U.S. mortgages, and who can blame them. Thank you Chris Dodd and Barney Frank.
All this will serve to worsen the housing decline, proving once again that our politicians’ failure to understand how free markets work is truly destructive.

[EconProf]

Bob
As has been pointed out here, the depth, size, and timing of the housing price decline will depend heavily upon mortgage rates. Accordingly, credit market developments of recent days are most alarming.
While the news media are naively convinced that the Fed’s recently lowering of interest rates will rescue housing, the mortgage rates have moved in the opposite direction. This is because the Fed can only influence SHORT TERM rates, such as Fed funds, the discount rate, and short term treasuries. But the MARKET determines long term rates such as 10 year bonds and mortgage rates. This is because supply and demand involving long term investors are buying such instruments, and they are concerned with future inflation and the strength of the dollar. If they have bleak expectations, they will naturally demand higher interest rates before committing their money for so long.
In recent days, long term treasuries have marched up about a half percent, and mortgage rates have climbed even more. I suggest this is because of worsening inflationary expectations and a declining dollar. As to why mortgage rates have climbed even more than government bonds, let’s thank our congress, which is considering bills to change mortgage contracts to the disadvantage of mortgage holders. When our politicians mess with the sanctity of contracts, the investors world-wide will run away from U.S. mortgages, and who can blame them. Thank you Chris Dodd and Barney Frank.
All this will serve to worsen the housing decline, proving once again that our politicians’ failure to understand how free markets work is truly destructive.

[EconProf]

Bob
As has been pointed out here, the depth, size, and timing of the housing price decline will depend heavily upon mortgage rates. Accordingly, credit market developments of recent days are most alarming.
While the news media are naively convinced that the Fed’s recently lowering of interest rates will rescue housing, the mortgage rates have moved in the opposite direction. This is because the Fed can only influence SHORT TERM rates, such as Fed funds, the discount rate, and short term treasuries. But the MARKET determines long term rates such as 10 year bonds and mortgage rates. This is because supply and demand involving long term investors are buying such instruments, and they are concerned with future inflation and the strength of the dollar. If they have bleak expectations, they will naturally demand higher interest rates before committing their money for so long.
In recent days, long term treasuries have marched up about a half percent, and mortgage rates have climbed even more. I suggest this is because of worsening inflationary expectations and a declining dollar. As to why mortgage rates have climbed even more than government bonds, let’s thank our congress, which is considering bills to change mortgage contracts to the disadvantage of mortgage holders. When our politicians mess with the sanctity of contracts, the investors world-wide will run away from U.S. mortgages, and who can blame them. Thank you Chris Dodd and Barney Frank.
All this will serve to worsen the housing decline, proving once again that our politicians’ failure to understand how free markets work is truly destructive.

[EconProf]

Bob
As has been pointed out here, the depth, size, and timing of the housing price decline will depend heavily upon mortgage rates. Accordingly, credit market developments of recent days are most alarming.
While the news media are naively convinced that the Fed’s recently lowering of interest rates will rescue housing, the mortgage rates have moved in the opposite direction. This is because the Fed can only influence SHORT TERM rates, such as Fed funds, the discount rate, and short term treasuries. But the MARKET determines long term rates such as 10 year bonds and mortgage rates. This is because supply and demand involving long term investors are buying such instruments, and they are concerned with future inflation and the strength of the dollar. If they have bleak expectations, they will naturally demand higher interest rates before committing their money for so long.
In recent days, long term treasuries have marched up about a half percent, and mortgage rates have climbed even more. I suggest this is because of worsening inflationary expectations and a declining dollar. As to why mortgage rates have climbed even more than government bonds, let’s thank our congress, which is considering bills to change mortgage contracts to the disadvantage of mortgage holders. When our politicians mess with the sanctity of contracts, the investors world-wide will run away from U.S. mortgages, and who can blame them. Thank you Chris Dodd and Barney Frank.
All this will serve to worsen the housing decline, proving once again that our politicians’ failure to understand how free markets work is truly destructive.

[EconProf]

Bob
As has been pointed out here, the depth, size, and timing of the housing price decline will depend heavily upon mortgage rates. Accordingly, credit market developments of recent days are most alarming.
While the news media are naively convinced that the Fed’s recently lowering of interest rates will rescue housing, the mortgage rates have moved in the opposite direction. This is because the Fed can only influence SHORT TERM rates, such as Fed funds, the discount rate, and short term treasuries. But the MARKET determines long term rates such as 10 year bonds and mortgage rates. This is because supply and demand involving long term investors are buying such instruments, and they are concerned with future inflation and the strength of the dollar. If they have bleak expectations, they will naturally demand higher interest rates before committing their money for so long.
In recent days, long term treasuries have marched up about a half percent, and mortgage rates have climbed even more. I suggest this is because of worsening inflationary expectations and a declining dollar. As to why mortgage rates have climbed even more than government bonds, let’s thank our congress, which is considering bills to change mortgage contracts to the disadvantage of mortgage holders. When our politicians mess with the sanctity of contracts, the investors world-wide will run away from U.S. mortgages, and who can blame them. Thank you Chris Dodd and Barney Frank.
All this will serve to worsen the housing decline, proving once again that our politicians’ failure to understand how free markets work is truly destructive.

[EconProf]

Bob
As has been pointed out here, the depth, size, and timing of the housing price decline will depend heavily upon mortgage rates. Accordingly, credit market developments of recent days are most alarming.
While the news media are naively convinced that the Fed’s recently lowering of interest rates will rescue housing, the mortgage rates have moved in the opposite direction. This is because the Fed can only influence SHORT TERM rates, such as Fed funds, the discount rate, and short term treasuries. But the MARKET determines long term rates such as 10 year bonds and mortgage rates. This is because supply and demand involving long term investors are buying such instruments, and they are concerned with future inflation and the strength of the dollar. If they have bleak expectations, they will naturally demand higher interest rates before committing their money for so long.
In recent days, long term treasuries have marched up about a half percent, and mortgage rates have climbed even more. I suggest this is because of worsening inflationary expectations and a declining dollar. As to why mortgage rates have climbed even more than government bonds, let’s thank our congress, which is considering bills to change mortgage contracts to the disadvantage of mortgage holders. When our politicians mess with the sanctity of contracts, the investors world-wide will run away from U.S. mortgages, and who can blame them. Thank you Chris Dodd and Barney Frank.
All this will serve to worsen the housing decline, proving once again that our politicians’ failure to understand how free markets work is truly destructive.

[EconProf]

Bob
As has been pointed out here, the depth, size, and timing of the housing price decline will depend heavily upon mortgage rates. Accordingly, credit market developments of recent days are most alarming.
While the news media are naively convinced that the Fed’s recently lowering of interest rates will rescue housing, the mortgage rates have moved in the opposite direction. This is because the Fed can only influence SHORT TERM rates, such as Fed funds, the discount rate, and short term treasuries. But the MARKET determines long term rates such as 10 year bonds and mortgage rates. This is because supply and demand involving long term investors are buying such instruments, and they are concerned with future inflation and the strength of the dollar. If they have bleak expectations, they will naturally demand higher interest rates before committing their money for so long.
In recent days, long term treasuries have marched up about a half percent, and mortgage rates have climbed even more. I suggest this is because of worsening inflationary expectations and a declining dollar. As to why mortgage rates have climbed even more than government bonds, let’s thank our congress, which is considering bills to change mortgage contracts to the disadvantage of mortgage holders. When our politicians mess with the sanctity of contracts, the investors world-wide will run away from U.S. mortgages, and who can blame them. Thank you Chris Dodd and Barney Frank.
All this will serve to worsen the housing decline, proving once again that our politicians’ failure to understand how free markets work is truly destructive.

[SD Realtor]

Hi gn –

Your stance is quite correct. Here is a good example of prices holding but not holding so to speak… Solana Beach entry level homes sit on the slope that faces the north. They enjoy a great view of the freeway and tones of noise. They have held firm in pricing for the most part but they are entry level. However other homes in Solana Beach have come down… some… not anything close to the % drops of less desireable areas but some.

Anyways, yes I agree no area is immune. Timing will be inreasingly variable and I don’t agree that % drops in desireable areas will match the % drop in not so desireable areas.

[SD Realtor]

Hi gn –

Your stance is quite correct. Here is a good example of prices holding but not holding so to speak… Solana Beach entry level homes sit on the slope that faces the north. They enjoy a great view of the freeway and tones of noise. They have held firm in pricing for the most part but they are entry level. However other homes in Solana Beach have come down… some… not anything close to the % drops of less desireable areas but some.

Anyways, yes I agree no area is immune. Timing will be inreasingly variable and I don’t agree that % drops in desireable areas will match the % drop in not so desireable areas.

[SD Realtor]

Hi gn –

Your stance is quite correct. Here is a good example of prices holding but not holding so to speak… Solana Beach entry level homes sit on the slope that faces the north. They enjoy a great view of the freeway and tones of noise. They have held firm in pricing for the most part but they are entry level. However other homes in Solana Beach have come down… some… not anything close to the % drops of less desireable areas but some.

Anyways, yes I agree no area is immune. Timing will be inreasingly variable and I don’t agree that % drops in desireable areas will match the % drop in not so desireable areas.

[SD Realtor]

Hi gn –

Your stance is quite correct. Here is a good example of prices holding but not holding so to speak… Solana Beach entry level homes sit on the slope that faces the north. They enjoy a great view of the freeway and tones of noise. They have held firm in pricing for the most part but they are entry level. However other homes in Solana Beach have come down… some… not anything close to the % drops of less desireable areas but some.

Anyways, yes I agree no area is immune. Timing will be inreasingly variable and I don’t agree that % drops in desireable areas will match the % drop in not so desireable areas.

[Author]

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