Wall Street Journal calls a “Bottom to Housing Market.”

[Rich Toscano]

I was going to write about some of the big flaws in this piece but CR beat me to it (as he always does).

I would just add a little local color. First, here in SD homes have absolutely not become affordable again. Even if you accept his wrong argument that rates are all that matter, note that rates aren’t terribly lower than they were in 2001-2. Prices (even inflation adjusted) are still much higher.

Second, this article:

This Just In: San Diego Homes are Overpriced

…has some data to support CR’s argument that price to income is a better valuation metric than price-to-monthly-payment, and that rates haven’t had much influence on valuations over the years.

Rich

PS – Great find HWG… I note that this guy’s fund owns a certain recently-defunct investment bank… since he obviously didn’t see the problems coming, why should we believe that he’ll know when it’s fixed?

[equalizer]

The article is really good, except it doesnt really apply to CA, FL, NV, AZ where the ratios went from 19% to 29% to over 50% and are still way above peak. Carmel Valley prices are still going up.

[equalizer]

The article is really good, except it doesnt really apply to CA, FL, NV, AZ where the ratios went from 19% to 29% to over 50% and are still way above peak. Carmel Valley prices are still going up.

[equalizer]

The article is really good, except it doesnt really apply to CA, FL, NV, AZ where the ratios went from 19% to 29% to over 50% and are still way above peak. Carmel Valley prices are still going up.

[equalizer]

The article is really good, except it doesnt really apply to CA, FL, NV, AZ where the ratios went from 19% to 29% to over 50% and are still way above peak. Carmel Valley prices are still going up.

[equalizer]

The article is really good, except it doesnt really apply to CA, FL, NV, AZ where the ratios went from 19% to 29% to over 50% and are still way above peak. Carmel Valley prices are still going up.

[cr]

Aside from the gross errors in referencing housing data, I question the rising income claim.

Even before you factor in the true 10-20% inflation we are seeing, I’d bet incomes are flat in more places, not to mention job losses are mounting.

[cr]

Aside from the gross errors in referencing housing data, I question the rising income claim.

Even before you factor in the true 10-20% inflation we are seeing, I’d bet incomes are flat in more places, not to mention job losses are mounting.

[cr]

Aside from the gross errors in referencing housing data, I question the rising income claim.

Even before you factor in the true 10-20% inflation we are seeing, I’d bet incomes are flat in more places, not to mention job losses are mounting.

[cr]

Aside from the gross errors in referencing housing data, I question the rising income claim.

Even before you factor in the true 10-20% inflation we are seeing, I’d bet incomes are flat in more places, not to mention job losses are mounting.

[cr]

Aside from the gross errors in referencing housing data, I question the rising income claim.

Even before you factor in the true 10-20% inflation we are seeing, I’d bet incomes are flat in more places, not to mention job losses are mounting.

[lonestar2000]

Housing bottoming out huh?
Then why is BenB scared sh*tless and why is WaMu’s Alt-A loan pool looking scarier by the day?

http://globaleconomicanalysis.blogspot.com/2008/05/wamus-suspect-mortgage-pool.html

There is a steady increase in REO supply on the market and they are the only homes selling, which are bringing down comps all over the place.

I just saw a local paper run a front page article which states that the price declines have started reaching ‘bullet proof markets’ such as Seattle and Chicago.

Meanwhile, brand new 1,600 sf homes near me have dropped by $100,000 in price over the past six months and still nobody is buying.

Banks are continuing to tighten credit standards, so the tiny pool of those actually looking to buy are shrinking even further:

http://money.cnn.com/2008/05/05/real_estate/bank_lending.ap/index.htm

We’re also rapidly approaching $200 for a barrel of oil ($5 per gallon):
http://money.cnn.com/2008/05/06/news/economy/200_dollar_oil.ap/index.htm?postversion=2008050610

Oh yeah, housing is bottoming out all right. I must be stupid for thinking to the contrary.

[lonestar2000]

Housing bottoming out huh?
Then why is BenB scared sh*tless and why is WaMu’s Alt-A loan pool looking scarier by the day?

http://globaleconomicanalysis.blogspot.com/2008/05/wamus-suspect-mortgage-pool.html

There is a steady increase in REO supply on the market and they are the only homes selling, which are bringing down comps all over the place.

I just saw a local paper run a front page article which states that the price declines have started reaching ‘bullet proof markets’ such as Seattle and Chicago.

Meanwhile, brand new 1,600 sf homes near me have dropped by $100,000 in price over the past six months and still nobody is buying.

Banks are continuing to tighten credit standards, so the tiny pool of those actually looking to buy are shrinking even further:

http://money.cnn.com/2008/05/05/real_estate/bank_lending.ap/index.htm

We’re also rapidly approaching $200 for a barrel of oil ($5 per gallon):
http://money.cnn.com/2008/05/06/news/economy/200_dollar_oil.ap/index.htm?postversion=2008050610

Oh yeah, housing is bottoming out all right. I must be stupid for thinking to the contrary.

[lonestar2000]

Housing bottoming out huh?
Then why is BenB scared sh*tless and why is WaMu’s Alt-A loan pool looking scarier by the day?

http://globaleconomicanalysis.blogspot.com/2008/05/wamus-suspect-mortgage-pool.html

There is a steady increase in REO supply on the market and they are the only homes selling, which are bringing down comps all over the place.

I just saw a local paper run a front page article which states that the price declines have started reaching ‘bullet proof markets’ such as Seattle and Chicago.

Meanwhile, brand new 1,600 sf homes near me have dropped by $100,000 in price over the past six months and still nobody is buying.

Banks are continuing to tighten credit standards, so the tiny pool of those actually looking to buy are shrinking even further:

http://money.cnn.com/2008/05/05/real_estate/bank_lending.ap/index.htm

We’re also rapidly approaching $200 for a barrel of oil ($5 per gallon):
http://money.cnn.com/2008/05/06/news/economy/200_dollar_oil.ap/index.htm?postversion=2008050610

Oh yeah, housing is bottoming out all right. I must be stupid for thinking to the contrary.

[lonestar2000]

Housing bottoming out huh?
Then why is BenB scared sh*tless and why is WaMu’s Alt-A loan pool looking scarier by the day?

http://globaleconomicanalysis.blogspot.com/2008/05/wamus-suspect-mortgage-pool.html

There is a steady increase in REO supply on the market and they are the only homes selling, which are bringing down comps all over the place.

I just saw a local paper run a front page article which states that the price declines have started reaching ‘bullet proof markets’ such as Seattle and Chicago.

Meanwhile, brand new 1,600 sf homes near me have dropped by $100,000 in price over the past six months and still nobody is buying.

Banks are continuing to tighten credit standards, so the tiny pool of those actually looking to buy are shrinking even further:

http://money.cnn.com/2008/05/05/real_estate/bank_lending.ap/index.htm

We’re also rapidly approaching $200 for a barrel of oil ($5 per gallon):
http://money.cnn.com/2008/05/06/news/economy/200_dollar_oil.ap/index.htm?postversion=2008050610

Oh yeah, housing is bottoming out all right. I must be stupid for thinking to the contrary.

[Author]

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