We are richer when house prices go down

[felix]

Jwm, you’re right.

There has been over building of tract homes and a contracting of credit. If those are the type of homes you are interested in then until inventory declines prices will be weak. That doesn’t mean you can wait forever to buy if you are interested. At some time, not too far off, those who can buy will.

And RE is different than the stock market with regard to timing. It doesn’t move as fast. However, the psychology behind buying and selling RE and the stock market are quite similar. It seems many here want to buy but are waiting for the bottom tick. They may miss out.

[sdduuuude]

JWM – not sure what you are saying here. I am in some sort of denial?

Also, Schiller said ” we can buy more housing ”
But – do we really need more housing ?

[sdduuuude]

JWM – not sure what you are saying here. I am in some sort of denial?

Also, Schiller said ” we can buy more housing ”
But – do we really need more housing ?

[sdduuuude]

JWM – not sure what you are saying here. I am in some sort of denial?

Also, Schiller said ” we can buy more housing ”
But – do we really need more housing ?

[sdduuuude]

JWM – not sure what you are saying here. I am in some sort of denial?

Also, Schiller said ” we can buy more housing ”
But – do we really need more housing ?

[sdduuuude]

JWM – not sure what you are saying here. I am in some sort of denial?

Also, Schiller said ” we can buy more housing ”
But – do we really need more housing ?

[felix]

Jwm, indeed it is not 2006. It is 2008 and we are now closer to the bottom than we were in ’06. So whatever you refuted then doesn’t necessarily still ring true. Rates have been reduced dramatically and home pricing has already moderated dramatically.

yes, some home debtors will be out of their homes. It will be those who overextended themselves. The vast majority who have not overextended themselves or used their home as a bank will not be dragged down regardless of whether the Fed monetizes the mortgages or not.

[felix]

Jwm, indeed it is not 2006. It is 2008 and we are now closer to the bottom than we were in ’06. So whatever you refuted then doesn’t necessarily still ring true. Rates have been reduced dramatically and home pricing has already moderated dramatically.

yes, some home debtors will be out of their homes. It will be those who overextended themselves. The vast majority who have not overextended themselves or used their home as a bank will not be dragged down regardless of whether the Fed monetizes the mortgages or not.

[felix]

Jwm, indeed it is not 2006. It is 2008 and we are now closer to the bottom than we were in ’06. So whatever you refuted then doesn’t necessarily still ring true. Rates have been reduced dramatically and home pricing has already moderated dramatically.

yes, some home debtors will be out of their homes. It will be those who overextended themselves. The vast majority who have not overextended themselves or used their home as a bank will not be dragged down regardless of whether the Fed monetizes the mortgages or not.

[felix]

Jwm, indeed it is not 2006. It is 2008 and we are now closer to the bottom than we were in ’06. So whatever you refuted then doesn’t necessarily still ring true. Rates have been reduced dramatically and home pricing has already moderated dramatically.

yes, some home debtors will be out of their homes. It will be those who overextended themselves. The vast majority who have not overextended themselves or used their home as a bank will not be dragged down regardless of whether the Fed monetizes the mortgages or not.

[felix]

Jwm, indeed it is not 2006. It is 2008 and we are now closer to the bottom than we were in ’06. So whatever you refuted then doesn’t necessarily still ring true. Rates have been reduced dramatically and home pricing has already moderated dramatically.

yes, some home debtors will be out of their homes. It will be those who overextended themselves. The vast majority who have not overextended themselves or used their home as a bank will not be dragged down regardless of whether the Fed monetizes the mortgages or not.

[patientlywaiting]

JWM, I love your terse comments. Others many not get it, but I do. 🙂

Felix, yeah, overnight, all the inventory of foreclosures, short-sales, distress sales will be all gone. Poof!! Don’t wait another day! Buy now before you miss out!!

I believe that Shiller said that we are richer, as a society, when housing prices drop. He’s looking at it from a macro perspective. The wealth of nations is based on the standard of living of the citizens. If you own and live in an old decrepit apartment in New York or Moscow with bad heat, you might have paper wealth, but your standard of living is low. That’s the context in which “rich” needs to be understood.

[patientlywaiting]

JWM, I love your terse comments. Others many not get it, but I do. 🙂

Felix, yeah, overnight, all the inventory of foreclosures, short-sales, distress sales will be all gone. Poof!! Don’t wait another day! Buy now before you miss out!!

I believe that Shiller said that we are richer, as a society, when housing prices drop. He’s looking at it from a macro perspective. The wealth of nations is based on the standard of living of the citizens. If you own and live in an old decrepit apartment in New York or Moscow with bad heat, you might have paper wealth, but your standard of living is low. That’s the context in which “rich” needs to be understood.

[patientlywaiting]

JWM, I love your terse comments. Others many not get it, but I do. 🙂

Felix, yeah, overnight, all the inventory of foreclosures, short-sales, distress sales will be all gone. Poof!! Don’t wait another day! Buy now before you miss out!!

I believe that Shiller said that we are richer, as a society, when housing prices drop. He’s looking at it from a macro perspective. The wealth of nations is based on the standard of living of the citizens. If you own and live in an old decrepit apartment in New York or Moscow with bad heat, you might have paper wealth, but your standard of living is low. That’s the context in which “rich” needs to be understood.

[patientlywaiting]

JWM, I love your terse comments. Others many not get it, but I do. 🙂

Felix, yeah, overnight, all the inventory of foreclosures, short-sales, distress sales will be all gone. Poof!! Don’t wait another day! Buy now before you miss out!!

I believe that Shiller said that we are richer, as a society, when housing prices drop. He’s looking at it from a macro perspective. The wealth of nations is based on the standard of living of the citizens. If you own and live in an old decrepit apartment in New York or Moscow with bad heat, you might have paper wealth, but your standard of living is low. That’s the context in which “rich” needs to be understood.

[Author]

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