We are richer when house prices go down

[Aecetia]

I think Temecula Guy is really one of the main characters from Office Space: “The thing is, Bob, it’s not that I’m lazy, it’s that I just don’t care.” The way things are going, someone will just donate their house to him because he is so darn funny.

Wake up Felix, the bubble has popped, the ship has sailed.

[4plexowner]

just to refute one of your numerous incorrect assertions, felix

yes, interest rates have come down dramatically in recent months

what has NOT happened is for those interest rate decreases to translate into the mortgage markets – mortgage interest rates are actually higher now than they were several months ago

you have posted too many incorrect statements to refute them all – I feel sorry for anyone who relies on you for financial advice

[4plexowner]

just to refute one of your numerous incorrect assertions, felix

yes, interest rates have come down dramatically in recent months

what has NOT happened is for those interest rate decreases to translate into the mortgage markets – mortgage interest rates are actually higher now than they were several months ago

you have posted too many incorrect statements to refute them all – I feel sorry for anyone who relies on you for financial advice

[4plexowner]

just to refute one of your numerous incorrect assertions, felix

yes, interest rates have come down dramatically in recent months

what has NOT happened is for those interest rate decreases to translate into the mortgage markets – mortgage interest rates are actually higher now than they were several months ago

you have posted too many incorrect statements to refute them all – I feel sorry for anyone who relies on you for financial advice

[4plexowner]

just to refute one of your numerous incorrect assertions, felix

yes, interest rates have come down dramatically in recent months

what has NOT happened is for those interest rate decreases to translate into the mortgage markets – mortgage interest rates are actually higher now than they were several months ago

you have posted too many incorrect statements to refute them all – I feel sorry for anyone who relies on you for financial advice

[4plexowner]

just to refute one of your numerous incorrect assertions, felix

yes, interest rates have come down dramatically in recent months

what has NOT happened is for those interest rate decreases to translate into the mortgage markets – mortgage interest rates are actually higher now than they were several months ago

you have posted too many incorrect statements to refute them all – I feel sorry for anyone who relies on you for financial advice

[DoJC]

I’m betting that a LOT of people fell into the trap of a house being an investment that would appreciate at a rate of 10-30% annually. They don’t want to look at their house dropping in value as that would lead them to take a cold, hard look in the mirror and either admit they were wrong, or admit they got taken. Neither is particularly appetizing, and telling your family that you gambled with their home and lost badly isn’t a good thing to have to face.

Also, Shiller’s discourse is only aimed at those who don’t already own a home. Dropping home values, even small ones, make it more difficult to sell a home and make the person poorer since they paid more for the home than they can currently sell it for.

– Doug

[DoJC]

I’m betting that a LOT of people fell into the trap of a house being an investment that would appreciate at a rate of 10-30% annually. They don’t want to look at their house dropping in value as that would lead them to take a cold, hard look in the mirror and either admit they were wrong, or admit they got taken. Neither is particularly appetizing, and telling your family that you gambled with their home and lost badly isn’t a good thing to have to face.

Also, Shiller’s discourse is only aimed at those who don’t already own a home. Dropping home values, even small ones, make it more difficult to sell a home and make the person poorer since they paid more for the home than they can currently sell it for.

– Doug

[DoJC]

I’m betting that a LOT of people fell into the trap of a house being an investment that would appreciate at a rate of 10-30% annually. They don’t want to look at their house dropping in value as that would lead them to take a cold, hard look in the mirror and either admit they were wrong, or admit they got taken. Neither is particularly appetizing, and telling your family that you gambled with their home and lost badly isn’t a good thing to have to face.

Also, Shiller’s discourse is only aimed at those who don’t already own a home. Dropping home values, even small ones, make it more difficult to sell a home and make the person poorer since they paid more for the home than they can currently sell it for.

– Doug

[DoJC]

I’m betting that a LOT of people fell into the trap of a house being an investment that would appreciate at a rate of 10-30% annually. They don’t want to look at their house dropping in value as that would lead them to take a cold, hard look in the mirror and either admit they were wrong, or admit they got taken. Neither is particularly appetizing, and telling your family that you gambled with their home and lost badly isn’t a good thing to have to face.

Also, Shiller’s discourse is only aimed at those who don’t already own a home. Dropping home values, even small ones, make it more difficult to sell a home and make the person poorer since they paid more for the home than they can currently sell it for.

– Doug

[DoJC]

I’m betting that a LOT of people fell into the trap of a house being an investment that would appreciate at a rate of 10-30% annually. They don’t want to look at their house dropping in value as that would lead them to take a cold, hard look in the mirror and either admit they were wrong, or admit they got taken. Neither is particularly appetizing, and telling your family that you gambled with their home and lost badly isn’t a good thing to have to face.

Also, Shiller’s discourse is only aimed at those who don’t already own a home. Dropping home values, even small ones, make it more difficult to sell a home and make the person poorer since they paid more for the home than they can currently sell it for.

– Doug

[kewp]

The problem with Shiller’s point is incomes will not stay at their current levels.

Wages are deflating when factored for inflation. Unemployment is going up. This trend is not going to change any time soon.

So yeah, in a decade when the economy recovers, their should be plenty of cheap houses for people to buy. If they haven’t burned down or been bulldozed by HUD, that is.

[kewp]

The problem with Shiller’s point is incomes will not stay at their current levels.

Wages are deflating when factored for inflation. Unemployment is going up. This trend is not going to change any time soon.

So yeah, in a decade when the economy recovers, their should be plenty of cheap houses for people to buy. If they haven’t burned down or been bulldozed by HUD, that is.

[kewp]

The problem with Shiller’s point is incomes will not stay at their current levels.

Wages are deflating when factored for inflation. Unemployment is going up. This trend is not going to change any time soon.

So yeah, in a decade when the economy recovers, their should be plenty of cheap houses for people to buy. If they haven’t burned down or been bulldozed by HUD, that is.

[kewp]

The problem with Shiller’s point is incomes will not stay at their current levels.

Wages are deflating when factored for inflation. Unemployment is going up. This trend is not going to change any time soon.

So yeah, in a decade when the economy recovers, their should be plenty of cheap houses for people to buy. If they haven’t burned down or been bulldozed by HUD, that is.

[Author]

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