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jficquette.
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October 18, 2008 at 11:06 AM #289646October 18, 2008 at 11:37 AM #289316
peterb
ParticipantUnderdose, I think that in order to have housing actually rise in price, we will need to have wages increase so that the debt can be sustained. Or the interest rate would have to be in the 1% to 2% range. I dont know if either of these could be accomplished in todays environment. I doubt very much that wages will be rising any time soon with unemployment in CA at 7.7% and 6.1% nationally. So that leaves lowering the interest rate. A few trillion US$ in T Bills outta do it. But what kind of premium will our lenders want for such a folly?
October 18, 2008 at 11:37 AM #289624peterb
ParticipantUnderdose, I think that in order to have housing actually rise in price, we will need to have wages increase so that the debt can be sustained. Or the interest rate would have to be in the 1% to 2% range. I dont know if either of these could be accomplished in todays environment. I doubt very much that wages will be rising any time soon with unemployment in CA at 7.7% and 6.1% nationally. So that leaves lowering the interest rate. A few trillion US$ in T Bills outta do it. But what kind of premium will our lenders want for such a folly?
October 18, 2008 at 11:37 AM #289633peterb
ParticipantUnderdose, I think that in order to have housing actually rise in price, we will need to have wages increase so that the debt can be sustained. Or the interest rate would have to be in the 1% to 2% range. I dont know if either of these could be accomplished in todays environment. I doubt very much that wages will be rising any time soon with unemployment in CA at 7.7% and 6.1% nationally. So that leaves lowering the interest rate. A few trillion US$ in T Bills outta do it. But what kind of premium will our lenders want for such a folly?
October 18, 2008 at 11:37 AM #289662peterb
ParticipantUnderdose, I think that in order to have housing actually rise in price, we will need to have wages increase so that the debt can be sustained. Or the interest rate would have to be in the 1% to 2% range. I dont know if either of these could be accomplished in todays environment. I doubt very much that wages will be rising any time soon with unemployment in CA at 7.7% and 6.1% nationally. So that leaves lowering the interest rate. A few trillion US$ in T Bills outta do it. But what kind of premium will our lenders want for such a folly?
October 18, 2008 at 11:37 AM #289666peterb
ParticipantUnderdose, I think that in order to have housing actually rise in price, we will need to have wages increase so that the debt can be sustained. Or the interest rate would have to be in the 1% to 2% range. I dont know if either of these could be accomplished in todays environment. I doubt very much that wages will be rising any time soon with unemployment in CA at 7.7% and 6.1% nationally. So that leaves lowering the interest rate. A few trillion US$ in T Bills outta do it. But what kind of premium will our lenders want for such a folly?
October 18, 2008 at 12:14 PM #289331jpinpb
ParticipantLa Jolla Renter – thanks for posting the calculation. One thing that makes a difference in the real monthly payment is the property tax. The property tax will be lower on a lower priced home. Also, a lower priced home may allow some people to put 20% down and avoid PMI, making the total monthly payment lower.
October 18, 2008 at 12:14 PM #289639jpinpb
ParticipantLa Jolla Renter – thanks for posting the calculation. One thing that makes a difference in the real monthly payment is the property tax. The property tax will be lower on a lower priced home. Also, a lower priced home may allow some people to put 20% down and avoid PMI, making the total monthly payment lower.
October 18, 2008 at 12:14 PM #289648jpinpb
ParticipantLa Jolla Renter – thanks for posting the calculation. One thing that makes a difference in the real monthly payment is the property tax. The property tax will be lower on a lower priced home. Also, a lower priced home may allow some people to put 20% down and avoid PMI, making the total monthly payment lower.
October 18, 2008 at 12:14 PM #289678jpinpb
ParticipantLa Jolla Renter – thanks for posting the calculation. One thing that makes a difference in the real monthly payment is the property tax. The property tax will be lower on a lower priced home. Also, a lower priced home may allow some people to put 20% down and avoid PMI, making the total monthly payment lower.
October 18, 2008 at 12:14 PM #289681jpinpb
ParticipantLa Jolla Renter – thanks for posting the calculation. One thing that makes a difference in the real monthly payment is the property tax. The property tax will be lower on a lower priced home. Also, a lower priced home may allow some people to put 20% down and avoid PMI, making the total monthly payment lower.
October 18, 2008 at 12:32 PM #289336kewp
ParticipantUnderdose, I think that in order to have housing actually rise in price, we will need to have wages increase so that the debt can be sustained.
In the long run, fundamentals *always* win out.
And median income in the fundamental. High unemployment plus falling wages is indeed the swan song for the SoCal RE market.
There is no way to re-inflate the housing bubble, short of imposing price controls and actually paying people to buy homes. I can’t imagine that ever happening.
October 18, 2008 at 12:32 PM #289644kewp
ParticipantUnderdose, I think that in order to have housing actually rise in price, we will need to have wages increase so that the debt can be sustained.
In the long run, fundamentals *always* win out.
And median income in the fundamental. High unemployment plus falling wages is indeed the swan song for the SoCal RE market.
There is no way to re-inflate the housing bubble, short of imposing price controls and actually paying people to buy homes. I can’t imagine that ever happening.
October 18, 2008 at 12:32 PM #289653kewp
ParticipantUnderdose, I think that in order to have housing actually rise in price, we will need to have wages increase so that the debt can be sustained.
In the long run, fundamentals *always* win out.
And median income in the fundamental. High unemployment plus falling wages is indeed the swan song for the SoCal RE market.
There is no way to re-inflate the housing bubble, short of imposing price controls and actually paying people to buy homes. I can’t imagine that ever happening.
October 18, 2008 at 12:32 PM #289683kewp
ParticipantUnderdose, I think that in order to have housing actually rise in price, we will need to have wages increase so that the debt can be sustained.
In the long run, fundamentals *always* win out.
And median income in the fundamental. High unemployment plus falling wages is indeed the swan song for the SoCal RE market.
There is no way to re-inflate the housing bubble, short of imposing price controls and actually paying people to buy homes. I can’t imagine that ever happening.
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