Snap, Crackle & Pop or Fizzle?
In The Sharecropper Society I commented: The reality is that a large percentage of homes "purchased" in the last three years are actually being LEASED with an option on potential profits. 100% financing, low rate ARM's or interest only loans make this possible.
Calculated Risk weighs in on the fact that alot of people are wanting to sell their "options" in Record Number of Homes for Sale quoting a NY Times article "A real estate slowdown that began in a handful of cities this summer has spread to almost every hot housing market in the country, including New York."
CR sez Inventory, inventory, inventory. That is the current housing story. We concur, as no truer words have been spoken.
In California Titanic we commented: that rising interest rates are no longer necessary to sink this ship, a minor recession and some additional layoffs will suffice. Simply put, like the "unsinkable" Titanic, California's overvalued real estate market is an unmitigated disaster just waiting to happen.
Mish weighs in with Housing Bubble Fizzle or Pop? Mish wonders what the economists at the S&P are smoking when they think that rising wages will catch up to the absurd home prices in the bubble areas in any sort of likely "soft landing"... Whatever they are smoking sure is powerful stuff.
The next consumer led recession is going to be a doozie and along with it will come a severe strain on home prices. The upcoming correction is likely to be dramatic in terms of price action or length of time or both. It may come about as a very long painful slow leak (the Japan scenario), or some sort of faster price crash.
Calculated Risk weighs in on the fact that alot of people are wanting to sell their "options" in Record Number of Homes for Sale quoting a NY Times article "A real estate slowdown that began in a handful of cities this summer has spread to almost every hot housing market in the country, including New York."
CR sez Inventory, inventory, inventory. That is the current housing story. We concur, as no truer words have been spoken.
In California Titanic we commented: that rising interest rates are no longer necessary to sink this ship, a minor recession and some additional layoffs will suffice. Simply put, like the "unsinkable" Titanic, California's overvalued real estate market is an unmitigated disaster just waiting to happen.
Mish weighs in with Housing Bubble Fizzle or Pop? Mish wonders what the economists at the S&P are smoking when they think that rising wages will catch up to the absurd home prices in the bubble areas in any sort of likely "soft landing"... Whatever they are smoking sure is powerful stuff.
The next consumer led recession is going to be a doozie and along with it will come a severe strain on home prices. The upcoming correction is likely to be dramatic in terms of price action or length of time or both. It may come about as a very long painful slow leak (the Japan scenario), or some sort of faster price crash.
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