Monday, May 07, 2007

Distrubing Data from CAR

I am not a supporter of CAR, however even they can no longer deny the stench this market is emitting. Existing home sales are down more than 20% from last year even though interest rates are almost the same. This points to tightening lending standards and an increase in buyer IQs.
The median price is up (which I question), but this may be an indicator that sellers (want to go down with there ship) are stubborn in decreasing their asking price.
Nonetheless, we are heading for a train crash, both buyers and sellers are not moving from there positions, but I am betting that the greed of the sellers will get the best of them.
Stay tuned.......


Anonymous said...

Once the lending standards tighten, the average person will simply NOT be able to qualify for loans at these prices. Hence, prices will have to come down; the way I see it, anyway. We'll have to see how it plays out.

Anonymous said...

It definitely will be interesting to see how this plays out over the next several years. The last housing runup is unprecendented, it has never happened before. This is why the real estate people think it ain't coming back down. However the economists, who have no financial interest in selling a property say the market is not going up and will very likely come down in an unprecedented fashion.

Anonymous said...

Why is it disturbing? It's kind of expected given the irrational exuberance of the prior 6 years.

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jon said...

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Like here, prices are way too high there. Plus, who would want all these Ass Holes down there anyway.

bill said...

Hi Bob,
Really enjoy your blog, but no new topics for over a month. Will there be new posts or have you moved on to other things?
I hope you are well.