Comments on: Optimism Fading? http://www.socalbubble.com/2006/07/optimism-fading.html Southern California is Experiencing a Real Estate Bubble like never before Fri, 04 Feb 2011 01:16:46 -0700 hourly 1 http://wordpress.org/?v=3.1 By: John Doe http://www.socalbubble.com/2006/07/optimism-fading.html/comment-page-1#comment-713 John Doe Tue, 25 Jul 2006 15:22:00 +0000 http://www.socalbubble.com/2006/07/optimism-fading.html#comment-713 B.<BR/><BR/>You're definitely right. Although there is a need to return to historical levels, there is a good chance that with all of the negativity, we could potentially overcorrect for several years below true equilibrium.<BR/><BR/>I'm convinced that's what happened in some areas during the mid-90's. The resulting up-swing for 5 years (97-01) was just returning to some kind of equilibruim. The 02-03 years are a question mark, but 04-05 are clearly classic bubble action. 06 is the weightless year, and gravity will begin to bring us down in 07. B.

You’re definitely right. Although there is a need to return to historical levels, there is a good chance that with all of the negativity, we could potentially overcorrect for several years below true equilibrium.

I’m convinced that’s what happened in some areas during the mid-90′s. The resulting up-swing for 5 years (97-01) was just returning to some kind of equilibruim. The 02-03 years are a question mark, but 04-05 are clearly classic bubble action. 06 is the weightless year, and gravity will begin to bring us down in 07.

]]> By: B. Durbin http://www.socalbubble.com/2006/07/optimism-fading.html/comment-page-1#comment-714 B. Durbin Tue, 25 Jul 2006 02:39:00 +0000 http://www.socalbubble.com/2006/07/optimism-fading.html#comment-714 There's also the fact that the housing market does follow herd behavior. With that many people thinking there's a crash in the offing, there's going to be a bit of "self-fulfilling prophecy" as people stay away from the market. There’s also the fact that the housing market does follow herd behavior. With that many people thinking there’s a crash in the offing, there’s going to be a bit of “self-fulfilling prophecy” as people stay away from the market.

]]> By: John Doe http://www.socalbubble.com/2006/07/optimism-fading.html/comment-page-1#comment-715 John Doe Sat, 22 Jul 2006 16:00:00 +0000 http://www.socalbubble.com/2006/07/optimism-fading.html#comment-715 I don't know. 55.7% said that a MAJOR Crash was likely. Between the 16% that said they didn't care because they could never afford it, only 25% believe in a "soft-landing" or optimistic outcome for this. I'd say that's pretty significant, and I probably wouldn't call that denial. For all we know, those 25% are all realtors. Either way, I don't think sellers will be going into the transaction with eyes shut.<BR/><BR/>John Doe I don’t know. 55.7% said that a MAJOR Crash was likely. Between the 16% that said they didn’t care because they could never afford it, only 25% believe in a “soft-landing” or optimistic outcome for this. I’d say that’s pretty significant, and I probably wouldn’t call that denial. For all we know, those 25% are all realtors. Either way, I don’t think sellers will be going into the transaction with eyes shut.

John Doe

]]> By: patient renter http://www.socalbubble.com/2006/07/optimism-fading.html/comment-page-1#comment-716 patient renter Sat, 22 Jul 2006 05:36:00 +0000 http://www.socalbubble.com/2006/07/optimism-fading.html#comment-716 It's about as would be expected. Many people are going to get burned. Most people will probably be negatively effected. The first stage of loss (equity) is of course, denial. It’s about as would be expected. Many people are going to get burned. Most people will probably be negatively effected. The first stage of loss (equity) is of course, denial.

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