This one is easy. Dead Cat Bounce. However, don’t take my word for it, see for yourself.
One of the most respected Southern California housing bubble bloggers, Rich Toscano of Piggington.com has declared that once again it is safe to buy a house in San Diego county. Almost without a blink, many others are jumping in with the same enthusiasm, declaring we have hit rock bottom or other such nonsense. It is true that with the performance of last year, we have revived a modicum of affordability that has been wrested from the cold fingers of death post 2004. Indeed, many who have held out during headier times have begun to jump in, and have wondered aloud and silently if this is as good as it gets. I believe it gets better, depending on what you are looking for.
Let’s get some busy work out of the way, and just to clear out some of the cobwebs, let’s tackle some of the more commone fallacies out there:
1. California is special.
2. We can “bounce right back”
this one is easy, trust me, when you have systematically murdered your move-up buyers financially, the middle of a recession is not the time to be buying a house. Indeed, many who have found (either by chance or by experience) that it is best to move against the crowd when it comes to investing. This couldn’t be more wrong. In fact, the trick is to run with the crowd, but one step ahead of them. Indeed, if one runs against the crowd, they only get trampled, figuratively.
