In Southern California, there is still a substantial disconnect between price, available inventory, and incomes.

The only way this temporary reprieve stays afloat is through low interest rates for a long time and a permanent first time home buyer credit. I might believe the first, but the second seems a bit of a stretch.

However, if stock prices and gold go up, interest rates will follow as capital will likely be sucked out of the fixed income markets chasing higher returns. This is, unless of course, the US government wants to subsidize home interest rates in perpetuity.

This, however brings a whole other set of problems. I think people and government will tire of all of this assistance and pork. Once non coastal America stabilizes (2010), I think it’ll be difficult to get the political will to do more.

Chuck

“ample inventory”

“The Move.com survey found foreclosure buyers expect to profit from both deeply discounted purchase prices, as well as healthy appreciation rates over five years. Most foreclosure buyers (58.2%) expect to pay 20 percent or less than market price for a foreclosure, while 38.5 percent expect a 25 percent or greater discount. While, 73 percent expect their properties to appreciate ten percent or more in five years, 28 percent expect their purchases to appreciate 20 percent or more during that same investment horizon. According to the Federal Housing Finance Administration’s Purchase Index, homes have appreciated an average of 15 percent nationally since 2004(2).”

http://newsblaze.com/story/200.....story.html

So basically everybody is hoping and praying for another bubble and for a greater fool to show up and buy their house at another imaginary peak 5 years from now.

Rick

Of course that makes sense. So does giving away credit to just about anyone to make a home sale. So the debt based banking system can rise again. The rest is fluff distracting you from how this this debt based system really works.

Of course to that isn’t really working anymore either. Only a half-wit buys in a bad economy with the possibility of job-loss. Much less one that is on the brink of disaster. Not to mention a negative equity market. See it’s what they don’t tell you.

So in October. 3 days before “Black Friday” a miracle happens. Housing sales have gone up the highest in 3 years. Oh National Association of Realtors and Macy’s it really is a wonderful life isn’t it?

Honey thats it. Lets get the credit cards and go on a shopping spree. I know it honey she replies, lets roll the dice. There’s the possibility we may wind up living in a tent. Yep he says and lets get a house from these nice people to. Little Johnny loves the woods, she mused to herself that isn’t a bad idea..

Your not trying to sell me something here are you waffle boy? Mr. Toyota lassos the moon only to find Mrs. Toyota hanging from it. It’s over with. Get real.

$8000 today is worth $8000 today. To suggest anything else is to make an agenda transparent.

I’m hunkering down in the bunker for any eventuality. I don’t know whether we’re going into stagflation or depressionary deflation, but I’m pretty sure we’ll see one or the other.

I’m more diversified than I’ve ever been — across cash, gold, stocks, and lead.