Comments on: Is the Bottom in Sight?

By: What Your State Says About Your Personality | Redfin Seattle Sweet Digs

What Your State Says About Your Personality | Redfin Seattle Sweet Digs — Tue, 16 Sep 2008 18:16:52 +0000

[...] Is the Bottom in Sight? [...]

By: Michael P Lindekugel

Michael P Lindekugel — Wed, 10 Sep 2008 13:14:32 +0000

Clint,

please provide your formula and formula proof or the citation referncing your “mathematical fact”.

By: EastsideRE

EastsideRE — Tue, 09 Sep 2008 16:29:43 +0000

Clint,

So lending rates and practices have nothing to do with prices? That’s interesting news to all the bubble folks who argue that relaxed lending led to the upside of the bubble. And now that the credit market appears to be turning the corner, it is spun as broker hype – come on Clint.

Income is an important factor, but it is only part of the equation. You can have the same household income and not qualify for a house at 10%, but can qualify at 5%. Lending rates changes impact sales. Even more so for highly leveraged assets like houses, cars, and industrial equipment.

Wouldn’t it be nice if the market were as simple as your one stat.

By: clint

clint — Mon, 08 Sep 2008 23:18:18 +0000

The bottom will be in sight once the average house price is 3x the average household annual income. Until then, prices will continue to fall. This is a mathematical fact. Anything else is just an agent or broker trying to hustle you.

By: EastsideRE

EastsideRE — Mon, 08 Sep 2008 19:21:14 +0000

So far the market reaction is that lending rates are falling. If that lasts or falls even more, it could induce more buyers.

By: Michael P Lindekugel

Michael P Lindekugel — Mon, 08 Sep 2008 16:27:37 +0000

Common stockholders are in trouble, but preferred stockholders will likely remain unscathed. the preferred stockholders include many foreign governmets.

I don’t like guvment bailout of the private sector. these two entitites are quasi public with the their oversight from the now defunct OFHEO. the ramnificaitons of a failure would likely be much more damaging to the overall economy then the cost of a bailout.