latimes.com
L) But experts say this bubble is different.
M) It's different this time. LMAO
L) Desperation is leading to bidding wars in many neighborhoods, said David Stratton, an agent at DBL Realtors in Los Angeles, who said four of the seven homes he's currently representing in escrow drew multiple offers.
M) Nope, no bubble here.
L) "At some point, we'll hit a ceiling," said Ted Grose, president-elect of the California Assn. of Mortgage Brokers. "Prices are already outpacing the growth in income, and people's earnings are going to limit who can buy a house."
M) Someone is at least thinking
L) Lenders are also far more liberal than they were 15, 10 or even five years ago, brokers said. While most mortgage lenders want monthly payments to equal no more than 33% of the borrower's total income, some lenders are willing to give loans that result in payments of 50% or even 60% of a well-qualified buyer's pay, said Allen Bond, president of the mortgage broker group's Southern California chapter. That expands the pool of potential buyers and increases what they can spend.
M) Easy money. Courtesy of "Easy Al". Yep, no risk here, prices are going up forever so we can lower our credit standards and assume pay raises are going to keep up with medical expenses, home upkeep expenses, and that energy and NG prices will forever remain depressed.
L) Fear Factor at Work as Home Prices Soar Higher
M) Fear of "missing the train". Yep, no sign of a bubble on that.
Let's look at rising lumber prices, rising copper prices, huge assumptions on the strength of the recovery, huge assumptions on the lenght of said recovery, massive consumer debt, massive government debt, the debt ceiling, the liklihood of rising interest rates, the liklihood of a weakening US$, trade wars, assumptions that pay raises will outpace inflation on key items(medical expenses, energy costs, home upkeep), easy credit standards (90-95% loans), assumptions that there will not be more rounds of layoff coming up in the next double dip recession, denial over the likely double dip recession in the first place, and assumptions that a housing boom can continue forever in spite of overall economic conditions.
Furthermore let's ignore history that says that homebuilder stocks are priced at or beyond perfection. Who care's about such things anyway? Let's ignore the fact that the stock charts appear to be deteriating.
Bubble, bubble, what bubble?
I see no bubble here. Does anyone see a bubble here?
Homebuilder stock prices can only go up from here.
HOW? Demographics my friend, demographics.
The same argument that suggested Naz 10,000.
Sorry, I don't buy it.
M |
