SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Mish's Global Economic Trend Analysis
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Elroy Jetson who wrote (77774)4/16/2008 12:18:21 PM
From: koan  Read Replies (2) of 116555
 
Elroy:
Home prices do not exist apart from actual recorded sales prices. Home prices are actual recorded sales prices, not "asking prices".

Homes and commercial buildings, as well as stocks, and commodities often sell far below replacement cost for long periods of time.

After an extended credit-bubble induced building boom we are faced with a massive glut of housing. This will take a very long time to work off.

When someone says current prices don't reflect "real prices" because they are mostly "foreclosures being sold by banks" or simply "people who have to sell" they are reflecting their own imaginary market rather than the actual market of supply and demand.
.

koan: I basically agree with what you say. I have been in real estate for 16 years and seen many booms and busts. Different parts of the country will recover at different times.

But remember as soon as any area has to build new houses with new and higher costs then the rest of the housing market in that area will need to reflect the new building costs. Housing costs should rise pretty closely to inflation when real supply and demand return.

Another thing we forget sometimes is the massive inmigration coming from the south. These people, in my opinion, will shorten the housing downturn as they will need a place to live. First rental prices will rise and then people will buy when it is cheaper than renting.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News