Tuesday, September 27, 2005

PINELLAS REALTOR ORGANIZATION: No Bubble

The Pinnellas County, Fl Realtors Organization released this report on housing in the Tampa area. They declared that "In fact, the local housing market is in excellent shape with a potential for significant housing equity gains, particularly for homebuyers who plan to remain in their house for the long run."

The Realtors applied various stress tests to the Tampa area market. Here was one such test:
The local housing market will experience a price decline of 5% only under extreme unlikely scenarios. For example, mortgage rates rising to 13.5% in combination with local job losses totaling 66,000 could lead to a price decline.
Could lead to a price decline? Price declines would be a virtual certainty. If those conditions happen price declines would be far greater then 5%. The results of their stress test is complete BS.
Posted by David at 2:35 AM

4 comments:

  1. Hah! And they are in one of the biggest bubble areas in the country, if you extrapolate from the nearby Sarasota area.

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  2. The only reason it will reach 5% is because it has to go through there on its way to 20%.

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  4. Yep
    and 500k houses will sell easily- because they will soon go to 800K
    These realtors are a riot- seems that most speak 'doublespeak' out of Orwells novel '1984' themes like 'love is hate' and 'war is peace' and 'freedom is slavery'- give me abreak.

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