"People who cashed out three or four years ago intending to buy back in at a lower price are still waiting," says James Hamilton, president of the California Association of Realtors and manager of real-estate brokerage Re/Max Execs in Redondo Beach, California. He adds that California housing prices are expected to increase 10 percent in 2006. "If you arenÂ’t moving somewhere where the cost of living is lower, big mistake."James Hamilton is dreaming if he thinks home price appreciation will be 10% in 2006. I am willing to bet him 5 to 1 that home price appreciation in California will be less then 5% in 2006.
The California Association of Realtors ( CAR) has this tremendous powerpoint presentation.
Below are my favorite slides:
It's bubblicious. :-)
Is that froth I see emanating from the green bubble?
Posts
I don't think anyone cashed out four years ago intending to buy back in.
ReplyDeleteSome of us (like me) did not buy because prices seemed crazy then. The fact that they are crazier now does not make them "a good buy" at previous prices. I'm probably at least as well off for not buying.
The same thing happened with the NASDAQ bubble. A lot of people (like Bill Fleckenstein) were pointing out it was crazy back in 1997. It took three years for him to be proven correct. Three years ain't that long.
peter,
ReplyDeleteprice declines? "Its different this time"
No way.
Download and save that CAR ppt presentation. It will make for a great laugh in 2008.
ReplyDelete