tag:blogger.com,1999:blog-13164186.post112931282092579398..comments2024-01-27T19:26:32.604-05:00Comments on Bubble Meter: No Laughing Matter at The BanksDavidhttp://www.blogger.com/profile/11169148764438565562noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-13164186.post-1129316350673948972005-10-14T14:59:00.000-04:002005-10-14T14:59:00.000-04:00IMO, housing is stalling and in places falling mod...IMO, housing is stalling and in places falling moderately due to unaffordability in combination with no new "creative" loan types to make prices more affordable. But as credit tightens it will be impossible to pay today's bubble house prices. In such an environment (of credit tightening), if a seller is going to sell, their only option will be to reduce the price to the point of being affordable. Affordability might now be defined in terms of how easy it is to get credit, but as people's perceptions change on such topics as debt levels, future retirement, having money to do other things for a quality life other than just owning a house, the virtue of actually paying off a mortgage, etc. the amount a seller will have to reduce the price will increase. Here in Marin county, CA, affordability has oscillated up and down since the late 60's (I have a graph of it on my blog) and I see no reason why that will change now.Marinitehttps://www.blogger.com/profile/01778945220593425787noreply@blogger.com