Predicting housing prices recalls Mark Twain’s old saw about picking stocks. “Picking stocks is easy,” he said. “Only buy stocks that go up. If they don’t go up, don’t buy ’em.” Similarly, to divine the direction of housing prices, just figure out where the economy and interest rates are headed (plus employment and inflation). Once...Read More
Lenders Hike Down Payment Requirements Burned by defaulting loans, at least some lenders are now adopting practices that stand to make things worse (“Zip Code ‘Redlining'”, Kenneth Harney; Washington Post 2/2/2008). To reduce risk, Countrywide Bank and others are now characterizing whole areas as either rising or declining, with shades therein. Where prices are deemed...Read More
Holding Out for 2009 Prices??? Perhaps the single best word to describe the current housing market is “cautious.” Inundated by negative media and predictions of price drops, buyers want to pay 2009 prices — or what they think they will be. Meanwhile, many sellers — notwithstanding exposure to the same media reports — are intent...Read More
