Comments on: Exposing the Southern California Housing Numbers and the DQ Special. DataQuick Numbers and 2007 Examined. http://www.doctorhousingbubble.com/exposing-the-southern-california-housing-numbers-and-the-dq-special-dataquick-numbers-and-2007-examined/ How I Learned to Love Southern California and Forget the Housing Bubble Tue, 06 Jan 2009 15:35:43 +0000 http://wordpress.org/?v=2.2.2 By: rick http://www.doctorhousingbubble.com/exposing-the-southern-california-housing-numbers-and-the-dq-special-dataquick-numbers-and-2007-examined/#comment-7021 rick Tue, 29 Jan 2008 00:41:45 +0000 http://www.doctorhousingbubble.com/exposing-the-southern-california-housing-numbers-and-the-dq-special-dataquick-numbers-and-2007-examined/#comment-7021 Hi John Q, You raised a key point - interest rate has been too low, artificially or not. Low interest rate discourage saving and encourage leverage. That is why we are in this mess. If one day interest rate does come roaring up, it will certainly kill the housing industries, encourage saving, and probably even marginalize the credit industry. Think about it, if mortgage rate is 20%, how much credit card carrying rate will be. FBs using their cards and houses like cash machine will be like walking in shallow water with shark. But of course, if high interest rate stays high, that will depress all spending and depression will entail. Hi John Q,

You raised a key point - interest rate has been too low, artificially or not.

Low interest rate discourage saving and encourage leverage. That is why we are in this mess.

If one day interest rate does come roaring up, it will certainly kill the housing industries, encourage saving, and probably even marginalize the credit industry. Think about it, if mortgage rate is 20%, how much credit card carrying rate will be. FBs using their cards and houses like cash machine will be like walking in shallow water with shark.

But of course, if high interest rate stays high, that will depress all spending and depression will entail.

]]> By: rick http://www.doctorhousingbubble.com/exposing-the-southern-california-housing-numbers-and-the-dq-special-dataquick-numbers-and-2007-examined/#comment-7019 rick Tue, 29 Jan 2008 00:33:16 +0000 http://www.doctorhousingbubble.com/exposing-the-southern-california-housing-numbers-and-the-dq-special-dataquick-numbers-and-2007-examined/#comment-7019 Dear Lauren, Please ignore all these people, you are the chosen one! History will prove you right, that housing will rise again, in 10 years. Oh never mind how low it will go down to... Dear Lauren,

Please ignore all these people, you are the chosen one!

History will prove you right, that housing will rise again, in 10 years. Oh never mind how low it will go down to…

]]> By: John Q http://www.doctorhousingbubble.com/exposing-the-southern-california-housing-numbers-and-the-dq-special-dataquick-numbers-and-2007-examined/#comment-6364 John Q Mon, 21 Jan 2008 04:59:57 +0000 http://www.doctorhousingbubble.com/exposing-the-southern-california-housing-numbers-and-the-dq-special-dataquick-numbers-and-2007-examined/#comment-6364 Housing prices IMHO depend upon prevailing interest rates. If the bond insurers Ambac and MBIA eventually go bankrupt, losses will be so high that the Federal Government may have to back up the banks to prevent widespread failures. The US Govt debt load will then be so high that the ten year treasury yield could rise to 20%. That would surely have a depressive effect on housing prices. How many of you can afford a 500K house with a $8300 monthly payment? Housing prices IMHO depend upon prevailing interest rates. If the bond insurers Ambac and MBIA eventually go bankrupt, losses will be so high that the Federal Government may have to back up the banks to prevent widespread failures. The US Govt debt load will then be so high that the ten year treasury yield could rise to 20%. That would surely have a depressive effect on housing prices. How many of you can afford a 500K house with a $8300 monthly payment?

]]> By: drhousingbubble http://www.doctorhousingbubble.com/exposing-the-southern-california-housing-numbers-and-the-dq-special-dataquick-numbers-and-2007-examined/#comment-6104 drhousingbubble Sat, 19 Jan 2008 04:08:46 +0000 http://www.doctorhousingbubble.com/exposing-the-southern-california-housing-numbers-and-the-dq-special-dataquick-numbers-and-2007-examined/#comment-6104 @All: I've just posted the latest SoCal short sales report: http://www.doctorhousingbubble.com/forum/viewtopic.php?p=401#401 Short sales now make up a whopping 9.37 percent of all inventory on the market. Just for a quick reference of how quickly things are deteriorating back in September short sales made up 5 percent of the total market. @Lauren, Blaming the media or data for the market going down is absurd. I didn't here the media telling people to exercise caution while this bubble was inflating. Take a look at the data and by the way, we have a $14 billion short fall in California. How this is good for housing is a stretch of the imagination. @All:

I’ve just posted the latest SoCal short sales report:

http://www.doctorhousingbubble.com/forum/viewtopic.php?p=401#401

Short sales now make up a whopping 9.37 percent of all inventory on the market. Just for a quick reference of how quickly things are deteriorating back in September short sales made up 5 percent of the total market.

@Lauren,

Blaming the media or data for the market going down is absurd. I didn’t here the media telling people to exercise caution while this bubble was inflating. Take a look at the data and by the way, we have a $14 billion short fall in California. How this is good for housing is a stretch of the imagination.

]]> By: Rob Dawg http://www.doctorhousingbubble.com/exposing-the-southern-california-housing-numbers-and-the-dq-special-dataquick-numbers-and-2007-examined/#comment-6131 Rob Dawg Fri, 18 Jan 2008 23:11:43 +0000 http://www.doctorhousingbubble.com/exposing-the-southern-california-housing-numbers-and-the-dq-special-dataquick-numbers-and-2007-examined/#comment-6131 <i>I know you are out in the area so how are things with the Countrywide debacle in your neck of the woods? Any word on the street?</i> Honest, there is a complete blackout at every level. The most anyone has talked about it is the Dir of Econ Dev in T.O. saying... wait for it... yep the takeover won't have any effect because... wait for it... yup the Conejo Valley has a diverse and robust economy. When it happens it will be fast and deep and hard. Interestingly tthat IMO is the best we can hope for. More likely is between now and Q3 a covenant failure and no takeover. Kmer Rouge City. I know you are out in the area so how are things with the Countrywide debacle in your neck of the woods? Any word on the street?

Honest, there is a complete blackout at every level. The most anyone has talked about it is the Dir of Econ Dev in T.O. saying… wait for it… yep the takeover won’t have any effect because… wait for it… yup the Conejo Valley has a diverse and robust economy.

When it happens it will be fast and deep and hard. Interestingly tthat IMO is the best we can hope for. More likely is between now and Q3 a covenant failure and no takeover. Kmer Rouge City.

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