Housing Demand Defies Fundamentals

Great time to buy, but the reality is that nearly 20% of the population is not working, or barely working. And people with jobs already, probably already have a house that they can't sell because they owe too much on it. Add to that the fact that 0% down is gone, and people have been living paycheck to paycheck for the last 10 years....not sure how hard it is to understand those fundamentals.

I have been watching realtors say now is the time to buy for over 40 years. They never say now is not the time to buy

Don't try to catch a falling knife. Wait for prices to turn then you will miss the bottom but it will always be worth more than you paid

Maybe the government should stop manipulating the economy and let the "fundamentals" work the way they should.

Japan is now in it's third lost decade with home values continuing to fall. We're only in our second.

Where does CNBC get off telling people they are crazy NOT to buy a house right now. Apparently high unemployment and a shaky economy are the perfect time to buy???? If I didn't know better I would say they are shilling for Obama. Just wait and see how much the economy "improves" in the coming months regardless of the actual data.

You know it's not the bottom when the media says it is. Inventories are high and there has only been a 30% off sale so far. Let's face it if the inventory increases like it's projected due to a virtual stop in many foreclosures we will see yet another drop so save save save while waiting for a 40%~50% off sale, it will be well worth it.

Source: CNBS where it's always the best time to buy an overpriced house, stock, bond, widget...

Interesting that Case-Shiller is mentioned in the article arguing that home prices are cheap. Professor Schiller recently said that house prices would continue to drop. I guess the public agrees.

The trouble is that these government backed agencies have not tried to deal on these properties with potential buyers over the last few years. Now here they are cutting billion dollar deals with their fat cat cronies, only. Screw the little guy...dems and repubs alike.

Why are they keeping house prices high? It's artificial. The whole market is a big LIE!

As people fail to occupy homes because of default, the burden will shift to existing homeowners. The taxes will skyrocket. It is no longer about Mortgage Payments--It's about Real Estate Taxes and Maintenace fees. Also, it's hard to get your taxes reduced even on a foreclosure. If one looks at the foreclosures, even though the home can be purchased for a discount, there is no guarantee you can get the tax reduced. There is a imbalance between what these homes are really worth and the assessed values (nationwide)

Buying a homes has become like buying a new car, a liability that depreciates the moment purchased. Buying a house is a burden on monthly income, plus the risk of loosing the entire down payment and houses fall in value like a car out of the showroom. The cost of fire insurance, highway robbery property taxes by counties, maintenance & home repairs, stuck in a neighborhood with lousy neighbors and other empty foreclosed homes. Public has finally saw through the lie that everyone should own a home is #$%$ Home owners are trapped like rats and suckers by local government and banks. Best to find a cheap rental and keep your down payment for living. People are tired of the payola game being sold to them. Houses are an aging commodity and old houses are bad to buy with unsafe old type electric wiring, no insulation, not enough outlets, and stupid old rusty iron piping for plumbing. An old house is like buying an old sheit car.

It takes JOBS to afford a home and life. There are NO JOBS! Stop the unemployment checks and see where housing prices go. Forget about those PE rentals. The country is becoming one big government housing project funded by the taxpayers. The default comes when people realize there are no taxpayers left when the rich have left the country and the remaining poor are on the receiving end!

with house prices falling still and millions of houses in forclosure and millions more to come you would have to be semi retarded to buy now.

I kind of miss the old TV programs about real estate. Guys with six blondes on each arm, 6 Rolls Royces in the garage, and the message "real estate never goes down". Ahh, the good old days, when will they come back. :))

Too darn bad. The lenders are back to what we needed to get a loan (20% down, 780 credit score) and a minimum 3 year work history. If the lenders had kept that requirement (like our locally owned bank), we would not have had the housing mess in the first place. Our local bank had only 6 foreclosures the past 4 years while the big chain banks had lots of bad mortgages.

The fundamentals need a reality check. While prices are 33% off highs, the argument assumes the economics driving demand are the same. Personal income, resale value, the same person buying 10 homes at a time to flip...that has changed...forever. The headline is written as if it's just a matter of time or circumstance until it all comes back.

I think the fairy tale is over.

Of course, the time to buy is NOW. Same push comes from stock brokers, car dealers, any salesmen.

Diana,

Did you get a call from David Lereah to write the boilerplate real estate industry PR?

Just wondering.

WJW